Energy Procurement Strategies: Two Years Later

Which entities have policies established to govern procurement of electricity and natural gas?
Which entities have policies established to govern procurement of electricity and natural gas?

Two years after NIGP's last survey on procurement of energy, a new survey now measures changes in policy, practice and strategy. Some results are expected, but other findings are surprising.

In November 2010, the initial survey was issued by NIGP to more than 2,000 recipients. The survey was designed to gain a better understanding of how governmental entities approach the procurement of energy. In particular, the survey was intended to help better understand existing opportunities for competitive supply of energy commodities, and to gain a deeper insight into existing policies, procedures, and attitudes toward the procurement of electricity, natural gas, and transportation fuel.

In general, the findings two years ago indicated a lack of knowledge regarding opportunities existing at the time for competitive procurement of electricity and natural gas. In addition, there was no widespread use of detailed market intelligence incorporated into the procurement process, and most entities started their plans just shortly before current energy contracts were expiring, thereby limiting their ability to follow the market and time their procurements more effectively. The use of professional consultants to assist with energy management and procurement was starting to become more prevalent as well.

What a difference two years can make....