Important Things to Ask When Choosing an Electric Alternate Supplier

Choosing an alternate supplier for electricity is often a confusing and complicated process. The idea is somewhat foreign to most people who have never had so many options thrown at them when being billed for electricity. The PA Power Switch website – http://www.papowerswitch.com – is designed to help guide and direct people in this process. They have created a full list of questions you should ask alternate suppliers when shopping around; however, they don’t really go in to detail as to why you should be asking certain questions. This article is designed to shed some light on that issue. Below is a list of questions you should be asking an alternate supplier, in order of importance, and more importantly why you should be asking these questions.

1. Is the supplier licensed by the Pennsylvania Public Utility Commission (PUC)?

- When choosing an alternate supplier you want to make sure that the company is licensed by the PUC. This is very important because only licensed suppliers are authorized to provide electric service in Pennsylvania. PUC licensing standards include that the supplier is bonded or has provided other security approved by the Commission to ensure financial responsibility; that the supplier has met the PUC technical and financial responsibility guidelines; and, that the supplier agrees to uphold consumer protection laws and reliability standards, along with supporting the consumer education requirements. A full list of supplier companies licensed by the PUC can be found on the PUC website here: http://www.puc.state.pa.us/electric/electric_suppliers_list.aspx .

2. What is the price per kilowatt hour (kWh)? Is the price fixed or does it depend on time of day or usage?

- You will also want to find out if an electric supplier offers fixed or variable electric prices, and understand the advantages and disadvantages of each.

- A fixed price will remain the same, usually for a set period of time. This will give you certainty that your price will not change during the term of the agreement. However, if market prices fall you may have to wait until your contract expires to get a lower price.

- A variable price can change by the hour, day, month, etc. With this option you can save money if market prices decrease, but may have to pay more if rates go up.

- A variable price may give you some savings in the short term but based on the direction of the electric market in the future, it may be wiser to lock in at a fixed price for bigger long-term savings.

3. What is the length of the agreement? Can your price change in that time? If so, when can it change and how will you be notified?

- Many alternate supplier companies offer a great starting price but it’s highly subject to change from month to month (variable). You really want to try and get an alternate supplier rate that has a fixed price for at least a year. Don’t be lured in by a cheaper price if it just has the chance to change in a couple months. This can come back to bite you.

4. Is there a cancellation fee or any penalty for switching suppliers?

- Some electric suppliers offer plans with no minimum contract period, while others may offer plans with a minimum term, which may be several years. Be sure to ask competitive suppliers about the contract terms, and whether there is a penalty if you cancel before the contract period ends.

5. Will you receive one bill or two?

- Many people don’t realize that with some alternate suppliers you will receive a completely separate bill each month. Some alternate supplier company charges will show up on your main electric bill but others will require you to pay for them separately.

6. Does the supplier offer a budget billing plan?

- This is only important if you are currently on a budget billing plan with your main electric company. Some alternate suppliers do not offer similar budget billing plans.

7. Is there a bonus for signing up?

- Some alternate suppliers offer bonuses for signing on with them such as $20.00 off the first month’s bill. These bonuses are often found among smaller supplier companies who are trying to boost the number of people signing on by offering incentives. Again, be careful not to be lured in with sign-on bonuses only to be stuck with a rate that is highly variable and subject to change.

8. Are all taxes included in the suppliers’ price?

- This question is really only for commercial and industrial companies choosing an alternate supplier in PA. Often times it is not made clear by the alternate supplier company that sales and gross receipts tax are not included in the price to compare.

Georgia Passes Legislation Requiring Water Submetering

In April 2010 Georgia passed the “Georgia Water Stewardship Act”.  The idea of the act is a comprehensive proposal that will encourage water conservation, reduce wasteful usage and incentivize innovation in both increasing water supply and lessening demand. Many of the proposals in the Georgia Water Stewardship Act of 2010 are based on recommendations from the Governor’s Water Contingency Task Force, which met in the fall and winter of 2009 and featured more than 80 business, government and environmental leaders from around Georgia.

“This bill represents the hard work and effort of the water task force and provides a road map towards being better stewards of our limited natural resources,” Governor Perdue said. “We have made great strides in creating a culture of conservation in Georgia, and these measures will continue our commitment to protect our state for future generations.”

The biggest innovation that this act puts in place begins in July 2012. All new residential and commercial multi-unit projects will be required by legislation to install sub-metering so that each unit will receive consumption reports and have incentive to practice conservation measures. The committee that put this in to effect was able to prove that submetering drastically reduces consumption at large residential and commercial properties. When tenants are held responsible for how much water they are using, they make an active effort to use less.

It’s important to note that this legislation specifically only requires all multi-tenant residential, commercial and industrial buildings permitted for construction on or after July 1, 2012 to install submeters and bill tenants according to their individual water use.  This legislation only applies to new construction going forward.

This is a major step in the right direction for state-wide green initiatives.  Georgia is the first state to require submetering in all new construction.  Many states such as New York are looking at similar legislation.  It won’t be long before many states will follow Georgia’s example and make submetering a requirement. 

It’s extremely important for property management companies in Georgia to team up with quality meter installation, reading, and billing services in order to fulfill this new requirement.  Energy Management Systems can provide meter installation, billing, collection services, consulting, and comprehensive energy solutions for commercial and multi-family properties.

For more information regarding the Water Stewardship Act of 2010 and what it requires, head over to the Georgia Water Coalition website at: http://www.garivers.org/gawater/2010%20Legislative%20Session.htm

Contact EMS at 800-965-9642 or visit our website at www.EMS3.com for more information regarding submeter installation and billing services.

PECO Rate Changes – January 2012

Starting in January of 2012 PECO Energy Co. (PECO) has begun phasing the power utility’s most popular discounted heating rate.

The Philadelphia-based electric utility is phasing out its discounted RH heating rate. The RH provides a discount of about 45 percent to customers who consume more than 600 kilowatt-hours per month during the winter, which PECO said helps its RH customers lower electric bills by an average of about 5 percent a year.

The discounts on these rates will be cut in half on Jan. 1, 2012 and will be eliminated totally by the end of 2012.

This means that for all usage over 600 kWh the price will go from $0.0548 / kWh to $0.0700 / kWh starting with the January 1, 2012 billing.

PECO said it was ending the discounted rates as required by the Pennsylvania Public Utility Commission (PUC). The discounted rates were put into place decades ago to encourage Pennsylvanians to switch to electric heating. But then electric deregulation allowed competing alternative electric suppliers to enter the market and sell electricity to electric customers in PECO’s service territory.

The good news is that starting January 1st the price for the first 600 kWh has decreased by about 12% from $0.1045 / kWh to $0.0927 / kWh.

This means that any residential customer billed under the PECO RH rates will see a decrease in your electric charges up to 915 kWh.  This is considered to be the break-even point where any usage over this number you will see an increase in your charges.

Regarding the decrease coming for PECO Residential Heating, non-heating, and commercial customers PECO issued a press release stating the following:

“Electric commodity costs fluctuate – either increasing or decreasing – based on many factors including wholesale prices when purchases are made, the amount of wholesale electricity purchased, the length of contracts, weather, reconciliation of collections for actual versus forecasted energy use, and other calculations.  Based on this adjustment, bills for a typical residential customer – not purchasing their electricity from a competitive electric generation supplier – will decrease about 6.6 percent or about $6.10 a month for the first quarter beginning on Jan. 1, 2012. 

Electric commodity costs for business customers also vary based on the total amount of energy they use and their energy usage patterns.  Beginning Jan. 1, 2012, prices for small business customers not purchasing their electricity from a competitive supplier will decrease about 9 percent and prices for large business customers not purchasing their electricity from a competitive supplier will decrease about 2.9 percent.“

Source: https://www.peco.com/News/NewsReleases/Pages/ElectricCommodityPricesToDrecreseBeginningJan1,2012.aspx

AQUA PA Notifies Customers of Upcoming Rate Changes

On November 18, 2011, AQUA Pennsylvania Inc. has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase water rates on January 18th, 2012.  Along with this request, a notification was sent to all of its customers that would be affected by this change.  The notice describes the request, the PUC’s role, and what actions that can be taken by the customer.

For residential and commercial customers, the rate increase would mean that an average tenant bill would increase by 9% overall.  This means that for an average monthly bill of $54.00 it would become $58.86. 

Aqua was very clear on why a rate increase of this magnitude was necessary.  The rising costs to maintain the water infrastructure is the biggest culprit.  The Environmental Protection Agency (EPA) puts a lot of pressure on water companies to maintain certain standards with water quality.  The EPA reports that in order to maintain these standards, water companies will spend over $335 billion over the next 20 years to maintain wells, pipes, tanks, valves, and treatment facilities.

In order for Aqua-PA to live up to these costly standards they need to increase annual income by $38.6 million per year.  Over 80% of the money collected from the rate increase will directly improve water quality, replacement and rehabilitation of more than 334 miles of aging water mains, as well as valves, fire hydrants, and service lines.  The other 20% will include the installation of state-of-the-art equipment to meet new environmental requirements set by the EPA.

The state agency that approves the rates for public utilities is the PUC.  The PUC will review and investigate the requested rate increase before it goes in to effect.  AQUA PA must prove to the PUC that the requested rate increase is reasonable.  After examining the request, the PUC may allow the rate change in full, in part, or not at all.  As a result, the final effect on a monthly bill my by different than the requested 9% increase.

Any customer in the Aqua PA service area may send a letter to the PUC or attend public input hearings to express concern over proposed rate changes.  For more information regarding the role you can take in rate changes visit the PUC website at  http://www.puc.state.pa.us/general/contactus.aspx for more information.

PECO Rates On the Rise – Consider Choosing an Independent Supplier

Beginning with the service period October 1, 2011 PECO has increased rates by 4.04%. For customers remaining with PECO as a supplier, rates are expected to continue to rise for the foreseeable future.  It’s important to understand why rates are increasing, and why choosing an alternate supplier is now more important than ever before.

The first half of 2011 showed little to no increase in electric costs.  In the second half, we started seeing the projected rate increase.  There is a reason behind this. Philadelphia Inquirer reported:

“The Philadelphia utility, rather than blaming the increase on rising energy costs, PECO says it undercharged customers earlier this year and needs to adjust rates upward to recover a $10 million under-collection.”

The price increase could provide an opportunity for alternative energy suppliers to highlight their discounts that, in some cases, now amount to 20 percent off the utility’s price.

No doubt that the continued increase in electric costs will encourage more consumers to choose an alternate supplier. Under the Electric Choice law in Pennsylvania, PECO is the default electric supplier for customers in the Philadelphia area. With Electric Choice customers have the option to buy electricity from independent supply companies, often at better rates than the current PECO one.

According to a spokesperson from the Pennsylvania Public Utility Commission, despite heavy marketing attempts from independent energy supply companies, as of July 2011, only 18% of residential consumers have switched to an independent supplier, in comparison to 31% of PA’s commercial users.  Industrial consumers lead the pack with approximately 66% purchasing electricity from an independent supplier.

In today’s economy can anyone afford to bypass savings on a monthly electric bill? The obvious answer is no. So why is there a delay in taking an action that could yield significant savings? Some consumers are reluctant to make the switch as they are under the impression that the potential savings seems insubstantial, for others, the process of choosing an independent energy supply company may be confusing.

Some of the most common concerns that I hear are: Should I choose a variable rate, which may be lower in the short-term, but can go up as the market fluctuates?  Do I stick with a fixed rate?  Will the independent supply company, who offers a favorable introductory rate, increase my rate after I sign on?

Energy Management Systems (EMS) a comprehensive energy solutions provider for commercial and multi-family properties has an Energy Procurement Team available to make shopping for electricity much easier and less stressful.

EMS Energy Procurement Team will:

-          analyze your energy usage and cost history

-          research multiple energy suppliers and arrange bids for your business

-          obtain competitive pricing on your behalf

-          present you with multiple proposals to choose from

-          facilitate a contract between you and your energy supplier of choice

Now is the time to seriously consider switching to an independent energy supply company.  PECO has projected that electric prices will continue to rise in the near future, further increasing the gap between independent supply companies and PECO’s default rate.  If you are a commercial or multi-family property manager or building owner, email EMS Energy Procurement Team at BestRate@EMS3.com or call 800-965-9642 ext 230.

Source Philadelphia Inquirer

Discovering the Benefits of Online Utility Bill Access

As a provider of comprehensive energy solutions, Energy Management Systems (EMS) is always working to discover new ways for property owners and managers to reduce or eliminate utility costs.  Ready access to utility bill information is the first step to increasing recovery.  As more and more utility companies are allowing access to bills online, EMS has begun the process of advising property managers and building owners to take advantage of this service.

EMS encourages all of our clients to register for online, paperless bills whenever possible, and to share the online access with EMS. Aside from the obvious “green” benefits of online paperless bills, there are many advantages that online bill access offers that effects the consumer as well as to the consumer’s business with EMS.   The benefits include:

1. An auto-email notification from the utility company sent the minute each bill has been generated. This type of notification expedites EMS processing of tenant level utility bills as there are no delays attributed to receiving paper bills in the property management office and then scanning or faxing them into EMS.

2. Having access to your monthly bill online allows EMS to identify low recovery accounts and make recommendations on how to boost recovery percentages.

3. Some utility companies such as PECO in suburban Philadelphia, allow consumers to establish one login and password for multiple accounts. Again, this simplifies the process of obtaining utility information quickly and easily.

Taken directly from the Aqua Online website here are some additional benefits of online bills:

“Switch to paperless billing today and make a positive impact on the environment. Enjoy the convenience of viewing and paying your bill on your own time”

“Provides a more secure way to receive and pay your bill.”

“Gives access to your current and previous bills around the clock and lets you pay your bill when convenient for you.”

The process to activate your account online only takes a few minutes. I’ve assisted several Philadelphia area clients with establishing online PECO electric account access, and Aqua water accounts.   With PECO simply go to https://mydetail.getbills.com/BDPeco/index.jsp  and click on ‘Enroll Now’ to begin.  You’ll be asked to enter your name, email address, account number, as well as selecting a username and password.  After establishing your account online you will only need to provide Energy Management Systems with your login name and password in order to give us instant access to copies of your monthly bills.

As another example, Aqua offers online bill access.  Simply head to their website at https://www.aquaamerica.com/aquaonline/Pages/default.aspx. After selecting your state, you are taken to a secure page where you enter your account information and click the enroll button.  Again, after selecting a username and password the property manager would only need to provide EMS with this information to have instant access to monthly bills.

The ability to access your bills online is a win-win situation for everyone involved.  This is a powerful tool that helps speed up monthly payment processing and ensures recovery through EMS’s comprehensive consulting and bill analysis.

For more information on utility cost recovery, or how to establish online access contact EMS at 800-965-9642 or visit our website at www.EMS3.com. Energy Management systems, located in Exton Pennsylvania, provides comprehensive energy solutions to commercial and multi-family properties.

Introduction

My name is Brian. I manage new submetering accounts with Energy Management Systems (EMS), in Exton PA. EMS provides comprehensive energy solutions for commercial and multi-family properties.

One of the more interesting, yet challenging responsibilities of my job is making sure that all EMS systems, and my coworkers stay current with the ever changing utility rates and regulations. To make this happen, I monitor information from hundreds of different municipalities and utility companies on a daily basis.

As both clients and my coworkers come to me with their questions, I’ve developed a reputation as the rates and regulations expert. I want to share all of this good information beyond the walls of EMS and be a resource for anyone wanting to know more about utility regulations, and why drastic changes sometimes occur with utility rates.

Each week, I ‘ll enter updates on recent rate changes, and what precipitated them. I’ll also provide the background details on how certain utility regulations evolved. Other blog topics will include advice to building owners and property managers on how to recover more utility costs from their tenants. I’ll also review some of the more common misconceptions that people have about utility rates and regulations.

A bit about me. I’ve studied mechanical engineering at Penn State University, and received a degree in business and communications from West Chester University. I’ve worked with Energy Management Systems over the last three years, mostly in the new accounts department.

A bit about Energy Management Systems. Located in Exton PA, EMS provides comprehensive energy solutions to commercial and multi-family properties. EMS core services include submetering, consulting, and procurement. Contact EMS at 800-965-9642 or visit us at www.EMS3.com