The document is a survey report on energy procurement in the public sector conducted by the National Institute of Governmental Purchasing, Inc. (NIGP) in collaboration with Tradition Energy, an energy management advisor. The survey was conducted using an online platform called SurveyMonkey.com and targeted NIGP agency member representatives. The survey aimed to gather information on the procurement of fuel, electricity, and natural gas in the public sector.
The survey results indicate that 58.8% of respondents have a policy/procedure in place for the procurement of fuel, and 37.6% do not have such a policy. Regarding the consistency of these policies/procedures with statutory regulations, 32.8% of respondents found it not applicable, 57.7% found it consistent, 1.6% found it inconsistent, and 7.9% were unsure.
In terms of the procurement process for fuel, the majority of respondents (38.1%) start the process 0 to 3 months ahead of their contract expiration, followed by 18.7% starting 4 to 6 months ahead, 9.0% starting 6 to 9 months ahead, and 5.8% starting 9 to 12 months ahead. Only 28.4% of respondents start the process over 12 months ahead.
Regarding the procurement of fuel, 85.1% of respondents reported using a competitive process, while 10.3% do not, and 4.6% were unsure. Additionally, 61.4% of respondents have a process in place to act upon market information to adjust their fuel contract, while 22.7% do not, and 15.9% were unsure.
When it comes to coordinating fuel procurement strategy with energy efficiency programs, 29.4% of respondents reported doing so, while 53.3% do not, and 17.2% were unsure. Similarly, 18.8% of respondents reported employing fuel management and/or hedging strategy to control costs, while 63.5% do not, and 17.7% were unsure.
In terms of working with fuel brokers/consultants, only 9.2% of respondents reported currently working with them, while 81.1% do not, and 9.7% were unsure. Additionally, 44.1% of respondents reported being part of a fuel aggregation, 45.2% do not, and 10.8% were unsure.
Moving on to the procurement of electricity, 70.1% of respondents reported being under contract for electricity, while 22.5% are not, and 7.5% were unsure. Regarding the deregulation of electricity in their area, 35.2% of respondents reported it being regulated, 39.0% reported it not being regulated, and 25.8% were unsure.
Regarding the policy/procedure for the procurement of deregulated electricity, 22.7% of respondents reported having one, 59.3% do not, and 18.0% were unsure. Among those with a policy/procedure, 28.0% reported it being consistent with statutory regulations, 4.8% reported it being inconsistent, and 20.2% were unsure.
When it comes to the procurement process for electricity, 30.1% of respondents reported using a competitive process, 59.5% do not, and 10.4% were unsure. In terms of the timeline for starting the procurement process, the majority of respondents (38.1%) start 0 to 3 months ahead of their contract expiration, followed by 18.6% starting 4 to 6 months ahead, 15.5% starting 6 to 9 months ahead, 10.3% starting 9 to 12 months ahead, and 17.5% starting over 12 months ahead.
Regarding the use of market information to adjust electricity contracts, 20.3% of respondents reported having a process in place, 51.4% do not, and 28.3% were unsure. Similarly, 28.1% of respondents reported coordinating their electricity procurement strategy with energy efficiency programs, 44.5% do not, and 27.4% were unsure.
When it comes to working with electricity brokers/consultants, only 19.3% of respondents reported currently working with them, while 64.0% do not, and 16.8% were unsure. Additionally, 22.2% of respondents reported being part of an electricity aggregation, 61.1% do not, and 16.7% were unsure.
Lastly, regarding the deregulation of natural gas in their area, 47.0% of respondents reported it being regulated, 19.9% reported it not being regulated, and 33.1% were unsure. Among those with a policy/procedure for the procurement of deregulated natural gas, 26.6% reported having one, 53.8% do not, and 19.6% were unsure. Among those with a policy/procedure, 30.3% reported it being consistent with statutory regulations, 6.6% reported it being inconsistent, and 40.8% found it not applicable.