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Utility-Customer Rate Negotiations Blackmail or Compromise?
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Whether you are employed by an industrial or a large commercial establishment, you are now in a position to negotiate the price and service level of your energy sources. Utilities are busy designing creative methods to retain, shape and expand their business. Their customers are looking for the most economic, reliable and trustworthy supplier. This freedom to set prices and levels of service is limited to be sure, since these areas still are under significant regulatory overview, but there is a great deal of latitude. This paper will illustrate how the success you experience is predicated upon the manner in which you approach your options. Our objective is to offer candid advice to keep your activity productive and your business relationships healthy over the long haul. We will also discuss types of projects that are being used strictly for negotiation. It is probably obvious that you can use cogeneration as a technology to play fuel suppliers against each other, then to turn that around to negotiate a reduced price for your electrical service (if you really do not want to be in the power generation business). In fact, you may be able to use projects to secure much more than simply a better price.
Gilbert, J. S. (1988). Utility-Customer Rate Negotiations Blackmail or Compromise?. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from