Residential electric customers

 

 

In…

 

 

 

New Jersey and Pennsylvania….

 

 

 

 

You finally have an opportunity

 

 

 

To lock your electric supply cost

 

 

 

At a fixed price…….

 

 

 

For a

 

 

 

12 month period

 

 

 

 

 

 

This means saving of

 

 

 

Around 15%

 

 

Off your current

 

 

 

Local provider supply cost

 

 

 

 

 

 

If you look at your PSEG residential electric bill

 

 

You will see your…..

 

 

Price to compare

 

 

For electric

 

 

Is around

 

 

 

$.116 cents per kwh

 

 

 

 

Atlantic City Electric customers

 

 

Your bill shows a

 

 

 

Price to compare of around

 

 

 

$.122 cents per kwh

 

 

 

 

We now have a program that will permit

 

 

 

Residential customers in New Jersey

 

 

 

To lock their electric supply cost for

 

 

 

 

 

 

$.0999 cents per kwh

 

 

 

 

For a 12 month period

 

 

 

 

For a typical household

 

 

This provides savings

 

 

 

Of over $300 a year

 

 

 

 

No additional cost

 

 

No transfer fees

 

 

 

No interruption of service

 

 

 

The supply charges will be billed on

 

Your current local provider bill

 

 

 

Best yet…..

 

 

 

Nothing changes…….

 

 

 

Should you have an electrical problem…..

 

 

 

You still will call your local provider

 

To service the account

 

 

 

 

This opportunity is also available for….

 

 

 

All Residential Pennsylvania

 

 

Electric customers

 

 

 

 

(Contact us to find out your rate…….

 

 

 

Your savings are comparable)

 

 

 

 

 

As most of you know…

 

 

 

HBS has been in the deregulated energy business

 

 

Since January 2000

 

 

 

We have been providing

 

 

This service…

 

 

 

For only the commercial market

 

 

 

 

 

 

I get several calls

 

 

Every  week

 

 

From my clients

 

 

Asking……

 

 

 

 

 

Can you help me with my home electric bill……

 

 

 

 

 

Many have faxed or emailed me…….

 

 

 

 

All the special offers they have been receiving

 

 

 

 

Problem was……

 

 

All I found was……

 

 

 

 

Smoke and Mirrors

 

 

 

 

 

They had the sizzle….

 

 

 

 

No contract…..

 

 

 

Month to month……

 

 

 

Low variable rate……..

 

 

They also had……..

 

 

 

 

 

 

Minimal to no $avings

 

 

 

Many have complained to me

 

 

 

They actually paid more

 

 

Than the provider price to compare

 

 

 

 

 

For the first time

 

 

 

We have found

 

 

 

A Residential opportunity

 

 

 

 

That will provide….

 

 

 

 

 

True savings….

 

 

 

 

For your…..

 

 

 

Residential Electric Account

 

 

 

 

Should you like to know more…..

 

 

 

About this saving opportunity

 

 

 

For your home

 

 

Email……..

 

 

george@hbsadvantage.com

 

 

Or call our office 856-857-1230

 

 

 

 

$300 savings

 

 

 

 

For me…..

 

 

It was the equivalent

 

 

 

Of getting 1 month

 

 

 

Free electric a year

 

 

Visit our website: www.hutchinsonbusinesssolutions.com   to learn more about opportunities available to provide savings.

 

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By Andrew Maykuth

Inquirer Staff Writer

Pennsylvania electricity customers are skeptical they can save much by
shopping for power.

Although 88 percent of customers say they are aware they can switch to
alternative suppliers, only 45 percent have shopped, according to a statewide
survey conducted by Terry Madonna Opinion Research.

Twenty-three percent of residential customers statewide have switched,
according to the Pennsylvania Public Utility Commission. About 1.4 million
customers have switched.

Madonna and several electricity suppliers told the PUC on Thursday that
nearly a year after Pennsylvania’s retail utility deregulation went into full
effect, the public remains wary of shopping.

“There are a fair number of people who did not look into changing an electric
supplier because they didn’t believe there would be long-term savings in it,”
said Madonna, director of the Center for Politics and Public Affairs at Franklin
and Marshall College in Lancaster.

The poll results were presented Thursday at a PUC hearing on competition.

The surveys found that price was the main concern driving customers to
switch, but many said the perceived savings were insufficient to make them
switch.

Suppliers said some residential customers have recorded savings up to $300 a
year.

Madonna, who conducted his telephone survey of 801 customers in September on
behalf of Constellation Energy, said 78 percent said they would consider
switching if they could save 10 percent on their generation charge.

Many customers who declined to shop said they were happy with their current
supplier regardless of the cost.

Madonna’s findings were echoed by an Internet survey of 450 customers
conducted by AlphaBuyer, a Paoli group- buyer that markets online.

Forty percent of the customers said the savings were not worth it, said Kevin
McCloskey, AlphaBuyer’s chief operating officer. About 24 percent said shopping
was too confusing or the choices overwhelming. About 15 percent said switching
was too risky or that it was a “scam.”

Under Pennsylvania’s Electric Choice law, customers can choose a company that
markets the power. Billing is still conducted by the incumbent utility company,
which collects a fee for distributing the power.

Customers who don’t switch are still supplied by the utility at a default
rate.

Only 18 percent of customers had visited the PUC’s website for choosing a
supplier. PUC members said more customer education was needed.

“It’s perplexing to us with all the tools being made available to customers
we only see 20 percent of the residential customers shopping,” said Robert F.
Powelson, PUC chairman.

Our Perspective:

HBS has been dealing in the deregulated energy market for over 10 years. I have always been suspect of the proposed residential savings in this market.  Most of the time you are offered a floating rate that may offer minimal savings.

The opposite is true in the commercial market. There are providers offering fixed price alternatives that offer a great opportunity for savings. HBS has found great success in the PA commercial deregulated market. We represent all the major providers selling electric in the PA market.

There is no upfront cost. Deregulated savings in the energy market has been a welcomed windfall for any business in both the New Jersey and Peennsylvania market who willing to look at the opportunity.

 

Read more: http://www.philly.com/philly/business/20111111_Most_in_Pa__avoid_shopping_for_electricity_supplier.html#ixzz1ddcYbDS5

As printed in philly.com

 

LindaPeterson  of West Chester was eager to switch from Peco Energy Co. at the end of last year.
She signed up for an alternative electricity supplier offering avariable rate that would fluctuate depending upon market conditions.

AsPeterson  discovered, variable rates sure can vary.

For a few months this year, Peterson’s rate was very attractive, indeed. But it went up
58 percent from May to June. At 15.63 cents per kilowatt hour – that’s just the
generation charge – her last bill was about $23 more than it would have been had
she stayed with Peco.

“I knew there would be some variation, but that’s just a huge, huge increase,” said
Peterson, who is semi-retired.

A representative from her supplier, Palmco Power PA L.L.C., did not return a phone call about
Peterson’s bill. But its customer-service department, in an unsigned e-mail,
blamed an “unusual” wholesale price spike for the increase.

“Thankfully,however, shortly after the wholesale price increase, wholesale prices dropped,and our
price billed to our customers dropped accordingly,” it said.

In Pennsylvania’s buyer-beware world of deregulated utilities, Peterson can’t do much but switch to
another supplier. Her agreement, like most with variablerates, does not carry an
early cancellation fee.

According to the state Public Utility Commission, a supplier can bill a variable-rate customer
at whatever price it believes the market will bear, even if the customer
originally thought he or she was getting a discount.

A company also can offer different rates to different customers. The variable rate that is
on a customer’s bill does not have to be the same as the initial price posted on
the PUC’s website, http://PAPowerSwitch.com.

“A supplier could have one rate for PowerSwitch . . . while offering a different rate
door-to-door . . . yet a different rate for enrolling by mail,”Denise McCracken,
the PUC’s spokeswoman, said in an e-mail. “They could offer me one rate . . . my
neighbor a different rate (as long as they are not discriminatingon the basis of
race, gender, etc. of course).”

In Pennsylvania and New Jersey, where dozens of electrical suppliers are competing, customers
accustomed to a lifetime of regulated utility prices now face a dizzying array of
choices – fixed rates, variable rates, and”green” rates from renewable-power
generators. Next year, Peco customers will begin seeing rates that vary hourly,
according to the market.

More than 20 percent of Peco customers have switched since Jan. 1. But despite promises of
savings, most residential customers seem unwilling to leave the protective comfort of the regulated utility.

On Monday, the Retail Energy Supply Association launched a campaign to educate customers
about the benefits of switching, but it faces headwinds generated bycustomers such as Peterson, who share their experiences.

“My neighbors are very scared about switching,” said Peterson, a clinical social worker with a
small private practice.

Peterson was an early adopter of electricity choice. She had switched suppliers in the late
1990s, when limited deregulation was introduced into the Peco market. Competitive
suppliers eventually pulled out because they could no longer beat the utility’s
capped rates. But when Peco’s rate limits were lifted at the endof 2010,
competitive suppliers returned en masse.

Peterson signed up with Palmco, the marketing arm of a Brooklyn fuel-oil dealer, which posted a
price on the PUC’s website. She liked the company’s low-key marketing,compared
with the blustery direct-mail appeals she received from bigger suppliers.

“The fact that they weren’t doing a lot of heavy marketing, I guess I trusted them
a little,” she said. “I didn’t expect them to escalate the price like that.”

According to a review of Peterson’s bills, Palmco’s rate was very generous during the first
few months. It charged her an introductory rate of 5.78 cents perkilowatt hour,
clearly a below-market 42 percent off Peco’s rate. But by May,Palmco’s rate had
increased to 9.91 cents – just about the same rate Peco was charging.

And then in June came the whopping 58 percent increase – to 15.63 cents per kilowatt hour.
Peterson averages about 475 kilowatt hours a month.

The owner of Palmco, Robert Palmese, did not return a phone call. But his
company’scustomer-service department offered this response:

“Our family has been in the energy business since 1938, 73 years. We know from experience
that it is always in the best interest of our customers to keep prices for energy
as low as possible.”

In an interview in October, Palmese offered reassurance to customers who might consider
his company.

“We have very casual marketing,” he said. “We’d like our customers tolike us. Just try
us, you may like us.

“You are always free to leave.”

 

Our Perspective

HBS is a independent deregulated energy management consultant. We have been providing deregulated energy solutions to our clients since 2000. We have heard stories like the one experienced above, countless times.

While the energy market prices are at their low point, it would be smart to lock into a fixed price contract for natural gas or electric for a minimum of 1 year but also be willing to look at the 2 year option. Fixed priced contracts normally provide a 10% to 15% savings under what Peco ic currently charging.

Do not be fooled by the variable rate options.

It is a good marketing ploy….

no contract…

month to month float….

But you will only pay more in the long run.

 

To learn more about deregulated opportunities for yopur business email

george@hbsadvantage.com

Visit us on the web www.hutchinsonbusinesssolutions.com

Online Auctions

March 31, 2011

The deregulated energy market is causing a big buzz in this area. In the spring of 2010, NJ opened up deregulated opportunities to the residential market.

In January 2011, PA opened up the Peco territory to deregulation after a 5 year moratorium.

As the result, the market has been flooded with companies and individuals trying to capitalize on these opportunities.

Online Auction opportunities are now available. All you have to do is type buying deregulated energy online into your Google page and you will have multiple selections.

Also many companies have been promoting a Multi-level marketing approach to set up a grass roots effort in hopes of gaining penetration in the market.

.

As more consumers have grown more comfortable with on line purchasing, it seemed natural that this avenue would be an effective marketing option.

The only problem we see is that when buying energy in the deregulated market, you are dealing with a commodity. This puts a whole new spin on the opportunity.

This week, we would like to take a look at on line auctions.

Below is a plus-minus list we have developed to help you make an objective decision about purchasing energy on line versus using an independent broker.

On Line Auctions:

Plus

  • Feel like you are getting a good deal by participating in an ecommerce transaction
  • Potentially lower price by doing the ecommerce transaction 
  • Potentially easier transaction since there is limited contact with 3rd party energy suppliers
  • Electricity is a commodity and customer’s management feels this is best process for doing transaction

 

Minus

  • Can be more challenging to negotiate terms & conditions  
  • Potentially less leverage with suppliers since there is no personal interaction
  • Difficult determining what factors are included in the price.
    •  Is it fully loaded? (contains 7% loss transmission and sales tax)
    •  Is it a fixed rate or variable rate?
  • How do you know when is the best time to buy
  • Online auctioneers are brokers approaching the same providers we would be using.
  • Many on line auction companies do not have any information on their website regarding the management of the company

 

Dealing with an Independent Broker (Hutchinson Business Solutions)

 

Plus   

  • We represent all the major 3rd party providers selling energy in deregulated sates
  • We offer personal service, individually marketing your account to these providers
  • We monitor market fluctuations and discuss timing with our clients
  • We offer fixed price solutions (Other options available for large volume users)
  • We make sure all prices received are fully loaded and are an apples to apples comparison to your local utility’s price to compare
  • Due to our business relationships, we bring leverage to the deal
  • We assist with customer’s legal team in negotiating the business terms of the contract as they may apply
  • We provide options, defining the best terms and conditions and service the account throughout the term of the contract, addressing issues as they arise
  • We have been advising customer risk management strategies in the deregulated markets for over 10 years.
  • Opportunity to outsource many of the tasks involved with the energy procurement process while retaining the control and final decisions on any potential transaction

 

Minus

  • The energy market is in a growth mode, many new faces and the information is sketchy.
  • You must be sure to deal with a reputable company who will represent your best interest
  • Many of the new companies are offering variable rates

 

At first glance you may think this overview is biased.

Yes, we are an independent broker. We take pride in the value we have brought to our clients in the deregulated market.

We have just seen too much abuse. The deregulated energy market is an unknown.

We take time to explain how the market works with each client. We want you to understand this concept and feel comfortable with your purchase.

Each account is unique. There is no one size fits all solution.

There are great opportunities for savings in the business market.

Know the facts!!!!

Look to ask the right questions.

Let HBS be your eyes and ears….

While you continue to do what you do best….

Run your day to day business.

To learn more about deregulated energy opportunitiews for your business email george@hbsadvantage.com

Visit us on the web www.hutchinsonbusinesssolutions.com

What’s Up?

March 24, 2011

I say potato.

You say patato.

The difference may be just an inflection

Or the pronunciation of the word

(in this case it was my spelling, so you get the gist)

However, we all know what we are discussing.

Shame that the same thing cannot be said

About the word…….

Deregulation……

We should all know what we are discussing

We should all be on the same page…..

But there are so many stories……

Each one providing the best deal……..

A once in a lifetime offer……

Get in on the ground floor…….

What is going on????

With electric prices being at a 7 year low

We are finding, that everyone and their brothers,

Are now selling energy………

I get calls at my office almost….. everyday

Would like to switch electric providers?

How would you like to earn some extra cash?

The market is being inundated.

I am surprised Comcast and Verizon are not selling energy?

HBS has been selling energy to commercial clients for over 10 years

I would like to take a few moments to add our perspective.

Define what we see as the opportunity.

Educate our clients and friends.

Business

 

 

  • The deregulated electric market price is closely tied to natural gas pricing.

 

  •  
    • Thirty ( 30%) of the electric generated in the US is made with natural gas. Therefore, natural gas is a good indicator of the market prices.

 

  • Natural gas market prices are the lowest they have been in the last 4 years.

 

  •  
    • As a result, the deregulated market price of electric has also dropped.

 

  • Many experts think that we may have hit the floor on natural gas prices back at the end of October 2010.

 

  •  
    • The market has gone up and down several times since then, but it has never gone back to the low point recorded on October 25th, 2010.

 

This information indicates that clients should be looking to lock in or fix the price of electric with a 3rd party deregulated provider for a minimum of 1 year…… possibly 2 years.

We have actually seen instances where the 2 year fixed price is more competitive and offers more savings.

Each account is unique. Prices are all based on demand factors.

Are you a seasonal account?

(Highest usages during summer months)

Do you use most of your energy during the day?

(On Peak….when prices are higher)

Or do you have mixed usage?

(On Peak and Off Peak)

All these factors play into defining the deregulated market rate for your account.

Do you have annual usage demands

vs seasonal usage demands……

Your fixed rate will be lower.

(your demand usage is being spread out over the entire year)

Is your usage a mixed between on peak usages and off peak usages

vs only using power during the day,

when rates are the highest

Then your rates will be lower.

Each provider has their sweet spot. A client profile, they are most competitive with in that market.

HBS is an independent energy management consultant. Thru our strategic partnerships, we represent all the major deregulated gas and electric providers selling energy in deregulated states.

Our expertise is the ability to properly define the market and select the provider(s) who will bring the most competitive fixed rate, offering the best opportunity for savings to our clients.

What about Variable rates?

There are many companies now offering variable rates for electric.

Month to month contracts….offering savings of around 10%.

If the market prices are near the bottom,

Why would it not be in the clients’ best interest to lock in a fixed rate instead of floating with a variable rate?

As the summer season starts,

Market rates will also go up,

Due to summer demand.

So will those variable rates!!!!

It only makes sense to lock in on a fixed price,

if the market presents the opportunity.

In the deregulated energy market,

You are dealing with a commodity.

Timing is everything.

Let HBS be your eyes and ears.

Next week, we will outline using an independent broker vs buying online. Also, what does it mean when you say the price is fully loaded

To learn more about deregulated opportunities for your company email george@hbsadvanatge.com  

Visit us on the web www.hutchinsonbusinesssolutions.com

Note: With the current deregulated market opportunities now being presented to many business that qualify, the market has been inundated with new sales personnel. I found this article provides on objective overview of questions you should ask and details you should know before making a decision.

There are many companies offering variable electric rates. I would not recommend this solution at this time.

With natural gas prices being the lowest they have been in the last 3 or 4 years, there are great opportunities to lock into a fixed price electric contract for a 1 or 2 year period.

By Carl Shaw

With the deregulation of energy in many parts of the US, competition is now allowed between energy companies to provide electricity at discounted rates directly to their customers. These Energy Service Provider Companies (ESCOs) are licensed by individual states and are required to adhere to the applicable regulatory guidelines set by the Public Service Commissions (PSC) or Public Utility Commission (PUC).  Customers (end-users) also have the opportunity to work with electricity brokers or consultants who can compare different offers and provide additional services to help manage your monthly energy spending and costs.

If you are a business spending a minimum of $3000 a month  on your electric or natural gas bill, you may qualify to choose your electric or natural gas supplier in deregulated markets, which could create savings opportunities. Companies that can control or manage their electric consumption to use more electricity in the off-peak hours will find the greatest opportunity for savings. In deregulated markets, you now have a choice and can choose lower energy rates without any risk or local service change.

Your local energy service providers buy natural gas and electricity on the open market at wholesale prices based on the current market conditions and then bill their customers at increased rates to include margins and/or service fees.

Independent Deregulated brokers can put your company in a competitive position by leveraging extensive buying power to help you develop energy supply procurement programs. They can conduct an unbiased rate and tariff analyses that may result in substantial savings to you. 

Due to the current economic conditions and the complications deregulation has caused there are many new energy advisory companies popping up, so be sure to know all the facts before making any decision.

When choosing a qualified utility tariff analysis & rate optimization firm to represent you, you should be aware of a few things:

First, be sure that the price you are quoted from your local provider includes all charges. Should you be talking to a consultant or broker, make sure the price is “fully loaded” meaning, does it include the 7% loss allowance (to deliver 100,000 kWh of electric, the providers must actually send 107,000 kWh, for there is a 7% loss in transmission)? Also does it include the local sales tax?

In PA, you must also ask if the price includes GRT (gross receipt tax) and RMR (reliabilty must run). RMR is a pass thru charge from the provider that allows them to meet peak demand periods when they must use additional resources to meet this demand. This is normally found during the summer months.

All these important components should be included in the quote from your deregulated provider to make an accurate comparison. These components are included in your price to compare from your local provider.  Often, companies will provide a low end quote without including sales tax and a load allowance. Be sure you are comparing apples to apples. Often when these figures are included, their real quote is much higher.

Does the company providing your quote have an Energy Information Management System in place, to make sure that you are getting the best available rate?

Are they shopping your account to more than 1 provider. Each provider has a sweet spot (a market they are most competitive in). An independent broker who knows the market will be able to identify these providers and work to get the best price.

Information is power. Knowing what questions to ask will save you time and money.

There are opportunities to save from 10% to 25% in the deregulated electric market depending on your usage patterns.

When making a final decision, know that you are dealing with a commodity and timing is everything. Market fluctuations may happen on a daily basis.

Trade group looks to revise “price-to-compare” system that helps customers make informed choices about independent power suppliers
 
By Tom Johnson, January 28 in Energy & Environment |
With residential customers finally switching electricity suppliers, a trade group representing independent power companies is hoping the state revamps billing and other procedures to make it easier for consumers to shop for a cheaper energy.
For the first time since the state broke up its electric monopolies more than a decade ago, residential customers and small commercial operations have some choices about who supplies the power to light their homes and businesses.

Because of a steep drop in natural gas prices and the way the state buys electricity, independent power suppliers have an opportunity to undercut the price that public utilities offer customers.

“The big story on the retail electricity side has been the emergence of residential and small commercial markets,” agreed Jay Kooper, New Jersey state chair of the Retail Energy Suppliers Association, a trade group representing so-called Third-Party Suppliers (TPS).

Falling Prices

Until natural gas prices fell, more than 99 percent of residential customers elected to stay with their incumbent electric utility to buy their power, a fact that generated criticism of the state’s deregulation law. Other power suppliers found it hard to beat the price of the incumbents, in part because fuel costs had been rising and the state mitigated those spikes by buying power in chunks over three years, which tended to moderate those increases.

But when natural gas prices began falling more than a year ago, suppliers could undercut the price offered by the state, with some offering price discounts of up to 15 percent on the supply portion of customers’ bills. Nearly 100,000 customers have switched as of November, according to the most recent data compiled by the state Board of Public Utilities (BPU).

With customers looking around for options, the big question for third-party suppliers is how do they sustain the business, especially if natural gas prices begin rising.

To Kooper, the answer is to revamp the state’s policies in two key areas: how to deal with customers who fall behind in their bills and owe the third-party suppliers money and the so-called price-to-compare, a mechanism set up by the state to help customers shop for new suppliers.

“We need to dive into the nuts and bolts of the retail market to keep it sustainable for the long term,” Kooper said, noting the changes his group is seeking have already been adopted in other states with deregulated energy markets.

Gaining Momentum

Board of Public Utilities President Lee Solomon, who ordered the stakeholder hearings on the issue, said he is trying to take advantage of the momentum created by new suppliers coming into the market and make it easier for them to compete with the incumbents.

Without changes, Kooper said the suppliers will be subject to a “boom and bust” cycle when natural gas prices rise as they most inevitably will. What the suppliers are seeking is a level playing field to compete with the utilities, he said.

Along those lines, the group is advocating requiring the utilities to purchase the suppliers’ account receivables, or unpaid customer bills. Kooper argued such a change would be fair because utilities are already are protected from uncollected bills by a surcharge, which allows them to pay off those bills.

The group is also seeking to establish a uniform price-to-compare system because each of the four utilities uses a different scheme to help customers compare prices, according to Murray Bevan, counsel to the group.

“As retail markets evolve, it’s very important that price-to-compare is as close to an apples-to-apples comparison as possible,” Kooper said. “Without these mechanisms, it makes access to the smaller customers trickier and riskier.”

About Deregulation

January 27, 2011

As presented on PSEG website

Before Deregulation 

Prior to New Jersey’s restructuring, PSE&G was responsible for generating electricity, transmitting the power to all regions of their service territory, distributing the power to the individual homes and businesses, and billing and service issues.  In addition, they were also responsible for all repairs to the electric lines and equipment.

After Deregulation

As a result of the New Jersey Energy Choice Program, the different responsibilities of the utilities were “unbundled” and the power industry was separated into four divisions: generation, transmission, and distribution, and energy services. The generation sector has been deregulated and, as a result, utilities are no longer the sole producers of electricity. The transmission and distribution sectors remain subject to regulation – either by the federal government or the New Jersey Board of Public Utilities.   No matter which electricity supplier you choose, PSE&G will continue to service the transmission and distribution sectors of your electricity.

Competition is allowed between companies to provide power at discounted rates and superb customer service directly to customers. These companies are licensed by the state of New Jersey.  You also have the opportunity to work with an electricity broker or consultant who can compare different offers and provide additional services to help manage your energy spending.

In most cases, PSE&G will continue to send you your utility bill.  So the only thing that changes if you shop for a better rate is that better rate.

Out Perspective

Deregulation has presented a great opportunity for savings in the business sector. If you are a company spending a minimum of $5000 a month on electric and you are not taking advantage of this opportunity, feel free to give us a call and we will present an overview. 856-857-1230

Or, if you would like to know more about deregulation opportunities for your business email george@hbsadvantage.com

HBS has been providing independent deregulated energy management solution to our business clients for over 10 years. We represent all the major deregulated energy providers selling energy in deregulated states.

Visit us on the web www.hutchinsonbusinesssolutions.com

Hutchinson Business Solutions (HBS) has been providing deregulated energy management solutions to our business clients for over 10years.

Although we currently do not service the residential markets in deregulated states, I found it prudent to offer some insight to the many residential clients now seeking savings in the deregulated electric market.

Since New Jersey just introduced the opportunity to their residents in the spring of 2010 and Pennsylvania in January 2011, many people have jumped on the band wagon selling electric.

We get several calls daily from our clients asking questions about saving for their home electric.

The first thing that I caution them is to make sure the price that is being presented is fully loaded and contains all the factors that are included to make a price to compare analysis.

Does it include a 7% loss allowance (to deliver 100 kw of electric you must send 107 kw, for there is a 7% line loss in the delivery of the electricity)  

Does it include 7% sales tax. (PA residents 6.46% gross receipt tax)

These factors are included in the PSEG and AC Electric price to compare.

The second thing we caution clients to look for is a fixed price.

Natural gas prices are the lowest they have been in the last 3 to 4 years. Although they have spiked recently due to the winter cold, prices are still very attractive.

Thirty % (30%) of the electric generated in the US is made with natural gas. Because of this, natural gas prices serves as a strong market indicator used for electric market prices.

By choosing a fixed price, you can lock your position for a 1 or 2 year period.

There are many companies offering variable options or 4 month fixed pricing and variable pricing for the remainder of the contract. I do not feel comfortable stating that this presents a good opportunity for savings at this time.

Variable pricing does not lock your position and leaves the pricing upto the whim of the market, therefore this is a more riskier decision at this time.

Proceed with caution and make sure to get all the facts before choosing a deregulated residential electric provider.

Visit us on the web www.hutchinsonbusinesssolutions.com 

As presented by Public Power (An overview of the deregulated electric in the residential market)

Many of those that are considering switching over are a little confused about what is actually happening.

You are not switching your gas & electric company, you are only switching service providers.

What this means,for example:

If PSEG is your current Gas & Electric Company. They will remain your Utility company. They will still service your home if you have a problem or power outage etc. You will still receive and pay your Bill thru PSEG. What you are doing is simply switching where your Gas and Electric is coming from.  In this case you will be asking PSEG to simply obtain your Gas & Electric from Public Power,LLC instead of their current provider. Currently Public Power per Kilowatt rate is cheaper than PSEG ‘s provider. You can check on your rate by looking at your BILL and looking up the kWh rate.

Then go to  https://ppandu.com/historical_rates.php to check Public Powers’s historical rates for other areas they currently service. Though rates vary from month to month, you will find they have been historically lower then PSEG, Con Ed and many other NY & NJ utility providers.

Actual electric rates for 2009 in January were 11.2 for Public Power and Utility (PP&U), Feb 2010, 9.999*, 11.051*, 11.568*. Jan 2010, 9.999*, 11.051*, 11.568*

PSEG Sept 2010 Average Residential rate is 12.00 per kWh

Currently if you are using under 600 kWh per month you are paying about 11.46 per kWh. If you never exceed that all year then your rate will stay at about 11.46.

 But as soon as you go over 600 Kwh June thru Sept,that part of your bill is jacked up to about 12.34 per kwh. So on average if you are using from 601 kWh and more during the year, the blended average rate is about 12.00 per kwh.  Understand above ONLY reflects the cost of electricity, not the PSEG delivery charges etc. The rates we are concerned with are just the BGS Energy charges, which on your bill is the “Rate to Compare” when you are considering a 3rd party supplier for your electric such as Public Power.

SEE BELOW THE PSEG RATE(TARRIF) Chart (approved June 2010) Note the highlighted rates

PUBLIC SERVICE ELECTRIC AND GAS

COMPANY           Twenty-Eighth

Revised Sheet No. 67 Superseding     

B.P.U.N.J. No. 14 ELECTRIC                                             Twenty-Seventh Revised Sheet No. 67  

BASIC GENERATION SERVICE – FIXED PRICING (BGS-FP)
ELECTRIC SUPPLY CHARGES 

APPLICABLE TO: 

Default electric supply service for Rate Schedules RS, RSP, RHS, RLM, WH, WHS, HS, BPL, BPL­POF, PSAL, GLP and LPL-Secondary (less than 1,000 kilowatts). 

BGS ENERGY CHARGES: 

Applicable to Rate Schedules RS, RHS, RLM, WH, WHS, HS, BPL, BPL-POF and PSAL           Charges per kilowatthour: 

Rate 

Schedule 

For usage in each of the 

months of 

October through May 

For usage in each of the 

months of 

June through September 

 

    Charges

 

   Charges 

Charges  Including SUT  Charges  Including SUT 
RS –first 600 kWh  11.4627 ¢  12.2651 ¢  11.4356 ¢  12.2361 ¢ 
RS – in excess of 600 kWh  11.4627 ¢  12.2651 ¢  12.3477 ¢  13.2120 ¢ 
RHS – first 600 kWh  9.8139 ¢  10.5009 ¢  10.9809 ¢  11.7496 ¢ 
RHS – in excess of 600 kWh  9.8139 ¢  10.5009 ¢  12.2005 ¢  13.0545 ¢ 
RLM On-Peak  16.1526 ¢  17.2833 ¢  15.6936 ¢  16.7922 ¢ 
RLM Off-Peak  7.4633 ¢  7.9857 ¢  7.8736 ¢  8.4248 ¢ 
WH  9.5068 ¢  10.1723 ¢  10.6903 ¢  11.4386 ¢ 
WHS  7.7482  8.2906 ¢  8.9246 ¢  9.5493 
HS  10.3708 ¢  11.0968 ¢  13.9608 ¢  14.9381 
BPL  7.3379  7.8516 ¢  7.6450 ¢  8.1802 ¢ 
BPL-POF  7.3379 ¢  7.8516 ¢  7.6450 ¢  8.1802 ¢ 
PSAL  7.3379 ¢  7.8516 ¢  7.6450 ¢  8.1802 ¢ 

 

The above Basic Generation Service Energy Charges reflect costs for Energy, Generation Capacity, Transmission, and Ancillary Services (including PJM Interconnection, L.L.C. (PJM)  Administrative Charges). The portion of these charges related to Network Integration Transmission Service, including the PJM Seams Elimination Cost Assignment Charges, the PJM Reliability Must Run Charge and PJM Transmission Enhancement Charges may be changed from time to time on the effective date of such change to the PJM rate for these charges as approved by the Federal Energy Regulatory Commission (FERC). 

Kilowatt threshold noted above is based upon the customer’s Peak Load Share of the overall summer peak load assigned to Public Service by the Pennsylvania-New Jersey-Maryland Office of the Interconnection (PJM). See Section 9.1, Measurement of Electric Service, of the Standard Terms and Conditions of this Tariff. 

Note: Hutchinson Business Solutions has been providing independent deregulated energy management solutions for corporate clients for over 10 years. Although we do not currently provide these services to the residential market, we felt that it is important to make this information available to the general public, since many residential customers are now looking at this opportunity.

Date of Issue: May 20, 2010-Effective: June 1, 2010
Issued by FRANCES I. SUNDHEIM, Vice President and Corporate Rate Counsel
80 Park Plaza, Newark, New Jersey 07102
Filed pursuant to Order of Board of Public Utilities dated March 1, 2010
in Docket No. E009050351