Posts Tagged NY electricity suppliers

New York Electricity Rates and Suppliers

Wednesday, January 5th, 2011 | Permalink

New York is a state that has deregulated its electric utility market. This means if you are relocating to New York or live there now you can choose a competing electricity supplier.

Your electricity service is still delivered by the monopoly electric utility and this will always be the same company. There are however multiple electricity suppliers out there that are trying to get you to choose them to buy your electricity service.

New York Electricity Suppliers

These retail electricity providers in New York are more like a paper transaction business. They buy energy on a commodities market and they hedge that energy to sell to you. This is all on paper and they do absolutely no transmission of electricity themselves or even create the power.

These retail electricity suppliers may sometimes bill you for their service or will allow the monopoly poles and wires company to do the billing for them.

So to help you understand the process just think of it this way. Some retail electricity providers do a better job of buying and hedging energy on the commodities market than do other companies.

An electricity company is really taking very calculated risks and managing their investment in energy very strictly so they can sell this power to you and make a profit at a very thin margin.

Some electricity suppliers in New York can do this much better than another provider and can run their business much more efficiently.

Many electricity providers will try to do this and will not buy or hedge their prices correctly and will go out of business because they were over leveraged.

The reality is that being in the retail electricity business requires a skilled trained workforce in order to buy and sell energy to your home or business and still make a profit.

If you would like to shop and compare electricity rates in New York please use our comparison chart on the top right of this page.

Type in your zip code and choose commercial or residential to get started. If you would like a detailed description of our reverse auction process we use to achieve for you the lowest available price for electricity please fill in your name and email in the form at the top right.

Electricity Suppliers