Electricity for Small Businesses
- Compare rates in minutes and complete your contract online.
- Daily rate updates for business electricity rates in TX, OH, and PA
- Get a custom quote if you spend over $2500 monthly
Why Shop Online for Business Electricity?
You didn’t start a business to decode electricity bills. That’s what we’re here for.
Most providers won’t show prices online. You fill out a form, wait for a quote, then request current pricing when you’re ready to sign.
We cut through that. We work with multiple suppliers in your area, review their rates and contract documents, and display everything side-by-side. Rates updated daily. Sign online when you’re ready.
ElectricityPlans.com is a licensed energy broker in business since 2017. We’ve analyzed thousands of bills and plans to help you find the right one in minutes, not days.
Understanding Your Commercial Electricity Bill
Understanding what you’re actually paying for is the first step to controlling your costs:
Energy / supply charge — The per kilowatt hour (kWh) rate your supplier charges for the electricity you consume. This is the part of your bill that you can control.
Distribution / delivery charge — A fixed pass-through charged by your local utility for maintaining the lines and infrastructure. This charge is identical regardless of which supplier you choose.
Base / customer charge — A flat monthly fee from your utility, ranging from $5 to $30 for small commercial accounts.
Demand charge — A fee based on your highest 15-minute peak usage during the billing period. You can control this by managing your usage on hot summer days.
Taxes and fees — State and local taxes, regulatory assessments, and other fees.
Shopping options depend on your usage level:
- Spend under $2500/month. Shop business energy rates online for a quick comparison from multiple providers, and complete your contract online.
- Spend over $2500/month or multiple locations. Get a custom electricity quote for your business.
How to Shop for Business Electricity – Step by Step
Shopping for business electricity doesn’t have to be overwhelming. Follow these steps and you’ll be able to compare suppliers, understand what you’re being quoted, and make a confident decision.
- Know Your Usage & Contract Status. Pull the last 12 months of electricity bills and note your monthly kWh usage, current rate, and contract expiration date. Make a note of your current electricity rate.
- Decide What Matters Most to You. Get clear on your priorities. Do you want a longer contract for predictability, or a shorter contract that gives you the cheapest price right now?
- Compare Rates Side by Side. Compare rates from multiple companies at once and finalize your contract electronically. Rates are updated daily at ElectricityPlans.com.
- Switch. Switching electricity suppliers is handled automatically. You sign your new contract online, your new supplier notifies your grid operator or utility, and the billing changes on your next meter read cycle (PA and OH) or on the date you’ve selected (TX).
How Deregulated Electricity Markets Work
With deregulation, the power grid, the delivery company and the electricity provider are all separate. And it’s that separation that gives you a choice of electricity provider.
Grid Operator
The grid operator is the independent organization that manages the regional power grid, balancing supply and demand in real time, maintaining reliability, and ensuring power is available to flow to your business.
In Texas, that’s ERCOT.
In Ohio and Pennsylvania, that’s PJM Interconnection.
Local Utility
The local utility company, also called the TDU (transmission & distribution utility) delivers electricity to your home, maintains the poles and wires and handles any emergencies or power outages.
In deregulated parts of Texas, your local utility is Oncor, CenterPoint Energy, AEP Texas, TNMP, or LP&L.
Pennsylvania utilities include PECO, PPL and more. Ohio utilities include AEP Ohio and First Energy.
Electricity Supplier
Your state public utility commission licenses electricity providers.
In Texas, you’ll pick your retail electricity provider who handles customer service and sends you one bill with supply and delivery charges.
In Pennsylvania and Ohio you can pay the standard utility rate, or shop for a competitive supplier. Your utility issues the bill.
Commercial vs. Residential: What’s Different for your Business?
Business electricity isn’t the same as home electricity. Here’s what changes when you’re shopping for business electricity:
Different Rates. Home electricity is 50% heating and cooling. Business electricity patterns are different, leading to different electricity rates. And in Texas, residential rates must be shown inclusive of delivery, while commercial rates are shown energy-only.
Demand Charges. This is a fee based not on how much total electricity you use, but on your highest rate of consumption at any single point during the billing period, typically measured in 15-minute intervals. (Find out more about demand charges and how to lower your peak demand.)
Load Profile and Rate Class. Utilities and suppliers categorize commercial customers by the size and pattern of their electricity use. A small office using 1,500 kWh per month will be quoted differently than a restaurant using 12,000 kWh per month.
Multiple Locations. If you operate more than one location, you may be able to consolidate your electricity accounts under a single supplier agreement.
FAQs – Business Electricity Plans
Yes, if your business is located in a deregulated area. Most businesses in Texas, Ohio, and Pennsylvania can choose their electricity supplier. You can verify eligibility by entering your zip code in our comparison tool. Note that some areas served by municipal utilities or electric cooperatives may not be part of the deregulated market.
A demand charge is a fee based on your highest rate of electricity consumption during any 15-minute interval in the billing period, measured in kilowatts (kW). It’s designed to recover the cost of maintaining enough infrastructure capacity to meet your peak needs. Demand charges typically apply to larger commercial accounts, though thresholds vary by utility and rate class. If you’re seeing a “demand” or “kW” line item on your current bill, it applies to you.
Yes. Fixed-rate contracts of 2, 3, and even longer terms are available for commercial accounts. Multi-year contracts can provide long-term budget certainty and protect against rate increases, though they typically come with higher ETFs if you need to exit early.
Most electricity contracts include an auto-renewal clause that rolls your account to a month-to-month variable rate if you don’t take action before the expiration date. They’re required to send you a contract expiration notice 45-60 days ahead of that date. Read your contract for the specific terms, and set a reminder well in advance.
An ETF is a penalty for ending your electricity contract before the agreed-upon end date. Structures vary: some are flat fees, some are calculated per remaining month of the contract, and some are based on the market value of your remaining energy commitment. Understanding the ETF structure before you sign is essential, especially for longer contracts.
Some contracts include a relocation exception that allows you to cancel without penalty if your business moves to a location that the supplier doesn’t serve. Review your contract for these terms before assuming you’d owe an ETF for a move.
Commercial contracts are based on your annual estimated usage at the time of contracting, called bandwidth restrictions. Expanding your business footprint or adding new equipment? If these fall outside the specified usage bands, that could trigger a different rate or a penalty. Contact your electricity supplier before you make major changes.
You may be able to transfer the contract obligation to the new business owner. Check your contract to see if it includes a section on transferability or assignability.