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Utility-Customer Rate Negotiations Blackmail or Compromise?
Abstract
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.
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Citation
Gilbert, J. S. (1988). Utility-Customer Rate Negotiations Blackmail or Compromise?. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92359.