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Our FAQ

Frequently Asked Questions

 

Our FAQs are designed to give you an overview of the energy technology questionnaire you might have, so you’ll have the confidence to go save extra money for your business.

Deregulated States Map

Map of Deregulated Energy States & Markets

No state has an energy market that is completely deregulated in the United States. The closest US state is Texas with approximately 85% of the state having access to energy choice.

General Questions

Why do I need an energy consultant?

Because ensuring you are receiving the best possible value now, remain positioned to take advantage of purchasing opportunities in the future, and negotiating the most favorable contract terms attainable is a full-time job that requires considerable expertise. In other words: you make widgets, and you’re very good at it because you are a professional widget maker. In a pinch, we MIGHT be able to make widgets, but the results wouldn’t be nearly as good, and in the end, it would cost us money. Let us do what we do best while you do what you do best. This produces the best results for everyone.

Why shouldn’t I just work directly with the supplier?

You can. However, the question is “should you?” Quick! Tell me what “LMP,” “RUC,” “UAE,” and “RTP floor” mean. Extra credit if you can tell me what a contango market is, or how nodal pricing can affect your bill? Know why a flat block of power is less expensive than a shaped one? Of course you don’t know these answers; why should you? And even if you did, do you really have the time to watch market indicators all day like we do? And another thing: the salesperson with the supplier works for the supplier; we work for you, and will do what is in your best interest.

You are one of the several energy consultant to call me this month; why should I do business with SEC?

I’m glad you asked. Here are just a few of the reasons we believe we can deliver the best results:

Integrity – We always hold ourselves to the highest ethical standards and honor our commitments. We foster a culture of transparency and ownership in our collective conduct. All our values are “non-negotiable” and will not be compromised for personal or corporate gain. We consistently apply moral and principled behavior in all our transactions, which builds trust in the client-advisor relationship.

Experience – We’ve been in the business of providing energy consulting services since 2006. Our management team, consultants, and analysts are all seasoned professionals and possess extensive energy backgrounds, with some exceeding 20 years.

Results – We have negotiated millions in electric and natural gas commodity contracts, saving our clients an average of 20% with our managed products.

Technology – You might ask, “How do you know how much you’ve saved your clients? Can you prove it?” Yes, we can, and quite easily. That’s because our data management platform tracks contract performance against the market. It also audits bills, interfaces with Energy Star can tell you your carbon footprint, builds budgets in minutes and processes thousands of utility bills to interface with your accounts payable system without you having to lift a finger. That’s just scratching the surface of what our industry-leading technology can deliver.

What’s the difference between an SEC and other consultants?

A broker works to get you the best price available at a given time, and you are not likely to hear from them again until it’s time to renew your contract. A consultant works to establish comprehensive energy management and risk mitigation strategy to not only obtain a great price and contract terms now but keep you positioned to manage overall cost and risk avoidance for the long run. Consultants typically offer additional “value-add” services such as energy data management, demand response, and utility bill processing. SEC, as your consultant, would actually be an extension of your own staff, working closely with you for the benefit of your business.

Can SEC save my business money?

Most energy brokers or consultants immediately answer this question “YES!” SEC’s answer is “It depends.” Savings can be defined in a number of different ways. Is it a comparison of one price versus another? Does it factor in non-price criteria? Does it account for avoided workload or risk? SEC cannot assess savings until we perform an assessment of your current energy information. We are proud of our track record of providing significant savings and creating significant value for our clients, but we will not promise anything until we analyze your situation. If we can help you, we will tell you. If we can’t, we will tell you that also.

Can SEC guarantee my business a lower energy price than I can obtain on my own?

No we cannot; there are too many factors beyond our control. However, with our experience and expertise in retail energy markets, and the leverage we gain through our large client portfolio, we strongly believe we can deliver your business a highly competitive energy price. Plus you don’t have to deal with or worry about a lot of the details and time it takes when you entrust SEC to work on your behalf. We work hard for each one of our clients to achieve the best energy result possible.

What markets does SEC serve?

SEC currently serves clients in most deregulated markets across the U.S. and is equipped to serve any deregulated market. Click Here are some among the many of electricity and natural gas markets SEC served its clients (Texas, New York, New Jersey, Pennsylvania, New Hampshire, Rhode Island, Ohio, Illinois, California)

What industries does SEC serve?

We can serve any industry that consumes electricity or natural gas. Some of the common industries we serve include education, commercial real estate, healthcare, industrial and manufacturing facilities, retail stores and chains, and restaurants. Some of our clients are small and some are very large.

What does it take to begin your energy procurement process?

This depends slightly on the market or markets your business is located in, but we can usually provide a quick analysis with information on your energy consumption and costs, typically obtained from recent invoices and a Letter of Authorization (LOA) form. Depending on the outcome of our free analysis, we then evaluate your risk tolerance, unique needs, product options, market conditions, and potential retail suppliers to make a recommendation for a strategic course of action.

Are offers from alternative electricity suppliers all the same?

No. Each supplier has its own product offering, and customers need to ask questions. How much bandwidth is allowed per contract? Are capacity costs included or passed through to the customer? Will transmission costs vary from month to month? We provide each client with an apples-to-apples comparison of each supplier’s pricing and contract terms. This allows our clients to know exactly what’s in each contract and to avoid surprises down the road.

Will I incur any fees by switching to an alternative supplier?
No. Our alternative suppliers do not charge switching fees.
Do I need to worry about reliability if I switch?

No. The delivery of the electricity is still a regulated function, and the utility is mandated to ensure the reliability of all customers’ electric service within their service territories. You have nothing to worry about if you switch.

What changes can I expect as a result of the switching process?

There are no physical changes because this is strictly a financial transaction. The only difference is that your monthly invoice for electricity may come from another company.

Whom do I call if my power goes out?

The delivery of the electricity is still regulated and maintained by the local utility. A customer whose power goes out should contact the local utility immediately to report the outage.

Is my state deregulated?

Depends on the state you reside or where is the business is located.

Do you do residential accounts?

No, we do not. The best way to choose your residential energy provider is to log on to powertochoose.org. There you can educate yourself on the energy-buying process and review the competing rates. We advise searching bids with a fixed rate with a one to a two-year term. Other items to consider are the service charges (set monthly fees) and contract cancellation fees. Also, less energy use can sometimes mean a higher rate – at what point that happens in your kilowatt-hour use and at what cost varies from REP to REP. You can find and compare that information on powertochoose.org.

What does SEC charge?

Customers pay nothing to CEC for bidding out their power. CEC is paid a commission from the winning REP for bringing them the business. The REP could add the CEC commission to the submitted energy cost during a competitive bidding process, but they risk losing the bid to another REP. The REP cuts their own commission to the quick in an effort to win the business. If the customer goes straight to a REP for a quote, the REP will sometimes even throw an inflated price to the customer to see if the customer (usually uninformed of current prices available) will accept it. Even when a REP cold calls a customer, it is sometimes a “third party” to whom the REP has to pay a commission. A competitive bid is always the best way to get the lowest price for energy.

*We have no deal with one REP to give it our clients’ business. After the bidding process is complete, CEC always analyzes the results to advise our clients regarding which REP is offering the best combination of rate and contract terms on that bid.

Which REP is the best?

If you are interested in more about a REP than the net energy rate that it offers – such as a REP’s environmental/social responsibility, history or values – SEC can help walk you through all the possibilities to find the REP that best meets your needs.

Will the REP I choose effect the reliability of my service?

No. When Texas deregulated the electric rates in 2002, they separated the pole and wires charges from the “retail energy rate.” The company that services the actual poles and wires in your area will always be the same, no matter which REP you choose. As such, you will get the same utility service to which you’ve been accustomed during storms, downed lines, etc. Your wires company is determined by and regulated by the Public Utilities Commission [PUC].

What is the bidding process like?

Once you decide to send your load out for bid to REPs via SEC, we will send you an LOA (Letter of Authorization) request form for you to sign so that we can get your usage information from the wires company in your area. Once we have your usage information from the wires company, we’ll discuss with you the details and set a date to bid your load out to the REPs. We’ll receive bids back that same day – and if they look right – will choose an REP and sign a contract before the end of business on that day. Because energy fluctuates with the price of natural gas, prices from the REPs are only good for that day, which will mean that it is necessary for you to be available to sign a contract during a small window of time.

About Our Premium Support Consulting Services

Premium Support

Saba Energy Consulting offers a variety of specialized services to meet clients’ electrical and energy needs. These include but are not limited to – predominant-use studies, energy audits, and metering expertise.

What Is "Deregulation"

Deregulation is the process of removing or reducing state regulations, typically in the economic sphere.

In regulated markets, consumers have no choice but to purchase electricity and natural gas from the local utility at prices regulated by the state and federal government.

The government deregulates energy by reforming old laws and passing new ones that change who can produce and sell energy.

When multiple suppliers compete on the market, prices remain lower—because of competition.

When is the best time to bid out my load?

Since electricity prices change daily, bid timing is very important. If we see prices trending up or down, we’ll advise you on the current trend when you call. But the price of energy ebbs and flows with the price of natural gas, so while we can analyze trends over long periods of time, predicting the price today versus the price tomorrow is usually just an educated guess.

How long are the contracts with the REPs?

That is up to you. Most contracts are between 1 and 3 years. Part of what we do is analyze the current price against how prices have been trending the last three years and help you make that decision, but that decision is ultimately in your hands.

Why couldn’t i go to a REP by myself?

You can, but you’ll probably end up paying a higher price. We receive and analyze daily pricing from the REPs and know the difference between a good and bad rate. We also know the difference between a good and a bad contract. A good rate could end up costing you more because of hidden fees in a bad contract. We know what they should and shouldn’t be charging you. The bidding process gets the lowest price and the best contract – we make sure of that.

When can I send my load out for bid?

The first question we’ll ask you when you contact us is “Are you currently under contract with an REP?” If you don’t know the answer to that, you can call your REP or we can help you find the answer. If you are currently under contract, we can mark the end of your current contract on our calendar so we can be prepared to connect with you when your term ends. In you’re within the last few months of your contract, we can help you get a contract set up to begin when your current term ends.

How much can I save?

Many of our customers save thousands of dollars a year by using SEC to bid their loadout. Even a 10th of a penny can sometimes save several times more than our fee if there is a fee. The size of your savings will depend on the size of your load, but you will always save.

Is my state deregulated?

Depends on the state you reside or where is the business is located. See deregulated states above on this page.

Contact Us for answers not listed here.

If you cannot find the answer to your question, please contact us.