LEA’s primary service is to assist clients in the development and execution of risk appropriate competitive energy procurement programs and to provide effective, high value energy data management. We have conducted electric and natural gas procurements in most deregulated states including MA, CT, NY, NJ, DE, MD, IL, TX, MI and CA, and oil procurements in the Northeastern U.S.
Energy procurement and management engagements typically include the following services:
Risk Assessment: Physical energy procurement program engagements are designed to be “risk appropriate”, correct for each client’s risk profile. The risk assessment process draws from all stakeholders creating a comprehensive and focused view of the clients risk tolerance and overall priorities and goals.
Risk Strategy: The Risk Assessment serves to guide the procurement process and facilitates the product selection process. The resulting Risk Strategy matches product types (fixed, variable, or hedged) and cost analysis in the final selection of supplier and product.
Utility Data Management: Comprehensive data management with full support and hosting services for UtilityTrac PlusTM , also known as EnergyCapTM , the leading industry software solution for identifying energy savings and efficiencies.
Market Evaluations: Regulatory factors and market conditions are considered when evaluating the strength of market opportunities. Tariff changes and comparative costs from utilities (the Price To Beat) compete against retail supply.
Market Monitoring and Benchmarking: On-going procurement services require monitoring markets and continuous preparation for the next procurement. Procurement strategies are reassessed in order to confirm that the strategy adjusts to the market environment and to the risk profile of the client.
Current State Assessments: Corporate-wide energy procurement and market assessments can be provided to assist in developing a regional or national procurement strategy.
Bill Auditing and Tariff Analysis: A detailed line item audit of utility bills including a review of correct and cost effective use of rates classes can be provided.
RFP and Contracting Process: Pricing requirements are defined by an RFP (Request For Proposal) document. The RFP is designed to extract from each supplier a variety of pricing products (and terms) with varying levels of risk. Despite significant detail that can be placed into an RFP, it is the energy contract that determines the true procurement arrangement. LEA assists clients in contract review and negotiations helping them avoid potential problems during the supply term.
Physical Hedging Strategies: As clients seek to control their energy price risk, physical hedges play a key role. Specifically, physical hedges allow for the opportunity to blend the responsiveness of index (floating) prices with the surety of fixed priced portions of the required usage. The end result allows the client to achieve limited price volatility in keeping with the risk tolerance and cost control goals.
RFP Offer Analysis: A cost benefit/risk analysis is conducted on each supplier’s offer with comparative pricing products and terms addressed, and related to the client’s predetermined risk requirements.
Supplier Selection: Energy supplier’s qualifications are reviewed and their ability to compete and operate effectively in each market is provided to clients in the early stage of the competitive procurement process.
Environmental Initiatives: LEA clients can get access to Renewable Energy Credits as part of their procurements, as well as greenhouse gas emissions and carbon footprint tracking, carbon credits, demand response programs, and other “green” initiatives.
In addition to the above, LEA performs these other services not directly related to procurements:
Training for Small Business Executives: For executives who run businesses generally too small to hire a full service consultant, LEA offers a very practical one day course to teach the fundamentals of energy procurement and how best to select advisors and suppliers. We cover how the energy business really operates, the options available to small businesses, what to seek out, and the caveats so businesses can get the most savings available whether they contract on their own or through a broker. Contact us directly to discuss how we can work with you.
Through its strategic partners LEA also offers clients the following related services:
Demand Response Programs: These programs work in conjunction with structured energy contracts to allow greater savings to clients through regional demand response initiatives.
Demand Management: Clients can reduce energy demands through energy audits, lighting upgrades, equipment efficiency improvements, etc. They also receive help with federal, state and local energy financing programs for these improvements, and have the opportunity to enter performance based contracts for services.
Engineering Services: Clients have access to studies and proposals for large scale projects such as co-generation, wind or solar power installations, auxiliary power production, etc. Services may include installation and project management, depending on size of project.
If a particular energy service need arises for which there is no standard offering, LEA will be happy to seek out that service on behalf of our clients through our extensive industry contacts. We remain flexible, and open to solving all our clients’ energy needs.