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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