Business electricity rates are set by a combination of regulated utility charges and competitive supply prices. The regulated portion — delivery, transmission, capacity — is fixed. The supply portion is negotiable through a broker process, and that's where most businesses have room to improve.
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What Determines Business Electricity Rates
Commercial electricity rates have four main components: (1) supply — the commodity, negotiable with retail suppliers; (2) delivery — utility wires and poles, regulated and fixed; (3) transmission — high-voltage grid managed by the ISO; (4) capacity and ancillary charges — pass-throughs from ISO markets. A broker only targets the supply component.
How Business Rates Differ from Residential
Commercial accounts typically have demand charges — fees based on peak 15-minute consumption in kW — that residential customers don't. Demand can represent 30–50% of a commercial bill. Commercial accounts also typically qualify for time-of-use rates and can negotiate longer-term fixed contracts.
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Rate Classes for Commercial Accounts
Utilities segment commercial customers by load size. Small commercial (under 50 kW demand) is often served under a general service tariff. Medium commercial (50–500 kW) has more rate options. Large commercial and industrial (500 kW+) often qualifies for interruptible rates, demand response, and custom supply contracts.
Why Rates Vary by State
Each state has different utilities, different ISO capacity market structures, different regulatory frameworks, and different levels of retail competition. Texas (ERCOT) rates differ structurally from PJM states (PA, OH, NJ) which differ from ISO-NE states (MA, CT). Understanding your market is the first step.
How to Get a Lower Business Electricity Rate
Run a competitive broker process: submit your load profile to 30+ suppliers simultaneously, let them compete on the same basis, and evaluate the full terms of each offer. The process itself — not any special access — is what drives better rates. We run it at no cost.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.