Business Plan and Industry Overview

Topics: Electricity generation, Natural gas, Electricity distribution Pages: 23 (7301 words) Published: January 2, 2013


Opportunity: America Approved is an energy brokerage / consulting firm that assist non-residential electric consumers in making informed energy purchasing decisions. We currently operate in eight deregulated energy markets. America Approved has developed numerous channel partnerships with major Retail Energy Providers across the country that offer all inclusive contracts that serve a wide variety of business and government entities.

Most businesses lack the time, expertise, and tools to track the energy market and make good purchasing decisions. Businesses today rely on experts when it comes to financial, insurance real estate and other complex transactions. For the same reasons, most businesses now purchase their energy with the assistance of a broker consultant like America Approved. America Approved earns a millage, typically 7 to 10, on the term kilowatt-hours (kWh) and is paid by the energy provider for connecting the consumer to the provider. Users of energy renew or extend their purchasing contracts creating an annuity like revenue stream for America Approved.

Brokerage commissions available in the markets where we currently operate exceed $7,000,000,000. This number will grow as more states embrace deregulation.

Deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what remains is a regulated delivery (utility) company that continues to distribute electricity and provides billing and customer service to the consumer.

Before deregulation, businesses had no choice and therefore no need to pay attention to the energy market. You simply paid the regulated rate just like everyone else. Over the past decade, deregulation has ushered in a new era of competition and consumer choice. The idea behind deregulation is that in competitive markets consumers benefit because suppliers compete on price, which allows them to create unique products and services. However, the reality is that lower prices and better services do not come by default. In a deregulated market the business must decide who to buy from, when to buy, what type of contract, how long to contract or whether they should consider a market based rate. With every option comes a certain level of risk, the decisions a business makes or fails to make is what drive the cost. The multitude of options combined with dramatic price fluctuations makes the competitive market infinitely more complex. America Approved helps businesses buy energy at 20% to 50% off peak rates in deregulated markets with a simple and objective process based on proven strategies that eliminates uncertainty and volatility risk for the consumer. America Approved connects businesses with the right supplier and the right contract at the lowest possible rate. We then provide the information and strategy to support all future buying decisions. Market Success: America Approved has secured pending broker commissions that exceed $430,000. Target Markets: Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York, Rhode Island, Texas and Washington DC. Other states are in various stages of the deregulation process and will be targeted at the appropriate time. Sales & Marketing: America Approved markets through independent consultant / agents who earn a portion of the company millage. Consultants operate in teams by market and the team leader earns an override commission on the sales of the team. America Approved has recently recruited and trained over 50 consultants with plans to expand to over 200 in early 2009.

For the electricity industry, deregulation means the generation portion of electricity service is open to competition. During the deregulation process the local utility is forced to sell their generation capacity, what...
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