Services
Negotiation of Contracts
Procuring electricity and natural gas has become increasingly complicated due to the growth of competitive regional markets, treatment of unbundled energy products such as ancillary services and capacity, recognition of demand resources, use of renewable energy portfolio standards, and increased use of financial instruments as a mechanism to hedge price risk.
Exeter has over two decades of experience providing energy supply procurement consulting services on behalf of large end-use customers and groups of customers, including:
- DOE national laboratories
- Numerous military installations
- NASA facilities
- State governments
Exeter’s work often begins with an Options Study to compare a base case—the continuation of current supply arrangements—with all other practical supply options, such as:
- Alternative regulated and unregulated supply options
- On-site renewable power project development, contracting, and financing
- Fuel-switching opportunities
- Cogeneration options to produce power and process steam
Once an approach has been selected, Exeter assists in all phases of energy procurement, including:
- Preparation of solicitation documents
- Evaluation of supply proposals
- Negotiation of energy supply contracts
- Collaboration with scheduling agents and coordinators
- Oversight of supplier billing and performance
Recent Projects
U.S. Army
Exeter evaluated the options available to Army installations in Kansas to reduce electric utility costs and identified opportunities to work with the local utility for lower-cost utility services. The options evaluated by Exeter included the development of on-site generation, evaluation of alternative rate schedules, opportunities to modify delivery arrangements and service agreements, and the potential for participating in interruptible load and demand response programs offered by the utility and in the Southwest Power Pool (SPP).
Defense Logistics Agency (DLA)
Exeter helped to facilitate three-way contract discussions between Southern California Edison (SCE), the Western Area Power Administration (WAPA), and Edwards Air Force Base (AFB). SCE had concerns about a power displacement agreement (PDA) that allowed Edwards AFB to receive its WAPA hydropower allocation and fulfill its federal renewable energy obligations through additional power and renewable energy credit (REC) purchases. In the end, SCE, WAPA, and Edwards AFB forged a new PDA that helped the base save millions annually.
U.S. Department of Energy, Berkeley Site Office (DOE/BSO)
For over 30 years, Exeter has assisted DOE/BSO in addressing the power supply requirements for the three Northern California DOE laboratories. Recent support has addressed meeting California greenhouse gas (GHG) requirements without the ability to purchase GHG allowances.