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When working within a budget funded by taxpayers, it’s crucial to make sure you’re keeping your energy costs affordable. But how can you be sure you’re getting competitive pricing and reliable service while staying within budgetary constraints? 

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Energy Rate Issues for Townships and Municipalities

Good-government laws and limited municipal budgets make it crucial to account for every taxpayer dollar spent, while still keeping the lights on in your local government buildings and schools. While the budget plays a major role, there are other obstacles site managers and treasurers often face while shopping for commercial energy rates.

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Complex Rate Plans

Commercial energy rate structures can include components like demand charges, time-of-use rates, and other fees. Understanding and comparing these plans can be a daunting task. Here are some of the rate structures and charges local governments should be aware of:

Demand Charges

Variable-rate plans have prices that fluctuate with energy prices, so your costs can spike during periods of high use. Understanding and hedging against these charges is crucial for budgeting.

Time-of-Use Rates

Some energy plans have rates that vary throughout the day. They can influence your energy costs depending on your active hours.

Transmission and Distribution Charges

These are infrastructure fees that cover the cost of getting electricity from power plants to your facilities. These come directly from the utility company and cannot be altered by suppliers or brokers.

Capacity Charges

These are optional charges that an organization can pay in advance to gain priority access to the energy available on the grid. They act as insurance against power outages caused by high demand. Many municipalities opt to pay them for always-on facilities like fire departments and police stations.

Fixed Charges

Fixed-rate plans keep your energy prices flat, regardless of time or market conditions. They insulate you from sudden price spikes and keep costs predictable, which is helpful for municipalities operating on a fixed budget. These tend to be the majority of plans except for large customers.

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Contract Terms and Negotiation 

Negotiating commercial rates also requires a deep understanding of industry terms and contract details. Without extensive knowledge in commercial energy rates, townships can miss out on better contract terms. Succeeding in these negotiation requires a deep understanding of topics like

• Contract length
• Termination fees
• Renewal terms
• Fixed vs. variable rates
• Volume commitments

These topics are complex, requiring familiarity with both law and the energy industry. Without proper guidance from an energy expert, it’s extremely difficult to negotiate a good energy rate.

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Provider Selection 

Researching, vetting, and negotiating with potential commercial energy vendors is a full-time job – just like everything else about operating a local government. The amount of time it takes to find an energy provider suitable for your needs can interfere with your other responsibilities. 

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Risk Management 

While the flexibility and overall lower costs of variable-rate plans might seem appealing, they expose you to the risk of sudden price spikes, which municipal governments can’t always afford. That’s why many towns and cities lock in their rates with a fixed-rate plan that offers predictability and safeguards against price fluctuations. 

Because local governments run key facilities like schools, firehouses, police stations, and water pumps, they can’t afford power outages. Many of them use capacity charges to protect against power outages, but that’s not the whole story. 

Local governments need to avoid outages as much as possible, and to know they can get immediate assistance when outages do happen. That’s why it’s crucial for them to get a trustworthy energy provider with a reputation for reliability and responsiveness. Without deep knowledge of the energy industry, it’s extremely hard to find a trustworthy provider, so it’s always best to get expert assistance when looking for one.

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Securing Stability and Savings with Integrity Energy

Rather than getting lost in the weeds reviewing rates, plans and providers, count on Integrity Energy as your ally and broker through the process. That way you can focus on what matters the most: Doing your part to keep your municipality running smoothly.

Integrity Energy provides you with a dedicated account manager who will help you compare plans and select a provider. Our commitment goes beyond securing the cheapest commercial gas and electricity rates available. We help you make the best choices for your specific needs.

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Stability Through Market Fluctuations 

Integrity Energy’s team of brokers understands the unique financial pressures you have to navigate through. They’re experts in finding you stable energy plans with reliable providers, protecting your budget and your city from outages and price spikes. 

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Vendor Buying Power 

With 30 major suppliers and over 40,000 clients, Integrity Energy has the buying power and access to find you the best commercial energy rates available. This can help local governments, townships, and municipalities leverage more favorable terms through:

Volume Discounts

Integrity Energy can use the sheer volume of energy our clients purchase as leverage to negotiate lower rates for you. 

Competitive Bidding

Because our brokers represent a large client base, energy supplies reach out to them with competitive bids in an attempt to secure your business. 

Reduced Markup

Integrity Energy’s team can negotiate lower profit margins with suppliers, meaning more savings for your municipality.

Personal Familiarity with Providers

Our brokers have established ongoing relationships with providers, which makes it easier for them to tailor contracts that meet your specific needs and preferences.

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Services Tailored to Your Needs 

There is no one-size-fits-all solution when it comes to commercial energy rates. Whether you are trying to compare commercial electricity or natural gas rates to finding renewable energy plans, our team will help you find a plan to address your needs.

How to Quickly Save More on Commercial Energy Rates

Compare Business Electricity Rates

If you’re looking for the best business electricity prices, look no further. Integrity Energy has handled over five billion kWh over the last two decades, so you can trust we have the knowledge needed to provide a seamless energy shopping experience for commercial clients. With all of this practice and expertise, we’re able to pass that buying power directly to you.

Compare Commercial Natural Gas Prices

Shop the most competitive natural gas rates in your state quickly and easily. With over 275 billion Mcf on our books, we have the volume to connect you to the best available local prices on natural gas.

Find Commercial Renewable Energy Plans

Looking to make the switch to a green energy supplier without breaking the bank? We’re happy to help you meet your business’ eco-goals. Talk to one of our energy experts today about finding the best commercial energy prices from renewable sources.