Third-party suppliers.    

When looking at a supplier’s rate quote, make sure it includes the following:

1. Basic energy cost
2. Capacity charge  (the old peak demand charge)
3. Transmission
4. Line Losses
5. ‘Ancillary’ charges

 In addition to the basic energy cost you will be charged these taxes too:

1. Gross Receipts Tax (GRT) (Ex. 6.47% in PA)
2. Sales and Use Tax (SUT) (Ex. 6% in PA & 7% in NJ) 
   – payable on the energy charge AND the GRT, 
      (i.e. a tax on a tax – how do you like those apples?!)

The Local utility bill. 

Separate from the 3rd party supplier bill, you have to pay the local utility bill, which includes the following:

1. Local distribution charges
2. Transition charges  (smaller accounts only– goes away in 2011)
3. Sales Tax (Ex. 6% in PA)
   
   

A Useful Rule of Thumb: 

if there’s more than ½ a cent difference between supposedly comparable quotes, you’re probably not comparing apples to apples.
 

CONTRACTS

Similarly, there are a number of differences between supply contracts that you need to watch out for:

• Usage variance clause – if your usage differs substantially from historical usage, there may be a penalty with some suppliers, but not with others.
  
  
• Auto-renewal clause – this can put you on a much higher rate at the end of your first contract if you’re not pro-active, but we advise each customer well before renewal time.