Spokane client got pitched by Pacific Power Marketing for electric supply. Contract has automatic renewal clauses and variable rates after 12 months. Avista's Schedule 11 looks better than their offer. What should I watch for in Washington state broker deals?
Avista territory broker contracts - red flags?
Washington has decent consumer protections but commercial customers are on their own. I always red-flag automatic renewals and teaser rates. Get the full term pricing in writing.
Avista's rates are pretty competitive in eastern Washington. Unless it's a large industrial customer, most small businesses do fine on utility tariffs. The broker has to beat Schedule 11 consistently, not just year one.
I audit a lot of Spokane businesses. The ones who switched to brokers usually regret it by year two when rates jump. Avista's customer service is also better than most third-party suppliers.
Run a 3-year total cost comparison including all fees and potential rate escalations. Many broker contracts look good initially but become expensive over time. Include contract exit costs in your analysis.