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Many municipalities and other major energy users such as hospitals and manufacturers accept the energy rates their utility companies dictate to them. In New England, Performance Business Solutions, LLC, based in Hampton Falls, NH, offers the “reverse energy auction” alternative to energy users in the region. By aggregating their business or municipality with others, large energy users are able to leverage better pricing.
The reverse auction allows energy suppliers to bid to offer businesses their services and the lowest price wins. The aggregation of utility usage and the subsequent auctions help reduce the cost of every kilowatt or therm of use. The auctions occur when there are enough buyers in the pool to interest the deregulated suppliers. This can be for amounts ranging from 10 million kWh to 50 million kWh.
The reverse auction is implemented via an Internet based system that tracks utility information and enables clients to manage their account more efficiently. The municipalities of Cranston, RI and Rochester, NH are among those that have worked with the firm to access reverse energy auction discounts.
Jeff Hiatt, founder and CEO of Performance Business Solutions, LLC explains, “There is no great secret to the success of the reverse energy auction concept. The utilities covet major power users and strive to keep their business. We simply formalize the process by aggregating several regional, major energy users and allow the suppliers to make their best offer.”