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ELECTRICITY SUPPLY: UNDERSTANDING PRICE COMPONENTS AND POWER SUPPLY OPTIONS

Understanding the various components of an electricity rate is the first thing we like to discuss with our new customers. Power supply prices have three major components in most U.S. markets: electricity, capacity, and transmission. End users have the option to float these components on the open market, fix all components, or do some combination of both. Most smaller commercial energy users (restaurants, hotels) typically look to fix these supply components into a fully-bundled fix rate for electricity. Larger energy users (industrial) tend to float some, if not all, of these supply costs on the open market.


We have the market knowledge to guide you on your best options to achieve the lowest-cost electricity with taking minimal risk. A typical negotiation for the purchase of electricity supply typically follows the process outlined below.

THE STEPS TO PROCURING
LOW-COST ELECTRICITY:

  • Submit a recent electric bill copy and give us authorization to price your accounts.
  • We will download your historical electricity consumption data from your utility company for analysis.
  • Together we will evaluate various electricity supply products best fit to your consumption profile.
  • Together we will evaluate risk vs. reward for each structure, and decide on a structure.
  • We will put your supply out to bid among qualified electric generation suppliers.
  • We will negotiate contract terms with the low-cost supplier.
  • You will execute a supply agreement.
  • We will monitor and service the supply agreement.

See a Sample Energy Analysis Report

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