Energy Acquisition Strategies

Abstract

For large-scale energy users, there is both convenience and value to
be enjoyed by the one-stop-shop method of dealing with the large energy
services firms. These companies will handle essentially all aspects of
your energy program, and keep you free to operate your core business.
The price of this, though, is to shift the majority of the benefit to the
services firm or, in other words, to leave money on the table.
Unbundling is the key to maximize the value (to you) that can be
enjoyed from the new era of energy deregulation. This is implicit in that
what the government has been doing is unbundling, while the energy
services companies have been quick to attempt to rebundle the discrete
components. Unbundling though does require a level of attention and
expertise not typically found among corporate energy managers, and the
consequences of possibly lesser performance can be significant. Also, the
strategy for every company must be different to assure the benefits are
aligned with the specific company goals.
Companies often have aggressive expansion programs underway,
with new properties being constructed in locations both domestic and
foreign. For heavy energy consumers, these properties pose an opportu-
nity to enjoy savings from reduced electricity costs whether through
deregulation, negotiation or other means. Such discounts will make the
properties operate less expensively, and help maintain them as competi-
tive in regard to their lease status.
Electricity is typically the single largest line item of operating ex-
pense, and is also the most fragile service of a utility nature. Contracts
may be had that provide for discounted and more reliable energy. The
best time to negotiate these terms are when a property does not yet exist,
but is in the planning stage