A state becomes deregulated when its officials deem the local utility is a monopoly and allows 3rd party energy supply companies (ESCO’s) to purchase energy from the energy grid.
- The first state to be deregulated in the United States was California in 1996.
- Not all states and/or utilities are deregulated, to date 17 states offer 3rd party suppliers.
Vantage Etc. Energy Solutions
Why use Vantage Etc.? Regardless of if you're currently with an energy supply company or with the local utility, utilizing vantages services can only benefit your company.
- Most people don’t realize, some states have up to 200 energy supply companies. By using Vantage Etc., your ability to shop the energy market immediately becomes more extensive.
- There are many types of contracts and lengths of energy purchasing contracts.
- What would be the best contract length for your facility?
- What are some of the many pitfalls an energy contract could have?
- Do you know your portfolio’s 24 month average KWH/Therm usage and cost?
- What facilities in your portfolio are the most energy efficient?
- How does your facility or portfolio compare to surrounding facilities when it comes to energy efficiencies?
- What can your facilities do differently to start saving money today?
- What programs are available to help pay for energy upgrades?
- What other ways can you save that only an expert energy solutions company and third party engineers can come up with?
Energy Supply Company (ESCO)
Unlike the local utility (Con Edison, PSE&G, National Grid, Com Ed, etc…) third party ESCO’s have the ability to offer programs a facility cannot obtain from their utility. Example: The local utility cannot offer a fixed supply rate, they only have the ability to offer a month to month fluctuating rate that can drastically change the cost of your energy bill from month to month. A fixed has the ability to decrease billing fluctuations and assist with budget control.
With the many options available; which procurement option is best for you?
- NYMEX Plus
- Fixed adder
- Fixed (6,12,18,24)
In some cases there may even be a significant tax reduction on your invoice when using an energy supply company.
Energy Contracts - What to look for?
Vantage Etc. will assist with guiding clients through the many pitfalls a contract may consist of:
- Single or Dual billing – With most energy supply companies you have two options:
- Consolidated Billing - The ability to receive one invoice from the utility each month and the ESCO will put their portion directly on the utility bill.
- Dual Billing – Both the Utility and the ESCO will send bill separately. There are pro’s and con’s with both methods.
- Force Majeure Clauses – This is the area in the contract that allows the energy supply company to determine what consists of an “act of god”.
- Pass through charges – Many contracts allow certain charges to be used as pass through charges. If done by design this method can be very profitable. When done incorrectly or by accident it can be very costly. Our team of experts will explain when and how these charges can work in your favor.
- Swing Ratio– A facilities historical usage plays a big factor on how to purchase energy. Swing Ratio is another important line item in a contract that can work in your favor or totally against you. It’s important to know all of the aspects of this clause and how to take advantage of it.
- Surveying Vendors – Vantage puts their vendors through rigorous testing and background checks prior to utilizing them as a vendor. We keep a preferred vendor list that could only be created through experience and evaluating how companies respond to mistakes and market changes. Anyone in business knows things don’t always go perfectly, which is why, one of the most valuable intangible benefits Vantage brings to the table is steering clients clear of poor performing vendors.
- 14 Point Post Contract Checklist - Just because a contract is signed it doesn’t mean the work should stop. It’s important to have a firm that is going to be with you every step of the way as the savings you’re expecting to receive can go away with one mistake.
Our experience has shown without going through the proper steps, many problems surface after a contract is signed.
Aggregates & Energy Alliance Programs
You may be eligible for a program and don’t even know it. Vantage Etc. has over 3,000 corporate clients in the Tri-State and is growing every day. Through volume purchasing, Vantage Etc. has saved company’s significant money over the years. Vantage Aggregating Flyer
- Benefits in Bulk Purchasing:
- Increase your energy purchasing capability by joining hundreds of facilities, like yours.
- How to find out if your facility or portfolio is eligible? What information do I need to provide?
- Q&A on aggregation
- How will my facility benefit?
- By joining one of our aggregates your facility will benefit in a number of ways: 1) A greater volume will be priced which typically results in lower rates 2) automatic enrollment in a proprietary tracking system that allows your organization to track (Gas, Electric, Water, Propane and/or Oil) on a month to month basis at the touch of your fingertips.
- Reduced fees on all added value and energy efficient services Vantage Etc. offers.