What is Deregulation or “Customer Choice”?
Deregulation of local utilities allows for competition with electricity and natural gas suppliers. This allows customers to choose their energy suppliers.

Deregulation “unbundled” or separated natural gas and electric industry into three separate functions: Generation, transmission and Delivery.

Generation means the Extraction of natural gas and the production of electricity
Transmission allow for the commodity to be moved from the point of purchase to the point of Delivery to the local utility company for distribution (delivery) to your facility.

Although a Supplier is typically selling you the commodity portion of gas or electric they will be including the transmission/transportation portion of the bill with the supply side of the bill. Suppliers pass through the wholesale cost of transmission without mark up. It can be all inclusive with one price or bundled with separate line item charges.

What is the function of the “Public Utility?”
The function of the “Public Utility” used public funds to build one distribution system which allows all parties equal access to reliable and dependable delivery of gas and electric.
Regardless who you choose as an energy supplier, you remain a customer of the local utility for energy distribution, and ongoing upkeep of the infrastructure. This includes the restoration of power after outages. Federal law mandates restoration guidelines and utilities must comply.

Will I still be a customer of my local utility company?
Yes. The local utility owns the power lines and gas pipelines that carry electricity and natural gas to your facility and they will continued to bill you for the delivery portion at rates governed by the state utility commission.

What if I have a gas leak or power outage?
The purpose of the local utility company is to maintain the infrastructure. In the event of a gas leak or power outage, please contact your local distribution company.

Everyone remains a customer of the utility company regardless the chosen supplier.

Remember, Federal law mandates the hierarchy by which restoration of power occurs. Utility companies are required to respond to service interruptions with equal attention. They cannot and do not discriminate against any customers participating in Choice regardless the supplier.

Will I notice any changes to my service?
No. When you choose an alternative supplier your electricity and natural gas service continues without disruption.

Will I have more than one energy invoice?
That depends on the Supplier and the individual state laws. While some Suppliers bill separately from the local utilities distribution invoice, others combine billing on the same utility invoice.

What is a LOA aka Letter of Authorization or Letter of Agency?
The LOA is required by certain states, which allow suppliers to obtain historical usage data. This information is a key for suppliers accurately quote a customers load; how a facility uses it energy and when.

What information is obtained by the Letter of Authorization?
Information a supplier may seek may include Customers’ electric usage information, account number (s) meter number (s), service name and address(es), interval data, meter reading data, CTC number, rate class, types of service, voltages, service phase and other information relevant to historical energy data, or other information consistent with state law.

Do I need to sign the LOA?
Signing the LOA simply means you have given the supplier your consent to obtain the historical data. Signing an LOA does not switch your energy supplier; rather it prevents unauthorized switching or “slamming” of customer accounts. No proprietary information is obtained.

Please note an LOA is not an EXCLUSIVE AGENCY AGREEMENT. If you are approached to sign LETTER OF EXCLUSIVITY be cautious as this exclusivity may lock you into choosing only from suppliers a broker has to offer.

Do I need to sign a long term contract?
No. Many suppliers offer month-to-month products and contracts with termination language.

Depending on the market conditions and your business plan, Brio Energy can customize products to fit individual facilities rather than bulking all facilities into a “one size fits all product.”

What is a NYMEX based contract?
NYMEX is the stock market for natural gas. At the end of each day and each month it publishes Settlement Price(s). Depending on the product this price will become the basis for the cost of gas for the following months gas usage.

What is the difference between NYMEX and NYMEX with Fixed adder?
An adder can float or it can be fixed for the term. Adders include transportation, and pipeline fees, handling, storage and margin costs.

• All In is a term meaning all costs are included.
• A floating adder typically changes monthly.

The only difference in NYMEX based products is the cost of the Adder.

NYMEX plus fixed adder example:
NYMEX Settlement Sept  close $3.02
 + Adder $1.00
 Cost of gas for October  usage $4.02