Recently, an individual reached out to WatchWire to ask how they could save money in a regulated energy market. This is a great question, and one that is particularly relevant now that energy prices are rising due to the global crisis. In this article, we’ll explain what a regulated energy market is, how a consumer can save money in such a market, and how WatchWire can help.
What is a Regulated Energy Market?
When an energy market is regulated, it means that utilities have complete control. The utility company owns the infrastructure and transmission lines, then sells the electricity directly to the customers. In regulated states, utilities must abide by electricity rates set by state public utility commissions. This type of market is often considered a monopoly due to its limitations on consumer choice, i.e., the consumer does not have the option of sourcing their electricity from a cheaper vendor.
How to Save Money in a Regulated Energy Market
When it comes to saving money in a regulated energy market, there are several options available to consumers. They are as follows:
Although it is a deregulated state, New York allows qualifying businesses and nonprofits statewide to potentially lower their energy costs by using specially allocated NYPA [hydro] power through the Recharge NY program. Companies receiving allocated power must make commitments such as remaining in the state, keeping or growing employment, expanding operations, and/or making significant local investments in their businesses. It is not uncommon for regulated states to offer similar programs. Check with your utility/state to see what they offer.
Implementing efficiency projects in your building(s)/home can help you save money in a regulated energy market. Since you can’t find a different vendor for your electricity, efficiency projects allow you to cut your energy use, thus lowering the number you see on your monthly bill. Examples of efficiency projects include:
- Installing LED retrofits
- Upgrading machinery and HVAC systems
- Replacing old insultation with new, more effective insulation
- Shifting operational patterns to use more energy intensive machinery at times when power is cheaper
How WatchWire Can Help
WatchWire’s energy and sustainability management software can help your organization with its efficiency projects. WatchWire provides you with real-time data monitoring to help you measure and verify both the effectiveness of your efficiency projects and the resulting energy and monetary savings. WatchWire also benchmarks your efforts against national efficiency standards like WELL Building and ENERGY STAR.
To learn more about WatchWire’s capabilities, download the WatchWire Fact Sheet.