We recently managed a complex energy procurement auction for a major healthcare system located in PJM, comprising which 20 hospitals and over 120 other facilities including long-term care facilities, urgent care facilities, physician practices and medical office buildings.
The auction was scheduled about 4 weeks in advance, and we worked with our Client to enable contracting as a single entity, instead of by individual hospital, as was done in the past.
In total there were almost 150 accounts organized into 16 groups, with an annual volume of about 325 million kWh.
The Client’s goal was to manage ‘Capacity’ costs over the next few years and achieve budget certainty.
The auctions took several days to complete and ALL were successful, with the Client accepting the pricing and signing contracts for an average term of 25 months, through May 2017.
The streamlined process enabled us to rely on a single signatory, leading to same day contracting in most of the auctions, a critical factor in achieving low prices.