Electric/Natural Gas Procurement

Electric Supply Procurement

Our process is unique in that we analyze the hourly data through several different filters and isolate the individual risks. With these data points, optimal market purchases, and your companies goals we will provide a thorough highly defensible electricity procurement strategy that will turn supplier profit centers in to company savings.

We have built and established relationships with industry leading suppliers to provide clients buying power that ultimately reduces how much they pay per $/kWh. In our combined 110 years of energy experience, we have found that only 3-5% of companies have taken all the proper steps to reduce their energy costs. Our goal is review how your company utilizes energy by evaluating each client meter on an individual basis and current buying strategies. Our approach is to then analyze our clients’ load shape and unique usage characteristics attributable to each customer meter, including load factor, load shape, on-peak and off-peak usage patterns, transmission and capacity tags, which are all critical and considered in the evaluation. We strategically will then put clients in programs to take advantage of market conditions thus maximizing savings verse a PIT (Point In Time) purchase, which truly is the riskiest way to procure electricity.

We can help you achieve your goals by building a sound strategy around your risk tolerance profile as well as any existing or anticipated operational or budget constraints in order to make sure your price in minimized and your exposure to risk matches your internal tolerance.

All of the aforementioned factors can, and in most cases do, have a large impact on what you pay for electricity and the type of product that would best suit your operational, financial and risk tolerance requirements. We help educate you on the products to best fit your specific energy needs and consumption such as a Fixed (PIT) price, variable price, block and index, Index, pool, blended, FIS, and pass through products. Choosing the optimum supply product to meet companies internal requirements is paramount.

We then manage all phases of the electric energy procurement process, including bill auditing, RFP design and implementation with multiple utility appropriate suppliers, pricing analysis, contract review and negotiation, and contract execution.

The past 24-36 months Statistical Energy LLC has developed a proprietary buying method using a complicated set of market indicators plugged into an algorithm that ultimately maximizes savings on the electric spend. This, coupled with our vast knowledge in the renewable space, makes our firm well rounded in all aspects of the energy purchasing process.

Variables that effect electric pricing

Natural Gas Supply Procurement

Natural gas procurement is primarily about risk allocation between a consumer (you) and a supplier (your energy service company). This may sound simple, but with the deregulation of the industry, there are many risks that you as a consumer must evaluate before entering a retail contract. We recognize that each of your facilities may operate in a different environment with varying requirements and demands. Statistical Energy values discussion and listening to your risk profile in addition to the goals of our clients and will recommend strategies for selecting an energy supplier that fits your company’s specific needs, particular product structure or a specific billing and customer service requirement. We are independent of every supplier across the country in constructing the overall strategy, product and contract terms for your situation and risk profile.

Future natural gas prices cannot be accurately predicted; however, market conditions, analysis, and experience shape our overall approach. Although natural gas prices are more stable now than they have been in a decade, big money can still be saved by creating a procurement strategy and timed purchases. It is critically important to work with an energy consultant who tracks market conditions and can help you make the right market timing decision.

Natural gas prices are more volatile than electricity prices, because gas is only responsible for a portion of total electricity generation, but overall the price correlation is high over time. Electricity has no storage component. Because gas can be stored, it used be consumed for ‘peak’ generation, but now that gas prices have dropped dramatically, it’s also used for base load generation. Because gas is such an important fuel, market watchers follow gas storage figures closely – inputs and withdrawals – which are released weekly by the Energy Information Administration. Net inputs imply lack of demand and so lower prices, and vice versa.