E3 Power is very familiar with what it takes to open and run a small business in Colorado. We are a huge supporter of the entrepreneurial spirit and the drive that goes behind those who follow their dreams and go for it. With that being said, there’s a lot that goes into running a smaller business. Many times things are completely unpredictable especially when you are first opening your doors. Your soft opening goes absolutely fabulous but for whatever reason, a pipe burst on opening day or your best employee is sick with the flu and you are panicking. When all else is up in the air your electric bill doesn’t have to be if you have a fixed rate.
How Variable Rates Work
Variable rates are just that, variable, meaning they fluctuate and change with the wind. Well, not the wind necessarily but it does have a little to do with the weather, the site of the power plant, the abundance of electricity, and supply and demand. The energy company buys electricity from through the energy market and then distributes it to you the consumer. The cost of the electricity changes by the hour depending on the factors we talked about and you get charged for whatever rate that is plus tax. Some of the factors that affect the cost of your electricity are:
- The Power Plant - Some power plants are more expensive to keep running if your electricity comes from one that does than your electricity will be higher.
- Supply and Demand - During the peak of certain seasons people use more energy due to the extreme cold or extreme heat. When everyone is pulling from the pool of energy at one time it forces the electric company to have to buy more and at a higher rate.
How Fixed Rates Work
Now that you understand how variable rates work let’s take a deeper look at fix rate electricity plans. This type of plan offers you predictability and if you are one that stresses out about bills and debt then this is probably a great option. Maybe you aren’t a big worrier but you just want the predictability in your life then this is the direction you want to take. Your electricity usage over a certain amount of time is what the electric company uses to determine your fixed rate. After they measure your usage, you and your electric company agree on a rate for a certain amount of time. Every month no matter if it is negative zero or one-hundred degrees you will pay the same rate. Keep in mind that this does mean that during certain months you could be paying over market value but during those peak extremes you could be below, it really just depends.
There Are Many Ways To Save
If switching over to a fixed rate isn’t right for you there are other ways to help your small business and make sure you are getting the best out of your building. Energy audits are a great way to find out more about your space and how to make it better. Lighting consultations and infrared diagnostic services are also a helpful way to help your small business save money. An air sealing consultation is perfect for some of the older building that tend to have a lot more cracks and crevices open to the elements.
We Can Help Your Small Business
E3 Power wants to see your Colorado small business thrive whatever that takes. We can help to keep your business updated on some of the latest energy-saving services. We would love to talk to you about what we have to offer you, call us today.