Energy Procurement & Supply Management

Energy Procurement & Supply Management

As one of the world’s largest energy management and procurement advisors, Tradition Energy advises organizations on how to buy, use and manage energy and brings value-added services to help them achieve greater efficiency and effectiveness in their operations.  Energy Procurement & Supply Management Services are described below.

Energy Procurement

Our procurement objective is the same as that of our clients—to obtain the most economical supply arrangement available and to further reduce costs as we proactively identify new opportunities as the markets evolve.  Tradition Energy’s supplier portfolio includes over 140 electricity and natural gas suppliers around the world, so our clients have access to highly competitive pricing and a full array of energy management products and services that help identify, understand, and manage the variables that affect the total price paid for energy.  Simplifying the purchase and management of energy requires a thorough understanding of the underlying wholesale market, power generation and delivery, and their impact on prices. Tradition Energy understands these factors better than anyone.

Our transparent sourcing events leave a paper trail for RFP requests and results and all procurement information is captured and available for our clients’ records.  We provide our clients with the right price and most optimal terms while offering the flexibility to accommodate the client’s internal decision-making process.  Based upon our Strategic Risk Management Services, which serve as the energy procurement blueprint, Tradition Energy’s procurement process follows these steps:
    1. Identification of probable suppliers
    2. Pre-sourcing review
    3. RFP process
    4. Contract review and negotiation
    5. Client services execution & follow-up
    6. Market & regulatory monitoring
    7. Data management & reporting

Demand Response (DR)

Demand Response (also known as ‘load response’) is a program where end-use customers reduce their use of electricity in response to power grid needs, economic signals from a competitive wholesale market, or special retail rates.

By participating in a DR program, our clients:

    • Generate a new revenue stream:  enhance the bottom line or fund other energy efficiency projects;
    • Safeguard infrastructures:  Protect and preserve equipment by reducing energy at times when voltage fluctuations are likely to occur;
    • Do your part and be admired:  Help alleviate stress on the electrical grid and receive recognition for your company’s energy conservation and green initiatives.

Utility Tax Consulting

Utility sales tax overcharges on utility bills can add more than 8% (depending on your local tax rate) to a company’s overall energy costs. Laws governing utility sales tax exemptions vary by state, but gaining the exemption can mean significant sales tax recovery and ongoing cost savings.

Tradition Energy can help to:

    • Arrange a Predominant Use Study, conducted by a registered professional engineer, to determine what     percentage of the energy consumed is used in manufacturing or producing a product;
    • Process the necessary steps to gain a sales tax exemption;
    • Secure a utility tax refund of up to 48 months’ worth of back taxes, depending on each state regulation.

Utility Negotiation

Similar to Utility Rate Analysis, Tradition Energy’s Utility Negotiation service involves analyzing our clients’ current rate structures in regulated markets to ensure they are best suited for the way they use energy.  When opportunities are identified, we address them directly with the utility and negotiate on our clients’ behalf.

The service includes:

    • Researching and evaluating alternative tariffs;
    • Evaluating alternative rate tariffs, applications and qualifications;
    • Preparing communication with utilities;
    • Negotiating on  your behalf with utility companies;
    • Verifying changes made to bills;
    • Implementing and monitoring accounts;
    • Monitoring and updating you on regulatory developments that could benefit you in the future.
For more information about Tradition Energy’s Supply Management & Procurement services, click here.