Electricity Rates

Electricity Rates

Our energy brokering services offer competitive electricity rates. We have a comprehensive process with our strategic suppliers to achieve the best rate and contract for your electric.   

Electric supply costs have several components to an electric rate.  Some states mandate all or some of these components in the electricity cost and can change because of regulatory changes.   

Electric Supply Cost Components

  • Energy - Energy is the cost for electric generators to produce each unit of power that they provide to the grid. These costs are based on generator fuel costs and generator efficiency. This is the main component of your electric supply cost and typically makes up 50% of your supply cost.
  • Capacity - This covers the cost of generators to be on standby at all times to meet the demand of the electric grid.
  • Ancillary Services - Charges which include a variety of costs that are incurred by the grid operator to ensure the grid is functioning smoothly, moment by moment, day after
  • Losses - The cost of energy that is lost during transmission from the energy source to the consumer. Energy is lost due to resistance in electric wires that dissipate energy as heat.
  • Transmission - The cost associated with moving power from a generator to the local distribution company.


Understanding what makes up the electric supply costs can be confusing for a business.  QFB Energy consultants have the expertise in explaining these components to customers.  Our consultants can explain billing details, and the different billing option available.   Electric rates can be billed from the utility or directly from the supplier.  


Pricing Options

Different pricing options are available for an electric rate.  Fixed or variable are the most common rates for electric.  Both option   Rates for electricity can be negotiated in different ways:

Fixed rate:  a rate that allows you to pay the same electric rates per kilowatt-hour (kWh) for a contract length, even if market prices fluctuate.  Rates are locked in be term lengths, usually 12-36 months.


Fixed Rate Pros Fixed Rate Cons
  • Price protection – Ability to lock in rate
  • Stabilizes the budget
  • Peace of mind – You know your rate will be fixed throughout your contract term (with few exceptions)
  • Wide range of contract lengths to suit your preference
  • Rates could be higher than market prices if rates fall while you’re under contract
  • Contracts have early termination fees if you want to end your contract before it expires



Variable rate:  a rate that changes month to month based on market conditions. Variable rate plans are month-to-month with terms of 31 days or less.  Variable rates are also know as index rates.

Variable Rate Pros  Variable Rate Cons
  • Can be cheaper than fixed rate plans
  • Not locked into a long-term contract, which means you can lock into a fixed rate, when conditions are more favorable.
  • No termination fee or penalty
  • Rates can increase at any moment without notice
  • Time to monitoring the rate to see where market is trending


Indicative market pricing changes daily.  By using an Energy Partner like QFB Energy, they can help you achieve your business goals by working with you on the best electric rate for you. 

Contact us today for more information on electric rates for your business. 

Please give us a call at (888) 947-8460 or send us an email to discuss how QFB Energy can help your organization save money on its energy rates.

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