faq

1. What is the difference between electricity supply and delivery?

• Answer: Supply is the cost of the electricity you use, while delivery is the fee for transporting it to your home or business.
• Example: You can choose a different supplier for your electricity, but the delivery charge will come from your local utility.

2. What is electricity deregulation?

• Answer: Electricity deregulation allows consumers to choose their electricity supplier while still receiving service through the existing utility infrastructure.
• Example: Texas is deregulated, allowing businesses to select their preferred electricity supplier.

3. Can I switch electricity suppliers in my state?

• Answer: If you live in a deregulated state, you can switch suppliers. Check your state’s regulations to confirm.
• Example: In Illinois, businesses can shop for competitive electricity rates.

4. How do I compare electricity rates from different suppliers?

• Answer: You can compare rates by reviewing supplier offers, looking at fixed vs. variable rates, and checking any additional fees.
• Example: Websites like ChooseEnergy or Bid On Energy can help compare rates across suppliers.

5. What is a fixed-rate plan?

• Answer: A fixed-rate plan locks in your electricity price per kilowatt-hour for a set term, protecting you from market fluctuations.
• Example: You sign a 12-month fixed-rate contract at 9 cents per kWh.

6. What is a variable-rate plan?

• Answer: A variable-rate plan means your electricity rate can change monthly based on market conditions.
• Example: If the market rate increases due to high demand, so will your electricity cost under a variable-rate plan.

7. How can I reduce my electricity bill?

• Answer: You can reduce your bill by using energy-efficient appliances, switching suppliers, or signing up for a time-of-use plan.
• Example: Installing LED lights or using smart thermostats can lower your energy consumption.

8. What is a Power Purchase Agreement (PPA)?

• Answer: A PPA is a contract between an electricity generator and a purchaser where the buyer agrees to purchase electricity at a set price for a specific term.
• Example: Many businesses use PPAs to secure stable electricity prices for the long term.

9. What happens if I switch electricity suppliers?

• Answer: Your new supplier will provide the electricity, but your local utility will still handle delivery and maintenance.
• Example: If you switch to a lower-cost supplier, your bill may decrease, but your utility remains the same.

10. Will my electricity service be interrupted if I switch suppliers?

• Answer: No, switching suppliers doesn’t interrupt service. The transition happens seamlessly.
• Example: When switching suppliers, the local utility will still deliver the power, so there’s no service disruption.

11. What are time-of-use rates?

• Answer: Time-of-use rates charge different prices for electricity based on when you use it, with higher rates during peak hours.
• Example: Electricity might cost 15 cents per kWh during peak hours but only 8 cents per kWh during off-peak hours.

12. What is net metering?

• Answer: Net metering allows customers who generate their own electricity (e.g., through solar panels) to sell excess power back to the grid.
• Example: A homeowner with solar panels can earn credits for extra electricity they feed into the grid.

13. What fees can I expect on my electricity bill?

• Answer: Typical fees include supply charges, delivery charges, capacity charges, and possible demand charges for businesses.
• Example: A delivery fee covers the cost of maintaining power lines and is separate from the energy charge.

14. What are peak demand charges?

• Answer: Peak demand charges apply when your electricity usage reaches its highest point during a billing cycle, typically in commercial settings.
• Example: A factory running multiple machines at the same time might incur peak demand charges.

15. Can I go back to my utility for electricity supply if I switch?

• Answer: Yes, in most deregulated markets, you can return to your utility’s default service at any time.
• Example: After trying a new supplier, you can revert to your local utility if their rates are better.

16. What is a capacity charge?

• Answer: A capacity charge ensures the utility has enough power to meet demand, especially during peak periods.
• Example: Even if your business uses less power overall, you may still have a capacity charge for peak usage periods.

17. How often can I switch electricity suppliers?

• Answer: You can switch as often as your contract allows, but be aware of any early termination fees.
• Example: Some fixed-rate plans charge a fee for switching before the contract ends.

18. Do I need special equipment to switch suppliers?

• Answer: No, the switch happens behind the scenes without any need for equipment changes.
• Example: Whether you switch suppliers or not, the same infrastructure delivers your electricity.

19. Why is my electricity bill higher in the summer?

• Answer: Summer bills are higher because of increased demand for air conditioning, which uses more electricity.
• Example: If you use air conditioning heavily in July, expect higher energy usage and a larger bill.

20. What is an energy broker?

• Answer: An energy broker helps businesses and consumers find the best electricity rates by comparing offers from various suppliers.
• Example: A commercial building might use an energy broker to negotiate lower rates for their electricity supply.

21. What is renewable energy?

• Answer: Renewable energy comes from sources that are naturally replenished, such as wind, solar, and hydroelectric power.
• Example: Many businesses purchase renewable energy credits (RECs) to offset their carbon footprint.

22. What are Renewable Energy Credits (RECs)?

• Answer: RECs certify that electricity was generated from a renewable source. Consumers can buy RECs to support green energy.
• Example: A business can purchase RECs to claim they are using renewable energy, even if they don’t produce it on-site.

23. How is electricity priced?

• Answer: Electricity is priced per kilowatt-hour (kWh), and the rate depends on supply costs, delivery fees, and market conditions.
• Example: You might pay 10 cents per kWh for your electricity, but additional charges can affect the total bill.

24. What is a kilowatt-hour (kWh)?

• Answer: A kWh is a unit of energy that equals the use of 1,000 watts of electricity for one hour.
• Example: Running a 100-watt light bulb for 10 hours consumes 1 kWh.

25. What is the default service rate?

• Answer: The default service rate is the price your utility charges if you don’t select a competitive supplier.
• Example: If you don’t switch suppliers in a deregulated state, you will pay the utility’s default rate.

26. What is an early termination fee?

• Answer: An early termination fee is a charge for leaving a fixed-rate electricity contract before the end of its term.
• Example: If you cancel a two-year contract after one year, you may owe a fee for breaking the agreement early.

27. How long does it take to switch electricity suppliers?

• Answer: It typically takes one to two billing cycles for the switch to be reflected on your bill.
• Example: After signing up with a new supplier, you might see the change on your next or second bill.

28. What is load factor?

• Answer: Load factor measures how efficiently electricity is used by comparing average usage to peak usage.
• Example: A business with a high load factor uses electricity steadily, reducing demand charges.

29. What are demand response programs?

• Answer: These programs incentivize consumers to reduce energy use during peak times to prevent grid overloads.
• Example: Businesses may participate in demand response by powering down machinery during peak hours in exchange for bill credits.

30. Can I choose green or renewable energy?

• Answer: Yes, many suppliers offer renewable energy plans that provide power from sources like wind and solar.
• Example: Businesses can opt for a green energy plan that sources electricity from wind farms.

31. What is community choice aggregation (CCA)?

• Answer: CCA allows local governments to procure power on behalf of residents and businesses, often with renewable energy options.
• Example: A town might set up a CCA to purchase greener electricity for its residents at competitive rates.

32. Why do electricity rates fluctuate?

• Answer: Rates fluctuate due to factors like fuel costs, weather, and market demand.
• Example: A spike in natural gas prices might cause electricity rates to increase temporarily.

33. What is the Public Utility Commission (PUC)?

• Answer: The PUC regulates utilities, including approving rate changes and overseeing consumer protections.
• Example: The PUC in Pennsylvania ensures that utility companies charge fair rates to consumers.

34. What is off-peak electricity?

• Answer: Off-peak electricity is power used during times when demand is low, typically overnight, and it costs less than peak electricity.
• Example: Businesses with time-of-use plans can save money by scheduling energy-intensive tasks during off-peak hours.

35. What is grid reliability?

• Answer: Grid reliability refers to the electric grid’s ability to consistently deliver electricity without outages.
• Example: Utility companies invest in grid reliability to prevent blackouts, especially during storms.

36. What is a smart meter?

• Answer: A smart meter records energy usage in real-time and can communicate this data to the utility for more accurate billing.
• Example: Smart meters can help businesses track and reduce their energy consumption during peak periods.

37. Can I get financial assistance with my electricity bill?

• Answer: Many utilities offer financial assistance programs for low-income customers to help with electricity costs.
• Example: A customer in Texas might qualify for bill assistance through the Low-Income Home Energy Assistance Program (LIHEAP).

38. What are ancillary services?

• Answer: Ancillary services support the transmission of electricity and maintain grid stability.
• Example: Services like voltage regulation or frequency control help ensure the grid operates efficiently.

39. What is power factor?

• Answer: Power factor measures how effectively electrical power is being used, with a lower factor indicating inefficiency.
• Example: A manufacturing facility with a low power factor may face higher electricity charges due to inefficient equipment.

40. What is distributed generation?

• Answer: Distributed generation refers to electricity generated from decentralized sources like solar panels or wind turbines located near the point of use.
• Example: A business with rooftop solar panels is participating in distributed generation by producing some of its own electricity.