TMT: Best Time to Purchase Natural Gas

Video Transcript

Hi! My name is Mike, and I’m a Senior Energy Advisor here at Nania Energy. One of the most common questions I get asked by clients is “When is the best time of the year to purchase natural gas?”

It’s a great question, because natural gas is a traded commodity — meaning prices go up and down with supply and demand. Should you purchase in the summer when there’s less heating demand? Or maybe in the spring and fall when the weather is a little more temperate?

In this week’s Two-Minute Tuesday, we’re going to answer just that.

How Buying Natural Gas Has Changed

Twenty years ago, purchasing natural gas seasonally made sense. You could purchase in the spring, summer, or fall when there’s less gas demand and generally make out pretty well.

But in the past few years, something has changed with natural gas. It has become the #1 source of electricity generation in the United States — meaning there is now year-round demand for it.

The chart below from the Energy Information Administration shows that in 1998, natural gas accounted for 15% of domestic electricity generation. In 2018, you can see that it accounts for 35% and is easily the United States’ number one source of electricity generation.

Sources of Electricity Generation

Source: U.S. Energy Information Administration, Monthly Energy Review, Table 7.2a, March 2019

So, when you’re in the dead heat of summer and you have your AC blasting, guess what’s cooling you down?

That’s right — electricity generated primarily by natural gas.

How does this affect your gas purchase?

So back to our original question: When is the best time of year to purchase natural gas?

Because of the growth in use of natural gas, there’s not a “best” time to purchase it. Supply and demand are battling each other, and they’re doing it every season of the year.

But that doesn’t mean that you can’t create a strategy that takes advantage of the market. Some options that you can include in your strategy are:

  • Planning hedging opportunities throughout the year, or
  • Setting a price target for your upcoming agreement.

What I would NOT recommend is waiting 2-3 months before your agreement expires to take action. Who knows what the market will be doing at that time?

Make sure your current broker is following a purchasing plan that matches your goals and makes sense. If you don’t have a plan or would like help developing one, that’s what we do.

Thanks for watching! If you found this video helpful, please like, comment, or share below.

 

Want more tips on energy purchasing? Check out these articles:

Green Energy 101: How to Go Green in 2020

By Michael Zaura

January 13, 2020 — The end of a decade and the start of the next is the perfect time to reflect on the past and plan for the future.

Green (renewable) energy has already made a significant impact on the energy industry, and it’s going to play a huge part going forward. The U.S. Energy Information Administration (EIA) predicts that renewable sources will generate almost half of the world’s electricity by 2050.

Green Energy 101

Source: U.S. Energy Information Administration, International Energy Outlook 2019

Have you been thinking about green energy for your facility? In this post, we’ll:

  • cover the basics of green energy,
  • answer some FAQs, and
  • explore a couple ways you can incorporate renewables into your energy strategy.

What are sources of renewable energy?

Renewable energy is energy that is not generated from fossil fuels (coal, oil, and natural gas). Sources include:

  • Sun (solar energy)
  • Wind
  • Underground heat (geothermal energy)
  • Water (hydroelectric power)
  • Biomass
  • Hydrogen and fuel cells

These sources are naturally replenished over time, which is why they’re considered renewable.

Is nuclear energy green?

Yes…and no.

Nuclear energy produces far fewer greenhouse gas emissions during electricity generation compared to coal or natural gas. It’s also more reliable in generation from an efficiency standpoint. Some suppliers even market nuclear as a “carbon-free” product. In those regards, it could be considered “green.”

However, nuclear energy contains uranium, which is not a naturally-occurring resource. Also, the radioactive waste created from the generation process is definitely not environmentally friendly.

Fore more on nuclear, check out these articles:

How to Buy Green Energy

When you’re looking to “go green,” you have two primary courses of action:

  1. Purchasing RECs
  2. Owning a renewable asset

What is a REC?

A Renewable Energy Credit (REC, or SREC for solar) is proof that 1 megawatt-hour of electricity has been generated by a renewable resource. Buying RECs ensures that renewable electricity is being generated on your behalf and delivered to the power grid.

Many clients choose this route as a more affordable alternative to owning the asset outright.

Owning a Renewable Asset

Examples of renewable assets include:

  • A solar array on a rooftop or plot of land
  • A wind turbine
  • A geothermal system in the floor of a building

Investing in a green asset for your facility requires the right amount of space, capital, and the right situation.

If you’re interested in owning a renewable asset, a Power Purchase Agreement (PPA) is one of your financing options. A PPA is a contract between a developer and an electricity consumer. These agreements typically last between 10 and 25 years.

“How do I know that the energy I’m getting to my facility is really green?”

I get this question from clients all the time. And the short answer is: unless you own the asset tied to your facility, you won’t know.

The grid contains both green energy and “brown” (non-renewable) energy. If you purchase RECs, you do ensure that green energy gets to the grid. But you won’t know for sure what part of the mix coming from the grid to your facility is truly green.

Is there green gas?

While most green energy talk revolves around power generation, green or renewable natural gas (RNG) does exist.

Green gas comes from biodegradable materials (think of a landfill) that emits a usable biogas. This biogas is purified and turned into biomethane. Biomethane can then be injected into gas pipelines for end user consumption.

One reason RNG isn’t as prevalent as renewable electricity is because most of the U.S. currently lacks the infrastructure to clean and transport the gas. Once more pipelines and refineries are developed, we will see an increased use of RNG.

Green energy can be in your future.

Is going green part of your plan in the next 30 years?

If renewable sources are going to fuel half of our electricity, more facilities will need to invest in renewable assets. Some countries, corporations, and individuals have already set sustainability goals. As new technologies surrounding green energy continue to evolve, these goals will be easier to achieve.

Cheers to a greener future!

How to Navigate Energy Phone Calls

By Matt Souvannasing

Energy professionals (brokers and advisors) primarily use phone calls to contact current and prospective clients. Knowing what to expect from a call will help you decide whether to take the call and determine if the call is from a reputable energy company.

Who is calling you?

When an energy professional calls you, they should state who they are and the company they work for within the first few seconds. If you don’t recognize the company name, you can do a quick online search for more information about the company.

Or, feel free to ask the caller any clarifying questions. Having peace of mind about who you’re speaking with will give you the confidence to continue the call.

Why are they calling you?

Energy brokers and advisors typically call you to:

  • Make an initial connection and explain their company’s services
  • Introduce a market opportunity that you could take advantage of
  • Set up a time to meet with you to discuss energy
  • Talk about renewing your current contract
  • Bring a billing or payment issue to your attention.

What information will they ask for?

Brokers and advisors need specific information from you so they can give you pricing options.

Typically, they’ll ask you for:

  • Current bill copies (1-3 months is standard, but some suppliers may require 12 months)
  • A copy of your current energy agreement
  • Your signature on an LOA or LOE

The energy professional should clearly explain why they need each of these documents and should never be pushy.

Why do they need those documents?

Each piece of information serves its own purpose in the pricing process.

  • Current bill copies: Suppliers use these to verify that you have an active account with your local utility and gain monthly usage and demand information.
  • Copy of your current energy agreement: Contractual obligations with your current supplier can only be verified by looking at a copy of your current agreement — specifically the “Service Term” section and any roll-over provisions. The broker or advisor will use this information to guide their pricing requests and ensure you don’t have early termination fees.
  • LOA/LOE: Most third-party suppliers require a broker or advisor to submit an LOA or LOE before they will release pricing. This document is proof that you’re allowing the broker or advisor to receive account information on your behalf.

Do your research.

Take some time to research before deciding if the person you’re speaking with is the right energy partner for you. A reputable broker will be more than happy to set up a follow-up call with you or an in-person meeting later.

You should not feel pressured or tricked into providing your information. If you do feel this way during the call, you should not continue communicating with the caller — it may be a scam.

Please feel free to contact us if you have any questions about working with an energy advisor or broker.

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TMT: Choosing an Energy Contract Term Length

Video Transcript

Clients are always asking me: “How long should I lock in a rate?” Is it better to lock shorter term or longer term?

In this week’s Two-Minute Tuesday, we’ll be discussing factors to take into consideration when choosing a term for your energy contract.

Common Energy Contract Term Lengths

When it comes to terms for your energy agreement, 12, 24, and 36 months are the most common options.

But they definitely aren’t the only options.

Most suppliers will readily go out 48-60 months on a fixed contract, and the top suppliers — with special approval — will go out for as far as 7-10 years for clients with really good credit.

Factors in Choosing an Energy Contract Term Length

So with all those options in mind, the major factors to take into consideration are:

  • Market Conditions
  • Internal Policies
  • Market Timing

1) Market Conditions

When we say “market conditions,” we aren’t just talking about pricing today. Market volatility and macroeconomics also play key roles over the long term.

When market prices are high, you don’t want to guarantee that you have a very high rate for a long time. That’s a good time to look shorter term.

When prices are relatively low — and notably lower than what you’ve been paying in the past — those are times that you’d want to look out longer term.

What constitutes longer term and shorter term for you may vary based on your organization’s internal policies, which is the next factor to look at.

2) Internal Policies

Some examples of how internal policies can affect the decision of how far out to lock are:

  • Specific term limits, i.e. you can’t enter into an agreement beyond a 36-month term.
  • How far out you can commit
  • Individual authorization limitations, where it wouldn’t be practical to go ahead and get additional authorization from a higher-up in the organization beyond a certain term length.

3) Market Timing

It’s important to allow ample time to monitor the market. Clients who see the best results over the longer term generally stay 9-12 months ahead of their contract termination date when making these decisions.

What does that mean for the length of the agreement? Well, any contract that expires within 12 months really doesn’t allow much time for you to go out and monitor the market and get the best results.

 

In short, when deciding how long you should lock in, take all of these factors into consideration to make the best choice for your organization. Thanks for watching this episode of Two-Minute Tuesday. If you found this helpful, please share or comment below!

 

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PJM Capacity Market Ruling

By Michael DeCaluwe

On Thursday, Dec. 19, 2019, the Federal Energy Regulatory Commission (FERC) voted 2-1 to extend PJM’s Minimum Offer Price Rule (MOPR) to any generation assets that receive state subsidies. As a result, energy consumers in PJM’s territory could see a significant rise in their electric rates.

That’s a lot of energy industry jargon, but we’re going to simplify it here and explain how this new rule could impact you.

What is Capacity?

Capacity is a charge levied by a grid operator, such as PJM. It is money collected from electricity consumers by the grid and paid to power generators to ensure that there’s enough power to meet energy needs during peak demand times.

This charge used to be a small portion of your energy costs, but over the past few years it’s grown to be 25-30% of your energy bill due to coal generators shutting down.  There’s less supply to meet demand.

PJM operates their capacity charges in a 3-year forward market. They hold an auction in which generators bid against each other to set capacity rates 3 years in advance. For example, capacity rates for 2022 were to be set in this year’s auction (2019).

Current State of PJM Capacity Market

Some generators have voiced their concern that state subsidies for some types of generation (such as renewable energy programs, state nuclear bailouts, etc.) place them at an unfair advantage when they need to compete in the capacity auction against these subsidized generators.

FERC — the regulatory body that oversees PJM and other grid operators — agreed to review PJM’s auction rules and delay the 2019 auction while these rules were reviewed.

What did they decide?

In their vote yesterday, FERC essentially banned any subsidized generator from participating in PJM’s capacity auction. This was a victory for un-subsidized generators (coal and natural gas-powered generators), but it was a severe blow to nuclear and renewable generators in PJM’s territory.

PJM Capacity Market

Source: trane.com

Estimates on increased electricity (capacity) costs to consumers range from $1.6 billion – $5.7 billion in the 11 states that PJM serves.

 

Why will capacity costs increase?

All 11 states in PJM’s territory operate some type of subsidization of energy, whether through nuclear bailouts (Illinois or New Jersey) or through state renewable standards (almost all states). If subsidized generators are barred from participating in the capacity market, future capacity markets will be determined by relative few players.

Less Supply + Same Demand = Higher Rates!

Also, without the ability to capitalize on capacity revenue, renewable energy assets become much less economical to build. This stunts the growth of renewable energy in the PJM market.

What’s Next?

There will undoubtedly be court action against this vote. Additionally, some states are pushing for a “carve-out,” in which they would operate their own capacity market independent from PJM.

In short, this FERC ruling has sent the industry into a pandemonium and has created real concern over the future of renewable energy assets in PJM.

What’s there to do as a customer? Nothing at this time until we have a clearer vision of what the final outcome will be. Just be aware that there could be major changes coming to electricity pricing in the next few years.

We’ll keep you updated as we learn more. Please feel free to contact us with any questions.

2020 PJM Demand Response Changes

By Becky Thompson

December 19, 2019

BIG changes to the PJM Demand Response program are coming in 2020.

If you’re currently participating in or considering enrolling in the PJM demand response program, here’s what you need to know.

What is Demand Response?

Demand response is a program designed to ensure reliability of the electric grid during peak demand periods.

Companies that enroll in the program agree to reduce their electric usage when they receive curtailment alerts. In return, they can receive substantial payments from PJM.

“I don’t think we can curtail any usage.”

That’s what clients initially say when we bring up demand response.

There are a variety of ways businesses can curtail their usage without major disruptions to daily operations. For example:

  • Industrial or manufacturing clients can shift production to off-peak hours.
  • Hospitals and data centers can use non-emergency backup generators that meet program requirements.
  • Schools and residential buildings can raise air conditioning set points by 5 degrees and turn off unused lighting.

What’s changing in 2020?

Up until 2019, organizations could enroll in a Base Capacity program that only required participation during summer months (typically June through September). Since most businesses use more power in the summer than the winter, they could easily match their projections and earn big payouts.

Starting in June 2020, the only available demand response program will be PJM Capacity Performance, a mandatory year-round program for participants.

Quick Facts about PJM Capacity Performance

  1. Demand response program participants will be required to curtail their usage during summer and winter events.
  2. Summer season is June 2020 – October 2020 and May 2021. Winter season is November 2020 – April 2021.
  3. There will be two test events  — one in summer and one in winter — and participants will have to participate in at least one of the tests.
  4. The enrollment deadline for the 2020 – 2021 is in the first or second week of May. However, the program has been decreased by 20% for this year – so enrollment space could run out before then. Site that sign up by the end of February should be able to get their desired kW enrollment value.

Why the change?

Blackouts occur when the demand for power exceeds the amount of supply available. And in recent years, winter blackouts have become more likely than summer because there is lower total supply available. In the Polar Vortex of 2014, PJM energy consumers were at risk of experiencing a blackout during one of the coldest winters in history.

As a result, PJM was forced to rethink how they viewed grid reliability.

How You Can Prepare Yourself for PJM Capacity Performance

Here are a few things to keep in mind when considering enrolling in the new program:

  • The minimum requirement for curtailment is 100 kW.
  • Your curtailment ability will be the difference between your seasonal Peak Load Contribution (PLC) and your Firm Service Level (FSL). Since these can vary greatly between summer and winter, you may see a drastic reduction in your curtailment ability and potential payout.
  • To maximize your payout, ask your demand response vendor if they offer a seasonal performance program that allows you to have different curtailment values for summer and winter.
  • Enrollment in the demand response program is limited because the total MW allotment has been decreased by 20%. It could be beneficial for you to sign a longer Demand Response agreement to ensure your seat at the table in the future.

Despite the changes coming to the program, demand response could be a viable way for your organization to generate some additional revenue. Contact us to discuss if the program is a good fit for you.

 

About the Author

Becky is a Senior Strategic Energy Advisor specializing in the public sector, including schools and municipalities. She has been in the energy industry for over five years, working from the ground up as an account manager and then as an electric pricing team lead. Her background knowledge of the inner workings or an energy company helps her identify actionable strategies for making her clients’ energy strategies both easy and cost-effective. In her free time, Becky enjoys any activity that requires being outside and making her son belly laugh.

Becky can be reached at (630) 225-4561 or bthompson@naniaenergy.com.

TMT: How are energy brokers paid?

December 17, 2019

Video Transcript

The topic for today is: How do energy brokers, agents, or consultants get paid?

It’s one of the most frequently asked questions that we get. So today, I want to open up a discussion so that you understand better how the process works.

There are 2 ways that we get paid. But first, let me explain that I’ve been doing this business for over 27 years and I’ve been involved in literally thousands of transactions. And I’ve worked with many other agents and brokers in this industry. So what I’m about to tell you is established as common practice.

How Energy Brokers Are Paid

1) Directly from the Supplier

Suppliers send us a commission check every month. The amount we get paid is a function of the margin rate that was established on the deal and the volume that was used in the previous month, whether that be gas or electric.

This method accounts for 98% of all the transactions in this marketplace.

2) Payment from the Client

The other way that accounts for a very small percentage is when a client pays the broker directly some kind of negotiated fee.

It is implied that when a client works directly with an energy broker that the broker is also not getting paid by the supplier. It’s a very bad practice in our industry, though, where often times the broker gets paid by the customer and then also gets paid by the supplier.  That is NOT best practice.

How Margin is Split Between Broker and Supplier

So let’s look at what’s included in the broker mark-up. Suppliers have minimums that they need to receive on any kind of transaction.

So how are minimums established?

First, suppliers are going to look at how big the load is. The bigger the load, the lower the margin that suppliers are willing to accept. The price that they’re going to put on it is so that they can receive a reasonable return and also cover their fixed costs with a transaction.

In almost every instance, a best practice in our industry is that the margin is split 50/50 between the broker and the supplier. So, if at the end of the day the mark-up on an electric deal is $.002 per kWh, $.001/kWh goes to the broker and $.001/kWh goes to the supplier.

What goes into a Broker’s Margin?

Let’s look at what goes into what the broker establishes as the margin.

The broker has to recover their sales and fixed costs. On the fixed cost side, there are several things we have to consider that could add to our cost for the transaction:

  • The complexity and size of the transaction. If it’s a larger load, the broker is less inclined to put a bigger margin on it.
  • Multiple locations
  • Auction was being performed
  • Custom contract negotiation: this requires more of our time to finish the transaction.
  • Competition at your location: Let’s say you have another broker shopping against us. Part of your evaluation of who you’re going to use is both their price but also their services. And those services are sometimes difficult to put a value on. But it’s something that we’re sensitive to when we’re pricing a deal.
  • Cross-Sell Opportunities: If we’re selling you electricity in this transaction but you’re also a big gas user or you’re considering demand response or efficiency projects, this weighs into our margin considerations.
  • Growing/Shrinking Load: For instance, let’s say you’re currently using 1 million kWh this year but you’re about to add some new production lines that will increase your usage to 4 million kWh. What we’re going to do is price it more competitively in anticipation of that bigger load.

Will an energy broker tell you their margin?

An energy broker typically does not disclose their margin in writing. It very much mirrors how the insurance business works.

If you would like it in writing, you are more than welcome to ask for it and, if necessary, a broker will put it in writing. The problem is, what they put in writing might not necessarily be what they are actually receiving. So this boils down to a matter of trust. You have to have a high degree of confidence and trust in the agent or broker that you’re using to ensure that you’re getting a fair deal.

Have more questions about energy brokers?

Thanks for watching! If you found this helpful, please like or share this with others. And, as always, if you have any questions about how a broker gets paid, feel free to reach out to us directly.

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Ask An Advisor: LED Lighting Upgrade

December 16, 2019

Video Transcript

Hi! I’m Michael, the Senior Vice President at Nania Energy Advisors. Now you’ve probably heard that upgrading your facility’s lighting to LEDs is one of the easiest ways to reduce your energy costs and to reduce your carbon footprint.

And that’s true. But what does it look and feel like to do a lighting upgrade project?

In today’s video, you’ll get an inside look at an in-progress LED upgrade, along with some before and after shots. You’ll be amazed by the results. Come see what I mean!

How does a lighting project affect day-to-day activities?

Today we’re on site at one of our industrial clients who is currently undergoing an LED upgrade project. As you can see, the contractor is able to do the lighting project with minimal disruption to manufacturing activities.

What can you expect from a lighting upgrade project?

So after the lights have been replaced and the project is complete, what can you expect to see?

1) Energy Savings

Depending on the energy of your current system, you should expect energy costs and usage related to lighting to dropanywhere from 20-80%.

As an added bonus, those organizations with sustainability goals should also see a reduction in in their carbon footprint, improving LEED scores and Energy STAR ratings.

2) Quick Return on Investment (ROI)

The average LED project will have a payback period of 1-3 years.

  • A payback period is defined as the amount of time that it would take for your electricity savings to accumulate to equal the initial project cost.

Your individual payback period will depend on a few factors, most notably:

  • The efficiency of your current system,
  • The number of hours that your lights are on during an average week, and
  • Any utility rebates that are provided to help pay for the initial project cost.

3) Lower Maintenance Costs

While a typical fluorescent bulb will last between 20,000 and 30,000 working hours (or 2-3 years), you can expect an LED bulb to last over 100,000 working hours (or 10 years).

Because LEDs last longer, you won’t have to replace them as often, saving you money on labor and supplies related to lighting.

Before

After

What are the benefits of a LED lighting upgrade?

So how is this industrial client benefiting from their lighting project?

  • This client will see an annual savings of over $31,000 a year on their electricity costs.
  • They’ll see a project payback of 2.6 years.
  • And they will see the lighting quality in their facility improve by over 250%.

How can you pay for a LED lighting upgrade?

Now, if you’re worried about how to pay for a lighting project, the good news is that you don’t have to pay for it all up front. There are many creative ways to pay for an LED upgrade.

For example, this customer selected to use on-bill financing. This project is being funded by one of our electricity supply partners, and the client is paying for the project through a small fee on their monthly electricity invoice.

Consider doing a lighting project at your facility.

As you can see, a lighting project can be extremely beneficial to your facility. If you’d like to learn more about LED upgrades or other efficiency projects, please check out our website or contact us.

Thank you for watching, and look for future energy videos.

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FAQ: What is Utility Consolidated Billing?

By Matt Souvannasing

December 12, 2019

Does your utility bill have a supplier name listed next to the energy charge?

Supplier on Utility Bill

Supplier on Utility Bill

If so, you likely fall into one of 3 scenarios:

  • You knowingly signed a contract with a third-party supplier and chose Utility Consolidated Billing (UCB) as your billing format (or it’s the supplier’s default format).
  • Your contract term expired, and you did not sign another contract. Based on the renewal language in your initial contract, you are still being serviced by the supplier on a month-to-month basis with the UCB billing format.
  • You may be part of a municipal aggregation program, in which your city or county has negotiated a rate with the supplier for your business (automatically set up on UCB).
    • This situation is not as likely. Depending on the rules of your local aggregation program, you might not be contractually obligated to the program and can secure your own supply option.

What is UCB?

Utility Consolidated Billing (UCB) is a billing format in which all energy charges — supply, market, delivery/utility, and taxes — are included on one bill from your local utility.

The supply charge is one of the line items listed on your invoice. When you pay your bill, the utility remits payment to the supplier for the supply (energy) portion of your bill.

UCB is common in states that don’t offer single supplier billing.

I didn’t sign a contract, and I’m not in an aggregation. What’s going on?

It’s possible that you’ve been slammed. Slamming is when someone else signed or authorized the execution of a supply agreement on your behalf without your knowledge or approval.

Slamming is more common in the residential or small commercial space. But it’s a good idea to review your bill regularly to confirm your current supply partner and contracted rate are correctly stated on your utility bill.

Who should I contact with questions?

If you’re not sure why a supplier is listed on your utility bill, one of the quickest ways to get answers is to reach out to that supplier and ask for a copy of your current contract.

If you have further questions, feel free to contact us.

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About the Author

Matt is an Energy Advisor specializing in retail and energy aggregation programs. He is passionate about helping first-time energy buyers understand the deregulated market and find the best solutions for their business. In his free time, Matt enjoys cooking and photography.

Matt can be reached at (630) 225-4557 or msouvannasing@naniaenergy.com.

Two-Minute Tuesday: Reverse Auction for Energy

December 10, 2019

Video Transcript

love buying things on eBay. It’s that thrill of the auction as those last seconds tick down and getting the product that I really wanted at a great price.

What if I told you that you can buy your gas and electricity commodity in an auction format as well? But instead of the price going higher like it does on eBay, the price goes down. It’s what we call a reverse auction. 

In this week’s Two-Minute Tuesday, we’re going to talk about what a reverse auction is for energy buying, if you’re a good fit, and what the benefits could be to your business as a result.

What is a reverse auction?

So what is a reverse auction? Just like we talked about, it’s like eBay in reverse. Instead of the price going higher for your electric or natural gas price, the price is actually going down as more bidders compete.

Take your current supplier or third party, like a Constellation or a Direct Energy. They all compete in an open platform online live for 20-30 minutes submitting multiple bids to win your business.

What are the benefits of a reverse auction?

The benefits to you are transparency in the process and a lower overall energy rate.

Am I a good fit for a reverse auction?

To find out if you’re a good fit for this, you may consider:

  • Do you need complete transparency in your purchasing or procurement process?
  • Are you a public entity where you want to see everything on a fair, open platform?
  • Or, are you a large business where energy is a large spend for you and you need the absolute lowest rate possible in the marketplace?

If so, this may be a route you want to consider.

So how about a real-life example?

We just ran a reverse auction for electricity for a large local school district a few months ago. Their overall rate at the end of the auction resulted in savings of $600,000 for their school district.

Think about how that kind of money and savings could help your operating budget. Then, reach out to your current broker or consultant and see if this is something that they offer. See what it could look like for your business and the savings you could attain as a result.

Thanks for watching our video! Leave your comments below, and check out this article on how you could benefit from a reverse auction.