Company Overview
Introduction
ENERGY CONSULTING Switch Energy is an energy consulting firm that assists non-residential electric consumers in making informed energy purchasing decisions.
Switch Energy has developed numerous channel partnerships with major Retail Energy Providers across the country offering all-inclusive energy contracts to serve a wide variety of business and government entities.
Simplifying the
energy markets.
Energy Consultant
WHAT WE DOSwitch Energy recognizes that every customer has different needs; therefore a customized Energy Cost Savings analysis is created on behalf of each client.
WHY USThe customers needs come first. We have years of energy experience and a proven track record for saving our clients money.
Before deregulation, businesses had no choice and therefore no need to pay attention to the energy market. You simply paid the regulated rate just like everyone else. Over the past decade, deregulation has ushered in a new era of competition and consumer choice.
You have the
power to choose.
Electricity Deregulation
The objective of deregulation is to offer energy customers greater choice, both among suppliers and services. Ideally that will result in increased market efficiency and dollar savings to the consumer.
U.S. Department of EnergyThe reality is that savings do not come by default, You Must Choose!
In a deregulated market the business must decide who to buy from, when to buy, what type of contract, how long to contract or whether they should consider a market based rate. With every option comes a certain level of risk, the decisions a business makes or fails to make is what drive the cost.
Energy Portion Open To Competition
Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to deliver electricity and provides billing and customer service to the consumer.
Deregulated Electricity Generator Regulated Delivery (Utility Co)
Source: EIA - Energy Information Administration - Official Govt Statistics
Electric Prices Will Continue To Rise
Electricity Prices – Highly Volatile
This chart shows the movement of electric prices on the wholesale market
Electricity market is 10 times more volatile than the stock market
Price is now low which makes it a great time to lock in prices long term
Factors That Affect The Price of Electricity Many factors affect the price of electricity and can introduce price risk to
the customer› Fuel price › New Plant Construction› Demand – Forecasted to grow by 30% to 40%
Load & seasonal variation Local climate On the fuels used to generate electricity
› Environmental Issues› Natural disasters – Hurricanes that disrupt fuel delivery › Political instability› Congestion Charges – not enough delivery infrastructure › Transmission and RTO service charges› Regulation› Speculation› Inflation› Unpredicted plant outages of base load plants
Supply and demand issues cause monthly and even daily price fluctuations Demand is usually highest:
› In the afternoon and early evening, known as “on peak” hours› During the summer and winter months when electricity is used for heating and
cooling
Electricity Generation – Fuel Types
Most people think that the price of oil affects the price of electricity. Not true, this chart shows that 70.2% of electricity is generated from Coal and Natural Gas. The U.S competes for these fuels globally.
Energy Outlook 2008 - Fuel Price Forecasts
0
2
4
6
8
10
12
14
16
Annual Energy Outlook 2008
nominal dollars per barrel
nominal dollars per ton
nominal dollars per thousand cubic feet
nominal cents per kWh
World Oil Price Natural Gas Wellhead Price
Coal Minemouth Price Average Electricity Price
Nuclear's Comeback: Still No Energy Panacea By Michael Grunwald
Electricity Consumption - Demand
Emerging countries are lighting up, placing enormous price pressure on the fuels used to generate electricity
New York Generation – New Construction
Coal
Petroleum
Natural Gas
Nuclear
Renewable
CoalPetroleum
Natural Gas
Nuclear
Renewable
New Generating Plant Construction Has Increased 50% In Just 8 Years
Switch Energy connects businesses with the right supplier and the right contract at the lowest possible
rate.
Deregulated Energy – Complex MarketThe multitude of options combined with dramatic price fluctuations makes the deregulated market infinitely more complex.
Switch Energy helps businesses buy energy at 15% to 50% off peak rates in deregulated markets with a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for the consumer.
These and many other energy providers
Pass-Thru Charges
Pass Thru Charges Can Include:› Ancillary Charges› Capacity Charges› Transmission Services› Congestion Charges› Location Forward Reserves› Transmission & Distribution Losses› Energy Procurement Cost Recovery› RMR (Reliability Must Run) Charges
Bandwidth› Some contracts will charge you if your usage varies Plus or Minus
the contracted amount of energy
Many contracts do not include Pass-Thru charges which can add 5 cents per kWh or more to your contracted energy price.
Your total price including pass-thru is the price to compare.
Variable and Hybrid Rates – Deceiving?
Variable rate and hybrid contracts, on the surface, appear to save you money but actually cost you more than a fixed all inclusive rate contract. You should choose your supplier based on total term cost not just the rate you get today. A business that makes a decision by comparing rates only are often surprised at the wide fluctuations they see on their bills.
Energy Provider Contract OptionsThe Plan You Should Choose Depends On The
Amount of Risk That You Are Willing To Take
Month To MonthVariable Rate
With Pass Thru
RiskVery High
Price varies Based on monthly
average market
Hourly PricedVariable Rate
With Pass Thru
RiskExtremely High
Price varies hourly based on market and
can easily double or triple
HybridFixed Energy
With Pass Thru
RiskHigh
Fixed energy but pass-thru charges can add 5 centsto the energy
price
Fixed All InNo Pass Thru
RiskNone
Eliminates all risk, this rate is constant and includes all pass-thru
charges, no bandwidth
Most businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions.
Retail Seafood House Paying $3,000 Monthly Annual Usage: 241,900 kWhOld Rate: $0.14555New All Inclusive Rate: $0.11993 Year Savings: $52,657
Automotive Repair and Body Shop Paying $7,500 MonthlyAnnual Usage: 597,200 kWhOld Rate: $0.145000New All Inclusive Rate: $0.11753 Year Savings: $128,667
Retail Furniture Store – 7 Locations Paying $9837 MonthlyAnnual Usage: 945,200 kWhOld Rate: $0.12490New All Inclusive Rate: $0.1253 Year Savings: $81,257, First Year Savings $5100
Large Manufacturing Facility Paying $85,000 MonthlyAnnual Usage: 7,846,153 kWhOld Rate: $0.130100New All Inclusive Rate $0.1174003 Year Savings: $1,215,484
Medical Center Paying $25,000 MonthlyAnnual Usage: 1,849,650 kWhOld Rate: $0.1622New All Inclusive Rate $0.09113 Year Savings: $527,759
Cost Saving Scenarios:
Savings Analysis - Actual Customer
Worry Free Switching: No switching fees
No interruption of service
Same poles, wires, and power quality from your local utility
First bill will come from the new supplier in approx. 45 days
Will notice new provider on the bill and contracted rates
Pay the bill as normal
Simple Steps To Savings: Fax or email Your Energy Bill For Analysis
› We will work to get your savings approved.› We will match you to the lowest cost provider that has an “all
in” fixed price.› Process takes 5 to 10 days on average.
Set the Appointment To Review Your Savings and to Lock In Your Rate› We provide you a blank contract prior to the meeting so you
have time to review.› Rates are priced daily so you will need to lock in the rate by
4PM eastern.
Contact us today to get started!1-888-893-9113www.switchenergy.us