Players in the wholesale market are facing many sourcing pressures: the need to secure the lowest price for ratepayers, the obligation to meet compliance standards, such as Sarbanes Oxley, and the mandate to be environmentally responsible through Renewable Portfolio Standards. Add in the dynamics of the energy markets, the size and complexity of wholesale energy loads, and the task of developing green sources, and effectively procuring today is extremely challenging. In this environment utilities, municipalities and co-ops are seeking new and innovative methods to source in the most efficient and compliant way possible. Traditional procurement methods such as paper RFPs and sourcing prices through phone brokers are technologically outdated and lack the controls, competition, and transparency that are essential to producing the best price in a manner that will pass muster with Public Utility Commissions and other oversight groups. Bid/ask exchanges may work for short-term commodity products, but often lack liquidity to ensure the most effective pricing on more complex or longer term products.
The World Energy Exchange offers not just a new and different methodology; but a vastly superior one. World Energy’s commercially proven and award-winning online auction platform – and end-to-end, market intelligence-driven process – have been recognized by regulators, SOX auditors, and wholesale market participants. For conventional and green energy commodities, World Energy Exchange offers the following benefits: - Secures the lowest price through hyper-competition
- Allows price discovery through multiple auction scenarios
- Reduces administrative costs for suppliers, which leads to lower prices for buyers
- Speeds up award times, minimizing risk premiums
- Provides data management of all transaction information, which is securely stored by World Energy
The greening of the wholesale market is proceeding on a variety of fronts. For utilities, the push to go green stems from rising demand from consumers and increasing regulations. As of 2008, 27 US states and the District of Columbia had issued Renewable Portfolio Standard rules mandating that utilities and suppliers green their energy portfolio. Those who need to meet RPS requirements can purchase renewable energy certificates (RECs) instead of generating their own green power, while those who generate surplus renewable energy can sell surplus credits in the REC market. Through the World Green Exchange, World Energy provides the market knowledge and advanced technological tools to help wholesale customers make the best decisions and enter the green market at the best price, amounting to a win for market entrants on the buy or sell side, a win for the green power industry, and a win for the environment. |
