Often times the word “deregulated” is met with staunch opposition across the board. However, in the context of deregulated energy, it is both progressive and advantageous, especially as it concerns property managers and owners.
The opportunity and market potential across the United States is vast and has surged over the last decade.
Deregulation was born in 1978 with the passing of the Public Utilities Regulatory Policies Act. This act paved the way for independent energy providers and suppliers to operate throughout the United States. It took an additional 14 years for the Energy Policy Act to pass, which removed limits on the price that could be charged for wholesale electricity. Enter in a new state-by-state deregulated energy boom.
The concept of regulated versus deregulated energy is simple. In regulated markets, the utilities own and operate the flow of electricity generation and supply all the way from generation to delivery. In deregulated markets, multiple retail suppliers buy and resell electric off of a grid or gas from a supplier. And often times, these resale rates are substantially lower than purchasing directly from the primary supplier.
Good, bad, or indifferent, most property owners and managers have the option to choose who supplies your energy. In fact, as it stands today over 20 states, mostly in the Northeast and Midwest, now allow some form of deregulated energy supply (either electric, gas, or both). The total market opportunity throughout the Northeast is over 26 million consumers and nearly 7 million in Texas alone. If you are in a state that supports regulated energy, then you you’ll most likely want to engage with a company that can offer you a full suite of energy supply management services, such as PayLease.
Utilities are a property’s single largest recurring operating expense. When it comes to electric and gas, there is a tremendous opportunity to decrease some of this cost. Working with a third party supplier is the best way to maximize your savings.
To accurately assess these third party suppliers, you need a strategic partner for energy procurement. Energy procurement examines a supplier’s market presence, pricing, billing accuracy, and customer service to figure out which provider makes most sense based on your needs.
PayLease offers a full supply opportunity assessment for anyone interested in utilizing our energy supply management services. After a supply opportunity assessment is performed, we then offer manageable spend reports to show which markets have the highest potential to engage with third party suppliers. With over $7 billion dollars in managed electric and gas spend, we can build custom programs for property managers of any size. All electricity is created equal, so don’t get left in the dark when it comes to your overall utility spend!