Q: What is Usource? A: Usource is a subsidiary of Unitil Corporation, based in Hampton, NH, provides customized Energy Management and Procurement Services to large and medium-sized commercial, industrial and institutional customers throughout the Northeast and Mid-Atlantic. Usource works with clients to manage, to control and to reduce electricity and natural gas costs.   Q: Is Usource also an energy supplier? A: No, Usource is an independent company that works with all suppliers of natural gas and electricity on behalf of its clients.   Q: What experience does Usource have in energy procurement? A: Established in 1999, the Usource energy management and procurement teams have assisted 400 plus clients purchase more than 65 billion cubic feet of natural gas and over 7½ billion killowatthours of electricity at a value of $1.1 Billion.   Q: What type of energy is procured through Usource? A: Usource specializes in the procurement of natural gas and electricity for its commercial, industrial and institutional clients. Clients   Q: Who uses Usource? A: 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 markets. Usource clients include manufacturers, retail stores, financial institutions, hospitals, school districts, universities and government entities.   Q: What geographic area does Usource currently service? A: Usource currently serves electricity and natural gas clients in the Northeast and Mid-Atlantic regions (CT, MA, ME, NH, NY and PA).   Q: Why use Usource instead of dealing directly with a supplier? A: Usource is an independent and unbiased company that has an extensive network of both electricity and natural gas suppliers. Usource has agreements in-place and a good working relationship with active suppliers in all its market areas. 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. Suppliers work hard to earn our clients' business and always come forward with their best prices. The dynamics of the supplier market are fluid and change weekly. The Supplier that was most competitive a week, a month or a year ago may not be the most competitive supplier at the time a Usource client elects to go to the market. The benefit that Usource provides to its Clients by insuring that it receives pricing from the most competitive suppliers in the market will result in cost reductions for Usource clients.   Q: I am concerned about how much time and resources it takes to make energy decisions, how can Usource help? A: Usource acting as an extension a client's staff frees the client's resources so that the client can focus on business critical needs, while the Usource consultants focus on the client's energy needs. Usource simplifies the process by providing a single point of access to all energy suppliers, developing a client-approved procurement strategy and monitoring the energy markets in order to execute to the strategy when market conditions are favorable. Usource's expertise and depth allows it to administer the complex and time consuming energy procurement and risk management process. Clients who utilize Usource's services and guidance will spend on average approximately 8 hours per year involved in managing the costs and risks of electricity and natural gas procurement. Usource minimizes its client's time commitment a time consuming and complex process by: 1.    Strategy meeting - Usource and client 2.    Obtain and analyze client's detailed energy usage patterns and levels 3.    Preparing a solicitation for client's energy needs 4.    Receiving bids from multiple suppliers 5.    Usource analyses those bids and the terms of supplier contracts 6.    Presenting bids and Terms to the client * 7.    Helping client to understand the bids * 8.    Helping client decide which bid is best * 9.    Awarding the deal to client's selected Supplier 10.    Working through any credit issues with Supplier and client * 11.    Reviewing client's/Supplier's contract to ensure it is correct 12.    Transmitting contract to client 13.    Client Executes Contract * 14.    Receiving the executed contract back from the client 15.    Forwarding executed contract to the Supplier While it will take Usource approximately 2 weeks to complete the above 15-step process, the client's involvement will be only:   15 to 30 minutes for the Strategy meeting (item 1 above), and   15 to 30 minutes to review bids, select supplier and execute the contract on the scheduled bid closing day ( Items with the * above ) (In addition, client may wish to spend some time reviewing boiler plate supplier contracts to become acquainted with supplier-specific options such as payment terms, band-width provisions, default provisions, etc.) Suppliers   Q: How soon after I sign with Usource, can I expect to see activity on my account? A: : Usually, within a day or two. Typically the entire process takes about two weeks. During the first week, a Usource Operations Consultant will make initial contact with the Client to briefly explain the process and schedule a strategy meeting. On the scheduled date, the Consultant works with the client to develop a comprehensive energy procurement strategy designed to meet the client's specific needs and to schedule the "out-to-bid/closing date". The Usource Operations Consultant will then execute the strategy during the second week, and a supply contract will be closed on the scheduled date.   Q: As a Usource client, how do I know I will be happy with the contract and supplier chosen? A: First, 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. Second, Usource clients will have time to review sample contracts for all suppliers that will be solicited and will have the opportunity to discuss any concerns with a Usource consultant before going to the market. Third, the Usource consultant will review all bids with the client, explaining all the specific provisions and the differences among supplier bids before the client selects the winning supplier. Fourth, the Usource consultant will review the winning supplier's contract to ensure all provisions are accurate and correct before forwarding it to the client for execution. Finally, the Usource consultant is available to the client throughout the term of the engagement to answer any questions that arise or deal with any problems that surface. Pricing   Q: How does Usource help me get the best pricing? A: First, there is more to the best deal than just pricing. Other factors include term of contract, payment provisions, and "swing" provisions and risk of substantial future price increases. Usource works with clients to ensure they understand all of these factors and to develop a strategy to meet the client's needs. Usource then uses its extensive market experience to leverage competitive supplier activity with market opportunities in order to deliver the best combination of contract provisions, including price, for each client. Usource provides substantial value to its Clients by being proactive and assisting them in managing energy costs. Usource works with Clients to understand their budget needs and risk tolerance and to execute procurements when it is best for the client, in accordance with their budget and risk tolerance. Usource works with clients to avoid being market price takers who are subject to short term market conditions such as: hurricanes in the production region, a ten-year winter or a ten-year summer. Each of these events would cause a significant short-term cost increase to a consumer. Significant cost reductions can be achieved through proactive management and timing of the purchasing decision. (Usource does not project or forecast the low market point. Forecasting the low point of the market is impossible to do.)   Q: Are there any fees associated with using Usource to procure energy? A: Yes. The winning supplier pays Usource a business origination fee over the term of the energy supply contract.