Procurement of Electricity and Natural Gas Through Aggregators (2018MS-5)

Issued Date
February 01, 2019

[read complete report - pdf]

Audit Objective

Assess whether local governments and school districts that utilize aggregators for energy purchases are ensuring they are procuring electricity and natural gas at the lowest prices.

Key Findings

  • Five of seven units reviewed (City of Albany; Counties of Broome, Cortland and Oneida; and North Syracuse Central School District) did not adequately evaluate procurement options or make benchmark comparisons to ensure they received the lowest prices for electricity and natural gas.
  • Five units (City of Albany; Counties of Broome, Cortland and Oneida; and North Syracuse Central School District) spent approximately $2.4 million (67 percent) more for electricity than a potential benchmark we identified for comparison.
  • Three units (Broome County, Cortland County and North Syracuse Central School District) spent approximately $391,000 (51 percent) more for natural gas than a potential benchmark we identified.

Key Recommendation

  • Evaluate procurement options and compare to potential benchmark rates to help ensure the lowest possible prices are procured for electricity and natural gas.