About Infinite Energy: Florida Deregulation

Florida businesses are saving money on their natural gas bills! Are you?

Public utility companies in Florida started offering new purchasing options to their commercial and industrial customers in the late 1990's. Today thousands of commercial and industrial clients take advantage of natural gas deregulation throughout the state. While their local utility still delivers their natural gas, using the same pipes as before, the savvy customer buys the commodity from a gas marketing company (Infinite), and saves up to 20% off their gas bill. The gas marketer moves the natural gas through existing interstate pipelines to the local utility, where it is further delivered by the utility to the end user.

So, how does this deregulation thing work?

All natural gas consumed in Florida comes from the same region. It's produced in Texas, Louisiana, or the Gulf of Mexico, and it's transported into the state via two interstate pipelines. Deregulated gas is co-mingled with the utility's regulated natural gas, as it is the same quality.

Deregulation works for a few reasons but it only prospers because of one - Deregulated natural gas costs less than regulated natural gas. If it didn't, no one would leave their utility company.

Why is the gas cheaper?
One reason is because deregulation introduced competition to the natural gas market. Previously, customers' only choice was the utility, which bought gas on high-priced, long term, firm contracts. The gas that a marketing company sells is excess gas - gas that is not tied up in long term contracts or is excess production. Marketers also buy, sell and trade portfolios to keep gas costs down. This can include gas that was previously purchased by industrials and utility companies, that is no longer needed.

Also, marketers don't have the same high fixed costs as utility companies. Therefore they can charge less. Finally, utility companies typically make the bulk of their revenue on the delivery of the gas through their system, not by marking up the gas that they purchase. In other words, they don't care whose gas is moving through their pipes because they get paid for the use of their pipes, regardless of who bought the gas. Natural gas deregulation works similar to the phone company. Your local phone company provides the service and keeps up the lines (like the utility) and the long distance carrier offers lower prices and pricing options (like the marketers). The utility companies actually work with the marketers in order to provide this choice.

Besides monetary savings, what are other benefits to deregulation?

With deregulation comes Options!
How would you like to know what your gas costs will be next winter? Or two years from now? Well, you can!

There is a pricing option that allows you to lock-in your rate for one or two (maybe more) years! This way, you always know what your therm rate is, no matter what the market price of gas is. Whew! Budgeting your energy costs has never been simpler!

And there are other pricing options as well. Check them out here on the web site.

What areas of Florida are deregulated?

Facilities that are served by the following utilities - TECO Peoples Gas, NUI City Gas, Central Florida Gas, and Florida Public Utilities, can take advantage of deregulated natural gas. There are also some other small areas that support deregulation. If in doubt, a call to your local utility will let you know if you are eligible. If your business is in one of these areas, you can purchase deregulated natural gas and save some money!

Grand Finale

Deregulated gas saves businesses money! Find out if you're in a deregulated area and call us so that we can provide you with a competitive quote. All it can do is make your bottom line happy. Good luck!