The Client: A large paper manufacturing company
The Problem/Situation: The Company subscribed to deregulated electric service, but was
consumed with “learning the energy business” and using unexpected staff
support to implement cost-saving practices for purchasing energy.
The Process: I conducted an extensive study of the issues, including the client’s
staff availability, risk tolerance for price excursions, shutdown
thresholds for operating costs, and long term energy plans for the site.
The Outcome: The new energy contract saved the client more than $2 million per year
in operating expenses by considering what energy could be purchased and
sold from operating facilities, with a minimal of internal staff time
and risk to the operating budget. Price targets and volumes for both
purchasing and selling energy were developed to simplify and
standardize energy decisions.
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The Client: A national, assisted-care residential facility developer and operator.
The Problem/Situation:
The Company had a need for highly reliable and economical gas and
electric supplies, but limited staff to manage energy purchases in many
U.S. states.
The Process: I
conducted an assessment of current and future gas and electric needs,
managed a bid process to contract for comprehensive energy services,
set price targets to be used for forward energy purchases, and guided a
Hedge Committee to oversee energy buying and budgeting activities.
The Outcome:
The client saved 10-20% in operating costs. Costs are now within
budgets and energy purchases are disciplined and within FAS 133
requirements. Supply reliability needs have been met to ensure the
health of residents.
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The Client: A national developer of cogeneration operations that serves large end-user facilities.
The Problem/Situation:
They need to buy fuel that meets the supply reliability and cost
obligations of thermal and electric energy provided to its hosts.
The Process:
I developed a disciplined gas purchase strategy, a performance-based
cogeneration operations plan, a plan to include the thermal host in
term buying decisions, a bidding protocol and supplier selection that
could implement the strategy, and monthly mark-to-market assessments
for buying decisions.
The Outcome: The client now saves 10-40% on otherwise applicable costs and enjoys favorable operating budgets.
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The Client: A commercial, single site business with a cogeneration facility and large, variable thermal and electrical demands.
The Problem/Situation: The cogeneration facility modestly meets any thermal and electrical needs and no longer fits with the business objectives.
The Process: I
developed an Information Memorandum and bidding process for financial
buyers, and assessed offers to buy or take over the cogeneration
operation.
The Outcome: The
cogeneration owner was paid for its cogeneration assets and purchases
thermal and electrical services at a 10% discount to otherwise
applicable costs, with no adverse affects to the core business.
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The Client: A plastics manufacturing company with locations in multiple states.
The Problem/Situation: The
Company was faced with different state regulations, deregulated and
bundled energy service offerings, and no desire to expand corporate
staff to learn and manage the energy business.
The Process: I developed a comprehensive energy plan for gas and electric supply
requirements and price needs covering all locations. I initiated a
bidding process to capture the biggest cost savings, progressively
expanding to the various deregulated service territories. For bundled
service areas, I reviewed tariff offerings and made recommendations
where applicable.
The Outcome:
Budgets are now more easily prepared and reliable, and energy supplies
are purchased at 10-20% below otherwise applicable costs with a minimum
of company involvement (excepting the limitations of FAS 133.)
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The Client: A major automotive manufacturing company located in the U.S.
The Problem/Situation: Highly disciplined needs for doing business with careful and detailed budgeting, reporting of costs and reasons for cost variances.
The Process: I performed a needs assessment compatible with their internal processes, conducted a bid process for a suitable supplier, and set up a process to scrutinize and document energy buying decisions, as well as mark-to-market assessment of buying decisions.
The Outcome: The internal process for buying energy is now consistent with internal management processes. Budgets are more readily prepared and depended upon. Energy cost-saving opportunities are recognized and implemented in a timely manner.
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