How do I evaluate whether a demand charge management provider is credible and unbiased for procurement?

To evaluate whether a demand charge management provider is credible and unbiased for procurement, treat them like you would any energy consultant: verify independence, methodology, incentives, and proof of performance.

1) Check for conflicts of interest

Ask directly:

• Do they sell hardware, software, utility services, batteries, or load control equipment?
• Do they receive commissions or referral fees from third-party vendors?
• Are they paid based on project size, savings claims, or equipment installed?
• Do they have preferred vendors they routinely recommend?

Best sign: they can recommend “do nothing,” operational changes, utility tariff changes, or third-party solutions without financial bias.

2) Look at how they quantify savings

A credible provider should explain:

• Baseline methodology
• How demand charges are calculated
• What data period they use
• Weather and seasonality adjustments
• Treatment of coincident peak charges and ratchets
• Confidence intervals or assumptions behind the savings estimate

Red flag: “We guarantee 20% savings” without showing assumptions or measurement method.

3) Ask for verified case studies

Request:

• Similar facility type and load profile
• Before/after utility bills or interval data
• Third-party verification or M&V reports
• Duration of performance, not just initial savings
• How savings held up over 12–24 months

Best sign: savings are documented using actual utility bills or interval-meter data, not only model projections.

4) Review their procurement process for neutrality

A credible provider should offer:

• A technology-neutral assessment
• Side-by-side comparison of options
• Clear criteria for ranking options
• Transparent assumptions and pricing inputs
• No requirement to choose their preferred solution

Red flag: they only present one “answer” and can’t explain why other options were rejected.

5) Examine their technical competence

Check whether they have expertise in:

• Utility tariff analysis
• Interval data analytics
• Load profiling and forecasting
• Demand response / peak shaving strategies
• Controls integration and operational constraints
• Measurement & Verification (M&V)

Useful credentials or affiliations may include:

• PE, CEM, CPQ, or similar energy credentials
• Experience with your utility territory and tariff class
• Published work, conference presentations, or technical references

6) Validate their independence with references

Talk to:

• Existing customers
• Customers they lost or did not win, if possible
• Facility managers who worked with them over time
• Consultants or engineers who know the market

Ask references:

• Did they present unbiased options?
• Were savings estimates accurate?
• Did implementation go smoothly?
• Were there surprises in billing or operations?

7) Require a clear scope of work

Your procurement documents should specify:

• What problem they are solving
• What data they will receive and analyze
• Deliverables: report, savings model, implementation plan, M&V plan
• Whether they are advisory only or also implementation-capable
• Disclosure of all incentives and affiliations

Best sign: the scope separates advisory analysis from product sales.

8) Compare multiple providers

Don’t rely on a single vendor’s view. Compare:

• Savings estimates
• Assumptions
• Proposed measures
• Risk profile
• Commercial model
• Transparency of methodology

A credible provider will welcome scrutiny and comparison.

9) Look for operational realism

Unbiased recommendations should account for:

• Production constraints
• Comfort or quality impacts
• Maintenance implications
• Cybersecurity and controls risks
• Manual override requirements
• Training and ongoing support

Red flag: savings only work on paper and ignore operations.

10) Use a simple credibility scorecard

You can score each provider 1–5 on:

• Independence / conflict disclosure
• Methodology transparency
• Proven savings accuracy
• Relevant experience
• Procurement neutrality
• M&V capability
• Operational practicality
• Customer references

Then weight the categories that matter most to your site.

---

Quick red flags

Be cautious if they:

• Refuse to disclose compensation or partnerships
• Use vague claims like “AI-driven savings” without methodology
• Promise guaranteed savings without risk sharing terms
• Push proprietary hardware before analyzing the load
• Can’t explain tariff calculations clearly
• Have no verifiable references or M&V data

Strong signs of credibility

Look for providers that:

• Start with your interval data and utility bill analysis
• Show a range of solutions, including no-cost/low-cost measures
• Separate advisory fees from equipment sales
• Provide transparent assumptions and measurement methods
• Offer references and actual post-implementation results

If you want, I can also give you a procurement checklist, a vendor interview questionnaire, or a weighted scorecard template you can use in an RFP.