Electricity & Fuel Procurement Advisory Services

Making Mills Add Up to Sense

Opportunities abound for large industrial, institutional, and commercial entities to reduce their energy supply costs and diversify their portfolios. The road to an optimal energy strategy oriented around economic and renewable energy objectives is paved with complex tradeoffs and hidden costs. LAI can help identify the traps and hidden risk factors for a utility or large industrial customer's energy procurement strategies. LAI has been worked closely with electric distribution companies to procure standard service for decades, incorporating advanced evaluation techniques to ensure that regular utility procurements are workably competitive.

The financial rewards associated with DR/EE and behind the meter combined heat and power (CHP) can be tenuous. For CHP projects, protection against fuel price volatility requires an in-depth knowledge of market dynamics and well-conceived risk management programs. LAI can evaluate the commercial terms and risks faced by commercial or industrial facilities contemplating rooftop solar installations and other behind-the-meter initiatives. We design long-term procurement strategies that best fit client-specific reliability, environmental and economic imperatives. We bring to the decision-making process advanced power engineering expertise, detailed knowledge of the energy markets, as well as the transactional experience needed to blend physical and financial solutions to your energy procurement challenges.

We also help state agencies assess the efficacy of rate design and other policies to promote DR/EE and behind-the-meter resources, in pursuit of decarbonization and grid security objectives. We can identify the value stack of customer, distribution system, transmission, environmental, and socio-economic benefits ascribable to different distributed resources.

LAI's procurement advisory services can help:

• Assess the implications of changing federal and state energy and environmental policies
• Issue fuel and electricity RFPs
• Manage contract negotiations
• Evaluate cogeneration and self-generation options
• Evaluate the value stack benefits of distributed renewable resources
• Formulate arrangements that shift price and reliability risks to third parties
• Assess local power transmission issues
• Analyze and forecast fuel and electricity prices
• Evaluate fuel supply, transportation, storage, and delivery options