Measurement & Verification
Blog Post
July 23, 2018
Measuring and Verifying (M&V) Efficiency Projects
When measuring and verifying efficiency projects, it is not enough to simply review year-over-year utility bills (e.g. July this year vs. July last year). Several factors may have changed that can have huge impacts on the energy conservation measure (ECM)…
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Budgeting
Blog Post
June 28, 2018
Utility Budgeting – Do’s and Dont’s
Energy is one of the top operating expenses for buildings, typically in the mix with debt service, taxes, cleaning, and staff salaries. It’s usually the most volatile operating expense for buildings, but it’s also one of the most controllable and…
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Procurement & Energy Risk
Blog Post
June 21, 2018
Fixed vs. Indexed Electricity Pricing
With a variety of different pricing strategies to be considered, there isn’t a blanket “right” or “wrong” choice when evaluating fixed vs. indexed pricing strategies. The market spectrum for pricing options ranges from fully fixed electricity pricing (with all components…
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Peak Load Management
June 12, 2018
PJM Capacity Prices Nearly Double In Most Territories
PJM capacity prices nearly or more than doubled in 17 of the 27 locational delivery areas in its latest capacity auction for the 2021/2022 period. Posted in May, the Reliability Pricing Model (RPM) Base Residual Auction (BRA) prices spiked due…
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Procurement & Energy Risk
Blog Post
June 5, 2018
Electricity Market Drivers
Like most other commodity markets, electricity pricing is driven by supply and demand. When demand outpaces supply, prices rise, and vice versa. For example, when power generation and heating needs are competing for natural gas supply during the coldest days…
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Procurement & Energy Risk
June 4, 2018
NJ Electric Invoices to Increase Immediately
On May 23, New Jersey Governor Phil Murphy signed two bills to raise the state’s renewable portfolio standard (RPS) to 50% by 2030 (one of the most ambitious goals in the country), as well as establish a Zero Emissions Certificate…
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Procurement & Energy Risk
Blog Post
May 31, 2018
Electricity Pricing: Property Specific Dynamics
Even if two buildings used the same amount of electricity one month, their bills may be completely different. When attempting to cut energy expenses, property managers may compare their buildings against peers. However, this can be misleading because all electricity…
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Procurement & Energy Risk
Blog Post
May 18, 2018
Managing Energy Risk – Pricing, Volume, and Demand
When companies discuss energy risk management with consultants or brokers, 9 times of out 10 the conversation centers on electricity supply rates (the contract $/kWh) and who’s the lowest bidder. While the overall rates themselves are obviously important, how the…
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Procurement & Energy Risk
Blog Post
May 11, 2018
What Influences Electricity Pricing?
When it comes to electricity pricing, there are many factors to consider. The electricity market is affected by the fundamentals of supply and demand and can be extremely variable – especially in deregulated, competitive markets, where supply and demand have…
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