Energy Procurement

In many states, electricity and natural gas supply and delivery is controlled by a local utility company within a protected service area. Pricing guidelines and other controls are set and monitored by the state they operate in but for the most part, customers do not have a choice in supplier or price.

Today, 28 states have deregulated the supply of energy, encouraging competition and offering customers a choice of supplier, price and contract term. Electricity and natural gas are traded on the open market as a commodity so prices fluctuate with the supply and demand just like stocks.

Depending upon your risk threshold, you may elect to lock into a guaranteed price for a specific length of time or you may choose another pricing plan and term that may fluctuate with the market in hopes of increasing your savings.

LES will analyze your historical data, create a customized energy supply and risk management strategy and execute the plan that best meets your business needs. You may be able to achieve an immediate energy cost-reduction after your next meter read date!


  • Budget Certainty

    Rising energy costs and not knowing what the future energy market will bring makes managing your company’s budget a difficult task.  A contract with a third-party supplier with a term length decided by YOU makes this much easier. Based upon historical usage, you’ll be able to predict and set an energy budget for the duration of the contract term.

  • Expense Reduction

    Multiple 3rd party suppliers will compete through their product offerings and price to earn your business.  LES will negotiate with these suppliers on your behalf.  We are an independent company and represent you, not the supplier, ensuring you receive the best possible product and price.

  • Risk Management

    Gain control and leverage your savings potential by managing and mitigating risk associated with the volatile energy market. The utility you buy from now may have tariff restrictions that restrict their ability to offer better prices and term lengths. 3rd party suppliers have created many innovative strategies and products to meet your individual needs and risk tolerance.

  • Product Choice

    There are many different products available to your company in a deregulated market. Depending on your energy usage profile, a traditional “fixed-rate” product may or may not be the best fit for you.  Customers have a choice of products in response to market conditions.  LES will help you understand this market and make recommendations based on an analysis of your profile.  We recommend multiple products with a variety of term lengths, not cookie-cutter solutions.

What is deregulation?

Consumers have been given the opportunity to purchase electricity and/or natural gas from competing suppliers. The local utility no longer has a monopoly covering a geographic territory. Nothing else will change. The local utility will still deliver the supply to you, service the lines, and send you your bills. The local utility will continue to be paid by all customers in its service territory for the delivery, servicing, and billing functions.

What happens if i choose a new supplier for my electricity and/or gas?

The process is seamless. Reliability and service are not affected. Your lights will not flicker, in fact, you won't even notice when the supply begins with the competitive supplier. You do not need any new equipment, no new meters, and no new account numbers, all of that stays the same. The only difference is that you will pay a competitive supplier for the supply rather than pay the local utility. Thousands of consumers change suppliers every day and millions of businesses have transferred their electricity service to competitive suppliers over the last decade.

How is my electricity and/or gas price determined?

Your electricity or gas account information is collected and analyzed for historical usage patterns and costs. Many key factors will be used to determine your profile including: demand (measured in kilowatts), consumption periods (peak and off-peak measured in kilowatt hours), seasonality (June–Sept or October-May), the market price (traded like commodity stocks), term (length of the contract), type of contract (fixed-price, index, hybrid, etc.) and your credit history.

Once your profile is created, a Request for Pricing Proposal (RFP) is released to a number of suppliers with products that meet your individual needs. After analyzing the price quotes and selecting the best option(s) for you, a proposal and contract will be prepared for your review.

Is deregulation working? Can my business really benefit?

During the past decade there have been thousands of reports, articles, and analyses done regarding electricity and/or natural gas deregulation. A lot of the information we see in the press is not the complete story or has a political bias. The reality is that there is much empirical evidence that illustrates that businesses participating in competitive markets have experienced many benefits including lower prices. As far as deregulation’s affect on the economy, it has spurred innovation and competition in the energy market, attracted investment, created jobs, improved the state and federal energy infrastructure and led to numerous policy changes that positively affect our lives every day.

If for any reason there is a power outage, what happens to my business if I move my accounts to a competitive supplier?

Nothing changes. The same local utility service team will be dispatched to service the power lines and turn your power back on under the same protocols that have existed for years. Your local utility is still responsible for all aspects of delivering and servicing your power. Your business, and all other consumers in the utility’s service territory, including residences, schools, churches, businesses, etc, pays a tariff amount every month to the utility for the delivery and servicing of the wires. In fact, the local utility is indifferent as to what supplier a customer uses. It delivers the electricity through its wires just as it always has.


Department of Energy (DOE)

Energy Information Administration (EIA)

Internal Revenue Service (IRS)

PJM Interconnection

New Jersey

Board of Public Utilities (BPU)

Public Service Gas & Electric (PSE&G)

Jersey Central Power & Light (JCP&L)

Atlantic City Electric (ACE)

Orange & Rockland Electric (RECO)

Elizabethtown Gas (EG)

South Jersey Gas (SJG)

New Jersey Natural Gas (NJNG)

New York

Public Service Commission (NYPSC)

NYSPSC Consumer Information

Con Edison (CE)

National Grid (NG)

Long Island Power Authority (LIPA)

Rochester Gas & Electric (RGE)

New York State Electric & Gas Corporation (NYSEG)

Central Hudson Gas & Electric (CHG&E)


Public Utility Commission (PUC)

Power Switch

PECO Energy Company (PECO)

Pennsylvania Electric Company (Penelec)

Pennsylvania Power & Light (PPL)

Metropolitan Edison (Met-Ed)

Allegheny Power (AP)

Duquesne Light Company (DLC)

UGI Utilities (UGI)


U.S. Department of Energy - Energy Basics