Energy Procurement Explained
Same utility. Same invoice. Different supplier. Better rates. Here's how it actually works.
How Deregulated Energy Markets Work
Understanding the difference between your utility and your supplier is the key to unlocking energy savings.
Utility vs. Supplier: The Critical Distinction
Your Utility (Delivery)
Your utility—ComEd, Eversource, National Grid, CenterPoint—owns the poles, wires, and infrastructure that deliver electricity and gas, and handles outages, metering, and reliability. You cannot choose your utility—it's set by your address and delivers your energy regardless of who supplies it.
Your Supplier (Generation/Commodity)
Your supplier is who you buy the commodity—electricity or natural gas—from. In deregulated markets, dozens of licensed retail energy providers compete for your business on rates, terms, and pricing structures. This is where choice exists, and where savings are found.
Why the Bill Looks the Same
In most deregulated markets, you get one consolidated utility bill with two parts: Delivery Charges (fixed infrastructure fees) and Supply/Generation Charges (variable energy costs). Switching suppliers changes only the supply portion—typically a significant part of your total commercial energy bill.
How Energy Flows vs. How Money Flows
Energy Flow
Power Plant → Transmission Grid → Local Utility → Your Meter → Your Facility
This never changes regardless of supplier
Money Flow
Your Payment → Utility Bill → Split: Delivery to Utility + Supply to Your Chosen Supplier
Supplier choice affects a significant portion of costs
Deregulated Energy Markets
Energy choice is available in 15 U.S. states. If your business operates in these markets, you can choose your supplier.
Why Energy Brokers Exist
A legitimate question: "Why do I need a middleman?" Here's the honest answer.
Forced Competition
Call a supplier directly and you're one customer with no leverage on rate. Brokers solicit bids from multiple suppliers at once, and suppliers sharpen pricing because they know they're competing.
Volume Leverage
A single business renews once every 1-3 years; brokers place dozens of customers monthly. That deal flow earns preferred pricing individual businesses can't access alone.
Market Timing
Wholesale energy prices fluctuate hourly with weather, demand, and global events. Brokers monitor ERCOT, PJM, ISO-NE, and other markets continuously, knowing when to lock rates versus wait for a better window.
Contract Expertise
Energy contracts hide complex clauses—bandwidth tolerance, early termination, auto-renewal, capacity charges, transmission pass-throughs—that raise costs if negotiated poorly. Brokers read hundreds of contracts annually.
No Cost to You
Reputable brokers are paid by suppliers via a small commission in the supply rate—never charged to clients. The service is effectively free, and net savings still exceed any embedded cost.
Aligned Incentives
We only get paid when we place your account, and only keep your business if we deliver value. Our success is tied directly to your savings—a partnership, not a transaction.
Client Success Stories
These are actual results from Inertia Resources clients using strategic procurement strategies.
🏋️ Gold's Gym
Industry: Fitness Center
16-24 hour daily operations with heavy HVAC and equipment loads. We implemented a hybrid index pricing strategy with strategic blocks.
- 32% Rate Reduction
- $72,517 Annual Savings
- $362,586 Projected 5-Year Savings
🍩 DEKK Holdings (Dunkin' Donuts)
Industry: Quick Service Restaurant
Energy across 200+ locations in multiple states required state-specific seasonal hedging with coordinated procurement.
- 24% Rate Reduction
- $184,738 Annual Savings
- $923,692 Projected 5-Year Savings
🌿 Hennep
Industry: Cannabis Cultivation
Energy-intensive cultivation required a block-and-index strategy with seasonal hedging to manage substantial consumption.
- 28% Rate Reduction
- $144,460 Annual Savings
- $722,302 Projected 5-Year Savings
🍺 The Dubliner
Industry: Restaurant Group
Locked into an unfavorable fixed-rate contract, we transitioned them to a seasonal block-and-index strategy.
- 24% Rate Reduction
- $86,339 Annual Savings
- $431,693 Projected 5-Year Savings
🏗️ JMK5 Construction
Industry: Commercial Construction
Variable project loads and temporary site connections required a flexible block-and-index approach that adapted to changing consumption.
- 29% Rate Reduction
- $23,825 Annual Savings
- $119,127 Projected 5-Year Savings
Combined Results Across These 5 Clients:
$2.56M+ in 5-Year Savings
Average cost reduction: 24-32% | All using block-and-index hybrid strategies
Why Suppliers Offer Better Rates to Brokers
It seems counterintuitive—a middleman should add cost, not cut it. Here's why the opposite is true.
Efficient Customer Acquisition
Suppliers budget heavily for sales, marketing, and acquisition—and a business calling directly still triggers those costs. With brokers, one relationship delivers many accounts, letting suppliers offer better base rates while protecting margins.
Deal Flow Economics
The math: a rep might close 2-3 deals a month going direct, but get many more qualified opportunities from one broker relationship. Suppliers compete aggressively for broker business because the volume economics are far better—and your contract benefits.
Wholesale Market Access
Large brokers have relationships with Tier 1 suppliers—major players with sophisticated trading desks and stronger wholesale positions. On identical terms, the gap between Tier 1 and smaller regional players can be significant. Brokers give you access to suppliers you'd never qualify for alone.
Transparency Check
When a broker receives offers from multiple suppliers for your load profile, outliers are obvious—if one is much higher (or suspiciously lower), the broker investigates. A business dealing direct has no benchmark and can't tell if an offer is competitive.
Energy Portfolio Strategies
The "best" energy contract isn't the lowest rate—it's the right structure for your business needs and risk tolerance.
Fixed-Rate Contracts
Lock a single price per kWh/therm for 12-60 months—your rate stays flat regardless of market swings.
- Pros: Complete budget certainty, protection from spikes
- Cons: No opportunity to benefit from market drops
- Best for: Risk-averse organizations, tight budgeting environments
Index/Variable Pricing
Pay real-time or day-ahead market rates plus a small adder—costs fluctuate with the wholesale market.
- Pros: Captures market lows, no premium for price certainty
- Cons: Full exposure to price spikes
- Best for: Organizations with flexible budgets and risk tolerance
Block-and-Index (Hybrid)
Fix a "block" of baseload at a set rate while the rest floats at market index. Example: 60% fixed, 40% index.
- Pros: Partial budget certainty + upside capture
- Cons: More complex to manage and forecast
- Best for: Most commercial clients (our typical recommendation)
Load-Following Block-and-Index
Like block-and-index, but the fixed percentage applies to actual monthly usage rather than a set kWh amount.
- Pros: Adapts to consumption variability automatically
- Cons: Slight premium over traditional block structures
- Best for: Seasonal businesses, variable production schedules
Managed Hedging / Layering
Buy your future load in "layers" over time at different price points—like dollar-cost averaging.
- Pros: Reduces timing risk, smooths costs across market cycles
- Cons: Requires active management and longer planning horizon
- Best for: Large consumers, multi-year planning horizons
Seasonal Hedging
Fix higher percentages during volatile seasons (winter in the Northeast, summer in Texas) while floating in milder months.
- Pros: Protection when you need it most
- Cons: Requires market knowledge to time correctly
- Best for: Weather-sensitive operations, regional expertise
Not sure which strategy fits your business? That's exactly what we help you figure out.
Get Strategy Recommendation →Frequently Asked Questions
Straight answers to the questions businesses ask most when exploring energy procurement.
About Switching Suppliers
Will my power go out if I switch suppliers?
No. Your utility still delivers electricity through the same wires and poles regardless of who supplies it. Switching suppliers is purely a financial/contractual change—you'll notice no difference in service or reliability.
Do I need new equipment or meters?
No. Your existing meters, electrical systems, and utility connections stay exactly the same. The switch happens entirely on the billing/administrative side.
How long does switching take?
Typically 1-2 billing cycles (30-90 days depending on your utility territory), with no service interruption. You receive power normally while the administrative switch processes.
Can I switch back to my utility's default supply?
Yes—you can return to your utility's default supply rate at any time (though your current supplier's contract terms may apply). You're never locked into third-party supply forever.
What if my supplier goes bankrupt?
Your utility automatically becomes your default supplier until you select a new one—no interruption, the lights stay on. This happens occasionally in deregulated markets, and customers are always protected by this safety net.
About Savings & Costs
How much can I actually save?
Results vary by market conditions, load profile, and timing, but commercial clients typically see 20-30% reductions on the supply portion of their bills. Across 4,000+ clients since 2017, Inertia Resources has averaged 27% savings. We'll provide a free analysis of your specific potential.
What's the catch? How do brokers make money?
No catch. Brokers are paid by suppliers through a small commission in the supply rate—a fraction of a cent per kWh, never charged separately to you. Net savings to clients consistently exceed any embedded broker compensation. If we couldn't save you money, we wouldn't earn anything.
Why wouldn't I just go directly to the supplier and save the broker fee?
You could, but you'd likely pay more. Suppliers reserve competitive pricing for brokers who bring volume and deal flow, not individual businesses. The "broker fee" is typically less than the extra discount we negotiate—net savings you wouldn't get going direct.
Is the lowest rate always the best deal?
Not necessarily. A low rate with punitive early termination fees, tight bandwidth tolerances, or hidden pass-throughs can cost more than a higher rate with favorable terms. We evaluate total cost of ownership, not the headline rate.
About Deregulation
Why haven't I heard of energy choice before?
Utilities don't advertise it—they'd prefer you stay on default supply. Deregulation varies by state and isn't widely marketed, so many owners in deregulated states don't realize they have options until a broker, peer, or industry association points it out.
Is my state deregulated?
Currently, these states offer commercial energy choice: Texas, Pennsylvania, Ohio, Illinois, New York, New Jersey, Massachusetts, Maryland, Delaware, Maine, New Hampshire, Rhode Island, Michigan, Virginia, and Washington DC. Natural gas choice is available in additional states. If you're unsure, contact us and we'll confirm your options.
What's the difference between ERCOT, PJM, ISO-NE, etc.?
These are Regional Transmission Organizations (RTOs) or Independent System Operators (ISOs) that manage the wholesale electricity grid by region. ERCOT covers Texas, PJM the Mid-Atlantic and parts of the Midwest, ISO-NE New England. Each has different market dynamics, pricing, and rules affecting retail energy contracts.
About Working with Inertia Resources
How is Inertia Resources different from other brokers?
We've been in deregulated energy markets since 2017, backed by a team with 15+ years of wholesaler relationships and deep market expertise. We serve 4,000+ commercial and industrial clients across 16 states, with particular strength in ERCOT/Texas. Our portfolio includes 200+ Dunkin' Donuts locations—sophisticated energy buyers who return year after year.
What does the process look like?
Simple: (1) you share a recent energy invoice, (2) we analyze your load profile and solicit competitive bids, (3) we present options with recommendations, (4) you choose, and (5) we handle paperwork and monitor your account ongoing. Typically 1-2 weeks from invoice to signed contract.
Do you charge any fees?
No. Our services are completely free—we're compensated by suppliers when we place accounts. No upfront fees, consulting fees, or hidden charges. If we can't save you money, we don't earn anything; our incentives are fully aligned with yours.
The Switching Process
From first contact to ongoing savings—what to expect with Inertia Resources.
Share Your Invoice
Upload a recent energy bill so we can analyze your rates, usage patterns, and contract terms. Takes 2 minutes.
Market Analysis
We solicit competitive bids from suppliers in your market and analyze which contract structures best fit your business. Takes 3-5 business days.
Review Options
We present clear, comparable options with our recommendations, explain the trade-offs, and you make the final decision. No pressure.
Execution & Transition
Once you choose, we handle the paperwork and coordinate with your utility. The switch happens seamlessly over 1-2 billing cycles with no service interruption.
Ongoing Partnership
We monitor your account, track renewal dates, and reach out when market conditions favor re-negotiation. You're never left on your own.
Proven Results
Delivering measurable savings for commercial and industrial clients since 2017.
Ready to See Your Savings Potential?
Upload your recent energy invoice and receive a custom savings analysis. No commitment, no pressure—just data.