August 2016 Edition:Electric choice brings many benefits to consumers including a variety of price options, risk mitigation, and energy experts to help you decide what is best for your business’ unique energy needs. To understand the benefits and options available, a familiarity of electricity supply cost components is fundamental.
In the past, your local utility provided all components of electric service, which included generation, transmission and distribution. In states where electric choice is available, the local utility no longer owns power plants nor does it profit by selling energy to consumers. The electricity generation and transmission, where applicable, may now be provided by competitive retail energy supply providers. Electric choice brings many benefits to consumers including a variety of price options, risk mitigation, and energy experts to help you decide what is best for your business’ unique energy needs. To understand the benefits and options available, a familiarity of electricity supply cost components is fundamental. We’ve outlined a few important ones below. If you have further questions, please contact your AEP Energy sales representative or contact us by phone at 1-888-545-7999 or by email at nhines@aepenergy.com.
provide to the grid. These costs are based on generator fuel costs and generator efficiency. This is the main component of your electricity supply. |
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profile, and to provide for unexpected changes in customer usage over time. |
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standby at all times to meet the demand of the electric grid. |
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mandated requirements for energy suppliers to purchase a portion of their energy from renewable sources, such as wind, solar, and biomass. |
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