The old adage: “Nothing happens until somebody sells something” is true, but… The real essence of the Electric Industry is focused much more tightly around the actual movement of MONEY – not Contracts!
This is a cash and collateral-intensive business. It is critical to understand your cashflow and verify the accuracy of your Supply invoices. Each Regional Transmission Organization (RTO) handles Energy, Ancillary Services, Capacity, and Environmental Credit transactions in their own way. While they all utilize a “Locational Marginal Price” approach in their daily Energy Auctions, some hold separate auctions for Capacity, and even Environmental Credits. With all this complexity, Reconciliation can be a daunting task.
You must always follow each RTO’s guidelines for posting collateral and paying invoices in a timely fashion. However, each RTO has a Bill Challenge process in place to give you the opportunity to challenge the invoices. The Challenge Period extends far enough to give you the opportunity to receive and analyze all of the relevant Customer meter reading data.
We conduct Backcasting analyses from this meter reading data to verify the quantities and costs in your supply invoices and alert you to discrepancies.