The deregulated utility market has presented a great opportunity for savings over the last year. For the first time in 3 to 4 years, market prices have been less than the providers’ prices, aiding in a windfall to those looking to save money on utilities.

 If you have been tracking natural gas prices, you would see that the market has dropped close to 20% since the end of June 2010.

 Natural Gas

With the steady fall of natural gas prices, HBS has been advising clients to float the market index position to take advantage of the current market prices. If you are a PSEG customer and chose to float the wholesale market over the past 12 months, you would have realized a 17% savings. Not bad!!!  South Jersey Gas clients would have saved 8%.

When speaking to our clients, we still offer an option to fix the price for a 12-month period, however it doesn’t make too much sense to fix a price that is actually higher than the price to compare that the clients have been paying over the last 12 months. Why is the price higher? Because the future market still shows that prices will go up.

Some clients may choose to fix the price for they want certainty in their cost. They do not want to be effected by market fluctuations. However if you lock the price, you are unable to change the price should the market continue to go down. By floating the market index, you can take advantage of the lower price and should the market turn and start to shoot up, you will have the option to lock in a price at a later option.

Electric

The electric market is directly affected by the natural gas market prices for 30% of electricity is generated by natural gas. So natural gas is commonly used as a market indicator. With the current fall of natural gas prices, electric prices continue to fall and have become even more competitive.

The electric market is completely different than the natural gas market. While natural gas prices change monthly with the local provider based on market conditions, the electric prices are fixed from June till May.

Every February, the state holds an auction for those selling electricity in New Jersey. The local providers buy electricity on the open market and blend the results with the electric it has purchased over the last 2 years. So the current market prices that the local providers charge are based on a blended price from purchasing electric over the last 3 years. They take these results and then present a proposal to the BPU (Board of Public Utilities), as to the summer rates (June till Sept) and winter rates (Oct to May) they wish to charge. Both the summer rates and winter rates have defined on-peak and off peak pricing.

As a result each account is charged differently based on their usage. A company with more off peak usage will actually be paying less than a company whose prime usage is during the daytime when on-peak charges are used.

Fixing your electric cost in the deregulated market offers a flat rate pricing no matter when you use it. This has offered a great savings opportunity due to the current market downturn. HBS clients are realizing saving from 10% to 20% on current flat rate pricing.

Should you like to know more about saving in the deregulated utility market, email george@hbsadvantage.com or call 856-857-1230.

Would you intentionally overpay for your phone service… monthly rent… or maybe a new car?

Of course not…

Then why would you overpay for your natural gas or electric bills?

Lower Rates… For the first time in the last 4 years deregulated natural gas and electric prices are lower than the local provider charges.

You now have a choice and can choose lower energy rates without any risk or local service change. No-Hassle!

Your local providers buy natural gas and electric on the open market at wholesale prices and then bill their customers at retail prices.

We put our clints in a wholesale position.

If you are a business spending a minimum of $3000 a month a piece on your electric or natural gas, you may qualify for deregulated savings.

We conduct a no-hassle evaluation. There is no-risk and there is no-cost. We simply find you the best rates available.

All we need is a copy of your latest provider invoice.

Start Saving and join thousands of happy customers who have already lowered their energy bills!

Makes Sense!

Why Overpay?

To learn more email george@hbsadvantage.com or call 856-857-1230

As the electricity rate caps expire the Peco territory beginning in Jan 2011, now is the time to start learning more about how  your facility can benefit from the saving opportunities in the deregulated utility market.

PECO is conducting auctions on the wholesale energy markets to enable it to set tariff rates for its customers in 2011. Commercial clients fall into three categories: small (under 100 kW demand), medium (100 to 500 kW demand), and large (over 500 kW demand.)

 Demand information can be found on your electricity bills. For small and medium PECO customers, the final PECO tariff rates will be set this fall and will be in effect from January 1, 2011 to May 31, 2012. Large commercial customers’ rates will be set based on a Spring 2010 auction. These rates will be set for one year, beginning January 1, 2011.

Now is the time to seek competitive supply options for your business. You need unbiased, up-to-date information. Do not be rushed or feel compelled to choose any solution until you have all the market facts. A well-reasoned business decision that fits your specific business’s needs is the goal.

Hutchinson Business Solutions (HBS) is an independent energy management consultant. We have been providing deregulated saving solutions in both the natural gas and electric market for over 10 years.We have strategic partnerships with all the major providers selling electricity in Pennsylvania.

Currently, Peco is buying electric on the wholesale market and billing their clients at retail prices. HBS puts their clients in the wholesale position. There are no up upfront cost and all the savings fall to the bottom line.

To get started all we will need is a copy of your latest provider invoice along with a signed letter of authorization which will allow us to request the annual usage on your account(s) over the last 12 months.

Working on behalf of our clients, HBS will define which providers are best suited to both service your account(s) and provide the most competitive pricing.

For more information email george@hbsadvantage.com or call 856-857-1230

Let the savings begin!!!

Deregulation of electricity generation in Pennsylvania was approved in the PA General Assembly in December 1996. The primary impetus for the legislation was to open the electricity industry to competition, thereby enabling Pennsylvania residents, institutions, businesses and industries to buy electricity at lower costs. Originally the deregulation was to be completed statewide by Jan. 1, 2001. There have been numerous delays in this arduous process. Now the anticipated deadline for completion throughout the state is Dec. 31, 2010 for all investor-owned utility companies. The rural electric cooperatives and municipal-operated utility companies are exempted from this legislation.

Electricity rate caps (or price controls) were implemented by the PA Public Utility Commission (PUC) to ensure relative price stabilityduring the potentially tumultuous years leading to the complete deregulation of electricity generation. The price of electricity has remained nearly constant since 1996 with annual increases ranging from 0 to about 5 percent, while the prices of other sources of energy were skyrocketing. During this same period, customers were required to payeach month the tangible and intangible transition fees (also known as stranded investment fees) to compensate the utility companies as they transition to the deregulated environment.

PECO Customers

The balance of this article is geared specifically to those customers served by Philadelphia Electric Company (PECO), which includes all the mushroom farmers in Chester County. The information pertinent to PECO customers is similar (but not identical) to the information pertinent to customers of the other investor-owned utility companies throughout the state.

The rate caps for electricity that have kept the electricity prices fairly low expire when the deregulation of electricity is completedat the end of 2010. The customer’s responsibility to pay the transition fees also expires at the same time, thereby completing the deregulation of electricity generation. Then what?.

Each customer will have the opportunity to shop for a supplier of generated electricity. Generated electricity will become a commodity that can be purchased from any licensed supplier or broker that you choose. Whenever considering generated electricity, we need to think in terms of both energy (kWh) and capacity (kW). If a customer opts not to shop for an electricity supplier, then PECO will serve as the “default service supplier” or the “provider of last resort.” If your selected electricity generation supplier is ever unable to provide the electricity you need, PECO will supply you with electricity at the prevailing price.

The transmission and distribution of the electricity as well as local service will continue to be provided by PECO. It doesn’t matter which company you select as your electricity generation supplier; you will remain a customer of PECO for distribution and local services. PECO will be responsible for providing line maintenance, restoring service after storms and accidents and providing on-going customer services including billing. These functions will remain regulated by the PUC for the foreseeable future.

Rate Design Changes

There will be numerous changes in the PECO rate designs. The familiar rate features listed below will be eliminated for generated electricity (energy and capacity) for all commercial and industrial customers starting the first of the year 2011. However, the rate features listed below will be retained for transmission and distribution.

* Demand ratchet * Winter heating rate

* Night service rider * Construction rider

* Interruptible rates * Curtailment rider

* Economic incentive & competitive alternative riders * Several other less-used features

The rate features of declining block rate structures and demand charges will be phase]d out over the three-year period 2011-2013 for generated electricity but will be retained for transmission and distribution.

What are your options for buying generated electricity? For the medium-sized customer (with kW demand greater than 100 kW but less than500 kW), the options are:

* Contract with a licensed retail supplier * Obtain default services from PECO at a flat, fixed rate of x cents per kWh.

For the large customer (demand greater than 500 kW), the options are:

* Contract with a licensed retail supplier * Obtain default services from PECO at day-ahead hourly prices

* Obtain default services from PECO at a flat, fixed rate of x cents per kWh. (this option available just for 2011.)

It does not matter what size customer you are, your most importantactivity to get lower prices for electricity is to manage your peak demand. An indicator of how well you are managing peak demand is the load factor. Next month’s article will focus specifically on load factor and how you can manage it to get electricity at lower prices.

You have 6 months to prepare for the deregulation of electricity. Take advantage of this lead-time. Start your homework now!

Brief Definitions

Demand: Unit of electrical power, expressed in kilowatts (kW).

Distribution: Delivery of electricity from the substation to the retail customers.

Generation: Production of electricity at a power plant or on-site facility.

Investor-Owned Utility: A utility company owned and operated by private investors.

Load Factor: Relationship of peak demand (kW) to electricity usage(kWh).

Peak Demand: Maximum amount of electrical power (kW) used over a 30-minute interval in the billing period.

Public Utility Commission (PUC): Pennsylvania regulatory agency that provides oversight, policy guidance, and direction to electric public utilities as well as other public utilities.

Transmission: Transport of high voltage electricity from the generation plant to substations.

Dennis E. Buffington Professor

Dept. of Agricultural & Biological Engineering Penn State University

Our Perspective:

Hutchinson Business Solutions is an independent energy management consultant. We have been providing deregulated energy saving solutions to our clients for over 10 years. To learn more about the the deregulated savings opportunities for your business email george@hbsadvantage.com or call 856-857-1230.

as reported in flettexchange

Electricity rates in Pennsylvania could soon be on the rise. Businesses, federal agencies, non-profit organizations, and residents could soon experience an increase in their electric bills. The increase in price stems from the deregulation of the Pennsylvania electricity markets.

In the 1990s Pennsylvania lawmakers moved from a regionally monopolized electricity market to a competitive electricity market. Pennsylvania consumers were paying about 15% more for electricity than the national average, so the decision to embrace a competitive electricity market was easy to make. Legislators restructured electricity generation to promote more competition. However to achieve the transition from a regional electricity market to competitive electricity market, legislators had to institute rate caps to protect from unpredictable price fluctuations and implement a “stranded costs” provision for electricity providers to pay for former infrastructure investments. “In return for the loss of their monopoly status, utilities were allowed to collect a surcharge above the price of electricity, otherwise known as stranded costs. Rate caps already have expired for six utilities statewide, and the transition period will end for all state utilities in 2011—ending the rate caps and the collection of stranded costs.” 4/9/2009, Pennlive.com, “Electricity Deregulation is a Win for Pennsylvania” –Elizabeth Bryan. As rate caps and the collection of stranded costs expire the Pennsylvania electricity market could experience unwanted changes during difficult economic times.

Electricity deregulation was established to promote competition and market efficiency. Unfortunately this is not always been the case. In 2001, California experienced the negative repercussions of a deregulated electricity market. California residents were forced to endure volatile electricity prices, while rolling blackouts plagued the state, and electricity could not be supplied during peak hours. For Californians, electricity deregulation equaled disaster.

The expiration of electricity rate caps could bring unwanted price increases to Pennsylvania. Consumers could experience percentage increases in their electric bills as regional rate caps expire. The following map exhibits regional Pennsylvania electricity territories and the electric providers that serve those areas. So far the consequences have been minor with rate cap expirations only affecting 14.1% of the Commonwealth. However from January 2010 – January 2011, rate caps for five major electricity service territories expire and the Pennsylvania electricity market will be completely deregulated.


Image Source: Pennsylvania Utility Choice (www.puc.state.ps.us)

Electricity rate caps for the Duquesne Light Company, PPL Electric Utilities, Inc., West Penn Power Company, Pennsylvania Electric Company, Metropolitan Edison Company, and PECO Energy Company expire between January 2010 – January 2011. This comprises 85.9% of Pennsylvania’s electricity market and could have an impact on electricity prices going forward. Fortunately Pennsylvania has learned from California’s missteps. Lawmakers are forcing utilities to diversify their electricity risk by securing both short- term and long-term contracts. This mixture of contracts could be helpful in mitigating risk, unlike California whose focus was concentrated on short-term contracts only. Regardless of the outcome, the Pennsylvania electricity market is one to monitor in the months and years to come.

Is there a way for Pennsylvanians to protect themselves from the upcoming deregulated electricity markets and future price uncertainty? The answer is yes. Pennsylvanians’ best solution is to embrace renewable energy. Solar energy can solve Pennsylvania’s electricity deregulation issue and act as hedges to potential higher electricity prices. Solar facilities level the playing field and allow businesses, federal agencies, non-profit organizations, and residents to participate in renewable energy, become less dependent on electric companies, and produce electricity during peak demand times. Parties that install solar facilities have the ability to achieve a fixed or reduced cost of electricity for an extended period of time, generate Alternative Energy Credits (AECs) (which are actively traded on Flett Exchange), and embrace clean energy that is absolutely vital to our environment. Pennsylvania also offers state incentives for affordable green energy. If you are a resident interested in solar click on, Pennsylvania Sunshine Program and for businesses interested in solar, click Pennsylvania Solar Energy Program to learn how to achieve clean energy.

Our perspective:

Hutchinson Business Solutions is an independent energy management consultant. We have be providing deregulated energy solutions to our clients for over 10 years. We represent all the major providers selling natural gas and electricity in both NJ and Pa.

The local providers buy energy on the open market wholesale and then bill their customers at retail prices. We place our clients in a wholesale position.

To learn more about saving opportunites in the dergulated utility market email george@hbsadvantage.com or call  856-856-1230.

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March 25, 2010  as reported by electricitywatch.org

On January 1, 2011 PECO electric customers will come off of decade long price caps and be subject to more recent market rates.  When this happens, customers will have the option to shop the competitive electric market for lower prices and multiple product options from 10-20 electric providers that are expected to be active as the calendar turns to 2011.

PECO will offer “Price to Compare” rates, or default rates, for those customers who are slow to shop the market.   These default rates will be determined by a series of auctions that will allow PECO to buy portions of the generation load that they will need to serve their customers at different times so that they are not subject to the electricity wholesale prices at any given time.  PECO is buying energy for their residential customers at four separate times.  Two of those auctions have already taken place with the final two set to occur in June and September of 2010.  After the first two auctions, the combined retail price secured is 9.41 cents per KWh.  PECO customers won’t know their exact price to compare, and how much those rates will be higher than what they are currently paying, until all four auctions have been completed.  At that point PECO residential customers can expect to see competitive electric providers market for their business.

To learn more about saving money in the deregulated energy market in the Peco market email george@hbsadvantage.com

Government boards regulate the utility market price.  Although, the state utility regulator is required to pass market savings onto the consumer, local providers buy natural gas on the wholesale market and bill their customers’ retail. We put our clients in a wholesale position because brokers/marketers have the flexibility to buy gas when rates are lower and pass the savings onto their clients.

Comparing and deciding among the various offers.

In the new deregulated industry, buying natural gas is like getting a home loan. You can select between:

  • Contract terms of 1 to 5 years
  • Lock in at a fixed rate for an extended period of time
  • Choose variable rates and rely on an experienced gas manager to get you the lowest price

Why switch?

Most consumers switch to brokers/marketers to save money.  Together you can determine your comfort level.

Ø    Security – if the utility price makes you feel more secure, choose an option that offers a percentage less than the utility for guaranteed savings.

Ø    Lowest Price – if you want to have a knowledgeable gas company managing your gas supply, select the variable rate and let a gas supplier manage it for you.

Ø    Fixed Price – if you think prices are going to continue to rise and you want to be sure of your bills, choose a fixed price.

Regulated rates are not fixed rates.

Each province or state has an agency that regulates utility rates. Utilities can and do apply changes to rates.  They are not allowed to offer fixed contracts. By signing up with an energy marketer you can avoid these unexpected rate changes. We competitively tender your natural gas needs to deregulated natural gas marketers.

If you choose to buy from a gas broker/ marketer, your gas service won’t change.

You will continue to receive a bill from your distributing utility authority indicating their regulated delivery charge (about half of your bill) and a gas supply charge that goes to the gas supplier. If you also have rental equipment or a service contract, these will appear on your bill, as usual.

It’s important to remember these cost splits when comparing prices. The suppliers, brokers and/or marketers are offering rates on only half of your bill. As previously stated, the distribution charge and monthly service charge is fixed.  It is strictly regulated by an Energy Board or Public Service Commission. As a result, when a promotional message claims a 10% saving, it is ONLY referring to that 10% controlled by all energy brokers.

You do the math.

To qualify in the deregulated market, your company must spend a minimum of $5,000.00/ month ($60,000.00/year) on natural gas. Half of that monthly fee ($2,500.00) is a regulated transportation and delivery charge. The remainder is the gas supply charge.

A gas marketer offering a 10% savings is offering a savings of $250.00/ month, 10% of the $2,500.00 gas supply charge. Your annual savings would be $3,000.00.

Saving is parity to how much you spend. The above example applies only to minimum qualifications.  The more you use, the more you save.

Hutchinson Business Solutions (HBS) is an independent energy management consultant. We have been providing deregulated energy solutions to our clients for over 10 years. HBS clients are saving from 10% to 20% on their natural gas supply bills.

Large market swings offer you big savings.

If you have been following market prices for natural gas, over the past couple of years, you have probably noticed the large market swings. ie: In 2008, PSEG prices ranged from $1.07 per therm in February to $1.64 per therm in July. In 2009, prices dropped and we saw $.889 cents per therm in January with a low of $.496 cents a therm in September.  With so much market fluctuation, we have been advising our clients to float their accounts, based on the market index.  In this way, our clients can save anywhere between, 8% up to 20%, depending on whom their local provider is.

Choosing to float the market index does not preclude you “locking in” on a fixed price at any time during the term of the contract. Conversely, if you choose a fixed price, you are unable to change to a float when market prices go down.

Want to learn more about opportunities to save in the deregulated natural gas market email george@hbsadvantage.com or call 856-857-1230.

Visit us on the web www.hutchinsonbusinesssolutions.com

    

One of the easiest ways to save money these days is to switch utility providers. Recent increases in the cost of energy are astonishing and finding a competitive deal is a must. There’s hot competition in the utility markets with many companies competing on price alone, as services are otherwise the same across the board.

Apples to Apples

Current market conditions have opened the door to many new faces selling energy in NJ and PA.  The difficulty is to properly define all the ancillary costs in order to present a true comparison of your current cost and the true savings that will be realized during the term of the contract.

Hutchinson Business Solutions (HBS) is an independent energy broker and has been defining saving opportunities in the deregulated natural gas and electric market for the past 10 years. We represent all the providers selling energy in New Jersey and Pennsylvania.

10% to 50% Savings

Though each account is unique, many of the deregulated providers have what they consider to be their sweet spot (their most competitive market).

Because of our strong personal relationships with the providers we are able to more accurately identify the right provider/s for you.  This enables us to present a specific proposal outlining your current cost and all the deregulated utility opportunities available.

We understand your time restraints.  We have an excellent streamlined procedure that makes the whole process simple and easy.  All we need is a copy of your latest provider invoice with a signed letter of authorization, which allows us to pull the annual usages on your account(s).

All the savings fall to your bottom line

There are no costs associated with our service. We receive a small residual from the provider during the term of your contract.

To qualify, your monthly energy costs should be a minimum of $5,000 for electric and $3,000 a month for natural gas.

To find out more, email george@hbsadvantage.com or call 856-857-1230.

You may also visit us on the web to learn more about savings in the deregulated utility market. www.hutchinsonbusinesssolutions.com

By Andrew Maykuth

Retail electrical choice is off to a fast start in PPL Electric territory.

Nearly a quarter million PPL Electric Utilities Corp. customers – 18 percent – had switched to alternative power suppliers as of Monday, the Allentown utility said.

And state officials expect that more PPL customers will sign up with discounted suppliers after they glimpse their bills, which reflect a 30 percent increase for power consumed after Jan. 1.

“When people see that high bill – especially if they’re a heating customer and it’s a high winter bill – that’s certainly going to arouse more interest in switching power suppliers,” said Pennsylvania Consumer Advocate Irwin A. “Sonny” Popowsky.

Caps on PPL’s rates came off Jan. 1, and the utility’s 2010 default rate, based on power purchased from 2007 to 2009, increased 30 percent.

But alternative suppliers, which can buy wholesale power at current market rates, are offering discounts of more than 10 percent off PPL’s current retail rates.

The Pennsylvania Public Utility Commission has certified eight alternative suppliers for PPL customers, including two that offer renewable power at a higher cost than PPL’s default rate of 10.45 cents per kilowatt hour.

PPL Electric, which serves 1.2 million customers in eastern and central Pennsylvania, is encouraging customers to shop around because the utility does not lose money on customers who choose alternative suppliers.

Customers who choose an alternate supplier still get billed and serviced through PPL, which collects a standard fee for distributing the power through its lines.

Of 248,000 PPL customers who have switched, 205,000 are residential, said Ryan Hill, the utility’s spokesman.

Deregulation in PPL territory has more than doubled the number of Pennsylvania electrical customers who get power supplied by independent operators. Nearly 414,000 customers statewide are served by alternative suppliers, according to the consumer advocate.

Rate caps will remain in place in Peco Energy Co. territory through the end of 2010, when customers of the state’s largest utility are expected to get offers from alternative suppliers.

Our Perspective:

HBS is an independent energy broker who is currently selling deregulated energy in the PPL territory. We are finding prices in the mid to upper 8 cent area. Shold yo like to know more about deregulated savings in the PPL territory email george@hbsadvantage.com

Deregulated Gas Savings

March 14, 2010

As reported by Energysop

Deregulation of utilities means that the historical monopolies granted to a few large utilities providing electricity, telephone and natural gas are eliminated. These companies will just operate the distribution systems, the wires and the pipes. Competitors then enter the market with different pricing and service offerings. With the onset of deregulation in all of these industries, it is possible for consumers to realize significant savings by shopping around for these commodities.

 Utility deregulation is complicated since there is a fixed and very expensive distribution system already in place – pipelines, power and phone lines. It’s just too expensive, disruptive and environmentally harmful to construct parallel distribution systems. This is different from deregulation of airlines or financial services where no such fixed infrastructure existed. As a result, only the commodity, gas, electricity or telecom, is deregulated.

Natural Gas Deregulation

Historically, consumers received supply and delivery of natural gas from a single company who had the monopoly franchise for the region in which they lived. These companies bought gas on the wholesale market and sold it to consumers in their jurisdictions according to regulated rates set by the local regulatory agency, an energy board or public service commission.

 Natural gas is being deregulated in many jurisdictions. Examples are, Ontario, Alberta, Maryland, California, Georgia and Pennsylvania. This means that a householder or business can buy gas directly from a supplier at a competitive price — not just from the gas utility. These utilities, however, continue to have the franchise to distribute gas and charge a regulated fee.

Deregulation separates the sale of the gas as a commodity from it’s distribution. The product is available at a competitive price and under competitive conditions but the delivery is a standard regulated charge. This would be similar to a situation where you might buy milk by phone, and it is delivered by a large courier service such as Federal Express. The milk is a commodity, and it would be priced differently between suppliers, but the supplier relies on a distribution system provided by Federal Express trucks. A portion of what you pay would be for the commodity (milk), and a portion for the distribution (Fed Ex). In the case of utilities, the distribution will remain regulated, but the commodity supply will be a free market.

 Experience in Other Jurisdictions

The U.S. initiated deregulation in the gas industry at the wholesale level in the mid 1980s which resulted in gas prices declining about 35 per cent for large commercial and industrial customers, according to a Harvard University study. Prices for residential consumers changed only slightly.

Agents, Brokers and Marketers (ABMs)

Consumers choosing to shop around for their natural gas supplies can benefit from the price swings and variations inherent in a competitive energy marketplace. But where do consumers go to buy natural gas? Deregulation has given rise to a number of sources of gas supply.

 First, you can continue to let your distributing utility purchase gas on your behalf and deliver it to you with no change in the process.

 Or you can look into purchasing it from an agent, broker or marketer. These are independent companies that either sell on behalf of gas producers or purchase supplies of gas and re-sell it to consumers. Securing a long term supply from one of these energy marketers when the gas prices are lower can result in significant savings over the term of your contract.

 Should you choose to buy from a gas marketer, nothing about your service will change. You will still get a bill from your distributing utility which will indicate a regulated Delivery Charge. This is about 1/3 of your bill and a Gas Supply Charge which is the remaining 2/3. The delivery charge will be kept by your distributing utility and the gas supply charge will be forwarded to the gas marketer or supplier you chose. Should you choose some value-added services offered by gas brokers, such as energy cost comparisons, rental gas equipment or an equipment service contract, these will also be added to your bill. If you switch to a gas marketer, there is no interruption of service nor any other additional fee charged.

 This cost split is a key point to remember when you are comparing costs or considering an appeal from one of the gas suppliers or marketers. You have no doubt received promotional materials from one of these either by phone, by mail or from someone knocking on your door. The suppliers, brokers and marketers are only dealing with 2/3 of your bill. The distribution charge, which is 1/3 of your bill, is fixed and regulated by regulatory boards. They have periodic hearings to evaluate and set this rate. The remaining 2/3 is variable depending on which supplier you choose. As a result, when a promotional message claims a 10% saving, it is referring to 10% of the 2/3.

 Take, as an example a fairly typical annual gas bill of $ 1,500. One third of that, $500, is a fixed distribution charge. The remainder, $1,000, is the gas supply charge. A supplier offering a 10% saving is offering a saving of $ 100, which is 10 % of the $ 1000 gas supply charge. The saving on the total energy bill is 6.7 %, ($100 saving on a $1,500 gas bill).

 Gas marketers offer varying contract terms and conditions. In general, however, you have two basic choices. You can sign on for a single or multi-year contract at a fixed price or you can choose a rebate option which means you pay the regulated price set by your distributing utility and will receive a rebate if your marketer can buy the supply for less than that price.

Our Perspective:

I found this article gave a good explanation of the deregulated natural gas opportunity. If your company is spending more than $3000 a month for natural gas, you should be looking at buying natural gas in the deregulated market. Our clients are saving a minimum of 10% to 15% by buying natural gas in the deregulated market.

Currently yor local provider is buying natural gas in the wholesale market and then selling it to their clients for retail prices. Should you qualify, we are able to put your company in a wholesale position and the savings will fall to your bottom line.

Hutchinson Business Solutions provides independent financial solutions in the dereglated energy market. We have been positioning our clients for savings in the deregulated energy market for over 10 years.

To find our more information, visit our website www.hutchinsonbusinesssolutions.com

or email george@hbsadvantage.com  You may also call 856-857-1230.