5 Questions to Ask Prospective Alternative Electricity Suppliers

Energy deregulation essentially breaks down the monopoly previously held by utility companies by separating power production from power distribution. Energy deregulation actually began in the 1970s, when the Public Utilities Regulatory Policies Act (PURPA) created a structure for independent power producers. But deregulation became much more widespread and viable after the Energy Policy Act of 1992, which eliminated restrictions on prices charged for wholesale electricity.

The reasoning behind choosing a different electricity generation company is fairly simple: If you live in an area where the electricity market is deregulated, then choosing an alternative home energy supplier could allow you to compare rates, products, services and then pick the best option for your needs while still receiving your power through the public utility as you always have. Actually choosing that supplier, however, can be a little more complex. Here are the five questions you should ask before signing a contract:

1. How Does Pricing and Fees Work?

There are two main pricing models used by suppliers. One is a fixed model, in which you pay a set price for electricity as long as your contract is in effect. The other is a variable or floating model, in which your price depends on several factors  for any given month. Some companies might use a hybrid between these two models. You should also ask about any fees you will pay on top of the cost of your actual energy usage.

2. What Contract Lengths Are Offered?

Before you sign anything, you should know if you are allowed to switch back to your previous supplier at any point or if you are required to stay under contract for a set length of time. You should also ask about the penalties should you want to get out of your contract early.

3. How Are the Two Aspects of Billing Handled?

Since deregulated energy markets split production and distribution into two services. In many cases you will continue to receive the same bill from your current public utility company, with the only thing that changes is the name of the delivery provider within that bill. But you should ensure that you will continue to receive only one electric bill and if not, understand how the new bill will be coming to you so no payments slip through the cracks.

4. How Do You Generate Your Electricity?

Each electric company has a slightly different profile in terms of how it generates its power. If you have strong feelings about sustainability or renewable options, then you will want to choose a supplier that shares your values in terms of green electricity generation. Remeber to ask about those power production methods and decide if they line up with your values.

5. When Will the Switchover Happen?

There will be no interruption in your service if you switch to an alternative electric supplier, but you will probably want to know for bookkeeping purposes when your new supplier anticipates the switchover occurring.  The switching time frame is controlled by state laws and/or regulations.  For example, some states allow switching to occur in a few days while other states have proceedures which may result in the switching taking up to 1 to 2 billing cycles. Do you have any questions about choosing alternative electricity suppliers, or about energy deregulation in general? Join the discussion in the comments.

5 Energy Conservation Myths That Could Be Sabotaging Your Efforts

Energy conservation is an important goal, both because it will help you bring down your electric company bills and because it benefits the planet as a whole. In the U.S., electricity use in 2013 was 13 times greater than in 1950; even with greener electricity generation methods, that consumption has a negative impact on the environment. That’s why it’s so important that we all join in and try to reduce our energy usage. But in your conservation efforts, it’s important you don’t get drawn into some popular myths. Here are five of the most common that need busting: Myth #1: It’s better to leave the light on than turning it on and off several times.It’s often said that it’s best to just leave the light on if you intend to come back to a room in a minute, but there’s no evidence to back that up. Your best shot at reducing consumption is to always get in the habit of turning off the lights when you leave the room. Myth #2: Keeping your thermostat at a constant temperature takes less energy.Since the largest portion of residential electricity use in the U.S. goes to air conditioning (19% of total residential electricity consumption), it makes sense for energy conservation efforts to focus on AC. But you shouldn’t fall for the common myth that it takes more energy to cool a room back down than it does to keep it at a constant temperature. If you’re looking for energy savings, it’s best to only cool a room when you’re actually using it. Myth #3: Turning your heat/AC to the most extreme setting leads to a faster result.Turning your thermostat all the way up or all the way down won’t heat or cool the room any faster or save you any energy. In fact, it’s far more likely to just stay on longer, heating or cooling the room beyond what you need for comfort. That’s why a programmable thermostat is often worth the initial cost. Myth #4: Using hot water from the tap before boiling it saves energy.This myth might intuitively feel true because if you fill a pot with hot tap water before putting it on the stove, it will take a shorter amount of time to boil. But heating water takes energy no matter what. In this case, you’re just moving the task to a different appliance, your water heater, and then running hot water through the pipes so that there’s a greater chance for heat loss and waste. Heating water is actually one of the largest energy expenses in average homes, accounting for between 14 and 18% of utility bills. The most efficient choice is simply boiling cold tap water in a pot with a lid. Myth #5: When you turn your appliances off, they’re off.Even when you hit the off button, your appliances and gadgets are still drawing electrical energy. Depending on the appliance, this might be a very small amount of energy, or it might be a very large amount of energy. You can look back at some of our previous blog posts for more on which household appliances are the worst offenders. Have you heard any other common energy conservation tips that need fact checking? Join the discussion in the comments.

What You Should Know About Space Heaters and Energy Savings

With a frigid winter showing no signs of abating, many Americans are probably looking for some energy savings when it comes to their heating costs. One of the easiest ways to find some savings is to have a professional energy audit that can tell you where your home is losing energy -- and what you can do to retain that money. In deregulated markets, homeowners can also consider switching their gas and electricity providers in order to get better rates. You might be surprised to know that the prices of energy aren’t necessarily fixed by generation costs; while in 1995, power generation accounted for approximately two-thirds of what electricity cost, actually generating electrical energy now accounts for less than half of electricity prices, according to the Edison Electric Institute. But if you’re looking to change your heating habits to garner some energy savings, one very small investment is worth considering: a portable space heater. Here are the pros and cons of such an appliance. Space Heaters Vs. Central Heating If you’re looking to save some money, you’ll need to figure out when using a space heater is more efficient than using your home’s central heating system. Almost all central heating is more efficient than space heating in terms of energy consumption versus heat output. However, if you’re using a space heater to heat one small room rather than your whole house, it’s likely you’ll save quite a bit on your overall bill. You should make sure that you’re turning down your thermostat in order to compensate for turning on your space heater; one reason some people see their bills increase with the use of space heating is that they use portable heaters for “comfort heat” on top of their regular heating system. Choosing the Right Space Heaters The Environmental Protection Agency doesn’t currently certify any space heaters as being worthy of the Energy Star label, but you should pay attention to efficiency nonetheless, comparing heat output and power usage for any models you’re considering. There are basically two types of space heaters: convection and radiant. The former rely on circulating heated air around rooms, while latter work because radiant heat moves in straight lines to heat whatever or whoever is in front of it. This means radiant heaters can be a more efficient choice if you’re looking to simply warm yourself up for a short period of time before moving into another space. Important Safety Considerations You’ll also want to keep safety in mind, both when choosing a space heater and when using it. You should ensure that you're purchasing a vented heater rated for indoor use, that your heater has an automatic shutoff in case it tips over, and that it carries the Underwriter's Laboratory (UL) label. It’s very important that you not plug space heaters into extension cords, and that you never leave them on when you’re away from the house. According to the U.S. Consumer Product Safety Commission, space heaters lead to over 25,000 home fires every year, and are responsible for about 300 deaths. Space heaters offer opportunities for savings, but absolutely must be used safely to avoid these tragic outcomes. Where are you looking for energy savings as the heating season drags on? Share your tips and tricks in the comments.

Why Efficiency Must Be Central to Discussions of Energy Conservation

In more than one of our previous blogs, we’ve discussed the concept of energy efficiency and how it can fit into energy conservation efforts. To catch you up, energy efficiency is defined as using less overall energy to provide the same or better services; for individuals consumers, that would mean using all the same conveniences but getting a smaller bill from the electric company. For example, even though refrigerators sold today in the U.S. are 20% larger and 60% cheaper than their counterparts sold in 1975, they use 75% less electrical energy. For this reason, energy efficiency has been called the “fifth fuel” (the other four being coal, petroleum, nuclear power and green energy sources). But here are the two big questions: What kind of financial and environmental benefits could be derived from energy conservation achieved through the implementation of more efficient products and practices? And if they are so significant, then why don’t more businesses and individuals take advantage of them? The Impact of Efficiency A New York Times column by David Bornstein published earlier this month provides some useful statistics on the impacts of energy efficiency. Striving for energy efficiency simply by retrofitting buildings in the U.S. could lead to stunning $1 trillion savings over the course of a decade, a study performed jointly by Deutsche Bank and the Rockefeller Foundation found in 2012. And if that figure isn’t convincing enough, the aforementioned study also found that retrofitting could reduce greenhouse gas emissions in the U.S. by 10% and stimulate job creation. Buildings that have already been modified with efficiency in mind are seeing results consistent with those predictions. Initial investments are often paid back within just a few years of lowered energy usage, and (barring the destruction of buildings) the savings continue for many years after the principal is recovered. This means businesses, universities or government entities with large campuses would likely see a better return by improving their own buildings than they would by putting their money into other investments. Money for the Taking So why, if retrofitting for energy efficiency could lead to such significant financial and environmental savings, is it not happening on a mass scale? A classic joke relayed by Bornstein illustrates at least part of the problem: Two economists are walking down the street. The more junior of the two sees a $20 bill on the sidewalk and asks his senior colleague if he should pick it up. The experienced economist replies, “Don’t bother. It can’t be real. If it were, someone would have taken it already.” “The idea that money is available for the taking defies economic logic,” Bornstein explains. “But sometimes it’s true.” And that’s certainly the case when it comes to energy efficiency, both on the large scale discussed in his column and for individual consumers just looking for some modest energy savings each month. Investing in efficiency, even when that simply means replacing an old refrigerator, must be thought of as a vital component in the future of energy conservation -- the numbers bear out that the returns on energy efficiency aren’t too good to be true. What have you been doing to improve your energy efficiency? Share your thoughts in the comments.

What You Need to Know About Energy-Efficient Home Appliances

Whether you’re trying to keep the heat in during the winter or the heat out during the summer, home heating and cooling uses a lot of energy. Add to that tasks such as doing laundry and leisure activities such as watching TV, and you might be shocked when you open up the bill from the electric company each month. Modifying your habits is a good start on the goal of energy conservation. But if you’re really looking for energy savings, then investing in some Energy Star-rated products might be to your advantage. Here’s what you should know about choosing more efficient appliances: The Concept of Energy Efficiency First, it helps to think a bit more about the concept of energy efficiency and the impact it can have on how we think about power generation and use. Coming up with better ways to generate power through renewable energy sources and lowering the overall costs of power through policies such as energy deregulation are important, but all too often people assume that power consumption must automatically rise as we add more and more conveniences to our lives. The flaw in this model is that we can also engineer the things we use to give the same or better performance even while using less energy. That’s what energy efficiency means: using less energy to do the same work. For example, the average fridge sold today in the U.S. uses only about three-fourths of the energy one sold in 1975 did, even though it is about a fifth bigger and costs three-fifths less. The Energy Star Certification Program  One of the ways energy efficiency can have a big impact is in home appliances. While all modern appliances tend to be much more efficient than their earlier counterparts, Energy Star appliances are held to much stricter efficiency guidelines. The Energy Star program was started by the U.S. Environmental Protection Agency and U.S. Department of Energy in 1992, and has now spread around the world. You can buy Energy Star heat pumps and water heaters (something to think about, since water heating is one of the largest expenses in a typical home, accounting for 14% to 18% of utility bills), Energy Star refrigerators and dishwashers, and even Energy Star washers and dryers. In fact, the very first Energy Star-certified dryers just recently went on sale. Most major brands make appliances that are Energy Star rated. Calculating Return on Investment To figure out whether you’ll save enough money on your utility bills to justify new appliances, you can look at the guidelines for the appliance you’re considering. Energy Star dryers, for example, must use at least 20% less energy than industry standard dryers. If all new dryers sold in the U.S. were Energy Star certified, Americans would save a collective $1.5 billion annually on utility costs. And if energy savings aren’t enough for you, those dryers would also prevent the emission of the same amount of greenhouse gasses put into the atmosphere by about 2 million vehicles. That makes replacing old appliances with new, efficient ones both a short-term and long-term investment in your pocketbook and the future of the planet. Add your thoughts on responsible energy savings in the comments.

Starion Energy, Inc. Announces Launch of Member Rewards Program

As of January, Starion Energy, Inc. began rolling out a rewards program that will offer customers discounts on various everyday services and products.

“The whole idea with the rewards program is to give people something extra for being our energy customers,” said Marketing Director Duane Gereski. “We want to offer our customers incentives and go above and beyond to see if we can save them more in their everyday life."

The program, called Starion Rewards, is a free, online member rewards program for Starion Energy Customers. The company successfully tested a pilot version in 2014, and has now announced a full launch. Starion Energy, Inc. is an alternative energy supplier in deregulated markets across 10 states. Starion Rewards will be offered to new customers, in most markets, who provide valid email addresses through the company’s telemarketing channel.

The program offers up to $1,200 in rewards per year in areas such as travel, shopping and dining; members can even receive grocery discounts. Plus, enrollees who remain an active Starion Energy customer for six months will also be eligible for an additional $100 shopping rebate from one of their favorite stores (or a choice of five other items). Active Starion customers can even continue to receive free milestone gifts as long as they are in the program. It's simple; the longer a customer stays with Starion Energy, the more they can save with Starion Rewards.

Gereski said Starion Rewards is designed to appeal to many customers across multiple states. “We wanted the rewards program to be customizable so it would be able to affect different consumer’s needs,” he explained. “If you are single, married, or have a family, it doesn't matter because Starion Rewards has benefits that we hope can appeal to your lifestyle."

More information about the program can be found at http://www.StarionRewards.com. “Qualified Starion Rewards customers choose the benefits that they want to use, when they want to use them,” Gereski commented. “It’s a totally free program and our way of saying, thank you for being a Starion Energy customer.”

About Starion Energy, Inc.

Starion Energy Inc. serves both commercial and residential customers, helping consumers find their ideal contracts and rates, and their coverage area spans 10 states throughout the U.S. To learn more about their services, visit starionenergy.com

3 Claims About Renewable Energy That Don't Hold Water

Green energy solutions take criticisms on both practical and ideological fronts, and it’s important that environmental advocates be able to engage critics in discussion so that the country as a whole can hasten its development of sustainable energy practices. Here are three myths about renewable energy:

1.     Renewable Energy Is Too Expensive to Be Realistic

The prices of renewable energy production methods are falling and will soon be competitive -- some people also forget to take into account the hidden price tag of non-renewable sources. Air and water pollution, along with their environmental effects can have a cost, even if that cost isn't easily tallied.

2.    Renewable Power Sources Aren’t Reliable

The problem with green energy companies, some doubters say, is that they’ll never be able to consistently meet demand; wind doesn’t always blow, and the sun doesn’t always shine. It’s true that consistency has long been a concern for renewables. But engineers  are tackling  these problems and coming up with better ways to either transmit power across distances in cost-effective ways (to account for regional discrepancies in renewable resources) or store unused power more efficiently for later use.

3.    We Have No Choice Except to Generate More Power

Some people think that our increased use of devices that require power will lead, inevitably, to a model in which we’re constantly consuming more energy and thus needing to generate more power. But this is a model that negates the power of energy efficiency, or using less energy to accomplish the same purpose. The average refrigerator, for example, now uses 75% less energy than the average fridge sold in 1975, despite being 20% larger and costing 60% less.

Good engineering can do more than give us cleaner, green ways of generating our power; it can also help to increase our quality of life while decreasing the amount of energy we consume. You can do your part by figuring out how you use the most energy and then trying to find a more efficient option. Water heating is typically one of the largest energy users in a home, accounting for 14% to 18% of utility bills. So installing tankless water heaters or other efficient appliances could help the planet and your pocketbook simultaneously.

Do you have any thoughts regarding power generation and the future of energy in America? Join the discussion in the comments.