Commercial Electricity and the Cost of Growth

Commercial Electricity and the Cost of Growth

Photo by Robert and Cathy

Here in Texas we have a problem: we are a growing state and, as a result, we are consuming more power. It’s a good problem to have—we’d rather be growing than the inverse—but a problem all the same. As we continue to grow and as our demand for commercial electricity grows with us, we will have to produce more and more power. If we can’t keep up with the demand, we’ll have rolling black-outs on our hands, and that’s not good for anyone.

In Texas, the potential solution to the issue of increasing consumption is one that will, without question, affect business owners: the Power Balance Penalty Cap and System High Cap was raised to $4500 in August, and is scheduled to rise again between now and 2015, topping out at $9000. The strategy behind this shift is simple enough. Currently, generators (the companies that build, own and run power plants) aren’t building in Texas at a fast enough rate to keep up with our growing demand. In order to address that issue, the PUC (Public Utility Commission) and ERCOT (the Electric Reliability Council of Texas) have made it more profitable for generators to operate in Texas. The hope is that this will encourage generation companies to build more plants, keeping our production up to speed with our demand.

The unfortunate side effect for Texas businesses is that the cost of commercial electricity will almost certainly go up, too. In fairness to the PUC and ERCOT, maintaining the stability of a power grid as big as the one in Texas is no easy thing. In fact, every deregulated state has its hands full trying to ensure that the grid is stable and pricing reasonable. Right now, Texas businesses are facing potential business electricity cost increases, but in future years the same sorts of shifts and changes can easily happen in any deregulated market.

As a business owner, how do you prepare for such possibilities? How do you minimize your commercial electricity costs without sinking all your time into tracking the market? How do you develop a well structured business electricity strategy that will protect your organization from swings in the energy market?

You can try to tackle these weighty matters on your own, or you can utilize a proven resource that literally hundreds of other business owners have already put to the test: the experts at Live Energy. Live Energy is a business electricity broker. Our passion and focus is on helping clients like you develop energy strategies that will protect your business from the volatility of the market, saving you both time and money. We know the commercial electricity market is a complex thing. That’s why we have expert analysts and some of the best technology in the business dedicated to following the market at all times. Our goal is to provide you with up-to-the-minute information about the market in easy to understand terms, without needless jargon and industry language. We can help you find a product, term and contract that is well suited for your business. In fact, our commitment to our clients is that we will do just that.

Give us the opportunity to show you that developing a business electricity strategy for your company does not have to be an overwhelming process. Please call us today at (817) 810-7770.


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