Prior to the enactment of deregulation laws you had only one choice when it came to your energy supplier. The rates were regulated and there were no competitive forces to help reduce those rates.
The effect of deregulation?Numerous providers enter the market, compete for your business and give you many supply options. That translates into more competitive energy rates.
Because of deregulation, you now have the choice to buy your energy from companies other than your local utility. The companies that have entered the market are called Retail Energy Providers (REPs). You should not have any greater concern dealing with an REP than you would with your local utility. REPs have to register with and adhere to strict Public Utility Commission/Public Service Commission standards, just like the legacy utility.
What changes occurred for the local utility after deregulation?In most cases they had to divest their generation assets, so now they don’t own or control any power plants. They still own, operate and maintain the delivery infrastructure (i.e. pipes, poles and wires). Your current Transmission, Distribution and Services Provider (TDSP or TDU), which was part of the legacy utility, is still responsible for delivering your electricity and natural gas regardless of which provider you select. Since they are not a supplier, they are indifferent which provider you select.
No! Regardless of which energy provider you select, your electricity and natural gas will continue to be delivered safely and reliably by the local utility in the same manner as it always has been delivered.
No. The switching process is seamless and you will experience no disruption of service.
In the unlikely event that occurs, you would still have your energy delivered without interruption. However, you would be served and billed by the default provider. We would immediately look at options for selecting a new supplier.
No matter who your supplier is, you always call your local utility. Remember, they still own, operate and maintain the delivery infrastructure (i.e. pipes, poles and wires). You should be able to find their contact information on the contract and invoices.
In addition to being professional, responsive, and possessing the highest level of integrity, we are energy experts that can assess your energy needs, develop a strategy, educate you, save you time and stress, and reduce your costs. We have relationships, and do a considerable amount of business, with numerous suppliers who understand: that we know where the competitive market rates should be; that they will be competing with numerous other suppliers for your business; we are skilled at breaking down and comparing all the different offers, products and their nuances; and that we will not allow any unfair language or fees to be included in the contract. Thereafter we do bill audits, assist in dispute resolution, etc. Does your internal person/group have the time, knowledge and relationships to replicate our offerings? The result of our efforts is the most competitive rates and preferential terms that will drive savings to your bottom line.
If I use your services, will I have to pay you directly?No. We have an equal fee structure with the suppliers and are paid by them based on your usage, not the price that you pay. Therefore, we are not incentivized to keep prices elevated or select one provider over the other. To the contrary, the cheaper the price the more you may use and the greater the benefit to us.
We are engaged in risk assessment and management, energy procurement (electricity, natural gas, RECs, carbon offsets, etc.), market analysis, offer comparison, contract and credit negotiation, supplier management, billing audits, energy efficiency, renewable and sustainability programs, demand response, and more. See other parts of this site for more information or contact us.
Directly, or through our partnership network, we provide services in states where deregulation has occurred, which currently is 17 states for electricity and 28 states for natural gas.
Energy products range from low risk products with budget certainty to higher risk products that can yield significant savings but are exposed to market volatility, which can be extreme at times. Several of the products are listed below and start with lower risk options to higher risk/reward options.
Fixed Price
Fixed Price products are the best option if budget certainty is a high priority because your price remains the same for the duration of your contract. There is no exposure to rising prices, which allows you to predict your energy spend with confidence. Fixed Price products are often considered a premium option because all the price risk is shifted to the supplier.
Heat Rate
Heat Rate products establish electricity prices through a conversion ratio from natural gas to power. They may be attractive for customers who’s business is tied to the natural gas market or when natural gas prices are very high and the reward of prices moving lower is far greater than the risk they will move higher. Basically you lock in a Heat Rate, float the monthly natural gas index to settlement and use that price multiplied by the Heat Rate to arrive at a fixed price for power for the corresponding month. Most products allow you the opportunity of locking in the gas piece for the balance of the contract and thereby locking in a fixed power price for the same period.
Block and Index
Block and Index is a combination product that allows you to purchase a volumetric block of energy at a fixed price and float the price for any usage above that amount against an index. This product provides you some price certainty for the fixed portion but allows you the flexibility to capture low day ahead or real time prices for the overage. Generally you can fix the index portion at a later date, if you desire. As with any index product, you run the risk of the prices being both higher and lower than the fixed price.
Flex
A Flex type of plan is similar to the Block and Index product but instead of a fixed volume it is based on a percentage of your usage. Essentially you would select what percentage of your usage would be tied to a fixed price and the remaining percentage would be tied to an index. Both options allow you to take advantage of falling energy prices with significantly less risk than an index only product.
Index
An Index product allows you to float the market to take advantage of day ahead or real time prices and position yourself to take advantage of forward prices when they fall to a level that aligns with your strategy. At any point you can convert into a fixed rate, for instance when prices fall significantly or to mitigate the effects of a rising market. This is the highest risk product with potentially the highest rewards. It is not for everyone though, since you would be subject to volatile price movements should they occur.
“RECs,” Renewable Energy Certificates, are one of the easiest methods your firm can support green sources of electricity.
By purchasing RECs you offset the environmental impacts of conventional fossil fuel generated electricity by supporting environmentally friendly renewable energy projects such as wind, solar, hydro, etc.
Demand response programs are financially and environmentally responsible ways to respond to occasional and temporary peak demand periods. The programs offer incentives to business that temporarily reduce their electricity usage during an emergency event or when prices are extremely high.
1 (800) 794-0759
info@ivyenergy.net
7941 Katy Freeway, #293
Houston, TX 77024