Energy Pricing and Load Management:
An E Source Market Research Multi-Client Study, 2001

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Prospectus

The Pricing Study prospectus is available for download as a PDF file (40k). The Adobe Acrobat Reader is required to view PDF files. If you do not have the Acrobat Reader application software, you may download the Reader for free from Adobe Systems Incorporated.

For more details on this study, download a PDF of the prospectus.

Study Objectives

Finalized in March of 2001, this study measures the energy pricing preferences of medium and large North American businesses in commercial, industrial, and institutional market sectors. The results provide insight into the following topics:

• End-users' knowledge and sophistication regarding energy pricing
• Decision-making process surrounding energy procurement
• Interest in participating in load reduction programs
• Interest in and propensity to select various pricing options

Creating Pricing Packages

"I would prefer shorter contracts over longer contracts in order to remain flexible. You don't know what will happen in the energy marketplace in the future."

We all know price is key to any deal, but this research identifies and quantifies "intangible" elements that enhance the overall value of your offer. The ability to deliver on contracts, your company's reputation, and the length of the contract are just a few elements that should be considered as part of your pricing packages.

• Create market entry scenarios
• Test and compare different pricing packages to determine the most preferred option for your buyers
• Quantify interest in index rates, weather insurance, price spike insurance, or price guarantees
• Identify the key procurers of energy within different types of organizations

The Power of Load Management

A surprisingly large amount of respondents' energy load on a typical day is considered nonessential—and that's good news in a constrained energy supply market. When faced with increasing market prices, respondents reportedly are able to shed or drop a significant portion of that nonessential load.

This study highlights the customer groups most likely to participate in load reduction programs and identifies the elements of load reduction programs that are most relevant to each group's operations—such as time of day or the number of times they are asked to reduce load. With E Source's pricing package simulator, study subscribers can model the impact of adding voluntary or interruptible programs to their offerings. You'll be able to:

• Quantify load available for reduction at peak times
• Identify key market sectors willing to participate in a given type of load reduction program
• Assess the impact of the price paid on respondents' willingness to shed or drop load
• Identify sectors that have the most "nonessential load"
• Estimate the impact these programs could have on your portfolio

Understanding the End User

Use the results of this study to learn more about your market. Do energy decision-makers spend a majority of their time on energy management? Are they most often the sole decision-maker or are they part of a team? Does this differ by market segment or by size of business? All results can be sorted and looked at from the following perspectives:

• Number of employees
• Hours of operation
• Square footage
• Region
• Energy bills
• Ownership status
• Number of locations
• Decision-making structure