Competitive Energy Supply Procurement

In an effort to reduce public sector energy costs, OER – in partnership with the Department of Administration – is supporting competitive energy supply procurement processes for State Agencies. These procurements have also been made available to other public sector entities, such as quasi-state agencies, municipalities, and public colleges and universities. By aggregating demand and leveraging economies of scale through a competitive process, OER and DOA aim to reduce energy supply costs, reduce energy price volatility, and provide budget certainty for all participating public entities. OER has been managing competitive procurements since 2015 for electricity and 2009 for natural gas.

The most recent procurement for electric supply was conducted in June of 2020 and resulted in a 4 year supply contract being awarded, which is expected to save the State approximately $2 million annually compared to prior contract rates, and resulting in a cumulative energy savings of over $8 million dollars across the life of the contract. The contract locks in a fixed supply rate that will reduce State Government’s exposure to energy price volatility and avoid price spikes during winter months and the summer peak period. As part of this agreement, all State Government electric accounts included in this procurement will be offset by Renewable Energy Certificates (RECs), accounting for 95% of the government's total demand. 

The most recent procurement for natural gas supply was conducted in 2019 and resulted in a 3 year supply contract being awarded, which is estimated to save the State approximately $2.1 million dollars annually compared to prior contract rates, or cumulatively over $6 million dollars across the life of the contract.

Eligible Entities: All Rhode Island State Agencies, Municipalities, Public Schools (including Public Colleges and Universities), and Quasi-State agencies, are eligible to join the State’s competitive supply procurements.

If you are interested in joining the next energy supply procurement for electricity or natural gas, or if you would like to explore joining the current energy contract, please contact Nathan Cleveland, nathan.cleveland@energy.ri.gov