Free Certified Energy Procurement Professional® exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Certified Energy Procurement Professional® exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1Which electricity price falls within FERC's rate jurisdiction rather than retail rate regulation?

   1. A.A utility's household retail energy rate
   2. B.A wholesale sale rate between electric utilitiesCorrect answer: B
   3. C.A utility's residential distribution rate
   4. D.A utility's small-business retail service rate

   Explanation: The primer states, "(FERC) has jurisdiction over wholesale electric rates and not retail electric rates". A sale between utilities is wholesale; the other choices are retail rates.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 2, p. 33, wholesale and retail markets

2. 2Why must electric system operators continuously coordinate generation and demand?

   1. A.Balancing total annual generation with annual consumption is sufficient
   2. B.Balancing each hourly average removes the need to respond within the hour
   3. C.Actual power supply and demand must remain matched as electricity is usedCorrect answer: C
   4. D.A day-ahead delivery schedule fixes the amount customers will actually use

   Explanation: FERC states that operators must ensure "demand and supply exactly match, every moment of the day". Matching annual totals, matching only hourly averages, or relying solely on a day-ahead schedule does not maintain continuous physical balance as actual load changes.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 2, p. 34, Electricity on Demand

3. 3An electricity buyer wants the contracted energy unit price to remain unchanged when market prices move. Which pricing structure directly meets that objective?

   1. A.A fully indexed energy price
   2. B.A fixed energy unit priceCorrect answer: B
   3. C.An hourly spot energy price
   4. D.A monthly floating energy price

   Explanation: DOE describes "Fixed price contracts which hold a cost stable regardless of how the market changes". Fixing the unit price meets this objective, although total spending can still change with consumption or charges outside that price.

   Reference: Energy and Energy Project Procurement—DOE Energy CLASS Prize — Slide 32, Energy Procurement Strategies

4. 4Which hydrocarbon is the principal component of natural gas?

   1. A.Ethane
   2. B.Propane
   3. C.MethaneCorrect answer: C
   4. D.Butane

   Explanation: FERC states, "Natural gas is primarily methane". Ethane, propane, and butane may occur as natural gas liquids, but they are not the principal component identified here.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 1, p. 2, Natural Gas

5. 5What is the principal scheduling advantage of firm natural gas transportation over interruptible transportation?

   1. A.It fixes the commodity price paid for gas at each delivery point
   2. B.It gives scheduling priority over customers without firm capacityCorrect answer: B
   3. C.It eliminates the need to submit delivery nominations to the pipeline
   4. D.It includes underground storage rights without a storage arrangement

   Explanation: FERC states, "Shippers with firm transportation service receive priority to use their capacity over those customers without firm capacity." Firm transportation establishes priority; it does not itself fix commodity prices, remove nomination requirements, or include a separate storage entitlement.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 1, p. 20, Pipeline Services

6. 6An interval meter records 150 kWh during a 15-minute interval. What is the average real-power demand for that interval?

   1. A.37.5 kW
   2. B.150 kW
   3. C.2,250 kW
   4. D.600 kWCorrect answer: D

   Explanation: DOE defines average demand as "determined by dividing the number of kilowatt hours by the number of hours in the interval." Fifteen minutes is 0.25 hour, so 150 ÷ 0.25 = 600 kW. The alternatives multiply by the fractional hour, ignore duration, or multiply by minutes.

   Reference: Advanced Metering Requirements and Best Practices—FEMP First Thursday Learner Guide — p. 3, Definitions—Average demand

7. 7Which characteristic distinguishes an exchange-traded physical energy futures contract from a customized bilateral forward?

   1. A.The futures contract requires every buyer to choose a unique delivery location
   2. B.The futures contract leaves its delivery quantity unspecified until settlement
   3. C.The futures contract uses standardized exchange-defined product specificationsCorrect answer: C
   4. D.The futures contract can never be offset before physical delivery occurs

   Explanation: FERC states, "A futures contract is a standardized forward contract that is traded on an exchange". Quantity, quality, location, and delivery period are standardized, while bilateral forwards can be customized and futures positions can be offset.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 5, p. 122, Physical Futures Contract

8. 8Which characteristic distinguishes a natural gas broker from a marketer that buys gas for resale?

   1. A.The broker markets gas produced by its own or an affiliated production company
   2. B.The broker buys gas into inventory and resells the commodity as a principal
   3. C.The broker arranges transactions without taking ownership of the gasCorrect answer: C
   4. D.The broker combines small supply volumes for resale as a larger gas package

   Explanation: FERC states that brokers "never take ownership of natural gas themselves". The broker facilitates transactions. Own-production marketing, inventory-based principal resale, and aggregation into larger packages are distinct marketing functions rather than the defining broker characteristic.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 1, p. 29, Natural Gas Marketers—Brokers

9. 9A facility can move 2,000 kWh from a $0.18/kWh peak period to a $0.08/kWh off-peak period without changing total kWh, demand charges, or production. What energy-charge saving results?

   1. A.$160
   2. B.$200Correct answer: B
   3. C.$360
   4. D.$520

   Explanation: FERC states, "Shifting involves moving or rescheduling high energyuse activities" to off-peak periods. The saving is 2,000 × ($0.18 − $0.08) = $200. This changes timing rather than total kWh; $160 and $360 are the separate off-peak and peak energy costs.

   Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 2, p. 41, Demand-Response Programs—Shifting

10. 10What market-access barrier did FERC Order No. 888 address in 1996?

    1. A.The lack of electronic information about available transmission capacity
    2. B.The bundling of interstate gas commodity sales with pipeline transportation
    3. C.The lack of independent regional coordination of transmission operations
    4. D.The lack of mandatory open access to electric transmission serviceCorrect answer: D

    Explanation: FERC states, "FERC issued Order No. 888 in 1996 and required mandatory open transmission access". Electronic capacity information is associated with Order No. 889, gas unbundling with Order No. 636, and regional independent operation with the ISO/RTO reforms discussed separately.

    Reference: 2024 Energy Primer: A Handbook of Energy Market Basics — Chapter 2, p. 36, Competition, Part 1