CEP Procurement Strategies & Contract Management 5

Question 1

What is 'demand response' as a procurement strategy tool?

Accepted Answer

Reducing or shifting energy consumption during peak periods in exchange for financial incentives

Answer

Demand response programs allow buyers to reduce grid stress during peaks and earn capacity or energy payments by curtailing load.

Question 2

An energy buyer discovers mid-contract that their supplier has been acquired. Which contract provision most directly protects the buyer?

Accepted Answer

Change of control clause

Answer

A change of control clause gives the buyer rights—such as consent approval or early termination—when ownership of the supplier changes.

Question 3

Which of the following best describes 'load shaping' in the context of energy procurement?

Accepted Answer

Adjusting the contracted energy profile to match the buyer's actual consumption pattern

Answer

Load shaping aligns the contract's delivery schedule with the buyer's usage profile to minimize imbalance charges and improve hedge effectiveness.

Question 4

In deregulated energy markets, which entity is responsible for balancing supply and demand in real time?

Accepted Answer

The Independent System Operator (ISO) or Regional Transmission Organization (RTO)

Answer

ISOs and RTOs operate the bulk power system, dispatch generation, and ensure supply-demand balance across their footprint in real time.

Question 5

A company operating in multiple deregulated states should consider which procurement approach to maximize leverage?

Accepted Answer

Aggregated multi-site RFP combining all locations to increase buying power

Answer

Aggregating load across multiple sites into a single RFP increases the buyer's volume and attractiveness, driving more competitive supplier pricing.

(CEP) Certified Energy Procurement Professional Practice Test