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What is Usource?
Usource, a subsidiary of Unitil Corporation (NYSE : UTL), provides custom energy management and procurement services to commercial, industrial, and institutional customers in deregulated markets. Usource helps clients manage, control and reduce electricity and natural gas costs.
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Is Usource also an energy supplier?
No, Usource is an independent company that works with all reputable suppliers of natural gas and electricity on behalf of its clients.
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What experience does Usource have in energy procurement?
Established in 1999, Usource energy management and procurement teams have assisted well over 1000 clients purchase more than 96 billion cubic feet of natural gas and over 16 billion kilowatt-hours of electricity at a value of $2.4 Billion.
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What type of energy is procured through Usource?
Usource specializes in the procurement of natural gas and electricity for commercial, industrial and institutional clients.
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Who uses Usource?
Medium to large energy users who do not have the time, resources or expertise to optimize the purchase of energy in very complicated and highly volatile deregulated markets. Usource clients include manufacturers, retail chains, financial institutions, hospitals, school districts, universities and government entities.
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What geographic area does Usource currently service?
Usource currently serves electricity and / or natural gas clients in 18 States (CT, DE, FL,GA, IL, IN,ME, MD, MA, MN, NH, NJ, NY, OH, OK, PA, RI, TX), and expands into new markets as they become deregulated.
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Why use Usource instead of dealing directly with a supplier?
The dynamics of the supplier market are highly fluid. The supplier that was most competitive a week, a month or a year ago may not be the most competitive when you decide to go to market. Usource acts as an independent and unbiased broker in this volatile arena, with access to the most currently competitive suppliers. For their part, suppliers know that when Usource goes to the market on behalf of its Client, a transaction is going to get done, usually that day, and that the most competitive supplier will win the business. Consequently, suppliers work hard to earn our clients' business and always come forward with their best prices.
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How can Usource help me reduce the time and resources it takes to make energy decisions?
Usource acts as an energy-procurement extension of your staff, freeing internal resources for other business-critical needs. You get a single point of access to all energy suppliers and markets, with alerts and reports as often as you need them. We help you develop a procurement strategy, then monitor the energy markets in order to execute the strategy when market conditions are favorable. Our expertise and depth allows us to administer the complex and time consuming energy procurement and risk management process.
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How much time can Usource save me?
After the initial setup, clients who utilize Usource's services and guidance will spend only about 8 hours per year involved in managing the costs and risks of electricity and natural gas procurement.
| Usource analysts and experts |
Time |
Your team |
Time |
| Initial strategy session; reviewing usage patterns, bills and meter reads; tracking markets, initiating and running auction, analyzing bids & making recommendations, reviewing contracts, expediting signing, |
2 weeks |
Provide energy bills and basic information, review recommendations |
1-3 hours |
| Ongoing usage & billing monitoring, market tracking, client notification of market opportunities |
12 months, ongoing |
Review recommendations, reports and newsletters |
8 hours |
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How do I start working with Usource?
It’s quite simple. You sign an agreement that we are your exclusive energy broker. It’s a straightforward agreement that costs you nothing, and you can get out of easily by giving us 30 days’ notice. It simply gives us the authorization to start working on your behalf.
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Why is the exclusivity clause in the USource contract important?
There are two reasons that exclusivity is important for our customers. First, exclusivity forces all suppliers to participate through the Usource process, thus driving intense competition for your business. Those not willing to bid on our platform, have some reason not to show their price up against others in a truly competitive arena. That is why we require all bids to go through our platform. Second, suppliers will only work with one energy broker at a time per account. The exclusivity eliminates any confusion as to who represents you, ensuring no delays occur when it comes time to execute on a strategy.
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How soon after I sign with Usource can I expect to see activity on my account?
Usually, within a day or two -- the entire procurement process takes about two weeks. During the first week, a Usource operations consultant will make initial contact with you to briefly explain the process and schedule a strategy meeting. At the meeting, we work with you to develop a comprehensive energy procurement strategy designed to meet your specific needs and to schedule the "out-to-bid/closing date". The Usource operations consultant executes your strategy during the second week, and a supply contract is closed on the scheduled date.
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As a Usource client, how do I know I will be happy with the contract and supplier chosen?
Usource ensures your complete satisfaction in five ways:
- Usource only deals with registered/licensed suppliers. This ensures that Usource clients will be served by a reputable supplier, one that probably is serving thousands of other consumers.
- You are given ample time to review sample contracts from all solicited suppliers and discuss any concerns with your Usource consultant before going to market.
- Your consultant reviews all bids with you, explaining all the specific provisions and differences among supplier bids before you select the winning supplier.
- Your consultant reviews the winning supplier's contract to ensure all provisions are accurate and correct before forwarding it to the client for execution.
- Your consultant is available to you throughout the term of the engagement to answer any questions that arise or deal with any problems that surface.
- You make the decision. Usource works to get you the best deal, but it must meet your expectations
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How does Usource help me get the best deal?
While we carefully monitor the markets using our proprietary Usource Market Tracking technology, there is more to the best deal than just pricing. We help you carefully consider a range of factors that give you flexibility down the road:
- term of contract
- payment provisions
- "swing" provisions
- risk of substantial future price increases
After we are sure you understand these factors and help you formulate a realistic strategy, we leverage supplier terms against market opportunities to deliver the best combination of contract provisions -- including price -- for each client.
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What’s the essence of your service offering?
Usource provides substantial value to you by being proactive and assisting you to manage energy costs. We work hard to understand your budget needs and risk tolerance, and to execute procurements when it is best for you, in accordance with your budget and risk tolerance.
We help you avoid becoming a ‘price taker’, subject to short term market conditions that cause significant short-term cost increases to consumers:
- hurricanes in the production region
- a ten-year winter
- a ten-year summer
Large cost reductions can be achieved through proactive management and timing of the purchasing decision.
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Are there any fees associated with using Usource to procure energy?
Yes. The winning supplier pays Usource a business origination fee over the term of the energy supply contract.