The Benefits of Energy Deregulation

The Benefits of Energy Deregulation

As regulators and electricity suppliers continue to sort out the nuances of deregulation, market forces and climate change combine to make one thing abundantly clear: The idea of a “normal” calendar season is no longer operative. Summer heat waves are longer and more frequent than ever and the last two winters were brutally cold.

So, with summer cooling bills upon us and jitters over what next winter's heating bills might look like, this seems to be a good time to consider the benefits of energy choice and compare traditional utilities with competitive energy suppliers.

Although the infamous polar vortex of 2014 and its high energy costs did not make a repeat appearance last winter, there's no way of knowing what the coming winter will bring.

Before the introduction of energy choice programs, customers had to buy energy from their local utility. The utility set the prices that customers were required to pay. In recent years, however, a number of states have introduced competition for energy supply. In these states, utilities no longer have a monopoly on both energy generation and distribution. Customers in these states may choose to buy from any number of licensed retail energy providers (REPs) or their local utility company.

Just because the energy industry has been “deregulated” does not mean that REPs are “unregulated.” REPs and utility companies are similar in many respects. Both are licensed and regulated by state public utility commissions for service and their relationship with consumers.

So, what's the difference between energy supplied by the utility versus a REP? Unlike utility companies, REPs specialize in procuring energy. REPs rely upon the utilities to deliver that energy. They do not maintain the system of meters, poles, pipes and wires required to deliver it. Customers who choose REPs still have their meters read by their utility, and in most states, receive their bills from their utility. Most important, REPs are not bound by the take-it-or-leave-it rate structure that utilities offer.

The power of choice has enabled REPs to compete for business by offering flexible options that the utilities never could — such as rebate programs, rewards and longer-termed “fixed” or “locked-rate” price programs.

So why did many REPs' prices rise so dramatically in 2014 compared with utilities' prices? The culprit was an unprecedented and unforeseen confluence of weather and market events that caused wholesale energy prices to skyrocket. Unfortunately, faced with those immediate costs, many REPs had no choice but to pass along those sudden price increases without delay. By contrast, sudden cost increases are not readily apparent in utility companies' rate calculations.

Thankfully, many REPs realized quickly that customers could not bear this burden and voluntarily absorbed as much of the cost increases as they could, issuing millions of dollars in good-will rebates to customers.

The path to improvement is not always smooth, and the polar vortex provided a particularly bumpy ride for the retail energy industry. But with the lessons learned and development of smarter and better controls, residential and business energy customers are certain to benefit in the long run.

Michael Stein is CEO of IDT Energy.

Link to Article: TribLive

Energy Efficient Remodeling: Part 2 - Bathroom

Bathrooms can be one of the smallest rooms in your house, however, they can also be one of the most expensive (next to a kitchen!). So it's important to make it work hard for you and save you money on energy!

The IDT Energy geeks have identified four areas that you can make improvements to and save on energy.

1. Windows
2. Faucets
3. Walls/Floors
4. Lighting

The windows provide light and ventilation for a bathroom. However, if it is not energy efficient it might provide to much ventilation - a draft! A new, updated window can both make the room cozier and more aesthetically pleasing. By installing a window with the Energy Star insignia, it will help prevent the room from becoming too hot or too cold. 

One of the largest energy wasters in a bathroom are the faucets; 50-75% of your water usage is in the bathroom. Leave the sink or shower faucets running and gallons of water, and $$, can disappear down the drain. By installing Energy Star rated faucets, you can reduce the flow of water and limit the amount of wasted water. Additionally, by upgrading your toilet to a dual flush, it can use a fraction of the water every time you flush.

Increasing the energy efficiency of the walls and floors of the bathroom may be a larger renovation, but can make a vast difference in the overall energy efficiency of the room. People are most sensitive to temperatures in the bathroom and proper insulation helps maintain the correct temperature - preventing additional adjustments to the whole house thermometer.   If you are removing walls, one of the most important steps is to increase the insulation if it is below a R19 ( R30 for ceilings) value. Also, by insulating your pipes with in the wall, you can prevent heat loss in water, reducing the energy your water heater uses. While your walls are open, this is a good time to check and seal any leaks in the framing. 

Lighting in bathrooms is important - especially if you are applying makeup! There are a number of ways to increase the energy efficiency with the lighting. A couple simple changes you can make: clean the window(s) - a clean window lets in more light; and change the light bulbs - update to energy efficient light bulbs. A large renovation can increase the lighting overall in your room, depending on where your bathroom is located in the house, add a skylight or for smaller spaces, a solar tube. Either of these options will bring in daylight, decreasing your need for artificial lighting. 

Of course you can always check our Pinterest for more energy efficient tips and ideas. 

In the Kitchen: Energy Efficient Appliances

As a follow up to our last post, here are some more ideas to get the most out of your kitchen appliances, energy-wise.

Here are a few simple tips from IDT Energy to help you get started making your kitchen as energy efficient as possible:

• Measure the space you have set aside for your new appliance. Then measure the appliance to make sure it will fit and that there is enough space to open doors or lid, and that there is enough room for proper ventilation.

• It is not enough to only consider the price of the appliance. Check how much the appliance costs to run, and be sure to purchase the most energy efficient that you can.

• Check with the sales person if there are any special offers such as cash rebates, low-interest loans or other incentives to purchase a more energy efficient model.

• Be sure to read the Energy Guide, the black and yellow sticker that the FTC requires be placed on all new appliances, (with the exception of kitchen ranges, microwave ovens and dryers.) Reading this guide helps consumers to compare the different models and make the most informed choices about the energy they will be using and the money they will be spending when they bring the new appliance into their home.

Becoming an informed consumer will help you save money and save energy.

Energy Efficient Remodeling: Part 1 - Kitchen

Are you using this beautiful weather to fix up or remodel some areas of your home? Are you looking to update the cosmetics or perhaps lower your energy bills? There are a number of ways you can make your house work harder for you and spend less on your monthly bills.

The geeks at IDT Energy are always looking for ways to improve their own homes and as total energy geeks we look for ways to lower our energy bills. For the first part of this series we are looking at the kitchen - the heart and hub of many homes.

1. The first and the most obvious way to improve the efficiency in the kitchen is to replace and upgrade the appliances.  Older appliances tend to use a lot of energy, by upgrading to energy star rated appliances you will reduce energy usage and save money.
2. Lighting can account for 15% of your home's energy usage and because your kitchen is one of the busiest rooms in the house, it uses the majority of that 15%. If you are not replacing the lighting fixtures, simply change your light bulbs from the old style to CFL (compact florescent lights). If you are replacing the light fixtures themselves, upgrade to Energy Star light fixtures. These light fixtures can use 75% less energy, generate 75% less heat and last up to 10 times longer.
3. Increase the natural lighting in the room. By removing any unneeded walls, increasing the window or door size and even adding a light tube you can increase the natural light in the room.
4. Add insulation to both the walls and the pipes. Additional insulation around the pipes will prevent the heat escaping from the water. For the outside walls add blown-in insulation if you are not opening the walls and spray foam if you are. Spray foam can be expensive so if you are looking save money, batt and roll works as well. Make sure you have an R value of at least R-30 for outside walls, but the higher the R value the better. 
5. Change out your faucet for a low flow faucet that can reduce water usage by 60%.
6. Check for any air leaks around electrical outlets, windows, doors and recessed lighting An easy way to look for leaks - use a stick of incense, use it around any possible leaks, if the smoke moves or shift there is a leak. Seal or insulate any leaks that you find. 

Stay tuned as we explore different areas of the house!

5 Tips to Keep Your Body Cool in the Hot Summer

It's hot out. You want to keep cool, but you don't want to crank on/up the Air Conditioning. There is no pool in sight, but you need to cool down.

Here are 5 energy efficient tips to cooling down in the hot summer:

1. Use cool water on  your pulse points (like your wrists). This can help bring your core temperature down as much as 3 degrees!
2. Your body sweats to cool your down as the water vapor evaporates. Take advantage of your perspiration - stand in front of a cool breeze or a fan and cool down faster. 
3. Go downstairs. It's simple - heat rises. If your home has a lower level or a basement the air will be less dense the further from the roof line.
4. Mint refreshes the skin and leaves a cooling sensation. Use peppermint lotion or peppermint soap, but avoid your face and eyes.
5. Take off your shoes and hat while indoors! Most of the body's heat is released through the palms of your hands, the scalp and the soles of the feet. If you have shoes or a hat on, there is no way for the heat to escape!

Check out IDT Energy for more ways to earn rewards and get cash back.

Beat the Humidity (On a Budget)

Spring is in the air and summer is almost here. Fun in the sun and outdoor activities are upon us. But with the heat comes the humidity.  Not everyone has air conditioning, or wants to spend the money of electric costs to keep it running. Here are a few tips on how to beat the humidity - on a budget.

1. Skip the drying cycle on the dishwasher. Simply open the door and let it air dry.
2. Wear light colored clothing with thinner fabrics - this will help sweat evaporate quickly, keeping you cooler. 
3. Eating spicy food can help cool you. It contains a chemical called capsaicin, which helps us perspire more readily, and when the sweat evaporates we experience a moment of cool. 
4. Drink water. Not only is it just plain good for you, it helps keep you cool. 
5. Turn off the lights!

Summer Energy Efficient Tips

Right now is a perfect time to save on energy! The heat is off and the AC hasn't been turned on yet.

It's also a great time to start preparing for the summer - keeping your energy bills low by conserving energy.

Here are IDT Energy's top 5 energy efficiency tips to get ready for the summer:

1. Change the filters once a month.  Don't make your A/C work harder than it has to. Pushing air through a dirty filter takes more energy; plus, who doesn't want clean air!
2. Install a programmable thermostat.  You have heard this one time and time again. So why are you waiting? Your couch and favorite lazy chair don't need to stay cool while you are busy at work. And who has time to remember to adjust the temp when you are running out of the house barely remembering to put shoes on! Set the thermostat to automatically adjust.
3. Clean the condensation lines.  Keeping this clean of sludge and debris is important to maintain the efficiency of the AC unit.
4. Check that the condenser (unit outside) is level.  If the cement pad that the condenser sits on outside is not level the machine has to work harder.  That means you have to work harder to pay those energy bills!
5. Clean the condenser.  While you are outside making sure that the condenser is level, make sure it's free of any debris. Debris blocks air flow, making the unit work harder.

Looking for more energy saving tips? Check out IDT Energy's Facebook and IDT Energy's Pinterest.

Lightbulbs With a rePurpose

We are total energy geeks at IDT Energy. We like all things that have to do with energy, electricity and natural gas. Even light bulbs. Lately we have found some really neat bulbs to light up your room and some unique ways to reuse the old ones.  Here are some of our favorites on Pinterest:

Brain Bulb via

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Mr. Hyde Via

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Energy Efficiency Road Trip Style

Did you go on a Memorial Day road trip? Have any exciting trips planned for the summer?

In addition to taking steps to make your home energy efficient, IDT Energy wants to help you make your car energy efficient. All these steps lead to real savings on energy bills!

1. Keep your tires inflated. Proper inflation can lead to a savings of around $61 a year!
2. Use the correct oil. Using the wrong product reduces efficiency and can waste up to $40 annually.
3. Get your junk out of the truck. Reducing the weight of your vehicle reduces efficiency  An extra 100 lbs  can add up to $40 a year.
4. Keep the speed limit. Going over 60 mph reduces your gas mileage and can add up to 31 cents per gallon. 
5. Put it on cruise control. Staying at a steady pace which helps save money.

Have fun on your road trip and save on your annual energy costs.

Of course, one easy way to save is to sign up with IDT Energy!

Is Your House Ready for the Summer? Make it Energy Efficient!

Right now is a perfect time to save on energy! The heat is off and the AC hasn't been turned on yet.

It's also a great time to start preparing for the summer - keeping your energy bills low by conserving energy.

Here are IDT Energy's top 5 energy efficiency tips to get ready for the summer:

1. Change the filters once a month.  Don't make your A/C work harder than it has to. Pushing air through a dirty filter takes more energy; plus, who doesn't want clean air!
2. Install a programmable thermostat.  You have heard this one time and time again. So why are you waiting? Your couch and favorite lazy chair don't need to stay cool while you are busy at work. And who has time to remember to adjust the temp when you are running out of the house barely remembering to put shoes on! Set the thermostat to automatically adjust.
3. Clean the condensation lines.  Keeping this clean of sludge and debris is important to maintain the efficiency of the AC unit.
4. Check that the condenser (unit outside) is level.  If the cement pad that the condenser sits on outside is not level the machine has to work harder.  That means you have to work harder to pay those energy bills!
5. Clean the condenser.  While you are outside making sure that the condenser is level, make sure it's free of any debris. Debris blocks air flow, making the unit work harder.

Looking for more energy saving tips? Check out IDT Energy's Facebook and IDT Energy's Pinterest.

Happy Birthday Earth Day! With Love from IDT Energy Geeks

Earth Day turned 43 today! Happy Birthday Earth Day!

How many countries do you think celebrate Earth Day?

Earth Day via

Did you guess 192 countries? If so, you are correct! That is 98% of the world.

According to www.earthday.org "the idea came to Earth Day founder Gaylord Nelson, then a U.S. Senator from Wisconsin, after witnessing the ravages of the 1969 massive oil spill in Santa Barbara."

Over 20 million American's took part in the first Earth Day. "The first Earth Day lead to the creation of the United States Environmental Protection Agency and the passage of the Clean Air, Clean Water and Endangered Species Acts."  The focus was about air and water pollution.

In 1990, there was a big push to go global and it reached 200 million people in 141 countries.  This gave a huge boost to recycling efforts.

Ten years later, in 2000, there was another push for Earth Day.  This year the focus on the need for more clean energy.

What can you do to make the world a more clean and green place?

• Sign-Up for IDT Energy Green
• Support Efforts for New Technology in Energy Generation
• Maybe create a little power from potatoes? ;)
• Be Green in the Garden
• Follow the DOE Energy Saving Tips
• Just use LESS energy!
• Follow IDT Energy geeks on Facebook and Pinterest for more energy saving tips and trip