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.

As part of its procurement strategy, and in service of the Executive Order goal of procuring 100% of State electricity usage from renewable energy sources, OER has been purchasing renewable energy credits. These credits match the percentage of electricity supply not already being provided from renewable sources by the utility to ensure 100% of the State’s electricity usage comes from renewable sources. Since 2020, the State has procured 100% of its electricity from renewable sources. 

Given the scale of the utility spend for the State –and its public sector partners – these energy procurements have been tremendously successful with avoided energy costs of tens of millions of dollars since program inception. These contracts also lock 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.

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