FAQ

Do we pay a fee to 3:23 Energy Solutions for electricity contracts?

3:23’s fee is included in the fixed price for energy, and the company is compensated much like an insurance broker. An insurance broker is paid a commission as part of an insurance premium. Whether going directly to the insurance company, or through a broker, a commission is paid to someone–either the insurance company’s sales person or the broker. It is the same with electricity. 3:23 does not get paid based on the price negotiated, but on a business’ actual usage. This ensures a fair negotiation for the best price in order to continue to positively serve the client’s bottom line.

What are CAA, CSA and Marketing agreements?

CAA is Common Area Accounts for a multifamily property–house meters, clubhouse, laundry rooms, etc. CSAs are Continuing Service Agreements–these allow service to continue in a vacant unit after a resident has moved out. In most CSAs, the service is automatically switched into the owner’s name upon move out. Some CSAs are “non-auto switching”, which means they do not switch to the owner’s name until directed to do so by the property manager. A marketing agreement allows for the property to receive a marketing fee from an REP for any resident which signs up for electricity service with them.

What is an REP?

With electric competition, retail electric providers (also known as “REPs”) sell electricity and routinely handle customer service and billing. REPs compete for a business by offering a variety of different pricing options, renewable energy options, added customer service benefits or other incentives. Note: Not all areas of the state are open to competition. Electric cooperatives and city-owned utilities may decide whether customers will have a choice of Retail Electric Providers. Customers in these areas should contact their electric cooperative or city utility for more information.

What is an LOA?

An LOA is a Letter of Authorization. This is not a contract, but rather an authorization for 3:23 Energy Solutions to request usage history from the electric delivery company (Oncor, Centerpointe, TNMP etc). The usage history is used to determine the amount of annual kilowatt hours used and assists in determining pricing.

What is a Transmission Distribution Service Provider (TDSP)?

Regardless of which Retail Electric Provider chosen, the actual delivery of the electricity (“transmission and distribution”) is still provided by a local Transmission and Distribution Service Provider, (also referred to as the “TDSP”). The TDSP will continue to be responsible for maintaining the poles, wires, and meter which deliver and measure the electricity consumed by a home or business. They are also responsible for reading the meter and providing the amount of electricity consumed to the REP, and for restoring service when there is a power outage. The choice of REP does not affect the reliability of transmission and distribution service, or how quickly power will be restored following an outage caused by a storm or other event. 

The Public Utility Commission continues to regulate TDSPs by setting the rates for transmission and distribution service, setting reliability and safety standards, and ensuring all customers and REPs are treated the same when it comes to the delivery of electricity to a home or business.

What are TDSP charges?

Commonly referred to as “pass throughs,” these are costs for maintaining poles, wires and meters from the Transmission Distribution Service Company (TDSP), as well as charges and fees regulated by the Public Utility Commission. Each REP passes through to its customers. Most fixed price contracts are the fixed energy price + TDSP charges. These fees are generally the same for each provider.

What are monthly meter fees or service charges?

These are monthly fees charged by the REP for each meter or ESI. For common area accounts these range from $0 to $6.95 (or higher) per meter per month. This can be considered similar to an application fee or administrative fee on a property. Charges are usually what the market will bear and so will the REP’s. 3:23 Energy Solutions’ understanding of each business enables the successful negotiation down to low rates or even zero. On common area contracts, customers generally do not pay any meter fee or service charge. For the typical property with 20 house meters, this can result in savings of over $1,200 annually. On CSA or vacant accounts, 3:23 Energy Solutions works to negotiate these down to the lowest possible rates–usually $2.95 versus the typical expense of$6.95 or more.

What is an ESI number?

An ESI ID is a unique premise identifier for each electric meter, which is required for electric companies to obtain a customer’s electricity usage history from the local utility. Usage history is used to provide a customized price which is specific to a home or business. 3:23 Energy Solutions uses a Letter of Authorization (LOA) with all of a property’s ESI numbers to obtain this information from the TDSP.

What is a bundled rate on a CSA Encumbers Continuing Service Agreements (CSAs), and is it a common practice to have a bundled rate quoted?

A bundled rate is a fixed-rate contract which includes the TDSP charges. A bundled rate of $0.0820 is bundled to include a fixed price plus TDSP charges or pass throughs. This is why customers often see such a large gap between prices for Common area contracts and CSAs. Common area contracts typically are quoted as a fixed price plus TDSP. CSAs have a bundled rate which includes the TDSP charges.