You Have Options with
Energy Procurement
At Utility Management Services, we provide a variety of utility bill cost-saving solutions in regulated states, including rate adjustments, billing error identification, and more. In deregulated states, we go a step further by assisting our customers in energy procurement. This article delves into the logistics of energy procurement, the advantages it offers, and the step-by-step process involved.
Energy Procurement
Energy procurement is an option in states classified as ‘deregulated,’ where utilities don’t maintain a strong hold over the entire energy supply chain. It’s important to understand that in deregulated markets, energy procurement isn’t a one-size-fits-all solution. Each state has its own rules regarding the types of energy that can be sourced from the market, along with specific size qualifications and location-based requirements.
To learn more about what your operations qualify in your state check out this article from the EPA.
Customers who meet their deregulated market standards can utilize our partnerships with energy brokers to obtain energy usage quotes and send their energy needs to the market. This is when energy retail suppliers can bid for the opportunity to supply a customer with energy.
Choosing Your Own Energy Provider
When establishing supply agreements, customers have multiple options to ensure the energy they procure from the market aligns with their usage needs and cost objectives. The contracts we facilitate typically range from 6 months to 3 years, depending on the customer’s specific requirements.
In addition to the length of a contract, there are varying price structures available that we can tailor to fit a customer’s needs.
- Fixed Price Buying: The supplier’s energy prices are locked in at the same rate for the life of the supply contract
- Index Price Buying: The contract fluctuates with the markets
- Hedging: Allows customers to lock in a price for their full energy use for part of the contract and then opt out of the fixed price for a designated portion of their energy usage for a later portion of the contract
Each of these purchasing strategies allows customers to customize their supply agreements to match their risk tolerance, budget certainty, upside risk threshold, and exposure to the markets.
Energy Procurement Aiding Sustainability Goals
The benefits of energy procurement go beyond just pricing and budget considerations. It also empowers customers to align their energy choices with sustainability and corporate responsibility goals. In deregulated markets, customers have the flexibility to source renewable energy from a supplier of their choice, rather than relying on a default utility company.
UMS Energy Procurement Guidance
Our energy procurement process is straightforward and requires just a few key pieces of information to get started. To initiate the retail supply process, we need a copy of all relevant bills from deregulated states, a retail LOA, and any existing supply agreements. From there, we collaborate with our brokers to analyze your usage volumes and obtain energy quotes from the market. Once we receive pricing quotes that meet your specifications from available suppliers, we draft an agreement and send it to you for signature.
As part of our commitment, we closely monitor all energy contract expiration dates, ensuring we assist you with the renewal process well in advance of your contract’s expiration.
To learn more about our energy procurement process fill out our contact form or give us a call at 888.867.3230
