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Discovery Energy ยท Energy procurement

Multi-site energy contracts: one strategy for every property

How companies with many sites, from plants and warehouses to property portfolios, keep every electricity and gas contract competitive, aligned and visible, so nothing expires unnoticed.

Multi-site energy procurement is buying electricity and natural gas for many facilities as one portfolio instead of site by site. It starts with an inventory of every account and contract, aligns contract end dates so the portfolio renews together, buys through one RFP across every deregulated state, and tracks each contract to renewal. Discovery Energy Utility Audits does this for multi-site commercial and industrial companies, from about 10 to more than 1,000 utility accounts, and holds every contract in its TaraBase platform.

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What goes wrong when contracts are signed site by site

In most multi-site companies, energy contracts were signed by whoever managed each site when the renewal notice arrived. The pattern repeats across industries and property types:

  • Expirations nobody sees. A contract ends, the account rolls onto month-to-month or utility default pricing, and the higher rate hides in a site budget.
  • Different products for the same load. One site is on an all-in fixed price, another passes through capacity, a third is on index, and nobody chose the mix.
  • Constant renewals. Staggered end dates put the company in the market every few months, without the leverage of buying as a portfolio.
  • Acquired sites outside the program. New locations keep the seller's contracts, suppliers and payment setup until someone finds them.
  • Unlicensed states. A broker covers the states it is licensed in; sites elsewhere are never bid.

Searches like "multi-site property energy contracts" and "utility contract strategy" usually come from someone who has just found one of these. The fix is the same in each case: get every contract into one record, then decide the strategy for the portfolio.

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A portfolio contract strategy in five decisions

  1. Which accounts can be bought competitively

    Sites in deregulated states, and gas accounts that qualify for utility transport service. The rest are managed through tariff review. See deregulated states.

  2. A common end date

    Contracts that end later are bought now with deferred starts, so the portfolio renews together. A staggered option (for example half the load ending each year) spreads market risk without returning to site-by-site buying.

  3. One structure per market

    Fixed, fixed with pass-throughs, index, block and index or layered, chosen for each market's load and risk. See contract structures.

  4. Rules for change

    Usage tolerances wide enough for closures and expansions, assignment rights for sites that are sold, and a process for adding acquired sites to the master agreement.

  5. Renewal discipline

    Expiration dates, notice periods and auto-renewal clauses tracked centrally, with renewal starting months ahead, timed by the market.

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What the contract inventory holds

Fields Discovery keeps for every supply contract in TaraBase
FieldWhy it matters
Site, utility, account and meterLinks each contract to the bills it governs
Supplier and productShows the mix of structures across the portfolio
Rate and what it includesSeparates energy from capacity, transmission and pass-throughs
Start and end datesDrives the renewal calendar
Notice period and auto-renewal termsPrevents silent rollovers
Usage tolerance and early terminationShows the cost of closing, selling or expanding a site
Billing typeUtility consolidated or separate supplier bill, for payment and checking

Because the same inventory feeds bill pay and audits, a supplier invoice that does not match its contract, or a site still billed after its contract ended, shows up in the month it happens.

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Property portfolios and tenant-billed sites

Owners and operators of multi-site property portfolios face the same contract problems, plus one more: who pays. Common areas, vacant units and owner-occupied buildings are on the owner's contracts; tenant spaces may be on the tenant's own accounts or on the owner's with recovery. A portfolio strategy keeps owner-paid accounts in one program, documents which meters belong to whom, and makes sure contracts allow sites to be added or removed as buildings are bought, sold and leased.

For distribution networks, cold storage and other sites that change often, see warehousing and distribution and cold storage and logistics.

Documented result

A multi-state renewable natural gas producer with sites in 10 states recovered $3,959,202 in refunds through an audit, and managed energy buying cut its ongoing costs by more than $404,000 a month. Read the case.

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Questions buyers ask

Should every site be on the same energy contract?

Every site in the same market can usually sit under one master agreement with one structure, but each market needs its own terms because capacity and transmission work differently in each. The goal is fewer, aligned contracts, not one contract for different markets.

How do we add newly acquired sites?

Inventory the seller's contracts first: end dates, early termination and assignment terms. Sites can be added to the master agreement when their contracts end, or earlier if buying out the old contract is cheaper.

What is a utility contract strategy?

A written plan for which accounts are bought competitively, in what structure, on what end dates and with what renewal process, plus how tariff-only accounts are reviewed. It replaces site-by-site renewals with portfolio decisions.

Does Discovery manage contracts it did not negotiate?

Yes. Existing contracts are loaded into TaraBase and tracked to expiry, then bid in the next portfolio RFP.

See how your bills would be coded.

Send a list of accounts and your cost center structure. We show how each account would map before you move anything.