Here are the most common questions we receive from commercial energy buyers.
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What is energy deregulation?
Energy deregulation separates electricity delivery (wires, poles) from electricity supply (generation). In deregulated states, any licensed retail supplier can compete for your supply contract. Your utility still delivers the power.
How do commercial electricity rates work?
Commercial electricity rates have multiple components: supply (the commodity, negotiable), delivery (utility wires, regulated), transmission (high-voltage grid, regulated), capacity charges (ISO pass-through), and taxes. Brokers focus on the supply component.
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What is a retail energy provider (REP)?
A retail energy provider (REP) is a licensed company that purchases wholesale electricity and resells it to commercial and residential customers in deregulated markets. They compete on price and contract terms for your supply contract.
What is a demand charge?
A demand charge is a fee based on your highest 15-minute peak demand (in kW) in a billing month, multiplied by the utility's demand rate. It can represent 30–50% of a commercial bill and is separate from the supply rate.
How long are commercial energy contracts?
Most commercial electricity contracts run 12–36 months. Longer terms provide price certainty. Shorter terms offer flexibility to reprice. The right length depends on your risk tolerance and market outlook.