- Conservative Approach – Basic fixed price agreement.
- Aggressive Risk Tolerant Approach – Market pricing tied to supplier pool cost or a published index.
- Hybrid Approach – More sophisticated approach utilizing a combination of fixed pricing and market pricing (e.g. Block and Index or layering).
- Products: Electricity, Natural Gas, Propane, Fuel Oil, Gasoline, Diesel Fuel, LNG, CNG, Recycled Fuel Oil.
- Step One: Discussion of Client Goals.
- Step Two: Data collection, including historic usage and sample invoices, will require a signed LOA so that potential suppliers are authorized to receive required historic data from the utility so that they can quote. It can also be used to get data from the incumbent, but its primary purpose is to get data from the utility.
- Step Three: Issuance of RFP to select group of pre-approved vendors that have met a stringent set of criteria including credit rating, financial stability, contract review, customer service, generation portfolio and performance history. Structure of RFP will be based on client goals, risk tolerance and budgetary constraints.
- Step Four: RFP responses will be analyzed for consistency and to insure all cost components are identified. This ensures a true comparison that accounts for any variables that may allow one vender an unfair advantage over another. Optional alternative proposals will be accepted for review in order to ensure that the client has taken advantage of the best possibilities available in the market. Once reviewed internally, all options will be presented to client with a discussion of pros/cons and a recommendation.
- Step Five: Once client has decided on which option to pursue, contracts will be requested from the vendor to be signed the same day in order to remove any additional market volatility.