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.

Unbiased Expertise

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

Customized Solutions

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

Schedule a free consultation to learn more about our Energy Procurement services.