Contracting for competitive energy purchases
Contracting for competitive energy can significantly lower energy costs and minimize price risk when compared with accepting the local utility`s business as usual delivery of energy supplies. In general, any facility spending a half million dollars or more on energy can realize sufficient savings to easily justify investing time toward this effort. While electric deregulation may not be available for several years in many states, other opportunities exist to get you started. If your facility has not yet taken advantage of natural gas deregulation, it`s time for implement a purchase strategy for that commodity. Once you`ve gotten a feel for purchasing on the open market for such marketers, transportation, or spot gas, the deregulated electric market will be less of a mystery to you. Both markets offer similar concerns about suppliers` reliability and financial stability, development and supply fluctuations. The paper discusses the preparation required, knowing your needs, knowing potential suppliers, developing a purchasing strategy, developing your own supply contract, energy purchasing contract terms, and recognizing the pace of deregulation.
- OSTI ID:
- 586063
- Journal Information:
- Cogeneration and Competitive Power Journal, Vol. 13, Issue 1; Other Information: PBD: Win 1998
- Country of Publication:
- United States
- Language:
- English
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