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Running an electricity RFP for a commercial portfolio

Commercial procurement

Single-site SMB up to multi-site retail and Class-A office. How to scope the RFP, who to invite, and how to score offers apples-to-apples.

Harry Parker

Energy Consultant, Seenra Inc

Commercial procurement12 min readPublished Updated

Featured infographic

The 9-to-1 RFP funnel — commercial procurement in four stages

9 invited → 5 priced → 2 finalists → 1 locked. Every stage is logged, scored, and disclosed. The funnel is what makes the rate comparison apples-to-apples.

Open graph image · /og/rfp-funnel.png

The short answer

Bundle the load profile across all sites before going to market.

Commercial energy procurement is a discipline of standardising the load profile, scoring offers apples-to-apples, and avoiding the silent rollover at end of term. For a single-site SMB the math runs $4,500–$6,500 in monthly bills; for a Class-A office or a multi-site retail portfolio it can run $25,000–$60,000+ per month. This guide walks through the four-stage RFP funnel that consistently wins the best price across deregulated US markets, the contract clauses that matter, and the scoring framework that bakes commission disclosure into the rate comparison.

Stage 1 — bundling the load profile across all sites

Before going to market, standardise the load profile across all sites in the bundle: kWh per month, kW peak, contract end-dates, current supplier, current rate, and any rate-affecting clauses (TOU, demand response, capacity tag).

A clean bundle gets better pricing because it reduces the supplier's acquisition cost. A messy bundle (mixed end-dates, mixed rate types, missing data) gets penalised in pricing because the supplier has to add risk margin.

For multi-state portfolios, the bundle is by state — most state PUC license boundaries do not allow a single contract to cover multiple states. Bundles can still be coordinated to expire in the same month.

Infographic

Multi-site bundle — 8 sites converging into 1 contract

Aggregation reduces supplier acquisition cost; suppliers price 1.5–2.5% better against bundles than against individual site shopping.

Stage 2 — invite 9 suppliers, expect 5 priced offers

Invite 9 PUC-licensed suppliers per market. Of those, 5 typically come back with priced offers; the other 4 either pass on the bundle (load profile not a fit) or do not respond inside the window.

The 9 invited list should mix tier-1 nationals (Constellation, NRG, Direct Energy) with regional specialists who know the specific utility tariff. Tier-1 nationals price aggressively on volume; regional specialists know the delivery-side details that affect the supply-side hedge.

Each priced offer arrives with: locked rate (¢/kWh), term length, contract clauses (early termination, swing tolerance, banking, etc.), and commission disclosure (in $ and basis points).

Stage 3 — score 2 finalists apples-to-apples

From the 5 priced offers, pick 2 finalists based on locked rate. Then run a second-pass apples-to-apples comparison that bakes the commission into the rate. A 12.6¢ offer with a 0.4¢ commission is structurally a 13.0¢ effective rate; a 12.8¢ offer with a 0.2¢ commission is a 13.0¢ effective rate.

The contract-clause comparison matters as much as the rate. Swing tolerance (the +/- band on monthly volume before the supplier penalises), banking (the ability to roll unused volume), and force-majeure clauses can all affect the effective cost over the term.

The 2 finalists also get a final negotiation pass. Suppliers expect this and will move 0.1–0.3¢ on the rate or relax a clause to win the lock.

Stage 4 — lock the supplier, then watch the renewal

E-sign the supplier authorisation, transmit to the utility via EDI 814, and stamp the contract end-date into the re-shop calendar.

The lock is the start of the deal, not the end. The renewal-watch clock begins the day the contract starts. Sixty to 90 days before expiry, the next-term comparison runs automatically.

  • Bundle the load profile across all sites first.
  • Invite 9 PUC-licensed suppliers per market; expect 5 priced offers.
  • Score 2 finalists apples-to-apples on locked rate + clauses + commission.
  • Lock the winner. Stamp the end-date. Watch the renewal.

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Common questions

Quick answers from the editorial desk

What load sizes does Seenra cover for commercial accounts?
Today we cover commercial accounts roughly $4,000 to $60,000 in monthly electricity spend (~25,000 to 400,000 kWh/mo) in deregulated markets. Larger industrial loads above 1 MW peak are handled through a separate procurement workflow — contact us for a custom quote.
How does Seenra make money if commercial procurement is run for the buyer?
When a contract is signed, the supplier pays Seenra a small commission. The amount is disclosed up front in the offer summary in dollar-and-basis-point form. The buyer-side price does not change with or without a broker — the supplier pays the commission either way.
How long does a commercial RFP take end to end?
Typical timeline: 5 days to bundle the load profile, 7–10 days for suppliers to return priced offers, 2–3 days for finalist scoring and negotiation, 1 day to e-sign. End-to-end roughly 3 weeks. Larger portfolios run 4–6 weeks.

Sources

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