What Does A Utility Bidder Do?
What does a Utility Bidder do? Utility companies are in the business of providing services. To provide those services, utility companies must bid for the right of placing those services on the utility poles. This process, called competitive bidding, is where two or more companies compete to be the lowest bidder on each pole. The utilities that participate in these competitive bidding processes are allowed to make concessions to their clients and customers to place their services on those poles.
In the past, utilities were very reluctant to participate
in pole and cable auctions because they were afraid of losing their customers. Now that most utility companies have changed their tune about participating in these auctions, bidding has become much more open and transparent. Although some companies still participate in underground power and sewer authority bids, most utility companies are now making it clear that they will participate in auctioning off utility poles. It is no secret what a utility bidder does and why they do it.
Utility bidders participate in the competitive bidding
process because it benefits them. When more than one utility company bids on the same utility pole, the rates will tend to be far lower than they would be if only one bidder were bidding on that pole. As the number of bids increases, the price per mile decreases but the benefits to the buyer increase as well. In essence, this means that the utility companies can get more for their power lines and sewer pipes than they could if the auctions were simply open to the public. This also allows them to serve more customers by offering pricing discounts and specials and helping customers with stranded electricity issues.
How are the utilities found in the areas of the country?
Most rural electric and gas facilities are located within three miles of any residential or commercial property. Gas and electric companies typically lease or own the poles and other assets they use to locate and service customers. These assets, such as poles and wires, become assets after they have served several customers before. Once an asset has served several customers, a utility company will find it far easier to locate the same location in an area when looking for a new customer to serve.
When does a utility bidder perform these services?
Any time an existing customer cannot meet their electrical or water supply needs, a utility company will search for a new carrier by looking into the customer’s address history. This is why you may hear the word “bidding” when discussing how to locate a utility pole or track down its former owner. When a utility company locates the customer’s address, it can make requests for quotes from different contractors to find out who will offer the best price.
What does a utility bidder do if they are not successful in their first bid for the job?
Utility companies have several ways to attempt to determine who the best candidate for the job is. A utility company can send out multiple bids, one for each type of connection, and ask customers for their input on which should be placed where. To learn what a utility bidder does if they are unsuccessful in their first attempt at finding a new customer, all you need to do is ask them.