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Document
RFQ - Master Renewable Energy Power Purchase Agreement
Year Created: 2023
DOCUMENT
POL - Practices - Electrical Purchase, 2005
- YEAR CREATED: 2005
- ENTITY TYPE: County
- TYPE OF DOCUMENT: POL - Policies/Procedures
- Energy
The document is a presentation on the electricity purchase strategy of the Baltimore Regional Cooperative Purchasing Committee (BRCPC). The BRCPC has been trying to find electricity rates better than the standard offer service (SOS) rates offered by BGE and Conectiv. However, the competitive electricity marketplace in Maryland is still immature, resulting in suboptimal response. The current approach of bulk purchasing is not effective due to procurement rules and governing board requirements. The BRCPC requires a minimum of 90 days to conduct each solicitation, which leads to higher rates if the market is unfavorable at the time of bid opening.
To address these challenges, the document suggests a new approach of starting with the real cost of power and adding only those costs that make sense to assume. By purchasing closer to the source and eliminating middleman costs, the BRCPC can push rates down. The document also discusses the three markets of PJM (futures market, day-ahead market, and real-time market) and suggests a phased-in approach for future electricity procurements.
The short-term plan involves signing up BRCPC members to compete for electricity accounts, allowing for flexibility and cost savings. The long-term plan involves creating an entity through which BRCPC participants can purchase electricity in PJM markets, further streamlining the procurement process. The document provides timelines for the short-term and long-term plans and highlights the benefits of these plans, such as simplified billing and potential cost savings.
However, the document also acknowledges the costs associated with implementing these plans, including the need for an experienced entity staff to procure electricity. Overall, the document presents a strategy for the BRCPC to improve their electricity purchase process and achieve better rates for their members.