“My supply team and I manage 2,300 line items….we can’t be experts for each of these items. It’s encouraging and comforting to know that I can lean on Richards Energy Group for professional energy advice and counsel when I need it!”
– Larry J. Nissley, C.P.M. (Clean Burn)

Background

The phrase “Bigger is Better” applies to the electric deregulation arena as it does in many others; the largest industrials will be able to negotiate the best rates for the purchase of electricity. However, by forming a users’ group (or “affinity” group as the current jargon goes), many large, mid-sized or smaller industrial, institutional and commercial electrical loads can be carefully grouped to become both “bigger” and “better.”

Most users groups are somewhat loose in structure and involve similar types of businesses. A rate structure is negotiated with a chosen supplier, and members of the group can voluntarily sign up with that supplier. In contrast, our definition of a “strong” users group is a collection of users with diverse kinds of loads who commit to acting as a group with the supplier who provides the group with the best overall deal. If structured properly, strong groups will achieve better electric pricing than loose groups, because the supplier has a good handle on the magnitude and characteristics of the load, and because the group as a whole will present better overall load characteristics than the individual loads will.

REAP

By capitalizing on deregulation within the retail electric supply industry, REG continues to successfully deliver solid savings for clients. REAP members who participate in our electricity users’ group are able to join forces with others, aggregating diverse load profiles to shop collectively and achieve the best possible savings deregulation has to offer. REG vigilance ensures maximization of market volatility opportunities to secure lower-priced electric supply for members. We are a licensed supplier in Pennsylvania and Maryland.

Vital Statistics

• Over 400 valued clients, both large and small, from Harley Davidson’s manufacturing plant in York to Haydn Zug’s restaurant in East Petersburg

• REAP includes over 1400 electric accounts totaling $80 million in annual bills, with a collective annual usage of 1.1 BILLION kWh, and 260 MW demand

• Over $3,000,000 in savings have already been enjoyed by REAP members from current electric supply contracts and resolved utility errors and billing issues in 2010 alone

• Originally Pennsylvania-focused with a concentration in PPL and Met-Ed service territories;our customer base has expanded to include accounts served by PECO, Duquesne Light, & Penelec, as well as accounts served by utilities in newly deregulated Maryland and Delaware.

• April 1, 2006 figures from the PA Office of Consumer Advocate reveal that 18.9 MW of industrial/commercial load is currently being served by alternative suppliers within PPL’s service area…our REAP group accounts for 18.0 MW, or 95% OF ALL SHOPPERS IN PPL

THE REAP PROCESS

Evaluation: REG evaluates each business’ electric billing data to determine whether they may benefit from REAP membership.Membership: Presuming a reasonable likelihood of near or long term savings, a company joins REAP and becomes part of the billion kwh block of load REG shops for. The first annual membership fee is the maximum financial exposure any REAP member has, since no other fee is charged until savings total more than twice the fees paid.

Shopping: REG acquires and assembles detailed load and billing data for each member. Then we solicit suppliers, evaluate their qualifications, request proposals, and select the best offer for the group, as long as savings can be assured. After contract terms are negotiated and approved by REG, contracts are executed between the supplier and the REAP member.

Follow-Up: REG audits REAP members’ electric bills for errors and opportunities, whether or not suppliers’ contracts are in place. REG communicates current energy issues via blast emails, and holds an annual REAP meeting for all members to review performance and industry trends.

WHY REAP WORKS

Size: The REAP group keeps growing, with more than 400 members, who collectively consume over a billion KWH of electricity annually. With such a critical mass, we can attract not only retail suppliers, but also generators seeking long-term outlets for their power.Strong Group: Since each member of the group gives REG the power to make purchasing decisions for the group, timely decisions can be made and suppliers can offer better pricing, knowing that they are bidding for all the accounts at one time.

Data: By providing electric suppliers the maximum amount of load data in a consistent, professional format, REG is able to obtain better rates for REAP members.

Qualified Professionals: REG is licensed by the PA PUC. REG’s credentials include Professional Engineers (PE), Certified Energy Managers (CEM) and Certified Energy Procurement Professionals (CEP).

Focus and Independence: REAP was formed for the sole purpose of reducing electricity costs for a wide diversity of electrical loads. REG is paid directly by REAP members, and is therefore not beholden to any electric supplier.