AEE CEP study guide
AEE CEP · Work through your exam, one topic at a time.
The Certified Energy Procurement Professional (CEP®) is a credential administered by the Association of Energy Engineers (AEE), where it is listed among the Utility Services certifications alongside the Certified Demand Side Manager (CDSM™) and the Distributed Generation Certified Professional (DGCP™). It targets professionals who buy electricity, natural gas, and other fuels for industrial, commercial, institutional, or public-sector organizations: energy managers, supply-chain and treasury staff, and consultants who advise on supply contracts and hedging programs. This study site is independent and is not affiliated with, endorsed by, or sponsored by AEE; AEE's own pages remain the authoritative source for eligibility, fees, scheduling, and results. The exam is multiple choice and is weighted evenly across five domains: energy markets and price fundamentals; procurement strategy and sourcing methods; contract structures, terms, and negotiation; price risk management and hedging instruments; and regulatory, financial, and sustainability considerations. The AEE CEP study guide has 5 sections and about 1,471 words.
01Energy Markets and Price Fundamentals
Energy prices are built from marginal cost and scarcity, not average cost. In electricity, the merit order stacks generators by variable cost; the clearing price is set by the marginal unit, so a small demand or supply shift can move prices sharply.
324 words, about 2 min02Procurement Strategy and Sourcing Methods
Procurement strategy starts with the organization's objectives: budget certainty, price competitiveness, sustainability, reliability, and administrative simplicity. These objectives conflict, so define a risk appetite and a decision horizon before choosing a product.
305 words, about 2 min03Contract Structures, Terms, and Negotiation
Contract design allocates price, volume, shape, credit, and regulatory risk. Common structures include fixed price, index, block-and-index, collar, cap, heat-rate or tolling, full requirements, and physical or financial power purchase agreements.
281 words, about 1 min04Price Risk Management and Hedging Instruments
Hedging manages exposure, not the underlying business. Start with an exposure map: volume by month, price reference, delivery point, and index.
269 words, about 1 min05Regulatory, Financial, and Sustainability Considerations
Energy procurement sits inside regulation and accounting. Regulated tariffs, unbundled transmission and distribution charges, capacity accreditation, renewable portfolio standards, carbon pricing, and market rules determine what can be bought and at what delivered cost.
292 words, about 1 min