In energy-choice states such as Maryland and Ohio, businesses can choose who supplies their electricity. That choice can save money, but only if you understand what you are paying for. Here is how a typical commercial bill breaks down.
Two companies, one bill
Your local utility owns the wires and delivers power to your building. That part is regulated and the same no matter who supplies your electricity. The supply portion, the electricity itself, can come from the utility's standard offer or from a competitive supplier you choose.
Delivery charges
These cover distribution and transmission, plus riders approved by your state's utility commission. You cannot shop these charges, but you can make sure your account is on the right rate schedule for how your site uses power.
Supply charges and the price to compare
If you buy supply from the utility, your bill shows a "price to compare." That is the number to beat when evaluating a supplier's offer. If you are already with a supplier, check whether your contract has ended and rolled onto a variable month-to-month rate.
Demand charges
Larger commercial accounts often pay for peak demand, measured in kilowatts, in addition to energy used in kilowatt-hours. A short spike, like starting equipment all at once, can raise demand charges for the month.
What to check
- Is each account on the rate schedule that fits its usage?
- Has a supply contract expired and moved to a higher variable rate?
- Are there meters or accounts for spaces you no longer use?
- Do the meter readings look reasonable compared with prior months?
Most energy-choice states publish a list of certified suppliers and current offers, such as Energy Choice Ohio and Maryland's Electric Choice site, which makes comparing options easier.