MANAGING ENERGY COSTS
Life science research, development and manufacturing facilities face significant energy operation costs, but they also have valuable opportunities to reduce these costs and improve reliability of their electricity and natural gas service.
WHY DWT FOR ENERGY EXPERTISE?
At DWT, our talented and diverse group of energy attorneys are experienced in energy procurement, financing and regulation. We have the technical skills and the extensive industry-focused experience to advise companies on their procurement of electricity and natural gas and to represent companies in negotiating energy contracts, in the development and financing of self-generation facilities, in regulatory proceedings that affect the cost and terms of energy service, and in contractual disputes with utilities and other energy service providers.
We have advised a wide range of energy users on procurement issues, including conducting RFPs for electricity and natural gas service, negotiating power and natural gas procurement contracts, and in resolving billing and tariff disputes with utilities.
The development of on-site electric generation facilities to serve as a primary or backup source of electricity for a large facility provides an opportunity for research and manufacturing facilities to reduce their energy costs and better ensure the reliability of their service and their ability to continue operating in the event their utility curtails electric service. A number of states offer financial incentives to encourage the installation of solar, photovoltaic and other self-generation equipment. In addition, an increasing number of companies are offering arrangements where they build and operate solar or other generation equipment at the customer’s facility and provide the electricity to the host customer at a discounted rate. This type of third-party financing enables large energy users to obtain the benefits of self-generation, including lower-cost electricity and increased reliability, without a large capital outlay and with reduced long-term risk.
Regulatory activities are an integral part of procuring electricity and natural gas for facilities at the lowest cost. Because research and manufacturing facilities are among the largest customers of electric and gas utilities, utility rate cases have a significant impact on the rates those facilities pay for electric and natural gas service. Our attorneys have extensive experience successfully representing energy users in federal and state regulatory proceedings that affect electricity and natural gas rates and utility terms of service.
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