FAQs
Why should I shop for electricity?
Can I save money by choosing a competitive electric supplier?
If I choose a different electric supplier, what part of my service will change?
How do I know that a different supplier will provide a reliable service?
My electric utility has always been a good company. Why should I switch now?
Who should I call about outages and repairs?
Who do I contact if I have billing questions?
Deregulation 101
Until the mid-1990s the only suppliers of energy in the US were the actual utilities that transported the energy from its original source and then distributed the energy to local consumers. Due to the significance of the service provided to the public, the US government has enforced strict regulatory laws upon the energy utility companies. Since then several states have passed legislation deregulating electricity markets; thus allowing for competition in the energy industry. This results in customers having the opportunity to choose an energy provider in areas that have undergone deregulation. Consumers no longer have to purchase the energy from the utility, for they are able to shop for the most competitive rates from licensed suppliers.
There are three fundamental components to electricity service:
Supply – The generation of electricity with the deregulated area. Consumers may choose an energy supplier. (Deregulated)
Transmission - The transportation of the large electricity supply from its source to the receiving station of the utility. (Regulated)
Local distribution – The distribution of electricity from the receiving station to the consumer. (Regulated)
Energy deregulation is very similar to the deregulated telephone industry, in which you may choose different companies for your long distance service, while your local phone company continues to maintain the lines you use. The transmission/distribution portion of your electric bill (the cost to get the power to you) is still provided by the utility, but you have the ability to shop for the best prices and services available to you in the market for supply or generation.
What is Deregulation?
Electric Deregulation is dividing the power industry up into number of segments. Your local utility will continue to provide you with the transmission and distribution service that it always has; so your reliability is not going to change. What will be changing is who provides the electric generation itself to you, so the actual power coming into your business. Now you’ve got the choice of not just buying that from the utility but buying it from a number of different suppliers who can offer you a number of different term legs and other products that you haven’t had a choice of in the past. So this is not as complicated as it sounds and may have a lot of advantages to your business.
Why should I shop for electricity?
Just like you shop for any household item, you can shop for your electricity to find the best deal and the best service for your needs. Remember, saving just one cent per kWh could translate into more than $100 a year in savings, depending on usage. Competitive offers may not be available in all areas.
Can I save money by choosing a competitive electric supplier?
Depending on where your business is located, you may be able to save money by switching electric suppliers. In the areas where rate caps have already expired, the number of electric suppliers offering services to commercial customers has increased. In some areas, the electric supplier's rate is as much as 10-25 percent less expensive than the default service price offered by the utility. Also, an electric supplier may be willing to negotiate on price or other services to entice you into switching suppliers. Competitive offers may not be available in all areas.
If I choose a new electric supplier, what part of my service will change?
There are three parts to your electric service: generation, distribution and transmission. Generation is the production of electricity. Transmission is the movement of that electricity from where it is produced to a local distribution system. Distribution is the delivery of electricity to your home or business.
When you shop for an electric supplier, you are choosing the company that generates your electricity. For most electric customers who select a new supplier, transmission costs will also be included in the charges from your new supplier. The electric utility that distributes your electricity will remain the same.
How do I know that a different supplier will provide reliable service?
If you choose a new electric supplier, the quality, reliability, and maintenance of your electric service will not change. Your current electric utility will continue to provide the same transmission and distribution service. All electric suppliers must be licensed by your State Public Utility Commission to do business in Deregulated States. Here is the link to your State Public Utility Commission website:
http://www.state.nj.us/rpa/state.htm
I participated in a pre-pay program with my utility, but would like to choose another supplier. What happens to my money?
The money that you deposited in a pre-pay plan and any interest will be applied to your account, no matter who supplies your electricity.
My electric utility has always been a good company. Why should I switch now?
Electric utilities are encouraging customers to shop around because you may be able to save money by switching to a competitive supplier. Regardless of whether you choose a different supplier, your electric utility will continue to deliver your electricity, provide reliable service, and respond to outage problems. The quality, reliability, and maintenance of your electric service should not change as it is still monitored by the Commission.
Who should I call about outages and repairs?
You will still call your electric utility about power outages and repairs.
Who do I contact if I have billing questions?
If you have a question about the generation charges, contact your electric supplier. Otherwise, you should continue to contact your electric utility to report outages and request repairs.
How Do I Switch?
It’s easy. Just tell us a little about your company—along with your historical usage data. Then we present you with a current price. You make a decision and we’ll handle the rest.
Tell Us About Yourself
First off, we need to know all about your business or institution. This includes things like electricity consumption, number of locations—and maybe even historical usage data. We can move on to the next step as soon as we have the information we need.
Get a Proposal ASAP
Next, we do our homework. We may have the occasional follow-up question for you, but otherwise just wait for your GPMS representative to deliver a proposal complete with pricing details.