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Market-Based Procurement

The price is only as good as the process behind it.

Buying energy is not a single transaction. It is a decision about product structure, contract terms, supplier credit and market timing, and each of those decisions carries a different risk.

Market-based procurement means the strategy comes first and the price comes second. We start by understanding your consumption profile, your budget certainty requirements and your tolerance for price risk, then build the product structure and buying plan to match. Only then do we go to market.

Priority Power Difference. Most advisors are limited by the supplier relationships they hold. We maintain active relationships with more than 60 leading electricity and natural gas suppliers nationwide, which means more suppliers bid on your load than a typical broker can bring to the table.

Our Engagement Process

  1. How did you buy energy?

    Current Portfolio Review

    We perform a complimentary market analysis to identify your current contractual price and term obligations, and evaluate today's market against the conditions in place when your existing agreements were executed.

  2. Where is the market at?

    Competitive Request for Proposal

    We take your load to a network of 60+ leading electricity and natural gas suppliers nationwide and can run both blind and open reverse auctions, depending on what serves your position best.

  3. What do the numbers say?

    Curated Data Analysis

    All returned pricing goes into our analytics platform. We cross-check leading bids against our market intelligence to confirm each one is consistent with where the market actually is, not simply accepted as quoted.

  4. What should we do, and why?

    Executive Recommendation

    We agree on a forward buying strategy based on the analysis, with a strict focus on product structure, term length and the right supplier partnership for your credit and operational profile.

  5. Execute the plan.

    Strategy Implementation

    We align your stakeholders on execution, then negotiate and review the supplier agreements with you before anything is signed.

  6. How is the plan performing?

    Ongoing Partnership

    We monitor performance against the strategy and adjust as market dynamics change, provide ongoing reporting, and identify further cost-reducing measures as they become available.

Our Core Capabilities

  • Market Knowledge

    As part of an integrated energy platform spanning procurement, infrastructure and asset operations, we see the factors moving price trends from several directions at once. We pass that real-time view to you so timing decisions are informed rather than reactive.

  • Customization

    Every business consumes energy differently. We offer a broad library of customizable reports to deliver quantitative value to the stakeholders who need it: finance, operations, sustainability.

  • Reporting & Analytics

    Information is leverage. Our analytics tools are built to take the guesswork out of product selection and market timing.

  • Transparency

    We provide clarity and visibility into a market and a process that are otherwise opaque. You see the bids, the analysis and the fees.

  • Communication

    A sound energy strategy only works if it is communicated. Power and gas prices move quickly, and a proactive advisor is what turns a strategy on paper into captured market lows and mitigated upside risk.

What Makes Up Your Energy Price

Priority Power works with clients to ensure each energy product and procurement strategy aligns with their operational needs, risk tolerance and budget objectives. Through our extensive supplier network, we include more qualified suppliers in our RFPs than most brokers. This broader participation increases competition, helps drive more favorable pricing and gives clients a wider range of options to evaluate.

Price is only one part of a successful long-term energy strategy. Market timing, contract structure and informed decision-making are equally important. While no advisor can guarantee the lowest point in the market, Priority Power provides the market intelligence, analytics and guidance clients need to make confident purchasing decisions.

Commodity

The cost of the physical electricity or natural gas your facility consumes.

Capacity

Cost associated with ensuring that there is sufficient generation capacity available to meet future electricity demand, especially during peak periods or emergencies.

Comprised of the facility’s “Capacity Tag” or “Peak Load Contribution (PLC)” (set during either 1 or 5 peak days depending on ISO) and the regional ISO capacity auction rate.

Transmission

Also called “Network Integration Transmission Service” (NITS), is the primary mechanism the ISO uses to:

  1. Ensure reliable delivery of electricity from generation sources to end users and
  2. Recover the costs of building, maintaining, and operating the transmission infrastructure.

Comprised of your “Transmission Tag” or “Network Peak Load (NPL)” (set during single highest peak hour) and the regional ISO NITS rate.

Line Losses

Refers to the energy lost as electricity travels through transmission and distribution lines from generators to end users. These losses are a natural consequence of electrical resistance and inefficiencies in the grid infrastructure.

They typically account for 5–10% of the total electricity generated.

Ancillaries

A charge covers the costs associated with functions that support the transmission of electricity from generators to consumers while maintaining grid reliability.

This includes Regulation Service, Spinning Reserve, Non-Spinning Reserve, Reactive Power, and Black Start Service. They ensure frequency stability, voltage control, and emergency response. Without them, the grid would be vulnerable to outages, instability, and inefficiencies.

Renewable Portfolio Standard (RPS)

RPS is a state-level policy that requires electricity suppliers to include a certain amount of renewable energy in their fuel mix.

RPS costs incentivize renewable energy development and generation. These costs vary significantly by state depending on the aggressiveness of their renewable energy goals.

Taxes and Service Fees

Depending on your location, state and local taxes can be a substantial share of the bill, so confirm whether a quoted price includes or excludes them.

The same applies to supplier and consultant fees: know what they are and how they are applied to your energy budget.

Getting Started Is Simple

  1. Send Your Bills and Contracts

    12 months of utility bills plus any current supply agreements, for each account.

  2. We Analyze at No Cost

    A complimentary review of your current position, your consumption profile and where the market stands against the terms you signed.

  3. We Go to Market

    We build the strategy, run the competitive RFP, verify the bids and manage execution through contract signature and beyond.

Market-Based Procurement: Frequently Asked Questions

That the buying decision is driven by market conditions and analysis rather than by whichever supplier quote arrives first. We establish where the market is before bids come in, so every offer is evaluated against a baseline instead of against the other offers alone.

We maintain relationships with more than 60 vetted electricity and natural gas suppliers nationwide and bring as many as are appropriate for your load, credit profile and market. A larger bidding field produces more competition and more product options than a smaller supplier network can.

In a blind auction, suppliers submit pricing without seeing competing bids. In an open reverse auction, they can see where they stand and respond. Each produces a different bidding behavior, and the right choice depends on your load, your market and how many suppliers are competing. We recommend one based on your position.

No, and neither can anyone else. What we commit to is that the best available analytics, market intelligence and supplier competition are applied to every decision, and that you understand the risk you are taking before you sign.

Yes. Both commodities, across deregulated markets nationwide.

Nothing. The current portfolio review and market analysis are complimentary.

No, it is usually the right time. Forward market conditions can make it advantageous to layer or extend well before an existing agreement expires, and that window is easy to miss if no one is watching it. We review the contract you have and tell you whether acting early is worth it.