Commercial Electricity & Natural Gas FAQ

1. What does it mean that my state is deregulated for electricity or natural gas?
Deregulation means businesses can choose their own energy supplier rather than being locked into the local utility’s default rate. The utility still delivers the energy, but you decide who supplies it — often at lower rates.

2. How do I know if my business is eligible to choose a supplier?
If your business is located in a deregulated state and your account is classified as commercial, you’re eligible to shop for energy suppliers. Your utility bill will typically show a “supply” section that can be switched.

3. What’s the difference between the utility company and an energy supplier?
The utility maintains the power lines, pipes, and delivery infrastructure, while the supplier provides the actual electricity or natural gas you purchase. Choosing a supplier lets you control your rates, not your delivery service.

4. How can switching suppliers lower my electricity or natural gas bill?
Suppliers compete for your business, which drives down prices. By comparing rates, you can find a supplier offering lower costs than the utility’s default rate, reducing your monthly utility bills.

5. Will I still receive the same reliability if I change suppliers?
Yes. Your utility is still responsible for delivery and reliability. Switching suppliers will not affect the quality of service, outage response times, or the infrastructure.

6. What happens if my supplier goes out of business?
If your supplier exits the market, your account automatically returns to your utility’s standard service. You won’t lose power or gas service. You can then choose a new supplier at any time.

7. How are commercial electricity and natural gas rates determined?
Rates are influenced by wholesale energy markets, fuel costs, supply and demand, contract length, and creditworthiness. Commercial customers often receive customized pricing based on their usage.

8. What types of rate plans are available for businesses (fixed, variable, index)?

• Fixed Rate: Locks in a price for the length of your contract, providing budget certainty.
• Variable Rate: Fluctuates month to month with market conditions.
• Index/Hybrid Plans: Tied to wholesale prices with some flexibility.

9. Can I lock in a fixed rate to protect my business from market volatility?
Yes. Fixed-rate plans allow you to stabilize costs and avoid unexpected spikes in electricity or natural gas markets. Many businesses prefer this option for budget forecasting.

10. Are there hidden fees when switching energy suppliers?
Reputable suppliers are transparent about costs. Always review contracts for early termination fees, demand charges, or other conditions. A trusted broker can help you spot hidden terms.

11. How do I compare supplier offers to make sure I’m getting the best deal?
Compare more than just price. Review contract length, terms, renewal options, green energy choices, and any extra fees. Working with an energy consultant ensures you compare apples to apples.

12. What information do I need to provide to get an accurate quote?
Typically, suppliers need a copy of your recent utility bill, which shows account details, usage history, and peak demand. This helps them provide precise and competitive pricing.

13. How long does it take to switch to a new supplier?
Most switches occur on your next meter-read date, which can take one to two billing cycles. There’s no disruption in service during the transition.

14. Will my utility company still deliver my electricity or natural gas?
Yes. The utility continues to handle delivery, maintenance, and emergency response. Only your supply cost and supplier name will change on the bill.

15. Is my business too small to benefit from comparing supplier rates?
No. Even small businesses can achieve meaningful savings. Every commercial account has the right to shop for competitive rates.

16. Can multi-location businesses combine accounts for better pricing?
Yes. Aggregating multiple accounts or locations under one supply agreement often results in better rates and simplified billing.

17. What happens at the end of my energy supply contract?
If you take no action, you may roll over into a variable month-to-month rate, which is usually higher. Reviewing and renewing contracts before they expire ensures ongoing savings.

18. Will switching suppliers affect my utility’s service or response during outages?
No. Outage repairs, gas leaks, or emergencies are still handled by your utility regardless of your supplier. Service reliability is not affected.

19. Can renewable energy options be included in my commercial electricity contract?
Yes. Many suppliers offer “green” plans with renewable electricity or carbon-offset natural gas. This allows your business to support sustainability goals while saving money.

20. How much could my business realistically save by comparing suppliers?
Savings vary based on market conditions, usage, and location, but businesses in deregulated states often save 10–30% compared to default utility rates. Larger users may save even more.