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The Choice: Understanding Your Options

Learn How Energy Choice Works for Your Business

How Energy Choice Works
Energy choice allows you to compare rates and additional service offerings from a variety of retail energy suppliers. Then, you can enter a contract to secure your energy at that rate for a defined period of time.

First, you should understand the cost components of your electricity and natural gas service. Typically, your bill includes charges for three components.

  • Supply. Supply refers to the generation of electricity or natural gas. This element of your energy service is deregulated to create competitive pricing based on the economic principle of supply and demand. Companies that generate electricity and natural gas make their supply available through the competitive, wholesale market. These rates will fluctuate based on a number of factors, such as weather and market conditions for other commodities.

    If your business is located in a deregulated market, you can choose a retail energy supplier (or provider) to secure supply from the wholesale market on your behalf at the most favorable rates available.

  • Transmission. Transmission refers to the transportation of the large electricity supply from its source (e.g., a power plant) to the utility’s receiving station. Transmission is regulated by the government to ensure the reliable delivery of energy.

  • Local Distribution. Distribution refers to is the transportation of electricity from the receiving station to your business via wi

    White Papers

    Protecting the Educational Promise:
    Supporting Student Achievement through Best Practices in Electricity Procurement

    Summary: By now, school business officials nationwide have felt the strain of shielding their educational programming budget from the demands of higher energy costs. This white paper was created to help school business officials understand the favorable electricity procurement opportunities that are available in competitive or deregulated markets. We introduce strategies that support the goal of directing the highest possible amount of funding to educational programming by effectively controlling the electricity spend. We describe proven approaches to controlling supply-side electricity costs, with the aim to more accurately estimate rates, secure the most competitive prices available and derive the greatest value from the electricity contract.


    Successful Cost Control in a Volatile Electricity Market:
    6 Fundamentals for Evaluating Buying Strategies for Industrials

    Summary: This white paper describes how industrial businesses can successfully implement a custom procurement approach by evaluating electricity buying strategies in a new way. It sets forth criteria for the request for proposal (RFP) review process and guides the reader through a focused discussion on cost control opportunities within expectations for business performance. Case studies demonstrate the benefits that two industrial businesses have gained by adopting this portfolio approach. Click on the title above to view the white paper.


    Pool Power:
    Bringing Big-business Electricity Choices to Small and Mid-size Businesses

    Summary: An electricity buying pool (also called aggregation) is an increasingly popular option for small and mid-size businesses seeking greater control of their electricity costs, particularly in today's volatile energy market. This white paper serves as a primer for businesses considering joining a pool. We outline the basic concepts behind the pricing for pool members, explain the characteristics of success and offer practical advice for selecting a pool program. Click on the title above to view the white paper.


    Renewable Energy:
    A Key Step on the Road to Sustainability

    Summary: In today's hypercompetitive global economy, organizations are looking for any way to optimize suppy chain management and reduce costs through operating efficiencies. Yet at the same time, they are being held to higher standards for corporate social responsibility, a key element of which is the environmental impact of their business practices. One of the ways companies can demonstrate environmental responsibility is to purchase renewable energy. Unlike traditional fossil fuels, which are in finite supply and emit harmful greenhouse gases when consumer, renewable energy sources, such as solar, wind, hydro and geothermal, cannot be depleted and minimize negative environmental impacts. Renewable energy certificates (RECs) allow companies to purchase the positive attributes of renewable energy and support the continued development of renewable energy generation facilities. This white paper explains the basics of renewable energy and outlines the choices companies have for purchasing RECs and "greening up" their power usage.


    Electricity Choices:
    Understanding the Basics of Market Volatility and Product Choices in a Deregulated Market

    Summary: If you do business in a state that has deregulated electricity, you have the opportunity to choose an energy strategy that suits and supports your business objectives. Your selection process can be complicated by the volatility and complexity of energy markets. This white paper will review some of the market basics, which can help you navigate the selection process. It presents the variables that drive market volatility and an overview of products typically available through retail electricity suppliers. It also includes a discussion guide, which you can use to help you gather the information needed to make electricity choices with confidence.

    res and pipelines. Distribution is also regulated by government agencies.

Energy choice gives you the option to compare the rates, services, and contract terms offered by retail energy suppliers so you can choose a contract that’s best for your business. Your regional utility continues to service the transmission and distribution portion of your electricity and natural gas bill. Your retail energy provider will process your invoicing and payments, and your bill should clearly describe the costs associated with each component of your energy costs.

What Deregulation Means
“Deregulation” is a confusing term; to the consumer, it may suggest that retail energy suppliers operate without rules or standards. This is untrue. Retail energy suppliers must be licensed by a government agency to operate within each service area.

Direct Energy Business Works for Your Business
Competitive energy markets were created to provide consumers with better options for securing their electricity and natural gas. At Direct Energy Business, we help our customers realize the promise of energy deregulation by putting competition to work for you. We are committed to helping you understand your choices, so you can select an energy solution that’s best for you.

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