In the past, one utility provided the three components of your energy service: generation, transmission and distribution.
Legislatures and the public utility commissions (PUC) of many states have created competition for electricity and natural gas supply. This allows consumers to choose their energy supplier, while the delivery of the energy is still regulated and is the responsibility of the local utility company.
With deregulation, you’re able to go direct and choose the company that produces energy, or the company who buys it on your behalf to sell to you.
Regulated Transmission and Distribution:
This is the actual delivery of electricity across poles and wires and natural gas through pipelines to your business by your local utility company. Your utility company is responsible for maintaining the poles and wires, or pipelines, and responding to emergencies and power outages. The public utility regulates transmission and distribution to ensure the safety and reliability of your services.
Energy Deregulation = Opportunity to Manage Exposure
- Competitive marketplace among energy suppliers
- Flexibility to create an energy strategy that suits your individual needs
- Freedom to choose suppliers, products, prices and terms
- Reliability-transmission and distribution regulated and guaranteed by the PUC
- Price protection from market volatility and rising costs-budget certainty
- Potential savings, including tax savings in some markets
- 41 states in the U.S. are deregulated
Energy Procurement – Your Options
Option 1: Stay with the utility/default supplier
- Energy not a material expense
- Comfort with utility
Option 2: Go direct to a third-party supplier
- Competitive price, but process is less complete/rigorous
- Limited buying power and market intelligence
- Requires expertise and is time-consuming
Option 3: Use an intermediary
- Unbiased advocate working on your behalf to achieve your procurement goals
- Increases supplier competition and lowers price
- Identifies the best solutions for each facility in each market
- Negotiates with suppliers to achieve contractual needs
- Provides timely responses to changes in market conditions leading to savings opportunities