Electric and Natural Gas Procurement

In deregulated states competing suppliers can often save commercial and industrial businesses a tremendous amount of money on your energy supply costs.

We’ll submit your electric, natural gas and/or heating oil usage to multiple suppliers who will compete for your business. We’ll then prepare an analysis comparing your current rate with the alternate best offer and calculate your projected savings. There is no cost, no obligation.

Energy Procurement 101

The Energy Market operates much like a stock exchange, with market participants establishing a price for electricity by matching supply and demand.

The market uses Locational Marginal Pricing (LMP) that reflects the value of the energy at the specific location and time it is delivered. If the lowest-priced electricity can reach all locations, prices are the same across the entire grid. When there is transmission congestion, energy cannot flow freely to certain locations. In that case, more-expensive electricity is ordered to meet that demand. As a result, the locational marginal price is higher in those locations.

The Energy Market consists of Day-Ahead and Real-Time markets. The Day-Ahead Market is a forward market in which hourly LMPs are calculated for the next operating day based on generation offers, demand bids and scheduled bilateral transactions.

The Real-Time Market is a spot market in which current LMPs are calculated at five-minute intervals based on actual grid operating conditions. Transactions are settled hourly and invoices are issued to suppliers monthly.

Pricing and Contractual Options

Fixed Pricing: Lock in to a guaranteed rate for “no-surprises” budgetary certainty. The price will be fixed for the term of the contract regardless of any market fluctuation.

Possible Charges in addition to the Energy Cost:

  • Congestion
  • Ancillary Services
  • ISO Charges & Administrative Fees
  • Renewable Portfolio Requirements
  • Transmission & Distribution Line Losses
  • Installed Capacity
  • Network Integrated Transmission
  • RMR
  • Applicable Taxes

Variable (Index) Pricing: This solution fits the needs of cost-conscious companies who can tolerate the risk of fluctuating market conditions. The price will be comprised of:

  • Fixed Adder: This may include any or all of the above possible charges PLUS
  • Day Ahead or Real Time LMP.

Blended Pricing: A combination of Fixed and Variable, this option creates a balanced approach to budget certainty while still benefitting from positive market performance. Available only for large commercial and industrial customers.

Customizable Term Lengths and Start Dates: We can provide budgetary planning conveniences by aligning contractual terms with your fiscal cycles. Pricing available from 4 months – 60 months.

Service Locations for Electric:

California | Connecticut | District Of Columbia | Delaware | Illinois | Maine
Maryland | Massachusetts | Michigan | New Hampshire | New Jersey | New York
Ohio | Pennsylvania | Rhode Island |Texas

Service Locations for Natural Gas:

Connecticut | District of Columbia | Delaware | Illinois | Maine | Maryland
Michigan | New Jersey | New York | Ohio | Pennsylvania | Rhode Island
Texas | Virgina | Wisconsin