Got approached by an energy broker here in Fresno claiming they can get us 30% savings on our PG&E E-19 secondary voltage rate. They're asking for 12 months of bills and want a 3-year exclusive contract with 40% of savings as their fee. This sounds way too aggressive for our market. Anyone dealt with brokers making these kinds of claims on PG&E territory? Our current blended rate is around $0.14/kWh and they're saying they can get us down to $0.098. I've been doing this for 15 years and something smells fishy.
Broker claiming 30% savings on PG&E Schedule E-19 - too good to be true?
Dan, that does sound aggressive for PG&E territory. Here in Phoenix we see APS brokers making similar claims but 30% is usually unrealistic unless there's some major billing error involved. What's your current demand charge situation? If you're on the wrong rate schedule that could explain part of the savings, but 40% of savings as a fee is highway robbery. Most legitimate brokers I work with charge 15-25% max. I'd ask them to show you exactly how they're calculating those savings before signing anything.
Red flags all over this one. PECO brokers in Philly tried the same song and dance last year. Turned out they were comparing our current bills to some fantasy rate they pulled out of thin air. The 'savings' were based on moving us to a rate schedule we weren't even eligible for. When I pressed them for details, they couldn't provide any documentation. Run away fast.
Had a similar experience with an OG&E broker here in Tulsa. They promised 25% savings but when we dug into the numbers, they were comparing our worst summer months to their projected average. Complete nonsense. The legitimate savings opportunities in regulated territories like PG&E are usually much smaller - maybe 5-10% through rate optimization or power factor correction. Anything more than that and you should be very suspicious.
Thanks everyone. I asked them to provide a detailed analysis showing exactly which tariff they'd move us to and how they calculated the savings. They said they'd get back to me in a few days. That was two weeks ago and radio silence since. Pretty much confirms what you all suspected. I'll stick with doing my own rate analysis - found we could save about $8,000/year just by switching from E-19 to E-20 and adjusting our peak demand timing. Sometimes the simple solutions are the best ones.
Good call Dan. Here in Seattle with PSE we've learned to be very wary of brokers promising double-digit savings. The regulated utilities just don't have that much fat in their rates. Most legitimate opportunities come from operational changes, not broker magic. I always tell my clients if it sounds too good to be true, it probably is. You dodged a bullet on this one.
Same story different state. Rocky Mountain Power brokers in Utah love to promise the moon. Last one I dealt with claimed 35% savings but couldn't explain how when our current rate is already pretty competitive. The devil is always in the details with these guys. Stick to doing your own analysis - you'll sleep better at night knowing you're getting the real story.
Update on this thread - just got contacted by what sounds like the same broker outfit. They're now working the Arizona market with identical pitch. 30% savings, 40% fee, exclusive contract. I told them to take a hike. These guys are clearly working a script and targeting multiple states. Everyone stay alert.