Biggins Lacy Shapiro & Company, LLC

Energy Procurement


Long term, the forecast is for upward pressure on energy prices.  This will be driven by an increase in domestic demand for natural gas due to coal plant retirements and by increased natural gas exports to Asia and Europe.

What can companies do?  To limit future exposure to price spikes, BLS & Co. recommends that customers in deregulated states give serious consideration to longer term energy supply agreements, such as:

  • Fixed Price Agreements: These provide customers with price and budget certainty.  Usage becomes the only variable that is monitored and managed.
  • “Block and Index” Structures: A customer can fix all or a portion of the price of energy.  Pricing can be locked in blocks or percentage levels. This entails more management and oversight, but allows a company to dollar-cost-average the price, as an investor would do with a stock purchase.

Sugarloaf Associates has many years of experience negotiating energy prices on the commodity markets, and our team frequently structures and negotiates energy services agreements for clients.



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com