What If You Buy Power From a Stranger?

We’re not talking about a stranger trying to sell you something from the back of his truck…….. “Hey Buddy, want ta buy some cheap power?”

Yet buying your electricity from a “third party” – not your regular electric company – might seem a little strange, if not dangerous. After all electricity itself is dangerous if not handled properly. And quite frankly, so is signing an agreement to buy power from a “stranger.”

So let’s look at the safeguards in place to protect you, and me, from the possible pitfalls that could make the purchase uncomfortable:

All third party electricity providers must be approved by the state utility commission and/or FERC to furnish power to your area. Be certain the stranger has that approval.

The rates charged and to be charged by the supplier must be filed with the local authorities; utility commission, Independent System Operator (ISO) or FERC, etc and made available to the public. Examine them carefully to see if any savings are possible compared to your local rates.
Reliable service is a consumers right. The local public utility – your original electric company - remains as the distributor of the power you use regardless of where it comes from. Any failure in delivery is the responsibility of the local utility.

If the supplier should go bankrupt or fail to provide service for any reason the law requires that your original utility act as “the supplier of last resort.”

Terms of agreement. Some suppliers require you to sign up for a given period, like one year or two, and if the customer cancels the service there can be a termination fee or penalty charge.
This should be clearly understood before entering into any third party purchase agreement.

If there is a question about any aspect of the third party energy purchase, the prospective customer may always confer with the local utility representative or an agent of the utility commission.

Finally, there are some private utilities offering electricity that has been generated using green – or replaceable – electricity. In some cases these suppliers charge rates slightly higher than the local or competitive charges. The consumer must decide if converting to the “green” power is worth a small increase in cost.

We have always felt that the increase now will result in cleaner air later. But what is more important is that each consumer taking that step is making a statement that clean energy for the future is more important than a slight cost increase at this time.