- Title : Plant Engineers & Managers Guide 17 by Albert Thumann, P.E., C.E.M.
- Publish : Marcel Dekker, Inc New York and Basel
- Type Document : pdf
- Release : December 2002
- Total Page : 8 page
- Size : 0.18 Mb
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Decrypted Contents
Fundamentals of Energy Outsourcing
This chapter addresses the fundamentals of energy outsourcing. It also discusses concerns that should be addressed prior to outsourcing energy activities. Elements to watch for when entering into agreements for outsourcing services are identified.
This chapter addresses the fundamentals of energy outsourcing. It also discusses concerns that should be addressed prior to outsourcing energy activities. Elements to watch for when entering into agreements for outsourcing services are identified.
INTRODUCTION
As states around the country begin allowing retail customers to choose their electricity provider, industries of all types, shapes, and sizes are becoming concerned with the question of preparedness. Will my company be prepared when the day comes? What are the risks? What’s the upside? What’s the downside? These are questions that must be asked and more importantly must be answered now. Planning for this major change in the energy industry will require most companies to devote a 3-year effort before they will be totally ready for all systems to operate smoothly. Note the Y2K correction effort that was highlighted more than a decade in advance. Therefore, it is essential that a company begin as early as possible. In most cases, outside help will be required and should be hired early into the program (during the initial planning stages).
To cope with many of these changes in this era of downsizing, rightsizing, restructuring, etc., companies are considering outsourcing their total energy requirements, not only electricity, but also natural gas and other energy-related commodities.