Affiliated Power Purchasers International (APPI), an independent energy consulting firm, partnered with NAB to assist members in reducing their electricity costs. Below are basic concepts to help better understand the realities of deregulation.

1. Deregulation occurs on a state by state basis
   There is no federal legislation mandating deregulation. Individual states can create their own legislation. Deregulation is complete and there is active competition among electricity suppliers for businesses in Delaware, Illinois, Maryland, Massachusetts, New York and Texas. Deregulation exists in other states but may be limited by a lack of competition for some business classes or service areas.


2. Coal, Oil and Natural gas are rising
   Coal, oil and natural gas have been on a steady increase for the last decade and show no signs of slowing. All three contribute to the costs of electricity production. Furthermore, overall energy consumption in the U.S. and in developing countries has grown at unprecedented levels.


3. Electricity prices change constantly
   While the overall trend is upward, electricity prices are volatile and change hourly. With an ever changing rate that fluctuates throughout the day, it would be impossible for any business manager to stay abreast of the energy market.


4. Avoid price risk, find a fixed rate
   The ability to lock in today’s rate in deregulated states is a valuable opportunity. With projected electricity costs rising 10 to 15 percent each year, a fixed rate contract provides budget certainty and savings when measured against increasing prices.


5. Businesses need an energy strategy
   Without a strategy, your business is vulnerable to increasing rates and price volatility. APPI's consultants have the expertise and experience to help members develop cost saving energy solutions.

For more information on the NAB plan, email APPI or call 800-520-6685. Visit the APPI website at www.appienergy.com.