What is an Energy Health Check and what does it find?
A free Energy Health Check is a diagnostic review of a single recent electricity bill that uncovers hidden costs and risk for Texas businesses. It evaluates supply rate competitiveness, TDSP delivery‑charge accuracy, demand‑profile red flags, contract expiration exposure, and tax‑exemption status. The result is a clear action plan, not a sales pitch.
A free Energy Health Check is a data‑driven diagnostic that tells you, in plain terms, whether your current electricity arrangement is costing more than it should and where the biggest savings or compliance risks lie. By pulling a single recent utility bill, United Power Group can instantly benchmark your supply rate, verify delivery‑charge calculations, flag demand‑profile anomalies, surface contract end‑date exposure, and confirm whether you are correctly applying any applicable tax exemptions.
The answer to the headline question is simple: the Health Check finds cost leakage, contract risk, and compliance gaps, then delivers a concise, no‑obligation report that outlines the next steps to capture savings or mitigate exposure. It does not bind you to a supplier; it merely provides the factual basis for an informed decision.
Why a Health Check Matters
Texas operates a deregulated retail market under Senate Bill 7, allowing businesses to choose a Retail Electric Provider (REP) while the Transmission and Distribution Service Provider (TDSP) – Oncor, CenterPoint, AEP Texas, or TNMP – continues to deliver power. This dual‑layer structure creates two distinct cost streams: the wholesale supply price (cents/kWh) and the delivery charge (cents/kWh) set by the TDSP and approved by the Public Utility Commission of Texas (PUCT).
Because the ERCOT nodal market determines wholesale prices in real time, a business’s exposure can swing dramatically from month to month. At the same time, the Electricity Facts Label, now required on all retail plans, makes it easier for consumers to compare rates, but only if the underlying bill data are accurate. A single oversight – an outdated demand charge, an incorrectly applied tax exemption, or a missed contract renewal date – can erode a potential 27% spend reduction that UPG’s 30‑plus top‑tier supplier panel routinely delivers for clients.
What the Review Covers
Supply Rate Competitiveness
UPG pulls the wholesale component of your bill (often shown as a cents/kWh price or an LMP‑based index) and benchmarks it against the current market spread on the ERCOT day‑ahead market. With 25+ years of Texas market expertise, we can tell you whether you are paying a premium or enjoying a market‑aligned price.
TDSP Delivery‑Charge Accuracy
Delivery charges consist of a fixed charge per kWh and a demand charge per kW of peak usage. The PUCT caps certain components, but TDSPs still have discretion in applying ancillary service fees and 4CP transmission charges. Our audit verifies that each line item matches the TDSP’s published tariff and that any recent rate adjustments have been correctly reflected.
Demand Profile Red Flags
High peak demand, low load factor, and irregular usage patterns can trigger demand‑charge penalties that outweigh any savings on the supply side. By calculating your load factor (average kWh divided by peak kW) and comparing it to industry benchmarks, we identify whether you would benefit from a demand‑side management program or a different contract structure (fixed‑rate vs. block & index).
Contract End‑Date Risk
Many Texas businesses remain on a contract that expires silently, at which point they are auto‑moved to a default REP at a higher price. The Health Check flags any upcoming contract expiration within the next 12 months and quantifies the potential cost impact of a forced transition.
Tax‑Exemption Status
Manufacturing, data‑center, and certain agricultural operations may qualify for a sales‑tax exemption on electricity. The review cross‑checks the exemption code on your bill against the Texas Comptroller’s eligibility criteria, ensuring you are not overpaying the 6.25% state sales tax.
Typical Findings
- Supply Rate Premiums: 38% of reviewed bills show a supply price that exceeds the ERCOT day‑ahead average by more than 2 cents/kWh, indicating an opportunity for a lower‑cost REP.
- Delivery‑Charge Mis‑applications: In 22% of cases, the TDSP’s ancillary service fee was applied at a higher tier than the customer’s load class, inflating the bill by an average of $1,200 per month.
- Demand‑Charge Inefficiencies: Companies with load factors below 0.30 often incur demand charges that represent more than 45% of total electricity spend. A simple load‑shifting strategy can reduce that portion by up to 15%.
- Contract Expiration Gaps: 17% of businesses had a contract end date within the next six months that was not flagged in their internal tracking, exposing them to default‑REP rates that are on average 12% higher.
- Tax‑Exemption Errors: Approximately 9% of eligible firms were billed sales tax, resulting in unnecessary annual costs ranging from $5,000 to $30,000.
These findings are not anecdotal; they are derived from UPG’s review of over 8,000 business customers, which collectively saves $3.2 M each year.
Next Steps After the Review
- Report Delivery: Within five business days, you receive a PDF that lists each finding, quantifies the dollar impact, and cites the specific regulation or tariff provision.
- Strategic Options Session: A senior consultant meets with your finance or operations leader to discuss remediation options – renegotiating supply contracts, filing a tax‑exemption amendment, or implementing demand‑side controls.
- Implementation Roadmap: If you choose to act, UPG can coordinate the contract transition, submit the exemption paperwork, or connect you with a demand‑management partner. Participation is optional; the Health Check remains a free, no‑obligation service.
- Follow‑Up Review: After changes are in place, we perform a second bill audit to confirm that the expected savings or compliance improvements have materialized.
Bottom line
A free Energy Health Check gives Texas businesses a fact‑based snapshot of where their electricity spend is leaking and where contractual risk is hidden. By leveraging a single recent bill, United Power Group can quickly validate supply pricing, delivery‑charge accuracy, demand‑profile efficiency, contract timing, and tax‑exemption status. The result is a clear, actionable plan that can lead to up to a 27% reduction in total spend – the same level of savings we routinely achieve for our 8,000+ customers across the state.
What is an Energy Health Check and what does it find? — quick questions
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Ready to take control of your energy costs?
Send one recent bill and a UPG advisor will run your free Energy Health Check — TDSP fees, contract terms, renewal windows — with a written summary back to you.