FAQ
Frequently Asked Questions
When does the new P4S Contract go into effect?
The P4S contract with ENGIE Resources goes into effect January 2020 at the conclusion of P4S contract with FES.
Who is the supplier?
ENGIE Resources currently provides electricity to commercial and industrial customers in 14 markets: Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, and Washington, D.C. ENGIE Resources has been providing electricity to customers since 2002 and has been consistently ranked as one of the leading suppliers. ENGIE serves a broad spectrum of business customers, ranging in size from small convenience stores to large refineries.
How was ENGIE Resources selected?
After a thorough RFP, ENGIE was selected as the supplier who brought the best pricing and agreement terms. Agreements were negotiated by P4S, the P4S law firm of Bricker and Eckler, Palmer Energy and Econergy to ensure that they best serve the needs of our districts.
How long is the contract for the new program?
24 months
What is the electricity rate on the new program?
Option 1: Energy-Only, fixed price product for $.03194/kWh
Option 2: Modified All-Inclusive fixed price product priced individually on districts request
What’s the difference between the Energy-Only and Modified All-Inclusive options?
Energy-Only Option
The Energy-Only option provides pricing on just the energy. All other components (losses, transmission, congestion, reliability must run charges, ancillary services, and capacity) are passed through without vendor markups, which ensures that P4S districts are receiving the lowest cost electricity service available.
Energy-Only Option Benefits:
- Increased probability of getting lower overall prices
- The district is paying for its actual use and demand; not what a supplier thinks the district is going to use based upon history
- If the district manages its demands and loads, it would be better-reflected in this type of pricing structure
- If the district’s generation capacity levels decline for the 2nd year of the agreement, the district would benefit from lower costs
- Passing through costs to the district reduces supplier risks and creates a more competitive price
Energy-Only Option Drawbacks:
- Increases in the district’s demands and loads may cause higher prices
- It is more difficult to budget your electricity costs
- Explaining this structure to other internal stakeholders may be more challenging
Modified All-Inclusive Option
The Modified All-Inclusive option includes energy and all other components with the exception of congestion and losses. If you are interested in the All-Inclusive price, please immediately contact Barb DelRoso at bdelroso@osconline.org. Barb will coordinate with ENGIE Resources to obtain an exact All-Inclusive price.
Modified All-Inclusive Option Benefits:
- The district is protected from increases in the district’s demands and loads
- Easier to budget electricity costs
- The district continues to rely on suppliers to manage many of the cost risks
- Easier to explain this structure to other internal stakeholders
Modified All-Inclusive Option Drawbacks:
- Likely a higher price than the Energy-Only Option
- The district is paying for a supplier estimate of the district’s historical use plus some coverage for the risk of changes during the term
- The district cannot benefit from managing its demands and loads during the term of the agreement
- A decline in the district’s generation capacity levels for the 2nd year of the agreement would not lower costs
Which Option is right for my district?
Either option will save the district at least 10% over the current FES Rate of $0.0518/kWh. The only question is which rate feels most comfortable for your district.
The difference in the two options relate to whether the district wants to pay for its actual usage for all components related to electricity (Energy Only with all other cost components pass thru without any vendor profit margin added) or whether the district wants to pay for their actual energy usage and also have ENGIE estimate the cost of all pass thru components (Modified All Inclusive).
How do I join?
Contact Barb DelRoso at bdelroso@osconline.org.
Who do I contact if I have questions?
If you have questions, please feel free to contact Barb DelRoso at bdelroso@osconline.org.