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Energy Purchase & Aggregation The cost at which you purchase energy is just as important as how you manage that energy. Like any commodity, the purchase of energy can be managed and controlled to give the buyer complete budgetary command over this essential resource. Energy aggregation is an effective method by which eligible organizations with compatible energy needs and usage patterns band together to negotiate for a better long-term price and greater level of reliability. Energy aggregation and purchase through a contract with Choice Energy Partners provides the best value for school districts, cities, counties and other governmental or non-profit groups that want to save money on energy use. Understanding Your Utility Bill
Before you can understand the true benefit of CEP’s aggregation pools, you must first understand what you see, and more importantly may not see on your utility bill, and how utility companies arrive at a per meter fee much higher than the actual amount of electricity you may have used.
Most utilities charge commercial buildings for electricity based on two measures: consumption and demand. The consumption component of the bill is based on the amount of electricity in kilowatt-hours (kWh) that the building consumes 24 hours a day during a month. The demand component is the peak demand (in kilowatts) occurring during any 30-minute interval during that month. Your load factor, not shown on your energy bill, is your average usage compared to your peak usage and can greatly affect your energy costs.
Load Factor(%) = Energy Used (in kWh) 1
_______________ x _____
Maximum Demand (in KW) Time (hours in billing period)
If, like many schools and churches, you power up a large building for just a few hours each week, you may have a low, 10% load factor and will pay a higher rate for energy. A factory running 24/7 may have a high, 75% load factor and get a much better rate. The lower your load factor, the more you can benefit from efficient grouping in an aggregation pool.
The Choice Energy Partner Solution
Electricity is the most volatile commodity in the world and, with the deregulation of retail electric providers (REPs), can be one of the most complicated to purchase, particularly if you’re a public sector agency with a tight facility budget and mandated energy savings.
Our contractors at CEP are PUC licensed and regulated aggregators who can manage your RFP process from start to finish, guaranteeing you the best energy rates available. When you contract with us, be assured you are partnering with the most qualified aggregator in Texas. Here’s why.
· Complementary load aggregation: Other pools may simply combine schools, but we combine complementary users to achieve a more consistent load profile throughout each day, week and year for a better rate.
· We bid our aggregation pools out to at least a dozen of the most reputable and competitive REPs for your size and type of business. No middlemen or salespeople involved. Since REPs can see the aggregate energy needs of an entire pool, they can buy blocks of energy from generating companies with more precision and less waste and pass the savings on to you.
· We make sure you know all the costs from each competing REP and provide accurate projections of annual energy expenses, not just a cost per kWh.
· No per-meter fees: We negotiate contracts without meter fees to remove another hidden cost .
· We know that timing is everything. Since energy is so volatile, it’s not uncommon to see a 5% price change within a single day and a 20% change in one month. We continually monitor prices and set target rates for clients to lock in energy contracts at the most opportune time.
· Flexible and long-term, fixed rates: We offer you the option to lock in your rate for one, three, five, or even 10 years.
· Client education, live customer service and legislative action on issues that directly impact your budget
Choice Energy Partners is also experienced in many emerging opportunities including:
• Demand response/load shedding • Cogeneration • Peak load reduction • kWh consumption reduction • Power factor correction • Automated systems • Smart metering • Green alternatives • Federal and state incentive programs |
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