Commercial electricity rates differ from residential rates in several ways. Businesses typically have higher overall consumption, so utilities often offer lower per‑kilowatt‑hour prices. However, commercial customers must pay demand charges based on their peak power draw, which residential customers usually do not incur. Rates for businesses may also vary by time of use, with distinct on‑peak and off‑peak pricing periods, while residential rates are often flat. Companies can negotiate contract terms and choose from a variety of plan types—such as fixed, variable and hybrid structures—whereas residential customers have fewer options. Because of these differences, evaluating your demand patterns and negotiating the right plan are critical for keeping business electricity costs in check.
To see how your business’s rates compare and explore your options, contact us for a free rate analysis today.