Eggs, lettuce, and kilowatts: An allegory for energy purchasing managers
- Precision Strategies, Inc., Long Beach, MS (United States)
Many traditional electric utilities are trying to marry their larger customers to them for an additional five to ten years with rate discounts, customized summary billing, and other incentives. The utilities feel that a new piece of paper will help secure their rights to continue electric service when retail competition is permitted in their state. It will only be a matter of time before your company is approached with some sort of a business proposal from your local electric utility in their effort to extend their contract with you. If you operate several facilities, e.g., chain stores, you can likely expect to be contacted by electric utility company marketers from outside your immediate area. These non-local utilities usually will offer to audit your electric bills and offer to be your negotiator for utility purchases. All they want in exchange is to have the right of first refusal to serve electric power to all your facilities when the state law permits retail electric competition. Too much is unsettled about the electric utility industry today to simply sign a long-term electric power contract for some immediate dollar savings. It may be very tempting to sign an agreement to have an electric utility company do your utility bill auditing and contract/rate negotiations. The paper recommends what one should do in this situation, illustrated using a university food and beverage purchaser as the example.
- Sponsoring Organization:
- USDOE
- OSTI ID:
- 624258
- Journal Information:
- Strategic Planning for Energy and the Environment, Journal Name: Strategic Planning for Energy and the Environment Journal Issue: 4 Vol. 17; ISSN 1048-5236; ISSN SEENEJ
- Country of Publication:
- United States
- Language:
- English
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