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Supply Procurement

Strategic Procurement: Beyond the Lowest Rate

A low rate from the wrong contract structure — or from a supplier that can't honor it — is not a deal. The Energy Exchange Market designs supply strategies around your load profile, risk tolerance, and capacity exposure. Then we audit every T&C before you sign.

Contract Architecture

The Four Structures

Every supply contract falls into one of four structures. The right choice depends on your load profile, budget constraints, and appetite for market exposure. We model each one against your interval data before making a recommendation.

📌

Fixed Rate

All-in or supply-only price locked for the contract term. Zero commodity risk. Maximum budget certainty.

  • Price certainty for multi-year budgets
  • Protects against forward market spikes
  • Ideal for accounts prioritizing stability
  • Best entered when forward curves are low
Best for: Budget-driven accounts
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Index / Floating

Commodity tied to daily or monthly market index. Full participation in market movement — both upside and downside.

  • Full market participation
  • Best when prices are trending downward
  • Requires strong risk tolerance
  • Paired with forward curve monitoring
Best for: Risk-tolerant, flexible operators
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Pass-Through

Transparent commodity pricing plus itemized pass-through of capacity, transmission, and ancillary charges. No hidden adders.

  • Full line-item cost visibility
  • No bundled mark-ups in non-energy charges
  • Pairs with our non-energy cost tracker
  • Enables targeted capacity cost management
Best for: Transparency-focused CFOs
Risk Identification

The Contract Fine Print Audit

A quoted rate is only meaningful in the context of what the contract actually allows the supplier to do after you sign. We read the entire agreement — not just the pricing schedule.

01

Material Change Clauses

Many contracts include usage bandwidth provisions that allow the supplier to re-price or exit if your consumption deviates significantly from the forecasted baseline. We identify these thresholds and negotiate appropriate protections before you sign.

  • Usage tolerance bands and re-pricing triggers
  • Contract exit provisions for over/under consumption
  • Seasonal load shape protections
  • Force majeure and termination language review
Risk: An unsigned clause can invalidate your "locked" rate mid-term.
02

Regulatory Pass-Throughs

Not all cost components labeled "fixed" are actually fixed. Capacity charges, transmission tariffs, and renewable portfolio standards can shift mid-contract depending on how the agreement is structured.

  • Itemized review of which charges are locked vs. pass-through
  • Capacity cost treatment in fixed vs. all-in structures
  • RPS and renewable compliance cost exposure
  • Gross receipts tax and franchise fee treatment
Risk: Hidden pass-throughs can add 10–20% above the quoted rate.
03

Change-in-Law Protections

In states with active energy regulation — particularly Massachusetts, New Jersey, and Ohio — mid-term legislative or regulatory changes can shift cost allocation in ways that affect your supply economics.

  • Supplier liability for legislative cost shifts
  • FERC order compliance pass-throughs
  • State-level RPS mandate changes (MA, NJ, OH)
  • Renegotiation rights triggered by regulatory change
Risk: Without protections, policy change becomes your cost.
The Client Journey

Our Four-Step Procurement Process

From interval data intake to executed contract, every step is designed to maximize your information advantage and minimize supplier leverage.

1

Data Intake via EDI

We collect your interval data, utility bills, and current contract terms via secure EDI data exchange. We build a full load shape profile and identify your capacity tag exposure before going to market.

2

Supplier Bid — 30+ Investment-Grade

We issue simultaneous bid requests to 30+ investment-grade retail energy suppliers. All bids are solicited on a common basis to ensure apples-to-apples comparison across structure types.

3

Normalized Comparison

Raw bids are normalized for adders, pass-through structures, and contract terms. We build a side-by-side matrix showing true total cost — not just headline rate — for each qualified offer.

4

Contract Execution + Ongoing Management

We manage LOE execution, EDI enrollment, and supplier onboarding. Post-execution, your account enters our active management cycle: budget-to-actual tracking, renewal planning, and market alerts.

The Difference

Standard Broker vs. The Energy Exchange Market

Standard Broker
The Energy Exchange Market
Supplier Selection
3–5 preferred suppliers on a volume deal
30+ investment-grade suppliers on every bid
Contract Review
Rate only — T&Cs passed through unsigned
Full fine print audit: MCC, pass-throughs, change-in-law
Post-Deal Support
No ongoing service after contract execution
Monthly budget-to-actual tracking + renewal management
Market Neutrality
Compensation varies by supplier — incentivizes steering
Market-first advocacy — we represent the buyer, always
Capacity Integration
Supply rate quoted without PLC/ICAP context
Capacity tag modeled into total cost before any bid

Ready to build a supply strategy
that fits your actual load?

We analyze your interval data, model all four contract structures, and audit every T&C — at no cost to you. No obligation. No pressure.