Deregulation. Turning Complexity into Opportunity
Across the country, power markets are being deregulated. This means you may
already have the choice to buy your electricity from a number of electric
suppliers and have the freedom to achieve lower costs. At the same time, you
will continue to receive the same dependable distribution service from your
utility. The timing for deregulation has varied from state to state.
Pennsylvania began its deregulation process in 1997, Maryland in 2000, the
District of Columbia, Delaware, New Jersey, and Northern and Central Virginia
in 2001. More recently, Illinois, New York, Texas and Massachusetts have opened
their electricity markets to deregulation.
Deregulation Makes Knowledge Imperative
Buying electricity in a regulated energy market is a relatively simple process.
You buy from your local utility at the prescribed all-inclusive rate that has
been approved by your state's regulators. In this regulated price structure,
virtually all large energy users pay the same rate.
In a competitive energy market, however, purchasing electricity will be more
complex but you will receive a price customized to reflect your specific
electricity use. Obtaining the best value for your energy dollar in a
deregulated market will require an analysis of how you use energy. To determine
the best price, every retail supplier will be required to have your
authorization to obtain usage information from your utility.
Let Pepco Energy Services Show You the Way
As a result of these complexities, many large-scale energy users are
recognizing the value that an energy partner, like Pepco Energy Services, can
bring to the entire energy management picture. Pepco Energy Services can work
as your energy partner in the following ways:
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Develop a View of Your Energy History and Needs
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Provide Energy Risk Assessment
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Provide Demand Response Services
What You Can Do to Be Prepared
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Identify a person in your organization who can authorize the release of your
electricity usage data to a potential supplier. Pepco Energy Services must
obtain written authorization from you to obtain basic information about your
usage. This data will be required to provide you with the most effective price.
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Understand the energy consumption of your facilities and the rates you
currently receive from the utility for the same service. This is one of the
most important items in your evaluation of a supplier's offer - the
supplier's cost to serve your hourly usage characteristics.
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Ask Pepco Energy Services if combining multiple facilities may improve
aggregate usage characteristics and possibly your price.
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Understand the price from your utility for its default service. To evaluate a
supplier's offer, you will need to know the rates your utility charges for the
same service. This price times your usage is the unique "shopping credit" or
the "price to compare" for each of your facilities. Averages rarely apply to
individual customers. Your unique usage characteristics will determine your
actual shopping credit.
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Once you select Pepco Energy Services as your supplier, we will notify the
utility that you have selected us. This step is called enrollment. We, in
turn, must notify your utility at least 17 days in advance of your next meter
reading date.
Other Considerations when Evaluating Retail Electricity Suppliers
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How can you shape your load profile to minimize costs?
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What are other alternatives to improve your facilities' energy efficiency:
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Retrofit equipment (e.g. HVAC, lighting)?
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Maintenance practices on major equipment?
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Can you control the load when feasible? Have you considered:
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Energy Management Systems?
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Operating Schedules?
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On-site Generation?
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Energy Substitution?
