Deregulated Electric

RDLogoPartDeregulated Electric

In the State of Ohio, deregulation has allowed companies a chance to decide on their commodity supplier.  Suppliers are motivated to differentiate their products by developing innovative features and pricing plans. This means that this is the best time to shop for a supplier with pricing and options that will best fit your company’s needs.

This deregulation has launched an avalanche of telemarketing effort by suppliers, brokers and consultants like never seen before. Most customers saved money initially off high utility rates when the wholesale electric market was at or near a historical low price level. In the beginning saving money off the utility rates was easy, but now the fact is many customers are paying more than they should.  While customers may be saving on the utility rate, their supplier could be charging them excessive fees to renew their contracts or because they are buying on a variable rate after the initial fixed rate contract term has expired.

The reason: they answered the phone or door and signed up for what they thought was a great electric price. Unfortunately both large and small electric consumers purchased their electricity through telemarketers and door to door sales technique in great numbers.  It’s not hard to imagine why, since these sales people are just that, sales people.  They do not have the knowledge or training to get you the best electricity price. In the beginning of deregulation seeing savings was easy.  Now consumers need to work with experienced energy professionals to maximize savings and buy confidently.

Since its inception in January 2005 RD Energy has been educating their customers about the wholesale energy markets; when to buy as well as how to get the best competitive price.  More importantly how does a customer wade through all the phone solicitation calls, door to door sales offers and direct mail offers to actually make a smart, educated electric choice?

RD Energy’s intensely loyal customer base knows the answer to these questions. By having RD Energy as their energy partner they can discard the aggressive sales methods, understand the energy market and once they contract with a supplier, have the confidence to feel great about the electric price and term contracted.

RD Energy knows that Knowledge is Power.  Rather than show their customers just one supplier’s electric price RD Energy does something few brokers have demonstrated the ability and willingness to do. They provide a electric price Scorecard so customers get to see, in a very transparent way, real time electricity prices available to them based on their individual load pattern. Customers will have the ability to contract their selected price in a matter of minutes.  The customer can then file the scorecard away to have a record of why they chose the price and supplier that they did.

As a RD Energy customer you will have the comfort and confidence of being able to determine your electric price based on using the Scorecard and due diligence efforts of RD.  The information will be at your fingertips.

RD Energy provides this same Scorecard to the very largest industrial customers as well as to the very smallest commercial accounts.  Horror stories abound about businesses buying a fixed rate over the phone only to find out that the price wasn’t what they thought it was or that there was a major “gotcha” when they received their billing.  As a Certified Energy Procurement Professional from the Association of Energy Engineers,  RD Energy takes electric energy buying to a level of integrity and transparency rarely seen.  As a Certified Power broker by the Public Utilities Commission of Ohio and a proud member of the highly ethical and energy watchdog,  Energy Professionals of Ohio, RD Energy provides customers with the knowledge and insight they need to make the smartest energy choice.

Deregulated Electric FAQs

 

Why is it possible to save on electric rates?

Utility generation (supply) rates have been steady or gone up the past 4+ years while wholesale electric prices have fallen to near a 10 year low. This means that the wholesale market is at such an attractive low point that businesses of all sizes big and small can fix a generation (supply) rate lower than current utility supply rates for 12, 24 and 36 months. The final generation rate offered will be based on annual usage, load pattern, utility rate class and contract term.  The deregulated electric market in Ohio has been around now for several years now and all indications are that it will continue for years to come as a way for businesses to control and budget their electric expenditures either short or long-term.  Since often times either a two or three year fixed rate is lower than a one year fixed rate, most customers choose the longer term fixed rate in order to get the lower supply rate and budget certainty.

How Can My Business Save On Electric?

RD Energy’s program is simple, straightforward informative. We want to help you understand what is happening and why as well as where the opportunities to save are and how much can be saved. The process is very simple and painless to find out what fixed rates are available to your business. We only need at most two items from you: a recent electric bill for each account being priced and a signed utility authorization form so we can collect electronic usage data. With those two items were able to solicit electric prices from many of the largest and most competitive electric suppliers and put everything into our Customer Scorecard. With the price scorecard in your hands you now have in front of you a transparent view of the electric pricing available for your business and can choose the best price and term. For your convenience our scorecard does highlight the best supplier price for each available contract term so choosing the right supplier is clear and easy. Once you make your selection we’ll have the contract ready for signature within minutes. The scorecard shows that your business performed a transparent due diligence in selecting the electric supplier so the decision is safe and sure.

What is happening…I don’t understand?
Historically commercial and residential customers have bought their electric supply for their home or business as well as distribution delivery service from local utility AEP. Both the generation supply charge and the distribution delivery charge are on the electric utility bill, broken apart separately on the bill. The rates AEP has been able to charge for both the generation supply as well as the distribution delivery charge is agreed to and approved by the Public utilities Commission of Ohio (PUCO). Buying the generation supply from the utility is called “regulated” supply since the PUCO regulates the prices. Due to low cost of deregulated electric supply found in the wholesale electric market compared to current utility regulated electric supply rates, it is it is possible to buy lower cost generation supply from other wholesale suppliers of electricity. Some of the deregulated wholesale electric suppliers are affiliates of Ohio’s electric utilities. In some cases the deregulated wholesale electric supply is produced right here in Ohio and possibly from your own electric utility while sometimes the electric is generated out of state. Buying from an alternative electric supplier is called “deregulated supply” since you can buy it at wholesale market rates and since the rate is not set by the PUCO.
How will buying from an alternative supplier change my current electric service and billing?
The utility bill will still come from the utility as before. There will only be one change, the utility line item for generation cost will be replaced with the new lower supply cost and new supplier name.

If you choose to buy lower cost generation supply from an alternative supplier, you will still be billed by AEP for the distribution delivery service. By paying this distribution delivery charge to AEP your business or home will still be completely serviced by AEP. This means that they will still read the electric meter and that they will take care of outages and everyday service requirements.

Why does RD Energy need my electric utility bill?
Your utility bill contains information like utility rate class, monthly and annual usage volumes along with the Service Identifier number needed to price and contract for deregulated supply. We can determine based on this information if we can move forward with creating the Customer Score electric pricing comparison or determine if your businesses usage is great enough that RD Energy can provide a custom Customer Scorecard. Sending RD Energy your electric bill in no way commits you to anything and we do not use it in any way except to provide the price comparison Customer Scorecard. It is simply part of the necessary process that allows RD Energy the opportunity to inform you what savings opportunity exists for 1, 2 or 3 years in a very clear and transparent way.
What do I do in case of emergency if I buy electric through an alternative energy supplier?
If there are any issues regarding your electric service at your business or home, call your utility company immediately, as your utility will continue to service you as it always has. The utility meter and emergency services are covered in the utility distribution charges on your bill so buying a lower cost supply does not in any way change the service type or timing of required emergency needs at your business.

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