Step-by-Step Guide to Completing an Energy RFP for a Mid-Size Illinois Commercial Account

An energy Request for Proposals (RFP) is a formal solicitation document sent to multiple licensed energy suppliers, inviting them to submit competitive bids for your electricity or natural gas supply. By specifying your requirements—usage data, desired contract term, pricing structure preferences, and other parameters—you create a standardized competitive process that allows genuine apples-to-apples comparison of supplier offers.

The RFP process transforms your energy procurement from a reactive, ad hoc exercise into a systematic, competitive, and well-documented decision. It's the difference between accepting whatever rate your current supplier offers and choosing from among the best rates that 10–15 suppliers are willing to compete to provide.

Why Mid-Size Businesses Are the Ideal RFP Candidates

Very small commercial accounts (under $5,000 annually in energy costs) may not justify the effort of a full RFP process—though a broker can often still run a simplified version efficiently. Very large industrial accounts typically have internal procurement staff who manage this process. Mid-size businesses—those spending $50,000–$500,000 annually on energy—hit the sweet spot where a formal RFP delivers significant ROI without requiring specialized internal expertise.

The quality of your RFP response is directly correlated with the quality of your usage data. Suppliers need accurate, complete data to price your account accurately and competitively. Poor data leads to hedged (higher) pricing or quotes with qualifiers that make comparison difficult.

1. 1**Gather 24 months of interval usage data.** Request your 15-minute interval electricity usage data from your utility (ComEd or Ameren Illinois). This is available through utility portals or by contacting your utility directly. This data reveals your load profile, demand peaks, and usage patterns far more clearly than monthly totals.
2. 2**Compile monthly usage totals by account.** Create a table showing monthly kWh usage, peak demand (kW), and relevant billing data for each utility account number you're including in the RFP.
3. 3**Document your current contract details.** Note your current supplier, contract expiration date, current supply rate structure (fixed, index, bundled, unbundled), and any contract terms that might affect transition timing.
4. 4**Identify your utility service territories.** Note whether your accounts are ComEd or Ameren (or other utility) accounts—this affects which suppliers are eligible to serve your accounts.
5. 5**Specify your requirements and preferences.** Determine in advance: preferred contract term (12, 24, 36 months?), preferred price structure (fixed vs. index?), green energy requirements, timing constraints for implementation, and any specific contract term preferences.

Working with an Energy Broker to Streamline Data Gathering

An experienced energy broker can assist with data gathering—including obtaining interval data from utilities on your behalf with a signed release. Brokers also know which data fields are most critical for accurate supplier pricing and can identify data gaps before they create pricing problems. Our Bill Analyzer tool can help you start the data organization process.

Once you've received multiple supplier bids, the comparison process is critical. This is where many businesses make mistakes—comparing on rate per kWh alone rather than on total cost and contract quality.

Build a Standardized Comparison Matrix

Create a matrix that captures every relevant element from each bid: supply rate, all-in effective rate (including any fees), contract term, bundled vs. pass-through components, early termination provisions, automatic renewal terms, and any other material terms. This standardized format allows genuine apples-to-apples comparison.

Beyond the Numbers: Evaluating Supplier Quality

Don't choose solely on price. Supplier financial stability, customer service reputation, billing accuracy, and responsiveness to issues are all material factors. Ask your broker for a supplier assessment, and consider requesting references from each finalist supplier for accounts similar to yours.

Even businesses that do run an energy RFP often make mistakes that reduce the quality of their outcomes. Here are the most common pitfalls.

Mistake 1: Providing Incomplete or Inaccurate Usage Data

Suppliers who receive poor data will either decline to bid or add pricing buffers to cover uncertainty. Providing complete, accurate 24-month interval data consistently results in better and more competitive quotes. Don't estimate—use actual utility data.

Mistake 2: Soliciting Too Few Suppliers

An RFP to three suppliers is better than no RFP, but it's not optimal. Illinois has 50+ licensed retail electricity suppliers. A well-run RFP should reach at least 8–12 qualified, relevant suppliers. Your broker's supplier network is your best tool for maximizing competitive participation.

Mistake 3: Focusing on Rate Rather Than Total Cost

This mistake appears repeatedly in energy procurement. The supply rate per kWh is just one element of total cost. Capacity pass-throughs, ancillary service treatment, and contract fees can significantly affect which bid represents the best value. Always evaluate on total estimated annual cost.

Mistake 4: Not Reading the Contract Before Signing

The RFP process creates competitive pricing. The contract is where that pricing is formalized—and where unfavorable terms can undermine the value of the competitive process. Always read the full contract, with specific attention to early termination, automatic renewal, and pass-through provisions.