Energy Data Management: Vendor Agreements
Understanding energy usage and spend is a core objective of energy management. Rather than implementing or managing systems in house, many companies use or are looking to use the expertise and resources of third-party providers. We can assist clients with the selection of an appropriate system and/or provider to meet their specific needs. Once systems and vendors have been identified, we conduct a detailed legal and commercial review of relevant agreements to help protect our clients, their investments, and their valuable information.
Energy Procurement Consulting
Energy markets continue to evolve and provide an increasingly broad range of energy procurement opportunities. However, along with opportunities come complexities – and potential risks. We help clients analyze and address the full spectrum of issues, including:
Electricity, natural gas, and other commodity-specific issues such as:
- Procurement in an open market/retail choice
- Supplier identification and evaluation
- Contract review and negotiation
- RFP process
- Market monitoring and reporting
- Regulated and monopoly utility supply
- Utility tariff analysis and optimization
- Leverage building, including involvement/persistence, bypass, user groups, and political pressure
- Utility negotiation and special contracts
- Transportation and delivery optimization
- Miscellaneous issues
- Storage
- Balancing
- Ancillary services
- Utility and energy supply tax evaluation and optimization
Behind the Meter Generation / Self-Generation
One of the best ways to take control of energy costs is through the utilization of behind-the-meter or self-generation opportunities. However, for most energy users, power generation is not a core business or area of expertise. Our energy management team partners with clients to:
- Assist with achieving PURPA designation for co-generation facilities.
- Review existing standby utility tariff rates to understand terms, conditions, and costs, and negotiate new standby rates.
- Perform environmental due diligence and pursue permit applications.
- Review utility and transmission system interconnection agreements.
- Perform commercial and legal reviews of major equipment purchase agreements and third-party service agreements.
- Assist with fuel-purchase strategy and supply contract negotiation.
Energy Supply Risk Analysis and Mitigation
There are many key risk elements associated with energy supply that, drawing on an effective energy management system, can and must be evaluated and mitigated. These include:
- Physical supply and delivery risks
- Points of equipment ownership transition, particularly from utility to customer
- Equipment ratings, emergency load-shedding procedures, redundancy and backup, common modes of failure for redundant systems, etc.
- Maintenance and inspection programs
- Contractual and cost risks
- Firm vs. interruptible, liquidated damages, replacement supply provisions, force majeure liability, etc.
- Financial hedging
- Fixed-price vs. floating-price contracts
- Our energy management team has extensive experience in risk analysis and mitigation. We regularly:
- Ensure that contractual and cost-risk items are addressed in the energy supply contracts.
- Perform a legal review of trading agreements and, for companies using financial hedging instruments, assist with establishing a hedging strategy.
- Help clients mitigate physical supply and delivery risks through a review of existing and establishing new facilities agreements with the utility or supplier.
Energy Efficiency Demand-Response Analysis
Another core element of an energy management program is the evaluation and optimization of energy usage. Effective energy efficiency and demand response can result in significant operational improvements and cost reductions. The attorneys and advisors of our energy management team work with clients to:
- Review existing and negotiate new energy efficiency and demand-response programs offered by the utility.
- Provide counsel on Energy Service Provider Company (ESCO) agreements, including terms and conditions, liability, measurement, and verification, etc.
- Conduct commercial and legal reviews of demand-response contracts with aggregation companies.
