Energy Contracts and Procurement
Energy is the number one controllable operating expense for buildings. In states with open energy markets, businesses can achieve multiple benefits from taking part in the deregulated energy marketplace:
- Reduce energy expenses
- Obtain savings vs. default utility rates
- Manage risk and volatility
- Secure budget certainty
- Optimize the ROI on efficiency projects through a strategic energy procurement plan.
A lot of customers make the mistake focusing on the lowest possible unit price. Price alone should not be the deciding factor; and in many cases, a bid that appears to be the “low price” may cost you more. Working with a company that understands all aspects of the agreement will insure the best outcome. Purchasing energy (electricity, natural gas and fuel oil) requires an understanding of not just the commodity markets, but also of regulatory developments, supplier contract terms/conditions and your operational plans.
We will work with you to understand your company’s goals and expectations and then craft a supplier agreement that will meet them. Price is important but we will also keep in mind your risk tolerance and appetite for pricing swings. The final agreement will also be scrutinized for the terms and conditions that could affect the success of the agreement (payment terms, credit assurance, bandwidth, assignment, etc.),
Once the agreement is in place, we don’t stop there. We monitor the agreement to verify compliance and we also watch the market for additional procurement opportunities. Monitoring the agreement and the energy market at large.