The most expensive way to buy commercial electricity is to do nothing. When a fixed-rate contract expires and no new one is in place, your business rolls onto a holdover rate — the supplier's or utility's default variable tariff, charged month-to-month, with no ceiling. That rate is almost always higher than anything you would have locked in 60 days earlier. The cheapest rate is not the one with the lowest number on an advertisement. It is the one you find by shopping your actual usage, in your territory, before the holdover clock starts.
This page explains the four levers that set your floor, the traps that make advertised rates look cheaper than they are, and how to compare quotes so you are measuring the same thing across every supplier.
Get quotes on your usage →Advertised commercial electricity rates quote the energy component only — the raw supply cost per kilowatt-hour. That number does not include capacity charges (what suppliers pay to reserve generation headroom in the forward market), transmission charges (what the regional grid operator charges to move power from plant to meter), distribution charges (your local utility's wire costs), or the various state-mandated riders and taxes that land on every commercial bill. All of these appear as pass-through line items on the actual invoice.
Three specific structures make headline comparisons dangerous:
| Trap | How it looks | How to catch it |
|---|---|---|
| Teaser rate | Low per-kWh headline; pass-throughs listed separately or buried in contract addenda | Ask for a full all-in rate that includes capacity, transmission, and all pass-throughs |
| Bill credits | Rate applies only above a usage threshold; advertised price assumes you always hit it | Check the contract for minimum-usage clauses; model your lowest usage months |
| Pass-through surprise | Quote excludes capacity costs; ISO capacity auction results raise the effective rate mid-contract | Ask whether capacity is fixed or variable; prefer contracts that fix capacity for the term |
| Holdover roll | Contract expires; no action taken; account rolls to a month-to-month variable rate with no ceiling | Set a calendar reminder 90 days before expiry; begin shopping at 60 days |
Delivery charges are set by your regulated utility's tariff and do not change regardless of which competitive supplier you choose. A business in an AEP Ohio territory and a business in a Duke Energy Ohio territory face different wire costs, different demand thresholds, and different rate class structures — even if they are a mile apart. Comparing delivery rates across utilities is pointless. The only piece you can shop is supply.
Competitive suppliers price contracts against your interval data — the 15-minute demand readings your utility meter records. A business that draws a steady load around the clock is cheaper to supply than one whose demand spikes sharply for a few hours each day, because the supplier must reserve capacity against that peak. Two businesses with identical monthly kWh totals can receive meaningfully different quotes if their load shapes differ.
If your operation has flexible loads — charging, pumping, pre-cooling, batch processing — shifting them off your peak hours can improve the quotes you receive. Our demand-charges guide explains how to read your interval data and find your actual spikes.
Commercial electricity quotes are priced against wholesale forward curves — the market's view of what power will cost over the contract period. Those curves move daily with weather forecasts, natural gas prices, and regional demand projections. Shopping 60 to 90 days before your renewal date gives you time to collect competing quotes, hold the best one while you compare, and execute before your current contract expires. Waiting until the last week eliminates your negotiating position and leaves holdover as the fallback.
Suppliers price longer contracts at a premium to the spot rate because they are absorbing forward-market risk on your behalf. A 24-month fixed rate will typically be priced higher than a 12-month fixed rate from the same supplier on the same day — that spread is the cost of certainty. Whether it is worth paying depends on your business's sensitivity to cost volatility and your view of where forward prices are headed.
Our commercial contracts guide covers the clause-by-clause terms to review before signing — including early termination fees, renewal-notice windows, and how pass-through language can reopen pricing mid-contract.
Comparing quotes from multiple suppliers only produces a useful answer if every quote is built on the same inputs. Four requirements:
ElectricRates.org pulls live competitive supply quotes from PowerKiosk and ComparePower for every state we cover. Select your state to see current rates for your utility territory.
| State | Market type | Business rates page |
|---|---|---|
| Texas | Fully deregulated (ERCOT) | Texas business electricity |
| Ohio | Competitive supply (PJM) | Ohio business electricity |
| Pennsylvania | Competitive supply (PJM) | Pennsylvania business electricity |
| Massachusetts | Competitive supply (ISO-NE) | Massachusetts business electricity |
| New Jersey | Competitive supply (PJM) | New Jersey business electricity |
| Washington DC | Competitive supply (PJM) | Washington DC business electricity |
There is no universal answer. The lowest all-in rate for your business depends on your utility territory (which fixes delivery costs), your monthly usage and load profile (flat load quotes cheaper than spiky load), the current forward energy market (which moves daily), and the contract term you accept. The only way to find your cheapest rate is to get multiple competing quotes on your actual 12-month usage data at the same time, on the same term, and compare every component — not just the headline energy price.
Advertised rates are almost always energy-only prices — the supply portion of the bill. Your actual bill includes capacity charges, transmission charges, distribution charges, and state taxes that suppliers pass through separately. As a hypothetical example, a quoted energy-only rate of 6¢/kWh can land meaningfully higher on the all-in bill once capacity and transmission pass-throughs are applied — which is why all-in quotes are the only fair comparison. Always ask for an all-in quote or ask the supplier to list every component they pass through.
Yes, significantly. Suppliers price supply contracts against your interval data — the 15-minute demand readings your utility meter records. A business that runs the same load around the clock (high load factor) is cheaper to supply than one whose demand spikes sharply during a few peak hours each day. If you can flatten your demand profile before shopping — by staggering equipment startup or shifting flexible loads off peak — you may qualify for better quotes. Our demand-charges guide explains the mechanics.
Shopping 60 to 90 days before your current contract expires gives you time to collect competing quotes, compare them carefully, and execute before your contract rolls over to a holdover rate. Holdover rates are the most expensive way to buy commercial electricity — they are typically the default variable rate your utility or incumbent supplier charges month-to-month when no fixed contract is in place. The forward energy market also moves: locking in when forward curves are lower captures a better floor.
No. Delivery charges — distribution, transmission, capacity, and demand charges — are set by your regulated utility's tariff and do not change when you switch competitive suppliers. Switching changes only the supply (energy) portion of your bill. This is why comparing delivery costs across utilities is pointless: they are fixed by territory. The only cost you can shop is supply.
Send us your last 12 months of usage data. Our commercial team pulls competing quotes from multiple suppliers in your territory on the same day — all-in pricing, same term, so you can compare what actually matters.
Get quotes on your usage →The four-step process, and what to check before you sign.
Fixed vs. variable, pass-through clauses, and early termination fees.
What small, medium, and large commercial accounts typically pay.