An electricity plan allows your business to choose a competitive supplier for the electricity supply portion of your service while your local utility continues delivering power and maintaining the grid.
Electricity plans differ by pricing structure, contract length and how they respond to market changes, giving businesses flexibility in how electricity supply costs are managed.
What is an Electricity Plan?
A business electricity plan covers the supply portion of your electricity service. Your utility continues handling delivery, outages and infrastructure regardless of which supplier you choose.
When Electricity Plans Make Sense for Businesses
Businesses often explore electricity plans when they want greater visibility into how their electricity supply is priced and managed, especially when contracts approach renewal or usage patterns become more predictable.
Electricity plans may be a good fit for businesses that:
- Operate in states with competitive electricity supply markets
- Want visibility into their electricity supply costs separate from utility delivery
- Have predictable or measurable electricity usage
- Are reviewing an existing contract or approaching a renewal period
Common Electricity Plan Types
- Fully Bundled Fixed Rate Plans
- Capacity Adjust Plans
- Custom Plans
A fully fixed-rate plan bundles all electricity supply components such as energy, capacity and transmission into one rate. The supply rate remains consistent throughout the contract term, though monthly bills still vary based on usage.
These plans separate the base energy rate from certain capacity market costs. Capacity pricing may adjust based on auction outcomes depending on the contract structure and timing.
Custom plans can be structured around a business’s specific usage profile or operational needs.
Plan Type Comparisons
| Plan Type | What’s Fixed | What Can Change |
|---|---|---|
| Fully Bundled Fixed Rate | Supply Rate | Usage |
| Capacity Adjust | Supply Rate | Usage, Capacity Costs |
| Custom | Varies | Varies |
Contract Term Length: How to Think About It
The contract length your business selects determines how long the supply rate and contract terms remain in place. Businesses often balance flexibility with pricing stability when evaluating contract length.
Common Term Lengths
Related Resource: Short Term vs Long Term Energy Plans
Learn More
What Affects Electricity Costs?
Electricity costs reflect a combination of energy usage, market pricing conditions, seasonal demand patterns and the structure of the supply contract.
Choosing an Electricity Plan
Choosing an electricity plan starts with understanding usage patterns, preferred contract length, pricing structure and the options available in your state.