More Than 10 Ways To Sweeten A Retail Power Contract

  • Lindsay Audin CEM, CEP, President Energywiz, Inc. www.energywiz.com
Keywords: Retail Power

Abstract

Securing good results from a retail power contract is more than merely receiving a good price. Depending on a customer’s leverage and his awareness of the purchasing process, a variety of other options may be pursued that could improve the bottom line.

Ways to do so are reviewed, including some with immediate fi nancial benefi t and others that could provide future value were a contract to be renewed or extended. Among the items covered are: use of the customer’s name, renewal bonus, size/duration of contract, “swing” allowance and penalties, share of available incentives, account “splitting” and/or triage, and use of interval data.

Issues that could impact a customer’s price and term leverage are also reviewed, including credit, metering, acceptance of price volatility, load factor/profi le, energy services “hunting license,” cross-marketing potential, load curtailability, use of reverse auctions, and prior experience with the vendor.

Many of the items covered are taken from the author’s online power procurement training course, “Power Techniques for Power Procurement” (for details, go to: www.aeecenter.org/realtime/Power- Purchasing) and come from his fi rst-hand experience serving large retail power customers in both the U.S. and Canada.

Downloads

Download data is not yet available.

Author Biography

Lindsay Audin, CEM, CEP, President Energywiz, Inc. www.energywiz.com

Lindsay Audin is the president of Energywiz, Inc., an energy consulting fi rm serving commercial/industrial facilities, government agencies, energy suppliers, and other consultants, both in the U.S. and abroad. His 28 years of experience in the energy services industry include 8 years as energy manager for Columbia University and 12 years with private engineering and energy consulting fi rms in New York City prior to founding Energywiz in 1996.

Audin has been named Energy Manager of the Year by three different national or regional US organizations. In 1993, the Association of Energy Engineers named him their International Energy Manager of the Year, and in 1996 inducted him into its Energy Manager’s Hall of Fame. In 1992, he founded the New York Energy Buyers Forum, a non-profi t organization of large energy users that focuses on regulatory and technical ways to cut energy costs. He also holds certifi cations in energy management and energy procurement.

His work has won many other national and regional awards, and has been featured in videos, case studies, and magazine articles. Over a thousand people have attended his seminars on energy procurement and energy analysis. Audin sits on several professional boards related to energy services, maintains a column on energy issues in Engineered Systems magazine, and is a contributing editor to Building Operating Management magazine.

Published
2007-07-01
Section
Articles