Energy Advisory Service

Deregulation 101

There once was a time in the United States when everyone had to deal with one utility company. That one utility provided the three components of your energy service: generation, transmission and distribution. That utility also set the price for electricity and natural gas. You had no choice but to pay that price.

Deregulation: BeforeDeregulation: After

Starting in 1977, states began to change their regulations and deregulate or “unbundle” the utility services, allowing consumers to now “Shop around” for the actual utility commodity (electric or natural gas). This is very similar to the Telephone deregulation. Seventeen states have since deregulated. Today, in 17 states the utility companies still play a role (depending on the state) ensuring your energy supply is safely delivered to you but unfortunately for the consumer, there is no “standardization” in these states.

Each state is a little different. For example, in Texas the consumer never goes to the utility for service. But in Maryland, the consumer must sign-up with the utility to establish service before shopping for pricing.

With deregulation, every state now has different rules when it comes to choosing an energy provider. Let EAS streamline your purchasing decision with our up-to-date knowledge of the specific rules within your area.

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V Electricity Procurement

The electric market is extermly volatile and can experience pricing swings of several cents in one day. These pennies can mean thousands of dollars annually for a portfolio. Understanding the energy market and your risk tolerance is essential to any energy plan. The electric suppliers we work with typically offer the following products:

  • Full Fixed

    Full FixedFixed pricing provides stability against a volatile market. No matter what happens, you’ll pay the negotiated supply price for the life of the contract.

  • MCPE + Adder

    MCPE + AdderThis product has a little more risk as your price floats with the market. You can take advantage of lower rates as you accept the risk of price swings. The remainder is fixed, protecting you against hidden costs.

  • Combination

    combinationThere are many variations of the two aforementioned products. By pre-negotiating the price for a portion of the usage, you can take advantage of the best elements of the full fixed and MCPE pricing.

Often, variable rates are lower than utility pricing while fixed rates provide greater pricing certainty. Whether you have one or multiple sites, we have the capability of working with small to large companies to assist in determining the best option for you and your risk tolerance.

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F Natural Gas Procurement

The Natural gas market is an extremely volatile market, experiencing price swings of $.50 to $1.00 per therm in one day. Understanding the natural gas market and the direction it’s likely to move is essential. Learn more about the Marcellus and other shale deposits throughout the nation, which are actual “game changers” in the industry. This and other supply information should and will affect your company’s supply purchasing plan. Natural Gas products that help you save on your natural gas costs are:

  • Full Fixed

    Full FixedFixed pricing offers safeguards from swings in energy costs.

  • NYMEX + Basic

    MCPE + AdderWith this product, the majority of your price will float with the Henry Hub NYMEX market price. This allows you to take advantage of lows, but has the risk of highs as well. The remainder of your supply price is fixed, protecting you against hidden costs.

  • Interruptible Contracts

    ContractsFor customers with duel fuel capabilities, interruptible contracts offer maximum savings. You may also take advantage of mandatory gas service interruptions imposed by the utility.

All suppliers deliver gas into the city gate, but we provide the best pricing, terms and options. Once you have the larger energy picture, it’s much easier to make a decision.

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