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Commercial Energy Broker: Cut Utility Costs and Raise NOI
By Jaken Finance Group · Principal, Jaken Finance Group
How a commercial energy broker lowers electricity and gas supply costs in deregulated markets — and when procurement beats efficiency upgrades for NOI.
Commercial property owners who pay electric or gas on the operating statement have a direct NOI lever: every dollar cut from the utility line (without cutting service) flows straight to net operating income — and from there to value and DSCR.
In deregulated markets, that lever is often a commercial energy broker who shops competitive supply contracts. This guide explains how supply shopping works, when it moves NOI, how it differs from efficiency CapEx, and where to request quotes through Jaken Finance Group’s affiliated energy brands.
Full NOI framework: how to increase commercial property NOI
How commercial energy brokerage works
Most owners think of one bill and one company. In deregulated states, the bill splits:
| Component | Who provides it | What you shop |
|---|---|---|
| Delivery | Local utility (ComEd, Oncor, Pepco, etc.) | Fixed — regulated wires and pipes |
| Supply | Licensed retail energy supplier | Broker shops this |
A commercial energy broker reviews historical usage, current contract terms, and market timing — then runs competitive bids from licensed suppliers. Enrollment typically takes 1–2 billing cycles (30–60 days) with no interruption in delivery, because the utility still brings power to the meter.
Commercial Energy Advisors — operated by JakenEnergy — covers 18 deregulated markets: Connecticut, Delaware, Georgia, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, and Washington DC. Natural gas procurement is available in 15 of those markets; Maine, New Hampshire, and Rhode Island are electricity-only. See the full service area map.
Request quotes at jakenenergy.com or commercialenergyadvisors.com · (833) 264-7776
When supply shopping raises NOI
Utility costs hit NOI only when the owner pays them:
| Situation | Broker helps owner NOI? |
|---|---|
| Gross or modified gross lease — landlord pays electric/gas | Yes |
| Multifamily 5+ — owner meter or house electric | Yes |
| Common-area and exterior lighting | Yes |
| Vacant retail bay — owner absorbs utilities during lease-up | Yes |
| Fully NNN — tenant pays all supply | Indirectly — at rollover, lower energy costs help lease the bay |
| Industrial NNN — tenant pays | Owner may still care on pad/building meters |
On a $14,000/yr landlord-paid electric line, repricing supply by 15% saves $2,100/yr — straight to NOI. At a 7.5% cap, that is ~$28,000 in indicated value from one operating line.
Fixed vs index-plus — contract structure matters
Brokers do not only find a lower ¢/kWh. They align contract structure to your load profile and risk tolerance:
| Structure | Best when | NOI risk |
|---|---|---|
| Fixed rate | Budget certainty, stable occupancy | Predictable opex — good for DSCR modeling |
| Index / market-follow | Willing to ride commodity swings | NOI can move month to month |
| Blended | Mixed load (base + peak) | Balances certainty and upside |
Renewal timing matters as much as the first contract. Owners who auto-renew with the incumbent supplier often roll into above-market rates. A broker tracks end dates and reprices before the default renewal hits the T-12 you send to a lender.
Commodity vs demand — two different bills
Commercial electric bills have two layers:
- Energy (commodity) — ¢/kWh or $/therm for gas. Supply shopping targets this.
- Demand / capacity / transmission — based on peak kW draw. Procurement helps less here.
Lowering peak demand — staggered HVAC start, LED retrofits, power-factor correction — cuts the delivery side of the bill. That is operational change or CapEx, not broker procurement alone.
If your building runs old rooftop units on simultaneous morning start, a broker might save 8% on supply while demand charges stay flat. Pair procurement with efficiency when usage is the problem.
Procurement vs efficiency — broker vs C-PACE
| Tool | What it does | Timeline | Capital required |
|---|---|---|---|
| Energy broker | Shops supply rate and contract | 30–60 days | None upfront (broker compensated by supplier) |
| C-PACE | Finances HVAC, LED, solar, resiliency | 60–120+ days (program + consent) | Long-term property assessment |
Procurement is the fast NOI win when the building is reasonably efficient but on a bad contract. C-PACE is the right tool when you need a new chiller, building-wide LED, or rooftop solar — improvements that cut usage over 20–30 years. C-PACE stacks alongside senior commercial debt where programs authorize it; see loan officer guide to C-PACE.
Both can run on the same asset: reprice supply now, finance the HVAC replacement next year.
What deregulated commercial rates look like (2026)
The U.S. Energy Information Administration publishes average commercial-sector electricity prices by state in Electric Power Monthly, Table 5.6.A. Commercial Energy Advisors’ 2026 state table summarizes that data — illustrative averages, not your account-specific rate.
| State (deregulated) | Approx. commercial avg. (EIA, 2026) | Notes |
|---|---|---|
| Texas | ~8.35¢/kWh | Full supply choice |
| Illinois | ~13.8¢/kWh band | ComEd / Ameren territories |
| Pennsylvania | ~13.7¢/kWh band | PECO, PPL, and others |
| Ohio | ~13.7¢/kWh band | AEP, Duke, FirstEnergy territories |
| New York | Mid-teens ¢/kWh | Con Ed and upstate utilities vary |
Regulated states (Florida, most of the Southeast, much of the West) do not offer supply shopping — owners focus on efficiency, rate schedules, and demand management instead.
Commercial Energy Advisors describes 10%–25% typical savings for qualified accounts that shop competitively in deregulated markets — results vary by current contract, usage, and timing. That range is the energy brands’ stated experience, not a guarantee from Jaken Finance Group.
Multi-site and mixed-use owners
Portfolio owners with properties in Illinois, Texas, Ohio, and Pennsylvania benefit from consolidated procurement — one broker relationship, aligned renewal calendars, and apples-to-apples supplier comparisons across sites.
Mixed-use buildings often have house meters (common lighting, elevator, hallway HVAC) on the owner account even when retail is NNN. Audit every meter on the deed before you assume tenants cover energy.
Document savings before you refi
Lenders underwriting commercial DSCR at 5.75%–10.5% want a T-12 that reflects actual expenses. Utility savings do not count until they appear on paid bills — not on a broker’s projection.
- Run procurement 6–12 months before a planned refi or sale
- Keep before/after utility statements in the file
- Note contract end dates so the buyer does not inherit a rate spike
NOI-to-loan math: how raising NOI increases commercial loan proceeds
Affiliation disclosure
Commercial Energy Advisors is a commercial energy brokerage brand operated by JakenEnergy, which is backed by Jaken Finance Group. The energy brands handle utility procurement; Jaken Finance Group originates commercial bridge (8.99%–13.5% IO) and DSCR permanent (5.75%–10.5%) on qualified investor files. Shared phone: (833) 264-7776.
Request energy quotes · Commercial Energy Advisors · Increase commercial property NOI · C-PACE financing · Commercial loan request · (833) 264-7776
Sources
- EIA Electric Power Monthly — Table 5.6.A — U.S. average commercial-sector electricity prices by state
- Commercial Energy Advisors — FAQ — deregulated markets, contract timing, brand relationship
- Commercial Energy Advisors — services — procurement and contract management scope
- Commercial Energy Advisors — commercial electricity rates by state (2026) — EIA-based state summary table