Category Archives: Energy

The Nature of Energy as a Purchased Item

Robert Rudzki, a regular contributor to Sourcing Innovation, recently edited a great two-part series on the nature of energy as a purchased item (Part I and Part II) by Ted Eichenlaub over on the Supply Chain Management Review that should be added to your reading list if energy is a reasonably significant cost of your operations, as the price of energy is only going to increase in years to come.

In these pieces, Ted, who is a senior advisor in the energy practice at Greybeard Advisors, elaborates on the increasing complexity of energy buys in today’s Procurement environment as the commodity cost of energy is only one part of the total cost of energy to the end-user.

Some important points to keep in mind are:

  • Price and Volume
    Energy is expensive and its price is volatile. In order to take advantage of price volatility, the buyer must know what price will achieve the desired cost ledger performance, the volume requirements, and and the nature of the volume.
  • Hedging
    Hedging can be used to reduce price volatility, but it can also increase price volatility if the hedges are not made by an expert.
  • Credit Worthiness
    A supplier may be unwilling to grant a major long-term contract with price that is very likely to below the price it could command in a month or two if it thinks there is a good chance that the buyer might not be around to utilize the full volume of energy that the buyer is committing to.
  • Standardized Contracts
    Most suppliers use standardized contracts and there is little room for negotiation beyond price and volume.
  • Worldwide Sources
    The energy might be produced locally, across state lines, or internationally (in Canada). Depending on where it is produced, and where it is purchased, there may be documentary requirements, energy credits, or other concerns that need to be taken into account.

In addition, there are concerns regarding transportation and delivery, regulation, and responsibility that also need to be understood. For more information, check out the two part series on the nature of energy as a purchased item (Part I and Part II).

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The Most Overlooked Risk in Your Energy Supply Chain Just Got Worse!

And I’m still not talking about volcanic eruptions — which could bury or clog your production facilities with ash, a terrorist attack — which could blow up a pipeline, or plain old management incompetence — which could result in a poorly maintained drilling station blowing up, but suicidal Sciurus Carolinensis, who, over the past few months, has knocked out substations in Ohio and Florida.

Now it seems that these organized little critters have figured out that they can’t always do it themselves and have recruited procyon lotor to help with those “well-protected” substations that need some extra muscle. A few days ago, in Memphis, an acrobatic and mean-spirited raccoon climbed over more than 30 feet of barriers to short-curcuit a switch on a substation and knock out power to 8,000 customers, including two hospitals the newspaper, for over five hours.

It would appear that things are getting dangerous over the hedge now that squirrels and raccoons are working together. If you’re not ready, your energy supply chain could be next!

Partners in Terror

How Many Times Do I Have To Tell You …

… that the most often overlooked risk in your energy supply chain is suicidal Sciurus Carolinensis? It started with FirstEnergy customers in North Royalton (Ohio) when a squirrel found its way into a circuit breaker in a substation and knocked out power to 9,000 homes. Then another squirrel went on the offensive and caused a power outage for thousands of home and business Gulf Power customers in Central and West Destin (Florida).

Now another squirrel has managed to infiltrate yet another substation and knock out power to 17,000 Georgia Power customers in DeKalb County (Georgia). They’re organized, they’re on the attack, and they’re out to take down your energy supply chain! You better be ready, or you’ll be next!

Reminding You of the Most Often Overlooked Risk in Your Energy Supply Chain

It’s not volcanic eruptions, which could bury or clog your production facilities with ash, as these generally only occur every few years to every few hundred years.

It’s not an unpredictable terrorist act that could blow up a pipeline in North America.

No, it’s suicidal Sciurus Carolinensis.

Last December, when I first told you about the most often overlooked risk in your energy supply chain, I told you how one little squirrel in one little circuit breaker in one little substation can knock out power to 9,000 homes, as FirstEnergy customers in North Royalton (Ohio).

Now, it seems another squirrel has went on the offensive in Florida where it caused a power outage in central and westin Destin (Florida), affecting both Gulf Power home and business customers.

Squirrels are on the attack! Are you ready?

IEEE Electrical Power & Energy Conference: Final Call for Papers

The Call for Papers for IEEE Canada’s Annual Electrical Power and Energy Conference, the premier conference on Energy Generation, Distribution, and Markets held north of the 49th parallel, which is being held in beautiful and historic Halifax, Nova Scotia, from August 25 to August 27 at the Halifax Marriott Harbourfront Hotel, has been extended until April 15th.

The topics being solicited for this year’s conference include:

  • Computational Intelligence Systems
  • Electricity Markets
  • Energy Storage
  • Wind Power
  • Solar Power
  • Wave & Tidal Power
  • Hydrogen Power
  • Bio-Thermal Power
  • Small Hydro Power
  • Fuel Cells
  • Smart Grid
  • Computational Methods in Power Systems
  • Transmission & Distribution
  • MicroGrids
  • Power System Communications
  • Energy Systems for Buildings
  • Energy Conservation and Efficiency
  • Technology Trends
  • Clean & Renewable Energy Markets
  • Novel Methods of Power Generation

Submit your paper, attend the conference, and you’ll also be able to enjoy

Shakespeare by the Sea, Ghost Walks, the Nova Scotia Provincial Exhibition, and, if you stay an extra week to enjoy the uniqueness of Halifax and Nova Scotia, you can enjoy the 20th Atlantic Fringe Festival. (A complete list of summer festivals can be found on the Destination Halifax and Nova Scotia.com sites.)

The Annual IEEE Electrical Power & Energy Conference is one of the premier global conferences on Energy and Power generation that attracts hundreds of leading researchers and practitioners from all over the globe. Don’t miss your chance to experience it when it is in historic Halifax, Nova Scotia.