Get the Best Price for Energy with EnerNOC Energy Procurement and Advisory ServicesTake Control of Your Energy Costs and Manage Risk in Competitive Energy Supply Markets

EnerNOC offers two discrete procurement services. Through our online procurement platform, we help you navigate com-plex, competitive energy supply markets to buy energy at the best available prices and secure contracts that match your risk tolerance. EnerNOC’s advisory services go a step further, working with you to design a holistic procurement and supply management strategy and actively track and evaluate the performance of that strategy over time.

Get the Best Available Price with EnerNOC’s Energy ProcurementOur philosophy is simple: when suppliers compete for your business, you get the best possible price. To streamline that competitive bidding process and ensure maximum transparency, EnerNOC’s energy intelligence software (EIS) brings suppliers together to compete for your business through competitive online auctions. Our Global Services team will tailor each procurement event to ensure you get the right product and terms to meet your organization’s needs and risk profile at the best available price.

Build Your Procurement Strategy and Ensure Continued Success with EnerNOC’s Advisory ServicesFor many companies, sourcing energy at a good price today is just the beginning of a successful procurement strategy. Putting your purchase into a broader strategic context with EnerNOC’s advisory services can help identify additional opportunities to reduce commodity costs, track financial results, and manage risk. Our advisors take a comprehensive approach to energy supply and risk management that empowers our customers to plan and manage energy costs.

As your advisor, we work closely with you to assess your business needs, help you understand how the intricacies of the energy and financial markets impact your procure-ment strategy, analyze your energy usage patterns, and design a strategy that matches your risk tolerance. Whe- ther you want to take full advantage of the opportunities presented by the volatile energy markets or manage complex purchasing requirements, we’ll help define and implement your energy purchase strategy. We track energy commodity markets continuously, and keep you updated on purchasing opportunities.

The competitive energy procurement landscape is crowded with energy suppliers, aggregators, and brokers, and it is overloaded with confusing information. Who has the time or expertise to track volatile market conditions, changing regulations, and increasing costs? What’s the financial impact of fixing your costs compared to floating in the market? Who has the time to analyze suppliers’ proposals and contract terms and determine if you’re getting the right product for your organization? EnerNOC takes what is fundamentally complicated and makes it simple.

How It WorksEnerNOC’s technology and team of procurement experts simplify the competitive energy purchase for you. We take care of the end-to-end process of the complicated physical and financial transactions associated with your energy risk management strategy—from education to execution—so you can stay focused on running your business. We also maintain transparency through our auction platform and advisory meetings, so you can maintain confidence in the approach and know you’re getting the best available prices.

WHY SHOULD I ENGAGE EnerNOC

Seamless ExecutionWe unbundle an otherwise complicated energy price to provide maximum risk management flexibility. Our rigorous portfolio management process results in the broadest variety of pricing options for you. And we don’t stop there. By continuously monitoring the markets, we help you adjust your supply purchases or overall strategy to take advantage of pricing that may impact your business.

Customer AllegianceOur neutral role in complicated competitive supply markets ensures that you get the advice you need to make informed energy purchasing decisions. There’s no conflict of interest, and all our fees are disclosed.

Broad Commodity Market and Industry ExperienceWith over 500 national and international clients and nearly $50 billion under management, our team has been deeply entrenched in the competitive energy markets for over 20 years. Our clients represent a variety of industries including manufacturing, real estate, data centers, government, healthcare, lumber, and more.

Pricing Leverage through TechnologyWhether executing procurements through an open auction or a sealed bid approach, our technology platform compels suppliers to compete for your business. With our tools and expertise, we help our clients secure the best pricing and terms available in the market.

Smart Purchasing ApproachOur technology platform and contractual relationships with suppliers streamline the procurement process through fully electronic transactions. Our auction platform leverages a real-time feed of natural gas forward prices directly from the Chicago Mercantile Exchange in order to monitor prices and execute hedge positions. Our industry-leading transaction architecture enables binding, electronic transactions, significantly streamlining the procurement process.

Energy Procurement Get the best available price with a tailored energy procurement strategy.

Risk AssessmentBefore going to the market, we’ll spend time with you to understand your risk tolerance and budgetary needs, and identify energy products that meet your business objectives.

Event ArchitectureThrough competitive auctions held on our online procurement platform, we’ll obtain prices for a variety of products and terms in a matter of minutes, providing visibility into the costs and benefits of these alternatives and securing the best terms for you based on one of these approaches:

Direct sourcing—Direct negotiation with a competitive group of suppliers for the best combination of price, term, product, and supplier

Online auction—An open- or sealed-bid auction with suppliers to automate the pricing process and optimize liquidity

Competitive BiddingWe sit on the same side of the table as you. Unlike retailers that have a vested interest in outcomes, our sole goal is to make sure you get the best possible contract. We’ll create customized electronic request for proposals (RFPs) based upon your business objectives, solicit bids from qualified energy supply companies, and leverage competitive pressures through our auction platform to secure optimal contract terms for you.

Contract NegotiationIn total, we’ve transacted nearly $50 billion in electricity, natural gas, and environmental commodities for our customers. Partnering with your legal team, EnerNOC will work with the supplier’s legal staff to negotiate optimal contract terms.

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Our auctions create competition among suppliers to get you the best available price.

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The Auction AdvantageSupplier LiquidityIt’s all about competition—when suppliers compete for your business, you win. There is no extra work to have a large number of qualified suppliers in an auction versus just a few, but with a traditional paper or email RFP process, sourcing bids from additional suppliers requires considerably more effort from your procurement staff or consultant.

On average, consultants query only two or three suppliers and then sell you on a “good enough” price and/or product. In an online auction, all qualified suppliers are invited in an effort to secure the best price.

Auction DesignAnglo-Dutch auctions are designed to get suppliers to give their best price. “Anglo” means participating suppliers can see the lowest bid at any given time to inform their own bidding strategy. The “Dutch” feature requires suppliers to enter their best and final offer (the poker equivalent of going all in) as the seconds tick down at the end of the auction. This design works so well that 20% of the time the leading supplier outbids itself to win the business.

RFP Architecting and SequencingOnline energy auctions make it easy to test different terms, products, and pricing structures. You’ll get real-time informa-tion on where prices are settling, allowing you to select the price and parameters that best meet your business needs and sustainability objectives. Additionally, because auctions are run in immediate succession, suppliers can react quickly to a loss, sharpening their pencils to win the next round.

Pristine ProcessBecause energy pricing is highly volatile, suppliers often add a risk premium for uncertainty and time delay during the contracting process. Online auctions help suppliers reduce their risk premiums by facilitating seamless transactions that often close within an hour of auction completion, further reducing your price.

Transparency and ComplianceAs an added benefit, online auctions capture, catalogue, and time stamp all bidding activity, providing you with a thorough and transparent audit trail of your energy procurement.

Market ExpertiseA traditional broker or consultant who cannot offer an online auction may argue that what matters most in energy procurement is market expertise and relationships. Our relationships with energy suppliers are critical to the success of our online auctions, drawing continuous supplier engagement and encouraging participation in each event. Many of EnerNOC’s energy procurement managers, who average 18 years’ experience, have actively influenced the opening of America’s deregulated energy markets, and draw upon this experience to keep suppliers engaged on our auction platform.

In today’s rising market, it’s critical for energy buyers to secure the lowest price possible. You’ll need every advantage you can get, and energy auctions clearly deliver.

Indexed Customers can choose to pay the market Day-Ahead or Real-Time price for all energy consumed.

Hybrids (e.g., “block and index”) Many options exist to combine a fixed product with an indexed product. Customizable hedge allows for some level of bud-get certainty while also providing the ability to take advantage of favorable market swings.

Fixed Price Energy with Pass-Thru For a slightly lower energy price, budget certainty and limited exposure to volatile energy markets.

Fixed Price For budget certainty and limited exposure to volatile energy markets.

Four Ways to Manage RiskEnerNOC will work with you to craft an energy purchasing strategy that best meets your busi-ness objectives, and design an online auction to get the best price and terms for your purchase.

Low risk, but low savings potential

High risk, but high savings potential

Advisory Services Build and manage your procurement strategy, analyze performance against budget, and assess changing market dynamics with help from our Advisory team.

Education and Market MonitoringWe make energy simple. With the deregulated markets as a backdrop, you’ll have a dedicated Account Manager who will provide you with ongoing market analysis and recommend available energy purchasing options including costs, risk factors based on your specific needs.

Load AnalysisWe recognize opportunities to improve your procurement strategy through demand-side management. We’ll analyze your load and energy usage patterns to determine their effect on pricing options. We’ll advise you on changes in your demand profile that could benefit you.

Financial ReportingOur team helps clarify the financial impacts of your energy procurement decisions. We’ll give your team a clearer vision of your budget, track accrued energy costs, and conduct scenario analysis to illustrate the risks of certain procurement decisions.

BudgetingWe’re committed to full transparency. Once your competitive supply agreement is in place, we’ll create customizable annual budgets that capture contract rate, historical consumption, and published utility tariffs.

P14095 (rev. 11/16) © EnerNOC, Inc. All rights reserved. www.enernoc.com