Top 4 Tips to Lower Your Energy Bill
Save money and lower your energy bill
What energy opportunities exist for small businesses?
1. Energy Supply Rate
When shopping for electricity and natural gas, not all rates are created equal. What kind of rates are available, and which is best for your business?
· Fixed - With a fixed rate, the price you pay per unit (kWh for electricity, mcf or ccf for gas) remains the same for the entire term of the supply contract, regardless of what happens in the market.
· Introductory – With an introductory rate, you may receive an extremely low rate for 1-3 months. Beyond the introductory period, you are typically then charged a supplier variable rate.
· Variable - With a variable rate, the price you pay per unit fluctuates monthly. There are many types of variable rates. Below are the most common for small commercial customers:
o Electricity Price-to-Compare (PTC) – This is the standard utility rate you receive if you have not shopped for electricity. This rate is set monthly and changes through a process dictated by Ohio’s regulators, the Public Utilities Commission of Ohio (PUCO). These rates are historically higher when demand is higher, such as in the summer months when customers are running air conditioning.
o Natural Gas Standard Choice Offer (SCO) – This is the standard utility rate you receive if you have not shopped for natural gas. These rates can be set in different ways depending on your utility region. However, these rates have also historically been higher when demand is high, such as in the winter months when customers are running gas heating.
o Supplier Variable Rate – This is an offer from a Certified Retail Electric or Natural Gas Supplier. These rates are often offered through door to door or telemarketing. When compared to fixed offers, they often appear to be much “lower”, but in reality, they can be far costlier as the rates tend to increase in the long term.
The winner? Fixed. – The uncertainty of an introductory or variable rate makes it difficult to budget monthly expenses. In addition, fixed pricing offers protection from market swings, seasonal demand spikes, and suppliers overcharging. For most small businesses fixed is the clear choice.
2. Terms and Conditions
Although price is typically the primary consideration, there are other factors to consider when signing up for a new product that could impact your energy costs.
· Automatic Renewal Clause – Many suppliers will enroll the account in an automatic renewal program if not acted upon prior to a contract’s expiration. These programs vary in length from month-to-month up to the full length of the initial term. Some suppliers require 30-60 days’ notice prior to the end of the contract to prevent an automatic renewal. It is important to understand your electric and natural gas supplier’s policy to prevent your company from being swept into an autorenewal term at higher-than-market rates.
· Early Termination Fees (ETF’s) - Most supply contracts include language regarding their fees for ending your contract prematurely. However, each supplier may calculate these differently; the two most common types are flat fees and damages.
o Flat fees tend to be a one-time fixed charge (e.g. $100 per account).
o Damages are typically the difference between your contract rate and market electricity or natural gas rates multiplied by how much they projected you would use for the remaining months of the contract.
What is right for you? – For most small businesses, it is ideal to get a supply contract that renews on a month to month basis, allowing you to move to a new agreement easily at the end of the term. There is no “one-size fits all” when it comes to ETF’s. However, it is important that the fee calculations are easy to understand and reasonable based on your usage.
3. Tax Exemptions
Many businesses in Ohio aren’t aware that they are eligible to reduce or eliminate their natural gas sales tax. Are you using gas in food or manufacturing process? Are you a non-profit organization? You might be eligible for a full or partial tax exemption.
4. Contract Management
Once you have signed an agreement, be sure to take the following steps:
· Create a file - Place a copy of your new supply agreement in a folder and write down the phone numbers for your energy advisor, supplier, and the utility.
· Create a reminder in your calendar - Place a reminder in your calendar to renew your supply contracts at least 120 days prior to the date of expiration.
Always avoid rolling to a monthly variable rate at the end of your contract so as not to erode your savings. Managing the end of your contract and proactively shopping for a new product will pay off greatly in the long run.
When in doubt, turn to your chamber. The Greater Medina Chamber of Commerce’s savings programs are vetted with trusted providers. Use them as a resource!
Rick Davidson, Community Energy Advisors
WAN Dynamics
Welcome WAN Dynamics
WELCOME NEW MEMBERS
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WAN Dynamics
PO Box 1758
Medina, Oh 44258
877-400-9490
wandynamics.com
WAN Dynamics was founded by veterans of the service provider industry that felt there must be a better way to manage networks than the decades old methods we had been using up to now which were static, closed and complex. After discovering the promise of Software Defined Networking (SDN) and the incredibly successful application of it in the form of Software Defined Wide Area Networking (SD-WAN), we set off to help organizations manage their network smarter and in a less expensive way.
Desperate Enterprises
Welcome Desperate Enterprises
WELCOME NEW MEMBERS
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Desperate Enterprises
6831 Ridge Road
Wadsworth, OH 44281
(330) 239-0500
desperate.com
We are a wholesaler of Nostalgic Decorative Wall hangings. We have been in business in the Medina area since 1987. Leading producer of Nostalgic Tin Signs featuring your favorite brand names, celebrities, automobiles and more!
Free Clinic of Medina County
Welcome Free Clinic of Medina County
WELCOME NEW MEMBERS
Welcome to our newest members
Free Clinic of Medina County
970 East Washinton, Suite 104
Medina, Oh 44256
(330) 764-9300
fcomc.org
Non- profit free clinic that provides free medical services to working residents of Medina County.
GlitterGirl Media
Welcome GlitterGirl Media
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GlitterGirl Media
1516 Marlowe Ave
Akron, OH 44313
330-347-9453
glittergirlmedia.com
A boutique social media firm with a focus on working with micro businesses (5 employees or less) that do not have a marketing department & whose owner does not want to BE a marketing department.
If your small business could benefit from the creation and implementation of a comprehensive marketing plan including optimized & attractive social media platforms, creative & engaging social media content, digital marketing plus traditional marketing platforms, we’re here to help.
Sgt. Clean’s Car Wash
Welcome Sgt. Clean’s Car Wash
WELCOME NEW MEMBERS
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Sgt. Clean’s Car Wash
969 North Court Street
Medina OH 44256
(330) 721-7000
sgtclean.com
Veteran-owned and operated since 2013, our mission at Sgt. Clean's Car Wash is to provide the highest quality car wash and superior customer service, while serving as positive role models in our communities.
Winner of the Cleveland Hot List “Best Car Wash" in 2016, 2017 and 2018, Sgt. Clean's Car Wash
operates five locations in Northeast Ohio.
Fyllo
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Fyllo
6685 Beta Dr
Mayfield, OH 44143
440-605-7176
fyllo.tech
Marketing Technology Company
Medina County Lifestyle Magazine
Welcome Medina County Lifestyle Magazine
WELCOME NEW MEMBERS
Welcome to our newest members
Medina County Lifestyle Magazine
3349 Stillwater Dr.
Medina OH 44236
330-280-2560
medinacountylifestyle.com
Our mission is simple, we hope to play a small role in helping the community flourish, by producing a private magazine filled with news and special events that take place each and every month. On many levels we operate a little differently than your typical magazine. One of the most exciting facets of our publication is that it truly belongs to the community. Not only is Medina County Lifestyle exclusively for and about the residents, it is the true pulse of what’s happening and important to you.
Frontier Dental Family Dentistry
Welcome Frontier Dental Family Dentistry
WELCOME NEW MEMBERS
Welcome to our newest members
Frontier Dental Family Dentistry and Prosthodontics
5155 Buehlers Dr. Suite 107
Medina, OH, 44256
(330) 952-2015
frontierdentalohio.com
At Frontier Dental, we put the doctor and patient relationship back in its rightful place—front and center. We provide all our patients with respect, care, and attention that they deserve, and we ask for the same in return. It is through this mutual relationship that trust is built and lasting relationships are made, which in turn leads to better health outcomes.
Exit Stage Right
What to think about when you're ready to leave your business.
Exit stage right - What to think about when you're ready to leave your business
A succession plan may help assure business continuity
If you’ve built a successful business, you know that having a plan could be critical to making it work. By the same token, readying your business for your retirement, or to enable it to carry on if anything happens to you, is an important piece of the puzzle.
While there are no set rules about what to address in a succession plan, you may want to include such details as:
· The successor: family member, business partner or someone new who will buy out your share
· Timeframe/transition period
· Key personnel changes and skill retention
· Training and development of new leadership
· Legal considerations: buy-sell agreement, estate plan/will
· Risk management
· Communication strategy
· Financial considerations: retirement income, insurance, sale price, tax implications
Protecting your most valuable asset: You
Your exit strategy not only recognizes when you are planning to retire from the business, but it can also address any potential surprises that may impact your ability to remain in charge.
You may develop a major illness or injury that takes you away from day-to-day operations. Having insurance in place can help ensure your company will continue to function in your absence, while also help to protect your own earnings and family, particularly if you’re not able to return:
Disability Insurance: All owners should consider having their own insurance that covers their monthly earnings in the case of an illness or injury that requires long- term healing. It may include a buy-out clause.
Business Overhead Expense Insurance: This helps to provide funding to the business of any overhead expenses (such as payroll or rent) if payment of these costs may be jeopardized by being away for an extended period.
Critical Illness Insurance: This is generally a lump sum payment that helps you cover your bills if you have a serious illness.
Key Person Life Insurance: A life insurance strategy may include a payout to the business for continuity, or to your estate to help minimize any tax implications. Life insurance proceeds may also be used to equalize payments to heirs, as it’s possible that, if you have multiple children, only one will be interested in taking over the business.
If you plan to retire, you need a plan
If it’s time for you to hand over the reins, your succession plan should address the time horizon for your transition and how much involvement you will maintain. You may want to execute a buy-sell agreement with partners or co-owners. It outlines the circumstances of your leaving, as well as the price that will be paid for your share of the business. Insurance can be used to help minimize the tax impact of a small business sale as well as financing retirement income.
There are many tax-efficient ways to help protect your business and help you transition to your retirement.
CARLSON FINANCIAL GROUP - 13374 Ridge Rd., North Royalton, OH 44133 - Tel:216.586.4853 – www.carlsonfinancialgroup.us. Ryan Carlson, Registered Representative. Advisory Services offered through Capital Analysts or Lincoln Investment, Registered Investment Advisers. Securities offered through Lincoln Investment, Broker/Dealer, Member FINRA/SIPC www.lincolninvestment.com. Carlson Financial Group and the above firms are independent and non-affiliated. The material presented is provided for informational purposes only. Nothing contained herein should be construed as a recommendation. Insurance products and tax, legal, or Social Security Claiming services and are not offered through, or supervised by The Lincoln Investment Companies. Neither Carlson Financial Group or Valued Capital Advisers, nor its employees, provides tax, legal or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions. 5/19
Submitted by: Ryan Carlson, Carlson Financial Group
Howard Hanna - Barbara Wilson Team
Welcome Howard Hanna - Barbara Wilson
WELCOME NEW MEMBERS
Welcome to our newest members
Howard Hanna Medina - Barbara Wilson Team
5164 Normandy Park Drive #205
Medina, OH 44256
740-297-5760
barbarawilson.com
Real Estate servicing all of Medina City and Medina County, including Sharon Township, Medina, Akron, Bath, Hinckley and Wadsworth. The Normandy Park Drive real estate office is staffed by experienced sales associates who are familiar with all types of properties available in Medina, including residential, multi-family, condominiums and vacant land.
Buehler's Fresh Foods
Welcome Buehler's Fresh Foods
WELCOME NEW MEMBERS
Welcome to our newest members
Buehler's Fresh Foods
3626 Medina Road
Medina, OH 44256
(330) 725-5000
buehlers.com
Offers an exceptional shopping experience that exceeds each customer's changing expectations through friendly, caring people and personal
relationships based on trust.
