The technology, marketing, and regulation of energy is rapidly changing.
Every day, building managers are facing new opportunities - and new pitfalls.
Deregulation, alternative suppliers, new rate structures, and the reorganization
of utility distribution systems are only a few of the new topics now confronting
us. Staying current is hard enough; trying to influence or benefit from these
options is often beyond the resources of the average facility manager.
To address these challenges, many energy users have pooled their resources
through the creation of buyer forums, purchasing consortia, and industrial
councils. In the process, they are looking beyond conservation and efficiency
for new ways to cut operating costs. Where many once only moaned over rate hikes
and rules, they are now working together to represent their common interests
before public utility commissions and legislatures.
In a variety of ways, the members of such organizations have learned that
- there is strength in numbers; few energy users are alone in their
dissatisfaction
- the "squeaky wheels" get the better deals
- some of the best paybacks come from influencing the regulatory/legal
process
- there is both immediate and long-term value in creating one's own power
base
What Can Such Groups Do For You?
Each of us is a single energy user with limited influence over the ways that
energy is priced, regulated, and sold. Many of us previously focused only on
energy conversion and distribution, but now find that we need to know much more
about purchasing and pricing of our energy. Experience with rate interventions
and deregulation has shown that being part of those processes is the only way to
be properly represented. Simply waiting and/or hoping that public utility
commissions, legislatures, and utilities will "do the right thing"
ensures that other interests will instead be heard. Only the naive still believe
that "the power company knows best."
One must also recall that only a small portion of the electricity industry is
being deregulated: both the transmission and distribution of power (which
typically represents the lion's share of your electric bill) may remain
regulated monopolies for the foreseeable future. As a result, energy prices will
continue to be impacted by public utility commission policies.
But the deregulation of telephones, airlines, natural gas - and now
electricity - have demonstrated new methods to confront utility monopolies and
find better pricing. As a result, user groups are pursuing a wide variety of
tactics that involve the combined resources of their members to do more together
than each could do working alone.
Types Of Groups
During the assembly of the first National Directory of Energy User Groups, it became obvious that there are three types of
groups:
-
those organized purely for buying energy as an
aggregation
-
those acting primarily as intervenors in
regulatory and/or legislative actions
-
those previously existing as affinity groups
(e.g., trade associations) that have formed a committee or division
focusing on either or both of the above pursuits
Variations also exist within those groups, e.g., some purchasing groups are
little more than collections of customers of one consultant or energy provider,
while others have no affiliation and offer their combined load to the lowest
bidder. Some groups form subgroups that buy electricity, oil, natural gas, or a
combination of such supplies. One common thread runs through nearly all,
however: to get the best price, some regulatory and/or political action becomes
essential, often due to the often convoluted rules involved in deregulation and
tariffs.
Finding such groups in your area can be a problem, however, as many of them
do not advertise their presence - and utilities rarely promote the existence of
such "troublemakers." Many others have short lifetimes, change their
names, and/or combine with others. To help energy users find and evaluate groups
in their area, Energywiz, Inc. and Energy
User News have created the first National Directory
of Energy User Groups.
When contacting a group near you, please keep the following items in mind: The
original
list was compiled over a two-year span, during which we found a new group was
appearing or disappearing about every two weeks, so some groups may no longer
exist or now have different names. As it was corrected, this list has been been
and continues to be updated
and will remain available on this site. Corrections are appreciated, and should
be sent to energywiz@aol.com. In
some cases, only an organization's name was available when the list was compiled. If you have further information, please e-mail it to energywiz@aol.com,
or send it by postal mail to: Energywiz, Inc., 221 Cleveland Drive, Croton on
Hudson, NY 10520,so that our next edition will be more complete. Not all groups fit easily
into a category, nor do they necessarily have similar agendas. This list
contains at least ten different "flavors" of organizations:
-
user-controlled groups with bylaws and dues,
controlled democratically
-
collections of customers of one utility
consultant, controlled by that firm
-
user-controlled groups organized around just
one issue at the moment
-
government-sponsored coalitions where state
agencies call the shots
-
affinity groups having core interests other
than energy (such as trade associations)
-
energy advocacy groups allying with some end
users to support interventions
-
loose groups of a few customers using an
attorney for a specific intervention
-
one large customer with which smaller firms
have allied for specific actions
-
groups dominated by customers of one type
(e.g., office real estate)
-
offshoots of groups, acting as aggregated
energy purchasing agencies
During this research, a variety of "front" groups turned up that
were basically fake organizations whose primary support came from utilities,
energy or equipment vendors, a single large customer, or political organizations
trying to use end users to legitimize their positions, or otherwise benefit
their agendas. Every effort was made to screen out such groups, but readers are
cautioned to closely examine organizations to ensure they truly share your
goals. If you're not sure, ask them to take Energybuyer's quiz.
State utility consumer advocacy offices (which typically represent
smaller customers) are also listed, primarily because they are often good
sources of information about groups active in their states. Such offices may be
separate, part of your public utility commission, or within a state
attorney-general's office.
Choosing A Group That's Right For You
To determine if a particular group is appropriate to your needs, ask the
following questions:
1. Who's running the show: who are the leaders and what are their agendas?
2. How are decisions made: are the leaders elected, and who gets to vote?
3. Are utilities, vendors and/or consultants (as versus end users) allowed
to join? if so,
can they influence decisions?
4. What benefits does membership provide (e.g., information, aggregated
pricing,
networking, regulatory/legal representation)?
5. When you meet the members, are you comfortable talking among them (e.g.,
are
many of them at your professional level)?
6. Are any of your competitors also members, and does that make a
difference
to you?
7. What actions has it taken in the past: would you have supported the
group's position?
8. How are dues and/or contributions to actions determined?
9. How will your convince your firm pay that amount on an annual basis?
10. Is the group growing or shrinking? (If there is a choice, go where
there is vitality.)
If no group seems right for you, it may be time to start your own. For help,
see A GUIDE TO FORMING AN ENERGY USERS GROUP by
Lindsay Audin, president of
Energywiz, Inc.
Many organizations exist to help businesses and institutions, but few of them
are focused on energy prices. Energy user groups help fill that need . When
their members combine their interests and talents toward mutual benefit, the
result is often a powerful and rewarding venture for all of them.
Energywiz, Inc.
Adding New Dimensions to Energy Services
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