An advisory report from the Inspector General’s Office discusses the benefits and challenges for cities and towns when using a broker to procure energy services.

The report highlights the municipal association model used in the MunEnergy program as a favorable mechanism for public entities to procure their energy.

MunEnergy, an MMA program with partner Constellation, offers municipalities and other government entities a vetted contract with favorable terms designed specifically for the public sector. The contract includes provisions such as 55-day payment terms and no penalties for a decrease in energy usage that results from installing solar generation.

The IG’s report points out that through MunEnergy, the MMA’s members “have the exclusive right to use the pre-negotiated contract terms. In theory, this type of arrangement saves members time and attorney’s fees and allows the members to benefit from the association’s expertise.”

• Download “Advisory for Municipalities and Other Public Awarding Authorities Using Energy Broker Services” (445K PDF)

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