DC Business Electricity Costs Drop

May 13, 2012

In my last writings the focus was on residential electricity prices and how low the cost per kwh rates are through Electric Advisors as opposed to Pepco DC's current supply rates. Now to bring the focus on the cost per kwh that commercial supply rate payers are being charged by Pepco in Washington, DC as opposed to the rates Electric Advisors is getting for their clients in Pepco DC's service area. In some cases the cost per kwh through EA could be up to 25% percent less than Pepco DC's mandatory pricing. Yes that's right, 25% lower...

First to define broadly a commercial account. Simply it is any rate payer whose Pepco DC invoice does not have an "R" or residential designation. From houses of worship, restaurants, multi-family buildings, warehouses, retail stores, office buildings, gas stations, hotels, and many more categories. It doesn't matter if the meter is in Anacostia, Georgetown, Adams Morgan, Chevy Chase, or Columbia Heights, if there isn't the "residential" category, the meter is considered commercial.

As with residential electricity choice in DC, commercial rate payers have contracted "shopped" with alternative electricity suppliers at a significantly lower rate than their Maryland counterparts. The POR (Purchase of Receivables) option that is not available in DC but is available in Maryland plays a part in this lower shopping rate. Again the DC Public Service Commission has great information available for commercial rate payers to learn about the process of choosing a third party supplier on their website and probably in their office, but getting someone on the phone can be a challenge.

Just like every the majority of expenses a business incurs, electricity costs can be controlled to some degree. Understanding your options regarding electricity supply rates available through energy brokers like Electric Advisors would allow you to free up cash assets that could be used for energy efficiency improvements, marketing dollars, debt reduction, and the list goes on.

Next posting will talk about renewable energy options available to the DC business community. Most would be surprised to know that buying renewable "green" in some cases can actually lower your rate as compared to Pepco DC's supply rate.


Aerial view of Baltimore's Inner Harbor with buildings, boats, and a wide body of water reflecting the cityscape.

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