So it seemed to Dave Brown, general manager of Talluto's Authentic Italian Food Inc., of South Philadelphia. After a parade of sales representatives evaluated his $1,200 monthly electric bills last year, he grew weary and chose one in October whose claims seemed honest.
"The ones who were pitching me really hard, I just didn't believe them," said Brown, who promptly forgot the name of the company he chose and refocused on the business of making and selling cheese.
Nearly three-quarters of Peco's largest commercial and industrial customers have switched suppliers since rate caps were lifted Jan. 1, but only a third of the utility's 156,375 small and midsize commercial customers have switched, according to Peco.
"Shopping is a more realistic option for larger customers that may have some in-house expertise to evaluate offers," Lloyd said.
Despite the complications of shopping, there may be attractive potential savings for some businesses. In a deregulated market, customers are free to shop for a supplier of electricity, which Peco delivers over its wires for a regulated fee.
Total energy expenditures as a percentage of sales varies dramatically for different types of businesses, according to a 2008 Small Business Administration study. Small food and beverage stores spend 2.1 percent on energy, restaurants and bars spend 2.8 percent, and accommodations - hotels, guesthouses - spend 7.1 percent.
But for most retail stores, professional offices, and warehouses, energy costs account for less than 1 percent of expenses.
According to Peco, the average monthly usage for general-service customers - the GS Rate - is 4,530 kilowatt-hours, or about $565 a month (that is about six times as much as a typical household).
