ART - Controlling Costs Through Energy Procurement 2010

The document discusses the challenges and opportunities of energy procurement, specifically in relation to electricity and natural gas. It emphasizes the volatility of these commodities and the importance of having a sound procurement plan in place. The document suggests that energy efficiency is one way to reduce spending, but the primary focus should be on controlling the cost of the commodity itself. It outlines the steps to designing a comprehensive energy procurement plan, including understanding cost exposure and risk tolerance, developing the plan with input from stakeholders, and implementing the plan through competitive solicitation or pre-procured contracts. The document also highlights the importance of market intelligence in procuring and negotiating energy contracts, as electricity and natural gas prices can change dramatically in a short period of time.