Making an informed choice in the new energy market requires you to do some comparison shopping. In order to make that comparison, you need to know these three things:
1. Your Electric And Gas Usage
You can get this information from your bill or utility.
2. What Your Utility Charges
Your utility can provide information to you about your electricity or gas usage and what if charges you for supply and delivery.
3. What ESCO's Charge
Compare the price of the electric or gas supply portions of your bill to offers from competing ESCO's.
ELECTRIC COST
Electric Supply -- Open to Competition
Electric Delivery -- Regulated utility service
Electricity supply-which represents about 50% of an electric bill-is open to competition. If, for example, your monthly electric bill is $100, you are paying about $50 for electricity supply. This is the competitive portion, and you can shop among ESCO's, as well as your local utility, for the best price. In this example, you are paying about $50 for electric deliver.
GAS COST
Gas Supply -- Open to Competition
Gas Delivery -- Regulated utility service
Gas supply-which represents about 75% of a gas bill-is open to competition. If, for example, your monthly gas bill is $100, you are paying about $75 for gas supply. This is the competitive portion, and you can shop among ESCO's, as well as your local utility, for the best price. In this example, you are paying about $25 for gas delivery.
Many states electric and natural gas utilities once operated as regulated monopolies, supplying and delivering such energy to you. Things have changed.
The combined services that were offered by your utility company have been split into two parts--supply and delivery, with the supply portion open to competition. You no longer have to buy your electricity or gas only from your local utility. Instead, you can shop among Energy Service Companies (ESCO's) that are competing for your business. This change in the energy market has brought about new products and services, and should give you better value for your energy dollar. Each utility service territory has a least three ESCO's serving electric customers and three ESCO's serving gas. Most territories have many more. Utilities are still responsible for delivering electricity and gas to your home or business using their existing wires and pipes and responding to electric and gas emergencies. The safety and reliability you've come to depend on won't change.