How would you like to have a lower electricity bill and a portion of your bill go directly to a charity? While it may sound too good to be true, this has been the business model of Discount Power Inc. since 2008.
Based in Shelton, the electric energy supplier has donated roughly $47,000 in total to several Connecticut nonprofits, including the Ridgefield Playhouse, New Haven Symphony Orchestra, Special Olympics of Connecticut, the United Way, the Arthritis Foundation and several school PTAs.
“We”™re very much community-minded in the way we conduct our business,” said Mike Ferreri, vice president of marketing, in a prepared statement. “We”™ve developed a nonprofit program that”™s mutually beneficial for both Discount Power and any charity that wishes to get involved. It”™s truly a win-win situation.”
Discount Power serves residents and commercial businesses throughout Connecticut at rates it promises are lower than both public utility companies in the state, Connecticut Light and Power and United Illuminating.
Its fixed commercial rate is about 15 percent lower, saving businesses tens of thousands of dollars a year; and its fixed residential rate is 2 percent to 7 percent cheaper, saving residents about $100 a year, according to rates listed by Discount Power. The company also offers capped variable rates.
Discount Power is able to offer cheaper rates by taking advantage of the deregulated electricity market. In the late 1990s the federal government and several states deregulated electricity to break up government-sanctioned monopolies in the $220 billion industry in order to increase competition and lower prices, according to the Center for Responsive Politics, a nonpartisan research group.
But few companies offering lower prices and innovative sales contracts have risen to popularity since the market deregulated. In fact, among the 24 deregulated states, prices have risen and demand has increased.
In addition to cheaper rates, part of Discount Power”™s sales contract is giving a portion of its proceeds to local charities. For each kilowatt hour of electricity used, the company donates $0.002 to $0.005 to charity, resulting in hundreds and sometimes thousands of dollars being donated a month, according to Discount Power.
Another part of its sale contract is its green energy initiative. About 16 percent of its energy is green and it also offers environmentally minded customers 50 percent and 100 percent green energy options.
The company is currently in the process of expanding to Massachusetts, New York, Pennsylvania and parts of Ohio.
In exchange for spreading the word about Discount Power to its constituency, any nonprofit can take advantage of the profit-sharing program.
“It is an easy way for a nonprofit to encourage supporters to donate while they are saving money,” said Ferreri. “In these continued, tough economic times, getting someone to put out cash to support a nonprofit is very difficult. With this program, not only are you not asking them for money out of their pocket, you are also assisting them in putting money back into theirs.”
