Your Complete Guide to Buying Electricity

Transcription

1 The big energy companies push their contracts on you door to door. The utility companies give you no options. You ve tried their help. Now try ours. Your Complete Guide to Buying Electricity

2 Your Guide to Buying Electricity A Message From Our Energy Manager Dear Electricity Buyer, With the cost of electricity going through the roof, it s time to take action. You simply can t sit still with electricity prices that are sky high and headed even higher. But finding a good deal and sorting out the information can be frustrating and time consuming. At FireFly Energy, we understand the hassles. That s why we ve created this convenient Guide to get you up to speed quickly and to help you find the solution that s right for you... whether you decide to choose FireFly or not. We re here to help you put the brakes on rising electricity costs and to help you avoid the risks and hazards along the way. You may already have some experience with buying electricity. Retailers or marketers may have come knocking on your door asking you to sign a contract. We know this type of selling can be intrusive and have chosen not to use these sales practices. It s also why we ve created this Guide. It has all the information you need to make a decision on your own, on your own time... without someone standing at your door pressuring you to sign. Take a look inside and find the decision that s right for your home or your business. Then... finally you won t have to think about buying electricity again. Sincerely, Bruce Fraser FireFly Energy Call Us at FireFly is a different kind of energy company. We re always seeking out better ways to help our customers, the community and the environment. Bruce Fraser - FireFly Energy

3 You can take control of your electricity costs Your Complete Guide to Buying Electricity To make the right choices you need all the facts What you need to know before you keep buying electricity like you always have Who the key players are and what it means to you The inside scoop on electricity prices What are your choices? Weighing your options Does locking in save? Who is FireFly Energy? 10 Things you may not know Is the FireFly electricity program right for you? How to lock in your rate with FireFly The biggest problem is that most people don't know what they don't know. They don't know they have choices about buying electricity. This Guide was created to help you get the information you need so that you can take control of your electricity buying situation quickly and easily. Take a quick walk through this Guide and uncover the secrets to buying electricity, discover all your options and find the one solution that's right for your home or your business. Then finally you won t have to think about buying electricity again. We really try to help. Or visit: FireFly Energy is a division of Ag Energy Co-operative

4 What you need to know 1. What You Need to Know Before you keep buying electricity like you always have The utility s Regulated price is no safe haven from market prices You have choices about how you buy electricity Have you checked your electricity bill lately? Prices aren t just going up, the bill is getting more complicated to figure out. With rebates, refunds, periodic adjustments and two-tier pricing it s hard to tell what you re paying each month. Many of the price increases and complications to your bill are a result of Ontario deregulating the electricity market in 2002 to introduce competitive pricing. After deregulation the price of electricity offered by the utility immediately soared because prices started reflecting actual market rates. Initially Ontario placed a price cap on the price of electricity to help consumers. Then on April 1, 2005, a revised price structure called the Regulated Price Plan (RPP) was put into place. This Plan applies to anyone consuming less than 250,000 kilowatt hours (kwh) per year and who buys from a utility. This also includes individual homes, universities, schools, agricultural operations and municipalities. At first, this Regulated program sounds great. It s intended to regulate market prices as much as possible and to smooth out the ups and downs of the market so consumers don t get hit with extreme spikes in price. But paying a regulated price does not mean you escape market prices. The Regulated Price offered by the utility is not a safe haven from market prices. Under this Plan you do not escape any increases that take place in the electricity market. The price you pay will continually change every six months as a result of market prices changing. These adjustments can make budgeting for most homeowners and businesses difficult. To make matters worse, the Regulated prices are based on a two-tiered pricing system. There is a lower price and a higher price depending on how many kilowatt hours of electricity you use per month. You will be charged a certain fixed amount for the first set amount of kwh of electricity consumed in a month and a higher price for each kwh above that threshold. This means if you own a business or run an agricultural operation where you re consuming more electricity, you end up paying a higher price. If you re a homeowner and go over the first-tier amount then you ll be paying a higher price. Contrary to what many believe, you don t have to buy electricity from your utility. You don t have to pay the Regulated Price. You have options! If you want to take control of your electricity costs, it s worth your time to consider options other than paying the Regulated Price that your utility offers. You can choose to opt out of the Regulated Price offered by the utility and pay a fixed competitive price offered by a retailer. Today there are a number of retailers selling long term electricity programs offering competitive fixed prices. Most of these programs lock in your rate for a period of three to five years. These locked in rates let you escape rising or changing market prices and can help make budgeting easier. Call Us at

5 Hydro Rates to Jump 17 Per Cent in Ontario, Experts Say The Truth About Your Utility Electricity Prices cents per kilowatt hour (kwh) Utility Price Increases Price Cap of 4.3 cents per kwh First Tier Prices Second Tier Prices Ontario utility rate increases over the past four years. These rates are set by the Ontario Energy Board. Go to to get the complete history of Ontario Energy Board and their decisions regarding rate changes.. Globe & Mail, April 12, 2006 Electricity consumers across Ontario are facing dramatically higher prices next month with rates expected to climb by about 17 per cent, industry observers say. Consumers have been bracing for higher energy bills for some time. They will get the bad news when Ontario s energy regulator unveils the new price plan for households and small businesses, which comes into effect May 1. Get Used To Hydro Hikes, Watchdog Warns Glove & Mail, April 13, 2006 Residential electricity charges in Ontario will jump by an average of 16 per cent next month and industry observers warn that consumers should brace for regular increases in the future. Utility price increases have been dramatic! The price per kilowatt hour used in the lower tier price has increased a total of 16% in the last year and 34.8 % since But if you use more electricity and pay the higher tier price, it s even worse. Second tier prices have increased 15.5% in the last year and 55.8% since Or visit: a division of Ag Energy Co-operative

6 The key players 2. Who Are The Key Players The electricity market is a real time market where prices fluctuate The commodity of electricity is bought and sold continually The electricity market includes hundreds of players and is extremely dynamic. All the players work together and affect your electricity supply and the price you pay. Regulators In Ontario the Government and the Ontario Energy Board act on your behalf and protect your interests. They regulate the electricity market. The Government of Ontario, through the Minister of Energy, sets the legal and policy framework. They pass the legislation and regulations that govern the energy sector. The Ontario Energy Board (OEB) carries out any regulations or legislation passed by the Minister of Energy, ensuring that market participants do what they are supposed to do. They are the ones setting the rates for the Regulated Price Plan offered by the utilities. Generators Generators produce the electricity that we use. Generation is the first step in the process to provide electricity and what it means to you to consumers and can come from a mix of supply sources. Generators in Ontario include: Nuclear plants Hydroelectric generators Coal-fired fuel stations Natural gas fired stations Renewable energy sources Transmitters Once generated, electricity travels across Ontario from generating plants over high-voltage transmission lines to local transformers that then reduce the voltage level, making it suitable for local distribution. The transmission companies own and maintain these high-voltage transmission lines. Delivery Utilities After traveling over the highvoltage transmission lines and through transformers, electricity then travels over low-voltage distribution lines to your home or business. These are owned by local utilities. Utility companies are responsible for building and maintaining the local powerline network. Some larger utilities also own and operate generating sources. Retailers Electricity is always delivered to your home by your local utility or distribution company. They own the distribution lines. However, you don t have to buy electricity from your utility. You can choose to find more competitive prices and buy your electricity from a retailer instead. There are a number of such retailers currently competing to sell power to residential and business consumers across Ontario. Large-Volume Customers Industries and companies that are directly connected to the IESO-controlled grid are also participants in the market. The Ontario Power Authority (OPA) This is the agency responsible for ensuring an adequate, long-term supply of electricity in Ontario. A key objective of the OPA is to forecast electricity demand and the adequacy and reliability of electricity resources for Ontario for the medium and long-term. The Independent Electricity System Operator (IESO) The IESO acts as a system controller at the heart of Ontario's power system. They run the wholesale electricity market and operate the hourly spot market rates. They control the flow of electricity throughout the province and ensure fairness to all the players. Call Us at

7 How are market rates calculated? The Ontario Energy Board (OEB) Retailers There is an updated list of retailers posted on the Ontario Energy Board website. The Key Players The Independent Energy System Operator (IESO) Every five minutes, the IESO forecasts consumption throughout the province and collects the best offers from generators to provide the required amount of electricity. This allows customers to see prices fluctuate based on supply and demand. The IESO also co-ordinates emergency preparedness for the province's electricity system and managed the restoration of power following the August 2003 blackout. Generators There are 20 different companies that own and operate power generators connected to the IESO-controlled electricity grid. The largest is Ontario Power Generation, controlling 70 per cent of generation in the province. Transmission There are 5 transmission companies in Ontario: Hydro One, Great Lakes Power, Canadian Niagara Power, Five Nations Energy, Cat Lake Power Utility Limited. Utilities There are 91 utilities throughout the province, each purchasing electricity through the IESO on behalf of all their customers. Their prices are set by the Ontario Energy Board. The electricity market is a real time market where prices constantly change. You can watch market information throughout the day on the Inside the market link at which takes you to price and demand graphs that continually update. Here s what this means to you... If you pay market prices they will constantly change and will be uncertain. Because the electricity market is actually a real time market with hundreds of players the market prices are always uncertain and change continually. Or visit: a division of Ag Energy Co-operative

8 Electricity pricing secrets 3. WHY PRICES KEEP GOING UP Increased demand Demand for electricity fluctuates yearly, seasonally, daily and even hourly. Each time the temperature rises even one degree above 16 C the demand goes up by 390 Megawatts (MW). Overall our demand for electricity is growing. The current peak demand is about 26,000 MW. In the long-term, Ontario demand grows by roughly one percent each year. This is partly due to economic growth. One thousand new jobs or new homes will add one megawatt to Ontario demand. As demand increases the IESO uses up the lower price offers and is forced to accept higher price offers from Generators to meet the need. Higher cost of supply At the same time as our demand is increasing, the cost of The Inside Scoop on Prices Why electricity prices keep going up Understanding what market prices really are What electricity prices will do in the future supplying electricity is increasing. Many generation facilities are aging and will need to be replaced in the next ten to fifteen years. This is costly. Adding to the problem is the fact that the Ontario government has committed to phase out coal-fired generation which will result in Ontario needing as much as 7,000 MW in new electricity supply to replace the electricity that originally came from coal-fired generation. Natural gas is one option that is used to generate electricity. Unfortunately, when natural gas is needed for the generation of electricity it pushes the price of electricity higher because natural gas is expensive. WHAT IS THE MARKET PRICE The wholesale market price for the commodity of electricity is based on supply and demand. Generators of electricity submit offers to sell electricity and wholesale buyers submit bids to buy electricity. The Independent Electricity System Operator (IESO) then uses these offers and bids to match electricity supply with demand, and establishes the Hourly Ontario Energy Price, or HOEP. This is the price paid by wholesale customers. THE INSIDE SCOOP - WHAT ELECTRICITY PRICES WILL DO IN THE FUTURE Over the long-term, Ontario faces some severe potential shortfalls in supply. Demand within the province is expected to increase by approximately one percent each year for the next decade. By 2014, up to 13,000 MW of Ontario s electricity needs will have to be met with new supply, refurbished generation or conservation efforts. If demand continues as it is, the prices of electricity will probably continue to sky rocket higher. Many people are choosing to lock in their electricity price at a fixed rate from a retailer to avoid future price spikes. Just like a mortgage, some people prefer the security of a fixed rate over a specified period instead of a variable or floating market rate. Call Us at

9 10 Year Outlook The potentially increasing gap between supply and demand could continue to drive prices higher in the future Megawatts Supply Growth Demand Growth The gap between supply and demand Ontario Warned of Power Crisis Globe and Mail, April 6, 2006 Ontario must come up with a clear, long-term energy strategy or risk persistent brownouts by "The time for study is over," TransAlta Corp. president and chief executive officer Stephen Snyder said. "This industry has been studied to death." Data from the Independent Electricity System Operator (IESO) Our demand for electricity continues to GROW driving prices higher One thousand new jobs or new homes will add one megawatt to Ontario demand driving market prices for electricity up if the supply is low or costly to generate. Or visit: a division of Ag Energy Co-operative

10 What are your choices? 4. What Choices Do You Have? CHOICE #1 - Buy electricity from your utility This option is definitely the easiest. You simply do nothing. When you do nothing you continue to buy your electricity from your local utility company. You will automatically be placed on the Regulated Price Program or RPP. Under this program your price is regulated by The Ontario Energy Board. But regulated does not mean it s fixed. Your price will continually change with the market prices. This price is based on true market prices and is adjusted during the year to reflect those prices. In short, your electricity prices will rise when demand rises. If you haven't already signed with a retailer this is your current position unless you have a smart meter or interval meter. If you consume a larger amount of energy you may have an interval meter. If you have one Buy electricity from your utility and pay market prices Buy electricity from a retailer and fix your price of these the utility charges you market prices for the specific time period you use it. These prices fluctuate dramatically throughout the day. If you have a interval meter you will see a phone line running to your electricity meter. Buying from your utility feels safe and it's easy. You probably already know the name of your utility company because this is the name on your hydro bill. Plus, many utility companies have been in business for a longer time than retailers. Why switch from your utility to a retailer? If you buy from your utility your prices will continue to be uncertain and will fluctuate to match market prices. This isn t good if you think electricity prices will increase in the future. It also makes budgeting almost impossible. This is frustrating if you are running a business or budgeting your home bills. The Regulated Plan or an interval meter provides you with very little stability and peace of mind. If you buy electricity from your utility you ll never know what your electricity will cost you at the end of each year and your price will follow the volatile market rates. Doing nothing could cost you more money As you know the electricity market is volatile. In the past, prices have gone up. So when you buy from the utility you ll pay for any future increases. When our supply costs more to generate or our demand increases, you'll pay for it. When you buy electricity from your utility you miss an opportunity to lock in your price at today s low rates and put a stop to rising energy costs. For example, if you buy from a retailer now and over the next two years the market price of electricity goes through the roof, you ll still be paying today s low rate that you locked in. But if you buy from your utility you ll be paying the higher market rate. Call Us at

11 With our demand increasing and our electricity supply becoming more expensive to generate, electricity prices are sky high and headed higher. You simply can t sit still... but what choices do you have? CHOICE #2 - Buy electricity from a retailer This option takes a bit more effort but you have the potential of finding relief from the volatile market prices, saving money and escaping the two-tiered RPP pricing program. If you choose to purchase electricity from a retailer your electricity will continue to be delivered to you by the utility. The utility will also continue to provide emergency response service. The only difference on your bill will be the name of the retailer you buy from and the price you pay. Who are electricity retailers? Electricity retailers or marketers are independent businesses. They buy and sell electricity to a group of buyers. That s their business - sourcing electricity and selling electricity. They offer different electricity contracts with competitive prices. These contracts fix your electricity price over a certain period of time. Retailers compete for residential and commercial businesses in Ontario. You may not be familiar with many of the retailer s names or you may not know how much experience they have with the electricity market. The biggest disadvantage is that it s virtually impossible to distinguish good retailers from bad ones. Unfortunately, comparing retailers is difficult. Some retailers make their contracts confusing with added incentives or fixed and variable rates. In fact, with some contracts you may not really know how much you have gained or even what you re actually purchasing. In the end, finding the right retailer for you can be time consuming and challenging. A retailer s price offer will often be higher than the utility s price. Why would you switch to a retailer s price if it s higher than the price you are now paying? The fact is the utility s price will keep going up over time. While the retailer s price will remain the exact same. So five years from now the retailer price you lock in at may seem very low compared to the utility s price. Another reason the prices are different is that the utility price includes benefits and rebates which drops the price significantly. The retailer s price does not include these same benefits and rebates. If you sign with a retailer you will still receive the same benefits and rebates. They will just be issued separately and are not included in retailer s price. Why buy electricity from a retailer? The fact is, many people save money because a contract locks in the price they pay for electricity over a period of time. It s simple. If market prices rise higher than their contracted rate then they save money. Locking in your electricity prices also fixes your costs. This makes it a whole lot easier to budget and it makes it easier to reduce and manage your electricity costs. You always know what you will be paying for electricity no matter how erratic or volatile the market becomes. Just as with a mortgage, some people may prefer the security of a fixed rate over a specified period instead of a variable, or "floating market rate." Or visit: a division of Ag Energy Co-operative

12 Weighing your options 5. Weighing Your Options Buy from your utility? NO No protection from market prices Hard to budget No price stability Erratic market prices will affect you Unfair two-tiered pricing No potential to save money You have to deal with adjustments Prices could increase radically Should you buy electricity from your utility? Buy from your utility? YES Easy Reputable companies No contracts You know who you re dealing with Call Us at

13 How to choose a retailer Should you buy electricity from a retailer? Answer these 7 questions to find out. NO Choice #1 Buy electricity from your utility and pay market prices YES Choice #2 Buy electricity from a retailer and fix your price Is the total amount you pay for electricity over a year significant to you or your business? Are you or your business trying to cut energy costs or feel that you can t afford to ride the erratic market prices? Do you think that the demand for electricity will increase faster than any new generating capability and drive prices higher? Do you want to take advantage of the opportunity to stabilize your energy costs? Do you want an easier way to budget for your electricity costs? Do you want to protect yourself from electricity price spikes in the hot summer weather or cold winter weather? Do you, your clients or tenants need to know how much your utilities are going to cost? Each retailer has their own way of doing business. Some may use questionable sales tactics or even trick customers into signing a contract. Others have confusing contracts. Before you sign a contract, read it. Review the rates, read all their literature and be careful to assess any additional hidden charges or surcharges. Don t be pressured. The relationship you develop with a retailer can be rewarding or it can be frustrating. The best situation is to find a retailer you can trust to be reliable and to build a long term relationship with them. This way they will become more familiar with your needs and can potentially give you better help. Should you buy from a retailer? Buying electricity from a retailer has one major benefit: peace of mind from the certainty of knowing you re paying a fixed price for electricity over the duration of the contract. You ll know the cost is fixed and will not change no matter how volatile the market becomes. Or visit: a division of Ag Energy Co-operative

14 Does locking in save? 6. Does Locking in Save? How much can you save if you switch to a retailer s electricity program? There are many variables to figuring out how much you can save if you lock in your rate. How much you save depends on whether the electricity market prices go up or down, the amount of electricity you use, the electricity price that you lock in at and the length of time you agree to lock in that price. It also depends on how much you spend on the commodity of electricity per year. If you spend less you have less to gain or lose. The more you spend the more you could potentially save. If you want to try to calculate your savings the first place to start is by taking a close look at your current electricity bill. You ll need to find out what price you currently pay per kilowatt hour of electricity and compare that to the fixed rate of a retailer. Sounds easy but it s not. Comparing utility to retailer prices is difficult There are a number of hurdles to cross if you want to compare utility rates with a retailer s The Bottom Line - How much money can you save if you switch to a retailer and lock in your rate rates. The first hurdle you must cross is trying to account for the rebates and benefits. The utility price has the Provincial Benefit and ONPA rebate calculated into the electricity price you see on your bill. A retailer s price offer does not have these calculated into their offer. When you sign a contract with a retailer you still receive these benefits and rebates but they are not calculated into the electricity price. They are separated. Initially the utility price will be lower than a retailer s price offer Because the utility price includes these rebates and benefits their price will be lower than the retailer s. To make a fair comparison you first have to subtract these rebates and benefits from the retailer s offer. Once you do this you ll be able to make a fair comparison. To find the amount to subtract from the retailer s rate you need to know how much the rebates and benefits will be. Unfortunately, these amounts change and are hard to predict. Using your last rebate isn t accurate but it will give you an idea as to how much the price could be affected by the rebates. The point to remember is that you must subtract the rebate from the retailer s price offer. The second big hurdle when comparing utility to retailer prices is taking into account what market rates will do in the future. Over the length of your contract with a retailer, utility prices will either go up or go down. The more market prices change the more utility prices will change. If they increase over the next five years then utility prices could be much higher than the fixed price offered by the retailer. To calculate your savings you would have to know how much the utility price will change in the future. Estimating what prices will do makes it virtually impossible to come up with any accurate utility rate to compare with a retailer s fixed rate. Comparing your current retailer contract with another retailer s rate If you re currently in a program with a retailer and are looking at renewing your contract you would need to compare current rates at this time because the rate you locked in at is unlikely still available. Call Us at

15 The Difference On Your Bill When You Buy From A Retailer Charges on your bill Electricity Priced in cents per kilowatt hour. This price is determined by the Ontario Energy Board Prices are based on a two-tiered structure x cents per kwh up to a specific threshold x cents per kwh above that threshold Delivery Regulatory Debt Retirement Charge This price has the Provincial Benefit and ONPA Rebate subtracted from the electricity price set by the OEB. This price will continually fluctuate with the market prices. These appear the same on your bill if you buy from the utility or from a retailer If you buy electricity from a retailer Charges on your bill Electricity Priced in cents per kilowatt hour. This price is set by the retailer of your choice If you buy electricity from your utility Provincial Benefit (PB) This can be a credit or debit. This is the difference between the regulated and contract prices for electricity that are paid to generators and the amount they would have received in the wholesale electricity market or spot market. Delivery Regulatory Debt Retirement Charge RPP Settlement (one time only) If consumers have been paying more for electricity than was paid to generators, you will get a credit for your share of the difference. If it s less, you will need to pay a charge for your share A fixed price on your bill set by the retailer The PB is indicated on a separate line on your bill if you are with a retailer. These appear the same on your bill if you buy from the utility or from a retailer This is is a one time settlement when you leave the utility s Price Plan. It could be a credit or a charge. This will settle your Regulated Price Plan account. Here s the Breakdown! Your electricity bill charges are split in several ways. Electricity charges: The commodity cost or the cost to buy the product of electricity. This is the price that the Ontario Energy Board regulates if you buy from the utility. If you buy from a retailer this price is fixed. If you have an interval meter this price fluctuates with the market hourly. This charge makes up about 60% of your total bill. Delivery charges: The cost to deliver the electricity from the generators to the utilities and then to your home or business. This charge is made up of DISTRIBUTION COSTS and TRANSMISSION COSTS. Regulatory charges: The cost of administering the wholesale electricity system and maintaining the reliability of the provincial grid. This charge is made up of the WHOLESALE MARKET SERVICE CHARGE and a STANDARD SUPPLY SERVICE CHARGE Debt Retirement Charge : Set by the Ministry of Finance to pay down the residual stranded debt of the former Ontario Hydro. ONPA Rebate (to be credited to non-rpp consumers quarterly) The difference between the quarterly revenue limit for some Ontario Power Generation generators and the revenue they would have received in the spot market The ONPA Rebate will be sent to you as a cheque or show up on your bill depending on regulations at the time. This information is available on The Ontario Energy Board web site at Or visit: a division of Ag Energy Co-operative

16 Who is FireFly Energy? 7. Who is FireFly Energy? We mean it when we say, We really try to help. This Guide you re holding is part of the proof. FireFly Energy is an energy retailing company made up of real people like you. Like you, we know that sometimes all you want is some help. You want answers to your questions and information that will help you make your own decision. That s why we created this Guide. We hope it helps you through the electricity buying process. Even if it means in the end, you don t buy from us. We won t pressure you. Even though you have our Guide we won t solicit you. We ll never send out sales reps to your door and we will not interrupt your dinner with phone solicitations. We don t like it when we get these calls so why would you. If you re wondering if we know the electricity market... we do! We don t solicit door to door or by phone We re a division of Ag Energy Co-operative We really try to help. Can we give you a good deal?... we can! Here s why. FireFly Energy is a division of Ag Energy Co-operative. This means we tap into their expert experience when buying electricity. Ag Energy has been in the energy management business since 1988 and they know the energy market. They know the energy market because they ve had over 15 years of experience buying energy and managing the energy needs of larger agricultural operations. You may not have heard of them since they specialize in helping larger businesses and agricultural operations manage their energy costs. They don t solicit residential homes or go door to door. If you sign a contract with FireFly Energy you ll be tapping into the experience and skill that very large energy users have come to rely on for managing their energy costs. They simply secure the best prices for their buyers. FireFly offers you: Simple contracts. We offer fixed price contracts for a longer term and shorter term contracts with prices that float with the market. The price we offer you is the price you pay - no surcharges or bundles. A hassle free approach. It s all here in this Guide. If you choose to lock in your price we ve included a contract you can simply fax to us. If you have questions, just give us a call because we re here to help you. A long-term commitment to managing your energy buying. This means we don t abandon you just because we have your signature. It also means our Programs are designed to be a long-term solution. Help. We provide more help than any other retailer before, during and after you sign our contract. A good deal. In the end, we offer you a good deal. We are constantly monitoring the market and buying energy at opportune times so we can get the best price possible. Call Us at

17 Here s what people are saying... We re constantly monitoring the market and buying energy at opportune times so we can get the best price possible. We have the skills and the right knowledge to buy your electricity and leverage the volatile nature of the market to your advantage. We re a division of Ag Energy Cooperative which is a company that has years of experience managing energy buying for larger customers and lowering their energy costs. We really try to help. FireFly can give you a good deal because... Ag Energy manages my energy so that I always get the best deal and can enjoy peace of mind. Augie Ingratta - Nick Ingratta Farms Ag Energy gives me peace of mind... the knowledgeable and professional staff are quick to address my questions and concerns, and are looking ahead to meet my changing needs. Stuart Reimer - Quarry Ridge With Ag Energy I can focus on my farm instead of worrying about my energy costs. Augie Ingratta - Nick Ingratta Farms Or visit: a division of Ag Energy Co-operative

18 10 Things you may not know Things You May Not Know about buying electricity 1. Switching electricity suppliers is a simple process. Switching from your utility is easier than you think. The only real change is on paper, and the only thing you'll notice on your utility bill is that the retailer s name will appear next to your electricity commodity rate. Once you sign a contract, the retailer is responsible for coordinating the transition with the utility. 2. Your utility will still send you your bill the same as always. At present, you receive a bill from your utility. This will remain the same. No extra bills or statements will be sent to you. The supplier s name will appear in the body of your bill along with their contact number. 3. You can find out if you re already in a contract by looking on your bill. If you have already signed a contract you can find the name of the supplier next to your electricity supply or commodity charge on your electricity bill. Their contact phone number will be listed beside their name. 4. The reliability of your electricity service will not change if you switch from the utility. The utility is responsible for ensuring you have a supply of electricity and the same level of service regardless of your choice of supplier. 5. If you move, we can try to transfer your contract to your new location. If you move, contact us and we ll make every effort to transfer your existing contract to your new location. When this is not possible we ll contact you and discuss your options. 6. If you have a service problem or emergency you call your utility. Your local utility is still responsible for delivering electricity to your home or business. 7. When comparing prices, the Regulated Price Program rate will be lower than the retailers rates. The utility s Regulated Price Plan rate includes the Ontario Power Generation Rebate and the Provincial Benefit. These are calculated into the price and as a result it lowers the utility rate. A retailer s rate does not include these rebates so the price is higher. You will still get the rebates if you sign a contract with a retailer. (See section 6. for details on how rebates show up on your bill) 8. You must first estimate future market prices to compare prices. You can not simply compare a retailer s current offering to the utility s prices right now. The utility price will rise or fall during the time you fix your rate. It could be much higher by the time your contract expires. So you need to compare a retailer s current price offering with an estimate of what you think the utility price will do over the entire time of your contract term. 9. If you ve already signed a contract you can switch when your contract is expired. Our enrolment form has a place to record the expiry date of your current contract. If you fill out the enrolment form and include this date we ll send you a new enrolment package when your contract is nearing renewal. 10. You can always return to your utility's service. When your contract expires you can renew with FireFly, switch to another retailer or return to the utility. You can also cancel the contract within 10 days of signing. Call Us at

19 Here's what happens when you sign a contract with FireFly You send us your one page Contract Enrolment form that is included with this Guide along with a copy of your last natural gas bill. We send your enrolment information to your utility. The utility ensures the names and account numbers match and that you are not under contract with another marketer. They also check to see if you have paid your bills and your account is in order. The utility sends us the results which will approve your enrolment in one of our electricity programs. This whole process takes two to three months. We'll send you a confirmation that you have been enrolled in your selected FireFly Electricity Program. The date our price will take effect on your bill will be clearly stated on the confirmation. You will then see the results on your next billing period after steps 1-5 have happened. A one time adjustment will show up on your bill under the new electricity program. This is the Regulated Price Plan Settlement. It s that easy! We guarantee that: The electricity price you re quoted on our contract is the price you pay for the length of your enrolment. You will not be charged any extra service charges or retroactive adjustments from FireFly. You'll never be billed by FireFly nor will you see us knocking on your door. You'll continue to receive one bill from your utility company and your service will continue as before. We really try to help. The team at Ag Energy is always there when I have questions or concerns. And they take the time to understand my situation and needs which is very helpful. Cole Cacciavillani - CF Greenhouses Tina McAuley - FireFly customer service representative Or visit: a division of Ag Energy Co-operative

20 9. Is a FireFly Electricity Program Right For You? What s right for you? What should you do now? How do you find the best deal? Is FireFly the right choice for you? Now what should you do? Answering the 7 questions in Section 5 and weighing your options may have helped you decide if buying electricity from a retailer is right for you. Simply knowing that the electricity market is extremely unpredictable may have helped you decide to fix your price. In the end, whether or not you should buy from a retailer depends on your budget, your tolerance for risk and what you expect electricity prices to do over the next three to five years. If your budget is such that you can follow the ups and downs of the market and potentially pay more, then doing nothing or staying with your utility is the easiest. If the amount you spend on electricity per year is significant to you. Or if you think that electricity prices will increase in the future and you want to put a stop to rising energy costs and make budgeting easier then fixing your rate for a longer term is the solution for you. If you think fixing your electricity price is right for you then your next choice is deciding on which retailer. You probably want to shop around a bit and compare retailers so that you find the best electricity program for your situation. To check out FireFly s current offerings take a quick look at the contract that is included with this Guide. These are solid long term electricity programs, but if you want to compare retailer s offers the easiest and fastest way to is to go to This is an independent site that serves the public. It provides current electricity rate comparisons. FireFly Energy is listed on under business users. Call Us at

21 is an independent website that serves the public. You can use it to compare retailer s offerings. Still Don t Know What You Should Do? Using you ll be able to compare the price offers of the different retailers including FireFly Energy. Once you have these companies names do a little homework on the company. Look up their website and read their literature. Make sure you re comfortable with their tactics and that they have been in business long enough to have the expertise to manage your energy buying. Ideally you want a retailer who will be there for you over the long term. Then simply choose the best one for you. If you decide FireFly is the right retailer for you... then please turn the page and... we ll help you take control of your electricity costs right now. We ve tried to help you as much as possible in this Guide, But we know that buying electricity isn t easy and you may still have some unanswered questions. If you re still unsure of what to do then give us a call at We ll be happy to help you find the solution that s right for you or answer any questions you may still have. FireFly Energy is here to help you take control of your energy costs. Call us at or Visit Or visit: a division of Ag Energy Co-operative

22 How to lock in your rate 10. How to Lock in Your Rate with FireFly If after looking at this Guide you ve decided to put the brakes on rising energy costs by locking in your rate at today s low price and you think we re the right choice for you then here s what you do: Fill in the one page Contract Enrolment included in this Guide. Sign the contract Find a copy of your latest electricity bill for each meter Fax your electricity bill and your signed Contract Enrolment form to FireFly Energy: We request that you fax in your contract because of the tight deadline. We can only hold the rate we quote for about 10 days or while supplies last. This makes relying on the mail risky. If you don t have a fax your local drug store or any Staples store offers this service. Yes, that s it! It s that easy! IMPORTANT: The rates we sent to you with this package are only available for a limited time while quantities last. This is usually about 10 days. If you want to lock in your price at the rate we offer with this Guide, please respond as soon as possible. Don t miss this opportunity to lock in your price for electricity at today s low rate while quantities last. If you still have questions give us a call at: Call Us at

23 If you want to put the brakes on rising electricity costs... If you want a fair deal backed by a reliable team of energy experts ready to help you... then join our group of buyers and enrol in one of FireFly s Electricity Programs. Peace of Mind Guarantee We offer a no risk guarantee! Yes, it means exactly what it says. If you re not happy about enroling in one of our Electricity Programs we ll cancel your enrolment. If you want to cancel your enrolment, just give us a call within 10 days and we ll cancel it no hassles. Bruce Fraser FireFly Energy We really try to help. When you enrol in our electricity programs you ll get: Guaranteed price protection from volatile electricity prices No unexpected service charges or added costs One bill from your utility the same as before A team of energy experts who are ready to help you and to answer your questions You will still receive all government rebates and benefits No other company can provide you with the kind of help and expertise that you ll get from FireFly Energy. Because no other company knows the energy market like we do. Give us a call today. Or visit: a division of Ag Energy Co-operative

24 If you run a business or own a home you know that rising electricity costs take a bite out of your bank account. It s time to take action. With electricity prices sky high and headed even higher, you simply can t sit still. But finding a good deal can be a confusing process. Faced with all the options, most people we talk to don t know what they should do. This Guide, written by seasoned energy consultants, helps you find the answer that s right for you whether you decide to choose FireFly or not. Sounds crazy but we simply don t want to waste our time and yours. If you decide to buy electricity from FireFly, we want to know that we re a good fit with you and your goals so you don t have to look at this issue again and again. At FireFly we take buying energy seriously and invest in developing long-term relationships with our customers. We mean it when we say WE REALLY TRY TO HELP. Take a walk through this Guide, find the facts you need to make the right choice for you. Remember, every dollar you save on energy is a dollar in your pocket.