Last time, we began looking at a state bill that would rework the regulatory scheme governing the bidding and negotiation of renewable energy projects. As we noted, the bill would put Duke Energy in charge of the bidding process for these projects, which is a cause of concern to private energy developers, who have been increasingly shut out by the utility.
Contract negotiation is an important aspect of doing business in any industry, including the energy industry. Generally speaking, energy contracts are of two different types: fixed procurement and flexible procurement. Fixed procurement contracts are those in which energy companies agree on a price for gas or electricity, and fix that price for the duration of the contract. Usually, the contract length is one to three years, but this can vary.