If your company has multiple facilities in one utility area, they can be combined for energy procurement purposes if a single legal entity owns them and one person has authority to sign for them all. If the facilities are spread across several utility areas, however, it isn’t legally possible to combine them to increase the energy volume being purchased.
Since each utility area has a different price structure, it isn’t possible to get a single price for all utility areas even if the facilities have common ownership. While there’s no way to get around these legal issues, Applied Energy Partners has a practical way to achieve the desired result.
Since the pool of major electricity Suppliers is common to many utility areas, we can set up a series of energy procurement auctions to be held on the same day for all facilities belonging to one company, even if they are located in several utility areas.
In this fashion, we will inform all the Suppliers that they’re bidding on a significant number of facilities under common ownership, with a substantial combined energy volume.
A note of caution: While combining all facilities under common ownership in a given utility area usually results in a better price, that’s not always the case. If some of the facilities have very different load profiles from others, those with the poorer load profiles may increase the group price disproportionately.
Under that circumstance, it may pay to auction two groups separately – one with the better load profiles and another with the worse ones. On many occasions we have auctioned them both ways to see which way attracts the best overall price.