Energy Procurement Services
What is Energy Procurement?
Every business or organization uses energy (electricity, natural gas, fuel oil, etc.) to keep its operations afloat. Energy procurement is the strategic process an organization uses to identify, select and contract with energy suppliers to obtain energy supply at the optimal balance between price and risk.
More than half of the fifty United States have deregulated gas and/or electricity markets. In deregulated states, energy buyers have the choice of buying energy from a third party supplier or a regulated utility company. In regulated states, there are no third party suppliers. If you don’t have a deep understanding of energy pricing, you are at the mercy of the energy companies that sell you supply.
All sorts of organizations may benefit from an energy procurement strategy: School districts, county and city governments, multi-site manufacturing or retail companies, large corporations operating across several states or regions, and more.
If your company or organization conducts business over multiple locations, you know all about dependence on energy utilities who dole out supply and distribution services under a variety of rates and programs. If your operations span deregulated states, your purchasing choices expand. A knowledgeable, independent consultant can help you develop a business energy procurement strategy that lets you exercise those choices wisely.
Sidestep the Complexities
Energy procurement in deregulated markets is complex. Your organization may not have the in-house expertise needed to purchase electricity, natural gas and other fuel supplies at the best prices. To limit your risk exposure, you need an extensive understanding of market trends and regulatory complexities for each state and utility where you conduct business.
Cost Control Associates has saved millions of dollars in avoided costs for our energy procurement services clients, and we’d like to help you. When you outsource your utility procurement to us, you can trust that you will get the best options for the right price. We help your organization evaluate and procure energy and other services such as waste removal and telecom. We work with you to understand your needs and find the provider options that best suit your objectives.
While we have established utility procurement relationships with suppliers, we have no formal ties to them. You get our undivided attention, unbiased expertise and dedicated support as we craft a customized solution to help you manage the energy procurement process. We want to drive down your per-unit costs with a program that matches your risk profile. As part of our energy procurement services, we will:
- Evaluate deregulated opportunities by state and utility
- Compare utility rates against competitive supply offerings and the timing of auction markets
- Assess savings opportunities
- Perform due diligence on suppliers, pricing, terms and contract considerations
- Assist in the selection of suppliers, including negotiation and execution of energy agreements
- Provide ongoing contract management and identification of market opportunities
We can also help you develop a customized business energy procurement plan for the long term. We help determine your procurement objectives, assess your risk profile, and quantify market risks and opportunities. The resulting plan will allow you to:
- Manage risks against established budgets
- Outline risk management strategies to lower prices for the short and long terms
- Hedge forward purchases on a predetermined basis to enhance budget certainty
- Combine fixed and index-based purchases to meet price targets
FAQs About Our "Energy Procurement" Services
How can good energy procurement strategies affect our costs in deregulated markets?
In volatile energy markets, it can be a challenge to develop accurate annual energy budgets and strategic procurement plans. At Cost Control Associates we use our deep knowledge of regulatory complexities in each state and utility to provide valuable insight and advice on cost containment. We navigate the fundamental and technical market trends to develop a program that matches your risk profile and drive down per-unit electricity and natural gas costs.
What type of organizations benefit the most from your energy procurement services?
Any business can benefit. Cost Control Associates has successfully helped firms—both large and small—mitigate risks and dramatically reduce energy costs in deregulated markets. Our energy procurement experts work with you to determine your specific needs and craft the right solution.
What do your energy procurement services include?
Our basic Energy Procurement program follows a step-by-step approach that has proven successful for regional and multi-site national firms. We evaluate deregulated opportunities by state and utility, then compare rates against competitive supply offerings and the timing of auction markets. We assess savings opportunities and perform due diligence on suppliers, pricing, terms and contract considerations. We also assist in the selection of suppliers, negotiate and execute energy agreements, perform contract management and identify market opportunities on an ongoing basis.
What if our organization requires more comprehensive services?
Our comprehensive Energy Procurement program includes all the components of our Basic Energy Procurement program and more:
Strategic Procurement Plan Development. CCA develops customized energy procurement plans by analyzing unique market opportunities, assessing risk profiles, assisting with the determination of procurement objectives and quantifying market risks and opportunities.
Establish Budgets, Pricing Models and Plan Tracking. We develop budgets, put mechanisms in place to evaluate pricing on an equal basis and provide a means to compare actual performance against plan.
Plan Execution. Once we establish a customized procurement plan, we have the experience, skills and resources to make it happen.
Which of your energy procurement services is right for us?
The basic program is ideal for clients who want to lower costs but do not require plan development, budgeting and cost tracking. For clients requiring a more robust, actively managed program, the comprehensive is a great option. In either case, we tailor an energy procurement program that meets your specific needs.
Does Cost Control Associates supply energy or utility services?
No, Cost Control Associates is not an energy supplier or marketer. We have assisted clients in reducing their energy costs since 1991. As an independent advisor, you can trust that our unbiased services are based on your needs alone.
What is the cost of your energy procurement services?
We have various pricing options including Monthly Retainer, Project Fee and Hourly Fee. After a no-cost initial consultation with one of our experts, we will tailor a program to meet your unique objectives. Our fees are based on your specific needs and the scope of work involved.
Schedule a free consultation to learn more about our Energy Procurement services.