Energy is the number one controllable operating expense for buildings. In deregulated energy markets, businesses can use utility expense management to reduce energy expenses, obtain savings vs. default utility rates, manage risk and volatility, secure budget certainty, and/or optimize ROI on efficiency projects through a strategic energy procurement plan. Purchasing electricity, natural gas, and fuel oil requires an understanding of not just the commodity markets, but also of regulatory developments, supplier contract terms and conditions, and your operational plans. Low price alone should not be the deciding factor; and in many cases, a bid that appears to be the “low price” may cost you more. Work with a company that understands all aspects of a strategic procurement plan and will partner with you for the best outcome.
EnergyWatch’s procurement process and analysis methods are managed by Andy Anderson: a series 3 licensed commodity broker, registered Commodity Trading Advisor, Columbia MBA with a concentration in data analytics and decision making, and power and gas market expert. Over the past 15 years, EnergyWatch has effectively managed energy supply procurement for some of the largest commercial and corporate real estate portfolios in the US, including Vornado Realty Trust, Hines, and RXR Realty, to name a few.
EnergyWatch will negotiate supplier contracts on your behalf and work with your legal team (should they want to be involved) in order to ensure contract performance and alignment with company goals and risk tolerances (payment terms, credit assurance, bandwidth, assignment, etc.). Our market experts will methodically review all feasible product and term options with you and your team, including creative ideas designed to capture value from building operations and future plans / developments (efficiency projects, battery storage, leasing, co-gen, etc.). Our value-at-risk analysis will help your team understand the potential benefits and liabilities of fixed vs. index vs. blended products, complete with outlines of best and worst case scenarios, projected costs and performance based on statistically derived confidence intervals, and proper sizing of hedge/block options.
Once contracts are executed and supply pricing is secured, our relationship does not end; energy procurement is not a once per year, event driven process. EnergyWatch’s strategic procurement process directs us to continuously monitor the markets for additional opportunities (convert index to fixed, blend & extend fixed pricing, layer hedges, etc.), monitor supply invoices for billing accuracy, and report contract performance vs. default utility rates and/or market/fixed rate options.
EnergyWatch is uniquely qualified to help your team manage your purchasing process due to our market, contract, and reporting expertise.