Electricity helps businesses run. Without it, nothing works. But how do companies get it? That’s where commercial electricity companies come in.
What Is a Commercial Electricity Company?
A commercial electricity company gives power to businesses. They do not supply homes, only companies like stores, factories, and offices. These businesses need more electricity than a house. That’s why they need special power plans.
Getting electricity for a business is not the same as for a home. In many places, businesses can choose who sells them power. This is called an open market.
In the U.S., about 26 states let companies pick their power provider. Texas, New York, and Illinois are examples. This helps businesses shop around and get the best prices, service, and green energy options.
Why Do Businesses Need Commercial Electricity Companies?
Running a store or office takes lots of power. Lights stay on all day. Computers, machines, and heating use even more energy.
Here’s why commercial electricity companies are important:
1. Tailored Plans
These companies offer special plans just for businesses. A big warehouse needs different power than a small bakery. Commercial providers help create energy plans that fit what the business needs.
2. Better Prices
Commercial electricity companies often offer cheaper rates for big users. Bulk buying saves money.
According to the U.S. Energy Information Administration, commercial electricity costs about 11.3 cents per kilowatt-hour. But home electricity costs about 15 cents. That’s about 25% more expensive at home.
3. Stable Bills
Some companies let businesses “lock in” a fixed rate. That means they pay the same amount even if prices go up. This helps companies plan and budget better.
4. Green Power Options
Many commercial electricity companies offer clean energy. That includes wind, solar, or hydroelectric power.
In 2023, over 30% of electricity in the U.S. came from clean energy. More businesses want to go green to help the planet and attract eco-friendly customers.
How to Choose the Right Commercial Electricity Company
Picking the right company can save big money. Here’s what to look for:
1. Compare Prices
Always compare rates from at least three providers. Some offer lower working-hour rates. Others offer discounts for long-term plans.
Use tools like Choose Energy or EnergyBot. They help you see price breakdowns and find the cheapest option in your area.
2. Check Service and Support
Good customer service matters. If the power goes out, you want help fast. Read reviews and ratings. Talk to other businesses in your area.
3. Look at Contract Length
Most deals last 6 months to 3 years. Make sure you’re okay with the contract time. Longer contracts often give better rates.
4. Don’t Forget Extra Fees
Ask about hidden charges. Some companies charge for setup, early cancellation, or meter checks.
5. Go Green (If You Want)
Ask if the company offers clean energy. Some providers let you buy 100% renewable power.
In 2022, Google used 100% renewable power for their global offices. Big companies do this to help the Earth—and so can small ones.
Success Stories: How the Right Electricity Company Helps
Case 1: Local Bakery Cuts Costs by 20%
A small bakery in Dallas switched providers using a local energy comparison site. They picked a fixed-rate plan and saved $200 a month. That’s $2,400 a year—enough to buy a new oven.
Case 2: Office Building Goes Green
A Chicago building chose a company that offered solar-backed power. They paid a bit more at first, but got a rebate for using clean energy. Their green move brought in more tech startups who care about sustainability.
Case 3: Factory Avoids Blackouts
A factory in Houston picked a provider with strong service reviews. During a storm, the power went down. Their power company gave them regular updates and restored energy in just 3 hours. Others nearby waited two days.
Do You Live in a Deregulated State?
Not every area lets you choose your electricity company. Here are states where businesses can shop around:
- Texas
- Illinois
- Ohio
- Pennsylvania
- New York
- California (for some parts)
In these states, open markets mean more choice and better deals.
What If You Can’t Choose?
If you live in a state without energy choice, you still have options. Try these:
- Ask your local provider for a better rate.
- Use less power during peak hours.
- Upgrade to energy-saving machines or lights.
Even without many choices, you can still save money.
Quick Tips to Lower Your Business Electric Bill
Even if you already have a provider, you can save more. Try these:
Get an Energy Audit
Many electricity companies offer free energy check-ups. They look for waste and help you save.
Use Smart Thermostats
These control heating and cooling better. You save power (and money).
Turn Things Off
Sounds simple, right? But many offices leave machines on all night. One copy machine on overnight can waste 1,500 kWh a year. That’s around $170 wasted.
Common Terms Explained (Just in Case)
Att kWh? Kilowatt-hour means the amount of energy used. If you turn on 10 100-watt bulbs for one hour, you use 1 kWh.
Fixed rate? Your price stays the same, even if markets change.
Renewable energy? Power from the sun, wind, or water—not from gas or coal.
Wrap-Up: Making the Smart Choice
Picking the right commercial electricity company can save your business money and stress. Here’s what you should do:
- Find out if you can pick your electricity provider.
- Use comparison tools to shop for the best deal.
- Pick a plan that matches your business size and hours.
Run your business better with the right power behind it. A smart choice today can mean big savings tomorrow.
