White Papers

Demand Response

Demand response – can be defined as the reduction of electrical consumption at the customer level in response to high wholesale electricity prices, the independent system (ISO) capacity needs or system reliability events during peak periods. This reduction can be achieved through curtailment or by self-generation, such as turning on backup generators. Customers may receive payment for participating in such demand reduction programs. Demand Response programs address supply and demand issues and present a win/win for all parties such as the ISO, utilities and the end-user by increasing grid reliability while helping to keep energy prices low.


Optimizing Your Competitivness with Fuel Switching

Utilization of your facilities’ capacity at the lowest possible cost for energy is obviously an important economic tool. The focus of fuel switching is the relationship between selecting your optimal energy source and not adding to the cost of production. It requires converting fuels priced in different units into energy expressed by a common unit of measure — the British Thermal Unit (Btu).

The main reasons for fuel switching are energy prices, loss of service from an operational flow order, and to reduce your carbon footprint by switching to a cleaner burning fuel such as natural gas. Fuel switching can also help maintain competitiveness. Your ability to switch fuels will work in your favor only when the conversion value between sources of energy is economically viable.


Introduction to Electricity Procurement

In deregulated natural gas and electricity markets, the commodity portion of your bill rules. It represents the largest percentage. Strategically, the best time to plan your purchase of an energy commodity is when its seasonal demand is lowest. Let’s look at the electricity market.


Using Reverse Auctions for Energy Procurement

Reverse auctions are seen as providing a new tool for companies that helps them shave expenses and better document their procurement transactions.

Reverse auctions are becoming very popular because they are seen as being fair to all bidders and eliminating bias, thereby creating a more competitive arena. Competition between bidders drives the pricing down and buyers see this as extremely beneficial. The federal government is leading the way on reverse auction procurement and its use is growing rapidly.