Energy Procurement

Energy Procurement

 

In today’s volatile energy markets, organizations are not only exposed to energy price risks, but also face the challenge of how to develop annual energy budgets and strategic energy procurement plans. Purchasing electricity and natural gas in deregulated markets is complex and requires an understanding of fundamental and technical market trends, as well as the regulatory complexities of each state and utility.

Cost Control Associates has successfully helped firms – both big and small – mitigate risks and dramatically reduce energy costs in deregulated markets. Our energy procurement experts will work directly with you to determine your specific needs and craft a solution. Our goal is to help you manage the energy procurement process to drive down per unit electricity and natural gas costs and to develop a program that matches your risk profile.

Although we have been helping clients procure supplies of electricity, natural gas and other heating fuels for over 15 years, we are are supplier neutral consultants working on behalf of our clients.

Cost Control Associates offers two types of energy procurement programs:

Option 1 – Basic Energy Procurement

Our Basic Energy Procurement program follows a step-by-step approach that has proven successful for both regional and multi-site national firms. We will:

• Evaluate deregulated opportunities by state and utility
• Compare utility rates against competitive supply offerings and the timing of auction markets
• Assess the opportunity for savings and perform a due diligence of suppliers, pricing, terms, and contract considerations
• Assist in the selection of suppliers as well as the negotiation and execution of energy agreements
• Perform ongoing contract management and identify market opportunities.

Option 2 – Comprehensive Energy Procurement

Our Comprehensive Energy Procurement program includes all of the components of our Basic Energy Procurement program and much more. The program consists of three key components:

1. Strategic Procurement Plan Development. Cost Control Associates will develop a customized energy procurement plan by analyzing market opportunities, assessing your risk profile, assisting with the determination of your procurement objectives, and quantifying market risks and opportunities. The resulting customized procurement plan is designed to:

• Manage risks associated with established budgets
• Utilize risk management strategies to lower prices
• Take short and long term views of the market
• Hedge forward purchases on a predetermined basis to contribute to budget certainty
• Help meet price targets by using a combination of fixed and indexed-based purchases.

2. Establish Budgets, Pricing Models, and Plan Tracking. Cost Control Associates will work with you to develop budgets, put in place mechanisms to evaluate pricing on an equal basis, and provide a means to compare actual performance against plan.

3. Plan Execution. Cost Control Associates will execute your customized plan.

The Basic Energy Procurement program is ideal for those clients seeking to lower costs, but not requiring additional assistance with plan development, budgeting, and plan/actual performance tracking. For those clients requiring a more robust, actively managed program, the Comprehensive Energy Procurement program is a great option. After a no-cost initial consultation with one of our experts, we will tailor a program that best meets your needs and objectives.

If you would like to learn more about our services and how we can save money for your organization, please contact us.

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