commercial electricity

Purchasing Business Electricity: Energy Procurement Strategy

What’s your energy procurement strategy? For most small business owners, this is just another item that they purchase for their business. You mark the calendar to shop for your next contract, but may give very little thought to other aspects of it.

Here are four things to think about for your energy procurement strategy, to get the best commercial electricity price for your business.

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Managing Your Commercial Electricity Contract

When you signed your commercial electricity contract, it included a list of meters and service addresses covered by the contract. It also included benchmark usage information (typically your historical usage) and clauses about penalties for material changes in usage.

All that comes into play when things change. Whether it’s an additional location, moving to a new location, adding new equipment or selling your business, material changes can have an impact on your electricity contract. This article will help you understand what to look for.

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City Inspections & Permits for Texas Business Electricity

City inspections and permits may stand in the way of getting new electricity turned on for your business.

It’s pretty common. The business owner shows up on the day they expected to have lights. And there’s no electricity. And it’s all due to a required inspection that no one told them about.

If you are putting the lights in your business name, you’re scheduling a “move-in” and that typically triggers an inspection. Contact your city or county inspection office to find out if a inspection is required. The inspection certificate must be filed with your local utility before you can get the lights turned on with the retail electricity provider you selected.

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Sales Tax Exemption in Texas – Cut Your Business Electricity Cost

Your Texas business may qualify for a sales tax exemption on your electricity bill. Any business that uses electricity in their production activities could qualify.

You’ll need an engineering study, called a Predominant Use Study, to prove what percent of your electricity usage goes into production. And you’ll need to file a Form 01-339 Exemption Certificate with the state in order to get the Utility Sales Tax Exemption.

But it’s worth it to save anywhere from 6-8% or more on your business electricity bill. Here’s what you need to know about the Texas Sales Tax Exemption and how to your business can qualify.

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