Who can run an electricity supply RFP across multiple deregulated states?
One RFP for every eligible account in every deregulated state, with every supplier quoting the same terms, read against how each market splits its charges, and timed with monthly market data.
A multi-state electricity supply RFP needs a provider that can legally act for you in each state (several states license or register brokers and consultants), that inventories every account first, writes one set of bid requirements for the whole portfolio, and compares offers line for line market by market. Discovery Energy Utility Audits runs these RFPs for multi-site commercial and industrial companies across the deregulated U.S. markets, for electricity and natural gas, and tracks each signed contract to renewal in TaraBase. Discovery acts as the client's energy broker; its energy broker licenses and registrations are held by Energy Auction Exchange, LLC. It discloses its procurement fee: a fixed monthly fee or a supplier-paid commission.
01 / 06
Why a multi-state RFP is harder than a single-site renewal
A company with 40 sites in eight states does not have one electricity contract. It has dozens, with different suppliers, end dates, products and pass-through terms, under utilities whose tariffs and market rules differ. Three things make the multi-state version hard.
Licensing caps who can buy for you
Brokers and consultants are regulated state by state. Pennsylvania licenses brokers and marketers as electric generation suppliers. Texas requires anyone providing electricity brokerage services for compensation to register with the Public Utility Commission. Ohio requires power brokers and aggregators to be certified. New York requires energy brokers and energy consultants to register with the Public Service Commission and to disclose their compensation to customers. A provider licensed in two states can run an RFP for two states; the rest of the portfolio stays where it was. Discovery Energy acts as an energy broker in its procurement work, and its broker licenses and registrations are held by Energy Auction Exchange, LLC. Ask any provider, Discovery included, for the license or registration that covers each state where you have sites.
Each market splits the bill differently
Capacity, transmission and ancillary services are priced and allocated differently in PJM, ERCOT, NYISO, ISO-NE, MISO and CAISO. In PJM, capacity is bought three years ahead in an auction and charged to each account through its peak load contribution; in ERCOT, transmission costs follow four summer intervals. A supplier that passes those charges through can quote a lower price than one that fixes them, and the two are not comparable until the charges are put on the same basis. Discovery's guide to how each market splits the charges covers the detail.
Contract dates do not line up
Contracts signed site by site end on different dates, so the company is in the market every few months without ever buying as a portfolio. An RFP that aligns end dates turns dozens of renewals into one event.
02 / 06
Who can run it: the four kinds of provider
| Provider | How it is usually paid | Strength | What to check |
|---|---|---|---|
| Retail supplier's own sales team | Its margin | Fast, one contract | Only one supplier's offers; no competition |
| Regional energy broker | Commission added to the supplier price | Knows its states well | Licensing footprint; how many suppliers it invites; whether the adder is disclosed |
| National energy consultant | Fee, commission or both | Covers many markets | Whether bids are normalized market by market; who owns the contract data |
| Integrated audit and procurement firm (Discovery's model) | Disclosed fixed fee or supplier-paid commission; audits on contingency | Bills, tariffs, contracts and renewals in one account inventory | Same questions: licensing, supplier field, fee disclosure, contract tracking |
Whichever provider you use, ask for its licenses or registrations in each state where it will act, the number of suppliers it will invite, how it will put every bid on the same terms, and its compensation in writing. The energy broker fees guide explains how commissions work and what a disclosure should show.
03 / 06
How Discovery runs a multi-state RFP, step by step
Inventory every account
Every electricity and gas account in every state: utility, account and meter numbers, current supplier, product, contract end date, early termination terms, rate class and 12 to 24 months of usage. Accounts in regulated territories are flagged for a tariff audit instead.
Collect the usage data
A letter of authorization (LOA) lets Discovery request each account's history from the utility: interval or monthly usage, peak demand, and the capacity and transmission tags (for example the PJM peak load contribution and network service peak load) that suppliers need to price capacity and transmission.
Write one set of requirements
Product, term, start dates, treatment of capacity, transmission, ancillary and change-in-law charges, usage tolerance (bandwidth or swing), billing method and credit terms are set once, by market, so every supplier quotes the same thing.
Time the purchase
The monthly Energy Risk Report tracks forward prices and sets a buy-or-wait call. Retail offers for larger accounts are often priced off same-day wholesale curves and valid only for hours, so the RFP is run so that a decision can be made on pricing day.
Invite the whole supplier field
Every supplier active in each market and utility territory, not just the familiar names, receives the same package. Supplier questions are answered once and shared with all bidders.
Normalize and compare
Bids are laid out side by side for each market in each structure that fits: fixed, fixed with pass-throughs, index, block and index, or layered. Capacity and transmission are put on the same basis so a low headline price that passes them through is visible as such.
Review the contract terms
Material change and usage clauses, pass-through and change-in-law language, early termination, auto-renewal, assignment for site sales, and notice periods are read before signature. No supplier is switched and no contract signed without your written approval.
Enroll and track
Enrollment follows each utility's switching rules, usually on a meter-read date. Every contract goes into TaraBase with supplier, term, rate, billing type and expiration, and renewals are flagged well in advance.
04 / 06
What a supplier needs to price your portfolio
Account and meter list
Utility, account number, service address, rate class and voltage for each site, with the legal entity that will sign.
Usage history
At least 12 months, ideally 24, and interval data for larger accounts. Missing months raise risk premiums.
Capacity and transmission tags
The values the utility assigns each June (PJM) or the 4CP intervals (ERCOT). They drive a large share of the price in those markets.
Planned changes
Closures, expansions, new lines or on-site generation. Usage that moves outside the contract's tolerance can trigger extra charges.
Credit information
Suppliers set deposits or guarantees from credit; a parent guarantee can lower the cost of a large award.
Start dates
Current contract end dates and early termination terms, so new contracts start without a gap or an overlap penalty.
05 / 06
What to compare in the bids
Price per kWh is the last thing to compare, after the terms behind it are the same. For each market, check:
- What the price includes. Energy only, or energy plus capacity, transmission, ancillary services, losses and renewable portfolio standard costs.
- Pass-throughs. Which charges are billed at cost, and whether the supplier can add new ones under a change-in-law clause.
- Usage tolerance. How far usage can move above or below the contract volume before the supplier charges for the difference.
- Term and end date. Whether the end dates align with the rest of the portfolio, and the notice period to avoid automatic renewal.
- Billing. Utility consolidated billing or a separate supplier bill, and how errors are corrected.
The contract structures guide compares fixed, fixed with pass-throughs, index, block and index, and layered buying, and the commercial electricity procurement page explains each decision in more depth.
Documented result
At a 103-facility industrial services provider, the previous broker was licensed in two states. Costs fell in those two states and the rest of the portfolio was never evaluated. Once every eligible account was reviewed in one account inventory, procurement savings extended well beyond those two states. Read the case.
06 / 06
Questions buyers ask
Who can run an electricity supply RFP across multiple deregulated states?
A broker, consultant or integrated firm that is licensed or registered where each state requires it, invites the full supplier field and normalizes bids market by market. Discovery Energy Utility Audits runs one RFP for every eligible electricity and natural gas account across the deregulated states a company operates in, discloses its fee and tracks contracts to renewal in TaraBase.
How long does a multi-state RFP take?
Most of the time goes into the inventory and the utility usage data, which depends on how quickly each utility answers the letter of authorization. The bid itself runs over days, and pricing day is usually a single day because offers for larger accounts are valid only briefly.
Can sites with different contract end dates be bought together?
Yes. Sites whose contracts end later can be bought now with a deferred start date, so every site ends up on a common end date and the next renewal is one event.
Does the RFP include natural gas?
It can. Gas accounts on utility transportation service are bid the same way, with NYMEX and basis priced separately where that helps. See natural gas procurement.
What about sites in regulated states?
Where customers cannot choose a supplier, the utility's tariff sets the price, so the lever is an audit of how the tariff is applied: rate class, riders, demand and meter setup. See utility bill audits and the state-by-state guide.
Is Discovery Energy a licensed energy broker?
Discovery Energy acts as an energy broker for its procurement clients. Its energy broker licenses and registrations are held by Energy Auction Exchange, LLC. Ask Discovery for the license or registration that covers the states where your sites are.
How is Discovery paid for procurement?
A fixed monthly fee or a supplier-paid commission, disclosed before any contract is signed. Audits are separate and contingency-based.
Sources
- Pennsylvania Public Utility Commission, Electric Generation Supplier application resources, broker licensing.
- Public Utility Commission of Texas, Broker registration and reporting, registration for brokerage services (16 TAC §25.112).
- Ohio Administrative Code, Chapter 4901:1-24, broker and aggregator certification.
- ENGIE Resources, Brokers enter new era in New York, registration and compensation disclosure under New York Public Service Law §66-t.
- US EIA, Can customers choose their electricity supplier?
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