What Energy Brokerage Services Do With deregulation comes both risk and opportunity. Bringing opportunity is what energy brokerage services do.
Continuing with the farm metaphor, you'll probably want your current (the potatoes) from the generator (farm) with the lowest prices. Or, you may have a desire for green electricity (organic potatoes), so you may want to buy from a generator that uses solar or wind power. (In some cases, a green electricity generator could also be the lowest cost provider.)
You'll also want to move your current over the long haul on the cheapest transmission service (truck) possible.
You may not want to change your distribution service company (the store). It has the lines that come directly into your building, and changing them is no easy task.
So, you have to ask yourself, do the people in my data center have the knowledge to make an informed decision on all these matters, or do I need an energy broker? If you need an energy broker, you're in good company. 70% of businesses use a broker or consultant.
An energy broker understands the product structures of providers, and is knowledgeable in procuring contracts. A broker aggregates and analyzes market data to assure your price. In addition to saving money, you'll also save time by letting them come up with a strategy for you. This strategy may include a Power Purchase Agreement (see sidebar).
A surprising way a broker can help your data center is by putting all your energy costs onto a single bill. There's power in seeing all those costs in a single place.
Power Purchase
Agreement (PPA) A PPA is one of the main tools a broker uses to help you lower your energy bill.
It's a contract between the generator of the electricity and you, the buyer. Among the things you can specify are:
· a locked-in price, · length of time, and · source of the electricity (solar, nuclear, etc.)
For instance, Mario Leone, manager of the relatively small borough of Monaca, Pennsylvania, used an energy broker to create a PPA. He says, "They were able to negotiate and lock in a rate that is saving the borough $100,000 a year on our electricity costs. Upon receiving our first new bill, the cost savings were confirmed, so we have budget certainty going forward.”
015
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34