FAQ

Electricity Choice

Can I cancel an existing supply contract before the identified contract end date?
When you switch to a third-party supplier, power is typically purchased at the contract signature date for the term that was signed (typically between 12 and 36 months). Suppliers typically have contract language in place protecting them from consumers switching in the midst of a contract, so consumers must be very careful of liquidated damages and early termination penalties that typically exist in breaking a contract early. A trusted energy consultant can help consumers walk through contract language and scenarios associated with early termination.

OnDemand is passionate about maximizing our client’s savings by finding procurement solutions and savings for every meter type, regardless of size. We currently serve over 5,000 business customers representing over 20,000 commercial meters and manage over 4 billion kWh’s of annual electricity usage. The load that we represent in the market positions OnDemand as the largest consultant in the Mid-Atlantic region, and one of the largest in the nation.

OnDemand continues to expand our world-class procurement solutions and is now active in all deregulated states.

Exceptional consultative and customer service separates us from the competition. Our approach to analyzing our clients’ load shape and in choosing the optimum supply product to meet their requirements is unmatched in the market.

OnDemand’s management team, which has over 250 years of energy supply, utility and regulatory experience, enables us to provide market leading consultative service.

We evaluate each and every client meter on an individual basis. The unique usage characteristics attributable to each customer meter, including load factor, load shape, on-peak and off-peak usage patterns, transmission and capacity tags, are considered with each evaluation. All of these factors can have a large impact on what you pay for electricity and the type of product that would best suit your operational, financial and risk tolerance requirements.

Give us a call today to better understand how an outsourced approach for procuring electricity could maximize your savings while making your life easier, allowing you to focus on other crucial aspects of operating your business!

Can I save money by shopping for electricity?
In States which have deregulated and introduced competition, you may be able to save money by switching to a third-party supplier. Energy markets are volatile, and default tariff rates frequently change. Therefore, many consumers switch to either lock in substantial savings or to lock in a long-term fixed number providing budget certainty.

OnDemand is passionate about maximizing our client’s savings by finding procurement solutions and savings for every meter type, regardless of size. We currently serve over 5,000 business customers representing over 20,000 commercial meters and manage over 4 billion kWh’s of annual electricity usage. The load that we represent in the market positions OnDemand as the largest consultant in the Mid-Atlantic region, and one of the largest in the nation.

OnDemand continues to expand our world-class procurement solutions and is now active in all deregulated states.

Exceptional consultative and customer service separates us from the competition. Our approach to analyzing our clients’ load shape and in choosing the optimum supply product to meet their requirements is unmatched in the market.

OnDemand’s management team, which has over 250 years of energy supply, utility and regulatory experience, enables us to provide market leading consultative service.

We evaluate each and every client meter on an individual basis. The unique usage characteristics attributable to each customer meter, including load factor, load shape, on-peak and off-peak usage patterns, transmission and capacity tags, are considered with each evaluation. All of these factors can have a large impact on what you pay for electricity and the type of product that would best suit your operational, financial and risk tolerance requirements.

Give us a call today to better understand how an outsourced approach for procuring electricity could maximize your savings while making your life easier, allowing you to focus on other crucial aspects of operating your business!

Could I be required to make a security deposit when securing a third-party supply contract?
Credit and payment history are important considerations for both third-party energy suppliers as well as local utilities. Third-party suppliers all have different criteria for retail client credit thresholds, and OnDemand has been very successful in finding solutions for all clients, even those who may have had some recent credit issues.

Do I need an energy consultant to help choose a third-party supplier?
Choosing a third-party supplier can be time consuming and daunting as the available options and the number of supplier options continues to grow substantially. For instance, OnDemand has placed over 25,000 business accounts into third-party options utilizing over 18 different third-party suppliers. Consumers can have the luxury of an energy expert walking them through the myriad of different supplier options, and maximizing the leverage that OnDemand provides in negotiating a third-party supply contract on our client’s behalf.

If I am with a third-party supplier, who do I contact for a power outage?
Your local electric utility will continue to handle all issues related to power outages and power restoration. In deregulated states, the local utilities do not care who you use for generation services, the local utility is still mandated by state law to provide distribution services to all consumers in a reliable fashion.

If I choose a new supplier, can I be certain that they will provide reliable service?
Your local utility will continue to provide the distribution services (poles and wires) to your home or business, and the local utility is still regulated by the State Public Utility Commission. There will be no difference in the quality, reliability, or the maintenance of your electric service.

If I have chosen a supplier, who do I contact for billing questions?
Your supplier will answer billing questions relative to the supplier charges, while the utility will answer questions regarding distribution charges.

Once I switch to a new supplier, when do they begin delivering my energy?
Depending on your meter read date, delivery can begin anywhere from 2 to 4 weeks. Actual supplier charges typically vary between 1 to 2 meter cycles or from 6 to 8 weeks.

Should I notify my utility before I choose a supplier?
Typically, your supplier will notify your utility on your behalf; you will not need to contact the local utility.

What does Price to Compare mean?
Price to compare (PTC) is the price per kilowatt hour (kWh) that your utility charges for generation and transmission. PTC is sometimes referred to as your shopping credit, and is the price you would pay the utility if you do not choose a third-party supplier. Increasingly, the PTC’s from local utilities are changing frequently (30 to 90 days) and the volatility in the PTC’s has even been greater than the normal “market” volatility.

What does the term POLR refer to?
POLR is defined as the Provider Of Last Resort. In deregulated states, typically the local utility is providing the POLR, or default rate, for those who choose not to shop for a third-party solution.

What is Electric Deregulation?
Deregulation is the reduction of government power in the electric industry with the intent to create competition within the industry. Deregulation empowers retail customers with the ability to purchase their power from independent, third parties instead of the incumbent electric utility.

What is a Letter of Authorization?
A Letter of Authorization (LOA) is a prerequisite to shopping on behalf of a retail customer. An LOA is also required to obtain usage data from your local utility so that suppliers can price a retail energy contract. LOA’s should not be binding documents, but merely a first step in the shopping process, and the binding agreement eventually occurs when a retail client chooses and signs a third-party energy contract.

What is an electric supplier?
An electric supplier is a company that provides the generation portion of your electric bill (and, in some states, the transmission portion as well). In deregulated states, consumers have the freedom to shop for their generation portion of the electricity bill for either a longer term or at a lower rate than what is typically provided by the local utility. When you shop for an electric supplier, you are choosing the company that will provide the rate for the generation portion of your bill.

Who is eligible to shop for a supplier?
Businesses and homeowners who reside in a deregulated state are eligible to shop for third-party solutions (unless your home or business is located in a municipal-owned utility or some other rural electric cooperative). OnDemand currently helps consumers choose a third-party supplier in Pennsylvania, Ohio, Maryland, Texas, California, Illinois, Michigan, New Jersey, New York, Delaware, Connecticut, Massachusetts, and the District of Columbia.

Will I receive one or two electric bills once I choose a supplier?
Although this varies from supplier to supplier, you may have the option to choose between single, consolidated or dual billing. In many instances, especially when signing a fixed price type of contract, you will continue to receive just one bill from your local utility. An energy consultant can help you understand your billing options.

Testimonials

golfCongressional Country Club

Many of our members at Congressional Country Club understand managing risk in an uncertain future and planning appropriate courses of action. Buying a volatile commodity like electricity is really all about managing risk and looking for purchasing opportunities. We have been extremely pleased with the performance of our current energy contract, as OnDemand Energy monitors the energy markets on a daily basis. Over the past two years, we have been able to take advantage of declining power prices as we continue to purchase power in a prudent, risk-averse fashion.

Dean Davidson
Chief Financial Officer, Congressional Country Club
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golfCurtiss Flow Wright

With rate caps for electricity expiring in Allegheny Power, we were very concerned about the financial impact to our bottom line. In addition, our operations were transitioning and it was unclear how much energy we would be consuming in the future. OnDemand Energy was able to skillfully negotiate contract language, protecting us from the uncertainty in our usage patterns, and, to our pleasant surprise, they were able to negotiate a rate that was lower than the previous capped rate, saving in excess of $600,000 per year for our organization!

Greg Carns and B.J. Rottschaefer
Senior Supply Buyer and Senior Facility Engineer
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golfFirst Commonwealth Bank

First Commonwealth Bank has over 115 branch locations spread over four different electric utility territories, so trying to find energy savings with so many small and medium-sized meters in different locations was a daunting task. Thankfully, we were able to leverage the ChamberChoice Energy program, managed by OnDemand, as they already had pre-negotiated rates in each of the four utilities with immediate savings for the smaller branch locations, while they negotiated customized prices for our two larger branches! Brought to us by our membership in the Indiana County Chamber of Commerce, all branch locations are benefiting with energy savings thanks to OnDemand.

Steven Smith
Vice President
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