Compare Commercial Electricity Rates

Electricity rates will vary based on seasonality, the wholesale electricity market and weather forecasts. Sometime long term rates are better based on market conditions, with offers ranging from 2 to 5 years. Other times short term business power prices are cheaper, with contracts of 6 to 12 months. To find the best plan, consider different term options to see what the prices are. Also take into account your risk tolerance, the role electricity plays in your overall operating budget and how often you want to shop.

A business’ load factor is a measure of how consistently a business uses electricity over a billing period. For example, a high load factor means the business is using power steadily and consistently, while a low load factor means there’s more variation in usage over the time of day and day of week. Most small business customers in Texas are low load factor. Businesses with higher load factor can qualify for custom pricing and lower rates.

To calculate your load factor, find the actual energy use in kWh on your bill. Then find your electricity demand in kW, which may be labeled as peak load or actual load. Calculate your load factor with this formula: monthly kWh / (monthly peak kW demand * days in billing period * 24 hours). A load factor above 80% is high load. A load factor between 40-60% is medium load factor. A load factor under 60% is low load factor. If you don’t have a kW demand number on your bill, you are low load factor.

Electricity demand refers to the maximum amount of power required at any given moment. Each year your maximum electricity demand is measured during the grid’s peak demand during June – September, also called 4CP or 4 coincident peaks. If you have a demand meter installed at your location, you may have to pay demand charges in addition to your price per kWh for your electricity and delivery. This helps to ensure those that use the most power pay their share of grid costs.

There are three key differences between residential and business power rates in Texas.
(1) Commercial electricity prices are quoted as energy only. Since the delivery charges on your commercial electricity bill vary based on your business’s meter designation and usage profile, business electricity rates are quoted as energy only, with delivery passed through at cost.
(2) There’s less transparency in pricing. Many business electricity suppliers don’t publish their rates online, whereas you can see residential rates on the retailer’s web site.
(3) There is no Power to Choose site for commercial electricity rates in Texas, which makes it important to shop using an online business electricity price comparison tool.

Historically, electricity prices are cheapest in the shoulder seasons of fall and spring. Prices tend to be highest in the summer (June-August) and during peak heating months (January and February). Plan ahead and manage your business electricity shopping for the best rates. You can start shopping rates for your contract renewal up to six months ahead of time. Then just schedule your start date to coincide with your contract expiration. This can be a great tip for avoiding high summer renewal prices.

There are no specific rates designed for new businesses. However, if you have not established credit in your business name, it’s likely that you will need to pay a deposit to establish your electricity service. If you are a new business, call ElectricityPlans directly at 844-214-5559 to discuss options for establishing service at your new location. We can connect you with providers that have more flexible credit terms.