Positive Feedback

May 11, 2010

Our last couple of articles focused on savings in the deregulated utility markets; specifically, energy or voice and data.  We have received a great deal of feedback not only from our clients but many prospective clients, as well.

 The deregulated price of both gas and electric is the lowest it has been in 4 years.  Over the past year, we have seen commodity prices continue to fall; opening up a great opportunity for savings.  But only if you qualify!

What is the qualifier?

 Your monthly natural gas and/or electric supply cost must be a minimum of $5,000.00 each.  When you look at your utility bill, you will note that the price for each utility is made up of 2 factors:

 Delivery….This part of the bill is state regulated and is the charge for bringing both natural gas and electric from the providers’ hub to your location. This price makes up approximately 30% of your overall gas and electric cost. You will see that delivery charges are listed under each utility.

 Supply…. This part of the bill is deregulated and is the only area where you can shop to find savings.  But to shop intelligently, you need to know the factors that affect supply costs.

Buyer Beware…

 If you are not aware of how the price is determined, it may look like a great deal. Once you sign a contract and receive the invoice from the new provider, you will find that the cost is always higher than what the “professional” consultant told you.  And when you inquire why there is a price discrepancy, they will tell you what the consultant did not. 

 All electric supply charges must include a 7% NJ state sales tax and 7% loss allowance.

 Don’t be fooled!   Many “new to the market” Energy Management Consultants either do not know or will not tell you! 

 If you are bidding on electric in the state of NJ, the BPU states that the price to compare (PTC) must contain 3 factors:

  • Supply cost
  • 7% loss allowance
  • 7% sales tax 

 In order to shop your account with multiple providers, these 3 factors should be included to make an apple to apples comparison.

 Hutchinson Business Solutions is an independent energy management consultant. We have been involved in the deregulated utility market for the last 10 years and have strategic partnerships with all the major providers selling energy in NJ and PA.

 Our expertise is in allowing our clients to continue to perform their core competency while we provide smart solutions for smart business.

 Should you like to know more about the opportunities for savings in the deregulated utility market email george@hbsadvantage.com or

call 856-857-1230.

Visit us on the web www.hutchinsonbusinesssolutions.com

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