Commercial Electricity Rates

Electricity is a large component of overhead costs for many businesses, especially larger ones. Prior to deregulation, businesses were forced to purchase their electric supply from their utility, having no choice and little room for negotiation on rate pricing. In the mid-1990s, businesses prompted electricity deregulation through government lobbying and promotion. Fed up with utility monopolies, businesses across the nation demanded to have a choice.

State governments have responded, and electricity deregulation has swept across the U.S. over the past two decades, with at least 16 states now participating in electric choice.

Small Commercial Electricity Rates

Many small commercial electric customers qualify for residential rates in many deregulated states. “Mom and Pop stores”, start-ups, and other small business owners can participate in deregulation much like they would for their homes.

Here at, we specialize in helping residential and small business owners with our FREE Compare & Switch tool. This tool is an easy way to compare commercial electricity rates by state, and offers from reliable retail energy providers in any deregulated area in the nation. To use the tool:

  1. Go to the compare and switch tool
  2. Type your zip code in and select your utility
  3. Compare providers in your area and select the provider and electricity plan that works for you
  4. Complete the two-step enrollment form
  5. Sit back and relax

If you own a small business and you’re not sure if you qualify for residential rates or commercial rates, please contact us or email us at and we’ll be happy to help you determine what rate category you fall under in your state. Be sure to let us know your address as well as your average monthly usage in the winter and summer or the amount of your average monthly utility bill.

Medium and Large Commercial Electricity Rates

Larger commercial electric customers have even more reason to participate in electric choice. Many commercial electricity providers offer lower rates for companies that use high levels of electricity. Since retail electricity providers are competing for commercial businesses to use their services, larger businesses can actually negotiate for better rates by submitting bids to providers in their service area.

Most providers don’t publically display commercial electric rates, so we are not able to provide you with a Compare & Switch tool that we do for residential and small business electric customer. But we can still help:

When submitting bids for electric rates, most providers don’t include all price components, and many companies simply don’t have the in-house expertise to decipher the total cost of electricity under a given contract.