ABSTRACT
Prior to the 21st century, a retail customer had to buy both services from the utility under regulated tariffs. Smaller customers may also find value where utilities offer clear benchmark pricing against which competing prices may be compared, or by buying through an aggregation program with others. A good specialist also reviews the proposed contract, called a power purchasing agreement, for issues that may require negotiation or alteration before the customer signs it. While many customers have saved 2% to 20% relative to tariff supply pricing, buying competitively priced electricity does not guarantee savings relative to utility supply pricing unless so stated in its power purchasing agreement. When buying products for a company, the Purchasing department is usually in charge: it has experienced personnel, contracts, and procedures in place. The Legal department will review proposed contracts to ensure that all provisions are acceptable and risk is minimized.
