NG: $2.163 0.062 (+2.95%)
CRUDE: $41.51 0.500 (+1.22%)

EDUCATION


ENERGY 101

FREQUENTLY
ASKED QUESTIONS


  • By switching to a lower rate with any retail energy supplier (RES) also known as a retail energy provider (REP). You have to ensure you do a thorough apples-to-apples comparison. “Full-Fixed rate,” has many loose interpretations in the retail energy industry. Hence, ask for “Full-Fixed/Full-Requirements Energy Rate."
  • Ananta Note: To be thorough, ask for a full-requirements energy rate, that includes the cost of energy plus the cost of capacity (if you’re in a capacity market), transmission, congestion, ancillary, losses, etc.
  • An Energy Supplier is also known as an Energy Provider and they purchase energy from the open market. If the contract makes sense, they can hedge your energy budgets at discount rates providing your business savings and price stability. An Energy Distributor is the local utility company that is responsible for the delivery of power and gas to your home and/or business. They’re also responsible for the maintenance as well.
  • You can contact an electricity supplier directly, or work with an energy broker who can navigate you step by step. Have an electric bill ready because connecting with your utility and pulling historical usage will be important, so the electric supplier can determine how many kilowatt hours your home, or business may require. You can always sign up online without a bill, but rest assure daily online rates have padding on those rates. For more information on why, contact us and consult with an energy broker with 13+ industry experience and contacts.
  • 1. You are switching your rate to a lower rate (is the goal).
  • 2. In order to do that, you will be switching your energy supply services to an energy provider who will purchase all of your energy quantities for you in bulk and upfront. (ie: Generation/Supply Charges on your electric bill, which can be 50% - 70% of your entire energy bill)
  • Ananta Note: You will NOT be switching your reliable services with the Energy Distribution company. They will continue to handle delivery, meter-reading, and maintenance. Hence, 30% - 70% of your electric bill will be paid to them.
  • Ananta 2nd Note: Excluding TX, most deregulated energy markets that have Customer Choice Programs allow you to keep the same utility billing comp as long as you ask for Utility Consolidated Billing (UCB), you will NOT be switching your billing company.This will ensure your local utility (ie: ComEd in Chicago, or AEP in Columbus) continues to bill you a single bill that will detail out what you’re paying for energy supply vs. energy distribution. .
  • In TX, It can. They have an option called, “Priority Move-In,” but in order to do same day enrollments, energy agreements have to be enrolled by a specific time around between 2p - 3p (CST), and it really comes down to which energy supplier is processing the enrollment with the local utility (ie: Oncor, Centerpoint, TNMP, AEP)
  • Everywhere else, it normally takes up to 2 billing cycles for a new energy contract’s rate to go into effect. If you’re already with an energy supplier, most utilities require energy suppliers to submit an energy contract on average 20 days before the customers meter-read date. Incumbent energy suppliers who are renewing can do same day renewals if desperate.
  • Sometimes it’s a timing issue. Energy prices do change daily. Other times it’s a volumetric issue as in if you guys are using the same amount of energy. If it’s not those two reasons, then it’s how you are using the energy. Especially on larger commercial deals. Load factor and timing can play a big role as to why you cannot get the same rate as your friend.
  • Yes, this is called pooling power and also known as an aggregation. If you are pooling several accounts together, ensure all accounts are looking to begin with the same start-date. In the event you combine several accounts, and have staggered starts between multiple energy providers, then risk premiums can be built into the hedge, thus defeating the purpose of pooling power, and building an aggregate.
  • Most markets will allow for this, Yes.
  • The Price to Compare also known as the rate to compare is the current rate you’re paying for your energy supply (aka Generation Services/Supply Charges) charges. Normally representing 50% - 70% of your energy bill, your PTC is the rate you want to lower with an energy provider.
  • In TX. YES. When you change suppliers, your billing will change with the new supplier, and the TX local distributor charges will be itemized on your energy bill.
  • In other markets, most energy suppliers work with the utility companies and provide utility consolidated billing (UCB). If you want to receive 1 single bill from your new supplier, that is an option for some energy suppliers, but rarely requested. In the event you want to receive two separate bills in most markets outside TX, you can do that too. You can request for dual billing, where 1 bill is strictly energy supply services, and the other bill is strictly distribution charges.
  • Yes
  • Outside of TX, you can receive one single bill from the energy supplier for your energy supply, and one single bill from your local utility for the energy distribution.This is rarely requested anymore, but for some organizations who truly want to track what they’re spending on energy demand vs. actual energy usage, dual billing might be advantageous for you.
  • If you are receiving two bills, the energy contract you signed up for had a dual-billing option checked off during your enrollment. If it’s a mistake, some suppliers allow you to change it mid-energy agreement. Other energy suppliers would not allow it and wait till the agreement expires to change it.
  • A Gross Receipts Tax is assessed in specific deregulated energy markets like Pennsylvania and is the tax is based on gross receipts from sales of electric energy within the state of Pennsylvania. This rate is 6.27% of your energy supply rate, so make sure this rate is included in your apples-to-apples comparison with your PTC.
  • It depends on the energy provider. Some are easy to work with and will allow you to do it with no CC fee, but you will have to sign up for their single billing option through the energy provider. Others might charge a premium. In several markets where the billing is coming from the utilities via UCB (Utility Consolidated Billing), you’d have to reach out to the local utility to see if they accept Credit Cards. Some do, and some don’t. The utilities that do allow it will normally charge some type of fee and in most cases it’s nominal.

UNDERSTANDING YOUR CITY ELECTRICAL BILL

Understanding your electric bill can be challenging at times especially if it's something you're not paying attention to every single month. While some do understand what's going on with their bill, most folks just get their bill, pay it, and either file it, or throw it away. Which one are you?

Ananta Energy Source would like to break down your electric bill for you providing a brief overview of all the line items. There are some variables you as a consumer have control over, and then there's other variables you don't have control over. Over the course of the next few weeks, we will be uploading some simple PDF images that break down the differences and hopefully, this will help you lower your utility bill.

CALCULATE YOUR CITY ENERGY RATE

Understand your rate using our electric bill calculator

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