Getting Started

Establish Energy Purchasing Benchmark

  1. Review energy purchasing methodology and billing accuracy
    1. Copy of one gas and one electric bill per facility
    2. Copy of existing contracts with suppliers
    3. Sign energy audit and agency agreement
  2. Audit natural gas and electric utility delivery charges
    1. Validate on correct rates, riders, and tariffs
    2. Seek credits where applicable and process change orders
  3. Establish historical performance vs. industry
    1. Report key findings and savings opportunities to management team

Develop Energy Procurement Strategy and Execution Plan

  1. Review management objectives
    1. Budget certainty vs. managed risk
      1. Benefits of price volatility (variable or index vs. fixed)
  2. Establish “go-to-market” strategy
    1. Discuss market option and associated risks
      1. Based on current market conditions
  3. Conduct multi-variable energy aggregation auction and a stand-alone auction to validate optimal results
    1. Generally multiple pricing auctions simultaneously
      1. Ensure aggregation delivers the lowest price
      2. Gives clarity as to what premium is being charged for fixed components
  4. Report results and budget impact analysis to management
    1. Prepare and present recommendations
    2. Review contracts for Industry standard language
  5. Execute on approved recommendations
    1. Align supplier and utility to ensure smooth transition
  6. Provide ongoing energy management
    1. Audit actual results vs. expected
    2. Develop and monitor energy budgets
      1. Create variance explanations
    3. Monitor and deliver energy market trends that will affect business


Four Steps

Market Assessment

Deregulation Status

Getting Started

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