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PREPARING FOR DEREGULATION

How can you prepare for deregulation?

Electricity consumers throughout Pennsylvania now have the opportunity to shop for electricity suppliers. Complete these steps before shopping for an electricity generation supplier.

  • Document how much electricity you use and when you use the electricity
  • Identify your major users of electricity
  • Determine how you could modify your load profile. The more attractive your load profile is to an electricity generation supplier, the more effectively you can negotiate with the electricity provider in order to get a favorable rate.
  • Consider the total cost of any alternate forms of energy, including costs for installation, maintenance and operation.
  • Explore options to become part of an aggregated group for purchasing electricity.
  • Study offers that "sound to good to be true"
  • Steps for Residential Users of Electricity
  • Steps for Industrial and Commercial Users of Electricity

After you have carefully documented how and when you use electricity, then you should be able to select the most appropriate electricity generation supplier to meet your needs.

Home Deregulation Definitions Deregulation-
The Facts

Choosing an Electricity Generation Supplier

Preparing for Deregulation Do's and Don'ts

Steps for Industrial and Commercial Users of Electricity

  • Calculate the cost of electricity as a percentage of total production or service costs. For example, if your company is manufacturing widgets, calculate the cost of electricity per widget produced. If you operate a commercial venture, calculate the cost of electricity per customer serviced and per dollar revenue generated. If you are a farmer, calculate the cost of electricity to produce 100 pounds of milk, a dozen of eggs, one pound of meat, one flat of bedding plants, or one bushel of fruit. After you have carefully documented how and when you use electricity, then you will be better able to negotiate effectively to get the best buy for electricity.

 

Steps for Residental Users of Electricity

  • Estimate your costs of electricity for various residential uses, such as heating, air conditioning and water heating. This recommendation applies to homeowners and renters as well as apartment dwellers. Consider how you could shift tasks such as laundering and dishwashing to off-peak hours to reduce you utility bill

Back to Preparing for Deregulation


For more information please contact:

Dennis Buffington
Professor of Agricultural and Biological Engineering
Penn State University
Email: dbuffington@psu.edu
814-865-2971 (Voice)
814-863-1031 (FAX)


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Last Update: December 15, 2006