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How It Works

How It Works

While a little over ½ of our American states have some sort of deregulation as it relates to you having an option for your power supply, each state has its limitations to some degree. While a state might be open for choice, there might be certain towns or counties within that state that don’t allow independent sourcing. And whether it’s open for natural gas, it might not be for electricity, vice versa or you can get both. The bottom line is, you need to tell us where you’re located and we’ll let you know what’s available, if anything in that area.

If you do switch to an independent supplier, it’s a seamless transition because the local utility will continue to deliver the power to your business, but the power itself is put on the local grid by your new supplier at a lower rate. Your local utility still owns and controls the power lines, transformers, meters, etc. So, if for any reason you experience a power outage, it’s a system failure by the utility company, not your independent provider. If weather, construction or other factors cause an outage you would still call the local utility.

The typical electric or gas bill has two portions to it. About 50% of that bill is for “Demand/Supply” which is the power itself. The other half of the bill is categorized as “Delivery/Transportation” which is the cost associated with bringing that power to your business through the pipelines or wires. That’s why in some states you might get one bill from the utility and one from the independent supplier. But in many states the bills are consolidated into one and continue to come from the utility, but will reference the lower “Demand” rate.

The utility companies send out bills that are usually very difficult to understand. We read every detail of your bill and discover usage, fixed and floating rates and rate classes. Breaking down the details of what your true costs are and where the savings may or may not be is a critical part of the discovery phase. After we gather all the pertinent data, we decide which independent suppliers are best suited to serve you in that region. All independent suppliers typically shine brighter in certain regions of the country. No one particular company is the best everywhere. Our experience knowing the strengths and weaknesses of these companies will help you get the best price, service and reliability no matter where you’re located.

Electricity & Natural Gas are commodities and traded daily at the world’s largest mercantile exchange at New York City’s NYMEX. Because it’s a futures commodity, these prices change by the minute. That’s why it’s important that when you receive a contract that it’s signed and returned within 24 hours. Swings in the market are generally pretty small one way or the other, but if you sit on a contract for several days, your independent supplier has the right to refuse it if the market moved against you.

Our job is to keep close tabs on the market and advise you when it’s the best time to wait, or pull the trigger. Over anxious purchasing of a commodity can be costly. Yes, you’ll probably still be saving money, but did your broker exercise patience while the market is rebounding in your favor? On the other hand, did he know when to get your full attention and get things in motion quickly before predictable events wipe out a large percentage of your savings. We all know good timing is critical in this type of marketplace and it’s vital that you have experienced, knowledgeable representation as it relates to your commodity negotiations.

Finally, and most importantly, these contracts are very detailed and can be rigged against you if you’re letting an inexperienced person or company represent you. Including all the necessary components, swing values, add/delete clauses, fixed or floating rates and many other details must be reviewed and included on your behalf.