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Energy Supply Management

Strategy Development, Structuring, Procurement, Contract Management, Portfolio Management

Energy markets can be complex, varying from state to state and by utility. Priority Power Management provides expertise in the development and implementation of energy supply management strategies for all types of energy users across the country.

Priority develops customized strategies for each client engagement, taking into consideration their unique usage and demand profiles, energy risk tolerance, as well as financial and operational goals. Through this process, we help the client determine the most appropriate product structure and the term of securing its supply.

Our energy experts constantly monitor real time and forward market pricing, changes in market fundamentals and regulatory news, and perform our own analysis to advise our clients on the most advantageous timing for the procurement.

We develop client-specific request for proposals (RFP) and solicit competitive bids from pre-qualified national and regional suppliers based on their financial strength, cost competitiveness and services capabilities. Through the procurement process, we analyze and evaluate suppliers proposals from a quantitative and qualitative perspective, ensuring a consistent evaluation pursuant to the RFP specifications, to determine the best overall value proposal. We negotiate most advantageous contract terms and manage the execution timing for the procurement of supply.

Once the procurement of supply has been completed, we stay engaged to manage the administration of the contract, interfacing with the supplier on behalf of our client for billing contract compliance, any issue resolution matters and the adding and deleting of accounts.

As the energy markets change over time, we deploy a portfolio management approach, identifying opportunities for incremental procurement of energy supply, effectively hedging against forward price risk, all to meet our clients stated objectives.

  • Data Collection
  • Strategy Development
  • Structuring
  • Procurement
  • Contract Management
  • Portfolio Management

Information is the key to developing a sound energy supply procurement and management strategy.

Priority Power Management works with our client to collect all of the pertinent information that is required to develop a strategy and implement a procurement plan.

Data collected may include:

  • Current contracts, their terms, product structure, pricing and volume commitments
  • Historical energy usage by meter / account
  • Detailed interval data by meter / account
  • Future load growth plans

Priority develops customized energy management strategies for each client engagement, taking into consideration their unique usage and demand profiles, risk tolerance, as well as financial and operational goals.

Considerations for developing a sound strategy include:

  • Location of client load, market specific, delivery point consideration
  • Past and future historical load changes, expected and unforeseen
  • Risk tolerance, budget certainty vs. market participation
  • Operational flexibility
  • Supplier preferences, existing relationships
  • Contracting philosophy, supply chain requirements, term length
  • Billing requirements, payment terms
  • Sustainability goals, renewable energy credits, PPA’s
  • Value-added services sought beyond supply

Based on the strategy developed, Priority helps the client determine the most appropriate product structure and the term of securing its supply.

Product structures are customized to achieve desired results, and may include a variety of products.

  • Electricity Product Structures
  • Load following fixed price or heat rate indexed
  • Fixed price or heat rate indexed blocks plus real-time or day-ahead index
  • All variable index at real-time or day-ahead
  • Wholesale 3rd party blocks with sleeve
  • Renewable energy supply, PPA’s
  • Integration of behind the meter generation, solar
  • Natural Gas Product Structures
  • Fixed price for fixed volumes with EOM cash out
  • Partial fixed volumes with daily variable index
  • NYMEX basis, local index pricing

Our energy experts constantly monitor real time and forward market pricing, changes in market fundamentals and regulatory news, and perform our own analysis to advise our clients on the most advantageous timing for the procurement.

Our procurement process includes:

  • Development of client-specific request for proposals (RFP)
  • Solicitation of competitive bids from pre-qualified suppliers
  • Analysis and evaluation of proposals, quantitative and qualitative
  • Determination of best overall value proposal and client recommendation.
  • Negotiation of advantageous contract terms
  • Supply procurement execution timing and management

Once the procurement of supply has been completed, we stay engaged to manage the administration of the contract, interfacing with the supplier on behalf of our client.

Contract management services include:

  • Review of supplier billings, ensuring accuracy and compliance with contract terms
  • Management of the resolution of any supplier issues
  • Administration of the adding and or deleting of accounts from the contract
  • Coordination of new service requests with the local utility for delivery, and or supply
  • Volume and cost budgeting, management reporting

As the energy markets change over time, we deploy a portfolio management approach, to advise our clients on maintaining forward looking supply positions that are consistent with the agreed upon strategy.

Our portfolio management services include:

  • Forward energy market price updates, price transparency
  • Identification of opportunities for incremental supply purchases
  • Execution of incremental supply purchases
  • Risk management strategies for physical supply

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