| Decision point | Northeast property | Midwest property |
|---|---|---|
| Retail route | Verify state, utility and commodity | Verify state, utility and commodity |
| Usage estimate | Building and operating assumptions | Building and operating assumptions |
| Price evidence | Actual tariff and matched supplier offer | Actual tariff and matched supplier offer |
| Decision metric | Comparable total scope and scenario range | Comparable total scope and scenario range |
Replace broad regions with an account map
List state, service address, distribution utility, customer class and commodity for each property. Identify the applicable retail purchasing route and grid region separately. Wholesale footprints cross state boundaries, while state-level choice frameworks and local utility programs can differ inside those footprints.
For a proposed site without an operating history, collect engineering or comparable-use assumptions and label them as estimates. Do not silently transfer an existing Midwest facility’s energy history to a Northeast property with different hours, weather, equipment or floor area. The same brand of business can have a materially different load at another building.
Separate climate, operating use and energy price
Heating and cooling requirements can affect consumption, while supply and infrastructure conditions can affect prices. These drivers interact but should not be collapsed into a regional stereotype. A weather-sensitive building needs seasonal usage estimates, not only an annual average and a presumed regional discount.
Gas purchasing also depends on local delivery and contract scope. Normalize volume units, review winter exposure and identify transportation or balancing terms. Electricity demand charges can be significant for a peaky site regardless of regional label. Use actual tariffs and contracts to identify those components rather than predicting them from the map.
Hypothetical location budget
Assume two candidate properties each have a 40,000-square-foot operating area. Site A is modeled at $80,000 annual energy spending and Site B at $68,000. Their cost intensities are $2.00 and $1.70 per square foot. If B requires an extra $20,000 annual fuel allowance for the actual process design, its modeled total becomes $88,000, or $2.20.
None of those numbers describes a regional benchmark. The example demonstrates how a missing fuel or changed operating assumption can reverse an apparent location advantage. Keep full energy scope, metering boundaries and comparable service levels visible before using a dollars-per-square-foot figure in a property decision.
Present uncertainty alongside the comparison
Provide low, base and high cases for the quantities or prices that remain uncertain, with a reason for each assumption. Retain the tariff versions, supplier offers, bill history and operating schedule. An executive should be able to see which cost is quoted, which is calculated and which is an unverified planning allowance.
A regional comparison can organize research, but it should end with specific account evidence. This page provides no current regional rate table or guaranteed location savings. The decision should reflect the business’s complete operating needs and actual available contracts, with review of site infrastructure and lease obligations beyond the narrow supply analysis where relevant.
Questions & answers
Can a regional average be used as a supplier quote?
No. It is a statistical reference, not an offer for a particular account, term or load profile.
Sources & scope
Primary references reviewed October 15, 2026. These sources support the stated concepts; actual tariffs, program rules and signed agreements govern the account. Decision examples and operational worksheets are original educational analysis.
- EIA: Factors affecting natural gas prices
Gas supply, demand, weather, storage and infrastructure as price drivers. - EIA: Electricity prices and factors affecting prices
Electricity price drivers and distinctions among customer and local circumstances; no current rate is quoted here. - PJM: About PJM
Wholesale grid coordination across parts of multiple states; wholesale geography is not a retail-supplier eligibility map. - ENERGY STAR: What is Energy Use Intensity?
Annual common-unit energy per gross floor area; building type and site/source distinctions.