Celebrate the Freedom to Choose This Fourth of July in Michigan

Competitive natural gas markets deliver freedom when looking for options and control

LANSING, Mich., July 1 /PRNewswire/ -- When celebrating Independence Day this July, think back on the role that freedom plays in your lifestyle. Americans value the freedom to choose where to live, what to drive and how to spend money. They also like the fact that in open markets, businesses must compete and when competition thrives, consumers win.

That's certainly true when it comes to electricity. In some states like Michigan, consumers are no longer forced to buy this vital energy source from monopoly utilities. States that have instituted energy choice programs give consumers the ability to choose from a variety of retail providers that compete to best meet energy users' needs by offering benefits like cost-effective and innovative plans and superior customer service.

Competition also gives consumers a sense of control in uncertain times. "Considering that energy prices fluctuate as the result of uncontrollable factors like rising oil prices or extreme weather, we find that many consumers value the freedom to choose their energy source instead of having no say in the matter, as was the case under the old monopoly system," says Mike Beck, vice president and general manager for Direct Energy, a major retail energy and services provider.

For these reasons, governmental agencies are reporting that thousands of consumers are switching from utilities to retail energy providers. But it's not just about choice and economic advantages.

Competition also brings energy companies who are committed to being good corporate citizens into the community. Direct Energy, for example, gives generously to programs whose aim is to reduce the impact of homelessness. And when parts of Ohio were recently ravaged by floods, the company contributed to flood relief with a sizable donation and worked with the Cleveland Indians professional baseball team to make it possible for fans donate non-perishable food items.

Yet another advantage of energy choice is that even when you choose to buy your energy from a competitive provider, your local utility still delivers it to your home and sends you just one bill. And in emergencies, the local utility remains the single point of contact.

So, how do you go about taking advantage of energy choice? There are just a few simple steps to keep in mind. First, ask yourself what you want or expect from an energy supplier. Choosing a provider is much like making any other important household purchasing decision, like buying a new car or remodeling your kitchen. Rather than rolling the dice and hoping for the best, it is worthwhile to look into your options and make a conscious decision about the choice that's right for your individual situation. Energy choice in your state offers a number of options available to meet the needs of a wide range of consumer situations -- the most important things to consider are the features that are important to you.

Look for a selection of features that matches your needs and lifestyle. Energy consumers typically can pick from options that include:

-- Fixed pricing: This option permits you to select a payment plan that sets a monthly price for your energy supply cost for a fixed term, such as one year, so you won't have to fret over potential commodity price swings brought on by rising oil prices or severe weather.

-- Variable pricing: This product changes month-to-month offering consumers the option to pay prices that are truly reflective of the actual cost of energy in the market.

Now that you're aware of the different energy options that competition has made possible, you're ready to do some savvy shopping. Most states have public utilities commissions that identify the companies that supply energy where you live. Use this information to assemble a list of providers, then call them or visit their Web site to see what product plans they offer.

Once you've identified some possible suppliers, weigh the pluses and minuses of each one, keeping in mind that cost shouldn't be the only factor. Consumers should also identify whether a supplier will be able to fulfill their commitment to you the customer. Factors for identifying longevity in a market include:

-- Financial strength: What is the financial scale of the energy company? Does the provider have the resources to meet their customer obligations in a potentially volatile energy market?

-- Customer service and consumer protection: Does the supplier offer multiple ways to reach them to answer your questions about their products and service? Does the supplier have a history of good relations with the local public utility commission?

-- Geographic footprint: Is the supplier adapting to changing markets by entering new geographic markets and varying their customer base to include both residential and business consumers?

Lastly, don't be afraid to ask friends and neighbors about their own experiences with a particular provider. But be sure to ask the providers themselves. They can offer vital information that will help you make your decision.