Procurement

March 31, 2016

Procurement Strategy

Customized energy
procurement
strategies
based on:

Energy objective
Consumption profile
Risk-tolerance

Mitigate risks and
manage costs for:

Electricity
Natural gas
Propane
Petroleum products

Transparent
RFPs with
lowest fees
in the
industry

Assist in
development
of fiscal
energy budgets

EEP’s Straight-Forward Procurement Process

Risk Management Strategy

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).

Energy Deregulation in the United States

  • Deregulated – Electricity Only
  • Deregulated – Electricity & Natural Gas
  • Deregulated – Electricity Natural Gas Only
  • Regulated