Energy Procurement

"Our approach is to assist clients with minimizing their long-term energy expenditures and control their energy price risk.  There is not one tactic that makes the biggest contribution to that effort.  All three - reduced consumption, strategic energy procurement and alternative energy generation solutions - should be considered."  

Energy procurement has become a high priority for industrial and commercial buildings seeking their most strategic energy supply along with contracts they can count on.  Since energy deregulation, CFOs and Building Managers are finding increased challenges as well as increased opportunities for connecting the energy dots.  Through trusted partnerships with energy experts and providers, building management can take their energy solutions to the highest levels by making sure that energy procurement contracts align with specific building requirements and details. 

This is why energy consulting is vital in the process toward building energy optimization.  Energy procurement consultants help avoid unnecessary costs from having the wrong contract, an unnegotiated contract, or the wrong energy supplier.  Reducing energy bills via expert energy procurement strategies can help shift funds toward future projects like on-site generation, the final step toward energy stabilization and optimization. 

The process for successful commercial energy procurement will always require an in-depth analysis of your facility and a dedicated partner to guide you through each step of the process.

• Understanding your facility's energy demand
  
• Having an energy strategy specific to your facility
  
• Monitoring energy markets for optimum pricing
  
• Analyze peak load reduction strategies
  
• Preparing documents for soliciting energy suppliers
  
• Negotiating the final contract and details within the contract
  
• Oversight of supplier billing and performance

Energy pricing plans can be fixed, index, or blended.  To know which is best for your facility, it's important to examine your current and projected energy needs.  Once qualified vendors have been sourced and deliver your tailored proposals specific to your facility, it's time to compare pricing, cost components, and what costs are included and which are pass-through.

Then you will want to look at how each supplier made their calculations and decide if they've made their assessment reasonably or if there are any unnecessary costs within the energy contract proposal. 

Next, it's important to compare and contrast your risk vs. reward for any pass-through components by examining each provision within the energy contract.  Finally, once you've narrowed down the suppliers to a short list, you'll want to review their capabilities for delivering on their contract promises and their long-term ability to support the items negotiated within the contract.  Once signed, it's time to audit billing on an ongoing basis to ensure supplier compliance with contract terms and conditions and monitor the market for the next buying opportunity.

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There are various factors to consider in an energy contract, it requires a dedicated energy broker who will spend the time required to learn the details of your facility, look at your current and projected usage patterns, and also your current and projected load profiles.  Then, matching these needs to the right contract and skillfully negotiating with the best supplier requires a trusted electricity consulting partner working on your side with a shared goal for the best deal that's tailored to your facility.

Choosing the best energy supply solution for your facility demands an understanding of the impact of the available strategies.  For example, facilities that have invested in behind-the-meter solar PV for the building will benefit significantly by using a blended rate (future and index components)