Electricity Auctions

Electricity is Complex 

While simpler than natural gas, electricity procurement incorporates a fair degree of complexity.  You need to consider:

  • Bandwidth
  • Pass-through’s for capacity and transmission
  • Fixed or variable rates
  • Percentage of Green Power (if any)
  • Term Lengths

Auctions Make it Simple

Fortunately, our auction process incorporates all these variables, through a simple 3-step process:

Understanding Your Needs:

  • We discuss all the variables with you and create an RFP
  • We send the RFP to every viable supplier in our network
  • You can expect to have 10-20 suppliers competing!

1st-Round Bids:

  • We review 1st-round results with you and narrow the options
  • We provide pricing feedback to suppliers (suppliers see every bid from the first round)and elicit a 2nd round of bids

2nd-Round Bids

  • We review the final results with you and help you make the right decision for your energy strategy.
  • You can expect to sign contracts the same day you see the final bids.

Click Here to view an example of a recent electricity auction held on The Energy Exchange. 

 

Why are auctions so effective?

On a regular basis (daily, weekly, or monthly), energy suppliers review their pricing policies in different markets. If they want more market share in a particular area, they’ll lower prices in that market, and when they’ve acquired enough market share,they will not be as aggressive as the field. 

Since they don’t announce these policy decisions, the only way to make certain you’re getting pricing from the most aggressive supplier on a particular date, is to have ALL of them competing.

Why are some auctions more effective than others?

The best suppliers won’t all compete unless the process meets their expectations. Here’s what Suppliers tell us they want:

  • Easy-to-use process
  • Fair and impartial results – no favoritism
  • Timely communication and feedback

The Energy Exchange was built to satisfy these criteria.  As a consequence, we have earned the respect (and the participation) of every supplier in our market area.  It’s an impressive accomplishment, and it is a critical factor in our ability to get you the best pricing.

You will see every price from every viable supplier, so you can be confident that you have seen the lowest price available. Its the fast path to the lowest price. 

David Benton

“I was most impressed with the on-line auction process. The Rittenhouse Hotel is delighted to repot a 19% savings over our previous Firm Fixed contract. Our new contract now includes 10% green power, important to our conservation efforts.”

David Benton

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Call Us Today for a No-Obligation Conversation: Kit Gutteridge, President, AEP 484.406.5400 x101