Energy Commodity Procurement Program

1
Energy Commodity Procurement Program Investigators
Mark J. Pruitt, Energy Resources Center Prime
Grant Support Illinois Department of Central
Management Services
Problem Statement and Motivation

• Natural gas and electricity markets in Illinois
  are deregulating
• Management of commodity delivery, pricing, and
  risk management are now the responsibility of the
  end user
• The State realized that direct management of
  procurement, billing, and risk management were
  essential to protecting the States interests and
  operating budgets
• The ERC was selected to manage deregulated
  commodity procurement for all state facilities

Key Achievements and Future Goals
Technical Approach

• Data analysis and management is key to
  supporting daily purchasing decisions as well as
  long term strategy development.
• The ERC developed a series of billing, modeling,
  and analytical tools to support data and decision
  management activities
• The ERC now trades utility account data with
  utilities and suppliers on a daily basis to track
  and verify consumption and costs

• recently expanded program to include electricity
  procurement in addition to natural gas
  procurement
• Successfully negotiated a five year natural gas
  contract for State facilities
• Saved state accounts thousands in misapplied
  taxes through special exemption filing
• Developed an electricity solicitation for all
  state accounts in the Commonwealth Edison Service
  territory
• Drafting amendment to CMS and ERC interagency
  agreement that will extend our relationship to
  2011