Electricity for Businesses
Businesses in the Mid Atlantic have been subject to the rising, unregulated market costs of electricity for several years. Most companies don’t have the resources, time, or opportunity to understand much about the types of agreements available and which terms will fit their company's future plans.
VESCO helps clients understand the different types of electricity purchases: Fixed Rate, Index Rate, Hybrid and Reverse Bid.
Fixed Rates: Provide low-risk and budget certainty. Contract lengths can run from six to 36 months depending on the supplier.
Index Rates: Are wholesale electricity rates that are set each month, with a Fixed Adder to cover capacity, transmission, ancillaries, and margin.
Hybrid Rates: this model employs both strategies.
Reverse-Bid Auction: VESCO will take your usage out to bid among our pre-qualified suppliers. The Supplier with the lowest rate is asked to provide an agreement with the price for our client to review. Since pricing is market based, those clients who can react quickly usually benefit the greatest.
How Our Process Works
VESCO is your independent energy consultant. We will have you sign a Letter of Authorization that allows VESCO’S Energy Suppliers to request your usage details from your utility. This data is used to generate a “Custom” electricity rate based on your specific usage patterns. We be accomplish this by way of our five step procurement process.
Our Procurement Process
- Management / Monitoring
Electricity rates fluctuate according to a variety of factors. The prices of Oil, Natural Gas and the weather are major drivers. VESCO will help clients understand when to lock in the rate and procure their electricity.
Demand Side Management
Our Demand Side Management team specializes in guiding our clients to take advantage of all Federal, State and Utility rebate, curtailment and tax credit programs. Using a wide array of recognized energy technologies, strategies and proprietary systems, clients can reduce their cost of energy and realize additional savings. Eligible clients can also take advantage of Demand Response programs, and get paid by the PJM for cutting back during peak times.
Demand Response Program
VESCO can help determine your businesses eligibility to be compensated for reducing electricity usage during peak periods. The PJM Grid in Maryland is looking for more generation plants to feed the GRID. One strategy to deal with demand that is higher than Supply, is to pay large users to cut back on Peak Demand days. The program is administered by PJM to facilitate these cutbacks and compensate the participating businesses, while “maintaining reliability during peak periods when generation supplies may be scarce”.
A quarterly check is issued to all participants in the PJM Demand Response Program. The payment reflects the amount of time the business reduced electricity usage on the days that PJM initiates an Emergency Request. Many businesses find that they can reduce demand and still operate effectively
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