BY TIM COMERFORD, BIGGINS LACY SHAPIRO & CO.

US pricing is more competitive than before, but companies must carefully negotiate incentives and conduct state-by-state, regional research.

Finding affordable energy is one of the most important factors in identifying and choosing the right site when a company is expanding or relocating — especially in the case of large industrial facilities. The electric power industry has seen significant changes in the last decade, with industrial electricity prices trending down due to the increase in natural gas supply. Energy pricing can vary widely by state, by region and, importantly, within regions. At the same time, it is important to keep in mind that while electricity prices are important, a particular region should not be ruled out on these costs alone.