PRICE TO BEAT APPROACH Sample Clauses

PRICE TO BEAT APPROACH. The Team conducts detailed price-to-beat benchmark analysis on every account in an aggregation, rather than estimate the price-to-beaat on the entire load. This detailed analysis enables the Team to architect RFPs in a way that provides customers with the most information upon which to base its contracting decisions. Utilizing account by account pricing benchmarks, WE can run auctions for subsets of the load versus running the load in its entirety, to assure that each segment stands on its own economically. For example for a large state aggregation, the Team was able to parse out streetlight accounts, create a benchmark, and run a separate auction. The benchmarks for the streetlights and the auction results indicated that it was uneconomic for these accounts to switch to competitive supply. Without the streetlights in the aggregation, the WORLD ENERGY SOLUTIONS PROPRIETARY INFORMATION WORLD ENERGY SOLUTIONS Team was able to avoid account cross-subsidization and attain a lower price for the accounts for which it was economical to switch to competitive supply. Without the separate price-to-beat benchmarks, the streetlights would have been placed on competitive supply and the average price for the aggregation would have been higher for all accounts, resulting in higher costs and lower savings. An example of the Team's price to beat analysis calculated at the individual account level is provided in Appendix G. This procurement included over 100 accounts.
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