Certified Facility Manager (CFM) Practice Exam

As a result of deregulation of electric utilities in the United States, hotel managers must:

1. pay higher prices for electricity

2. choose a utility company to supply their hotel's electricity

3. rely solely on renewable sources

4. implement their own power generation

The correct answer is: choose a utility company to supply their hotel's electricity

Deregulation of electric utilities in the United States has transformed the way businesses, including hotels, procure their electricity. With this shift, hotel managers are no longer bound to a single utility provider; instead, they have the opportunity to select from various companies that supply electricity. This ability to choose fosters competition among utility providers, potentially leading to more favorable pricing and service options for hotel managers. By being able to evaluate different utility companies and offerings, managers can select a provider that best meets their operational needs and budget. This choice also allows them to consider factors such as the source of electricity, customer service, and reliability, ultimately enhancing their operational efficiency and cost management. In contrast, the other options present scenarios that are not directly related to the core implications of deregulation. While price fluctuations can occur due to market forces, the key takeaway is the empowerment of managers to choose their electricity supplier, rather than having limited options or being forced to switch to renewable sources solely.