Experience

Tradition Energy is one of the world’s largest and most experienced full-service energy management and procurement advisors serving more than 1000 commercial, industrial and governmental clients ranging from Fortune 500 global companies to medium-sized businesses to local municipalities. We have been advising clients in energy commodities markets since 1986, and have managed over 90 billion kWh in annual electricity usage and more than $15 billion in electricity and natural gas spend.  Tradition Energy’s procurement “best practices,” originating from our experience with organizations worldwide, result in the best customized solutions.  Click on the photos below for a few samples of our experience case studies. If you have a question regarding our experience with an organization similar to yours, please contact your Tradition Energy advisor.

Who We Serve

 
Communications

Case Study: Communications

Telecommunications company learns how leaving the local utility can substantially reduce costs

Opportunity

  • In 2014, Tradition Energy reached out to a telecommunications company to find out how they were procuring energy.
  • Until that time, the company was getting its energy directly from their local utility and not taking advantage of the competitive marketplace. Tradition Energy clarified its specific approach to managing energy and explained how their proprietary research and market intelligence supported their methods and recommendations, and defined ways in which those methods could be beneficial to the client.

Approach

  • After analyzing the client’s usage profile and billing history, discussing the current energy price outlook, and formulating a procurement strategy, Tradition Energy sought out all Tier 1 suppliers in the market for pricing.
  • Then, Tradition analyzed pricing and contract information and presented a proposal to the client, along with options and Tradition’s recommendations.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Tariff Analysis
  • Energy Bill Auditing

Results

  • After selecting and contracting with one of Tradition’s recommended suppliers, the client is projected to reduce its annual electricity supply costs by approximately 12% during the contract period.
  • Tradition’s market intelligence and strategy recommendations have enabled the client to achieve its goal of minimizing energy costs. Tradition’s rigorous vetting process and highly competitive pricing platform ensured that at execution, the client had the supply agreement that best met its needs.
  • In the past several months, Tradition has been monitoring the market for additional cost reduction opportunities and continues to advise the client as these opportunities present themselves.
 
energy management advisors Data Centers

Case Study: Data Centers

Data center turns to Tradition Energy for risk management strategy and procurement advice and saves millions

Opportunity

  • Our client is one of the largest and longest operating mission-critical telecommunications and data center facilities in the nation. When Tradition contacted them about serving as their energy advisor we were told that their goal was to achieve the lowest possible rates and minimize their energy bills, and that they were willing to assume some risk in order to do so.

Approach

  • Tradition understood the client’s detailed budget requirements and appetite for risk and made minimizing costs its top priority in identifying an appropriate product strategy.
  • After a lengthy evaluation of the client’s historical and projected energy usage, and load profile, Tradition recommended a variable-rate product structure that had the potential to outperform the default utility rate as well as enable the client to shed some risk when the market dictated it necessary.
  • Tradition implemented the variable-rate product, which had an immediate impact on the price our client was paying, and then leveraged its proprietary energy market intelligence to reduce risk over the term.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity

Results

  • After two separate transactions, the first with more risk and the other with less risk, Tradition’s guidance and expertise helped the client outperform the default utility rate offer by over $3 million and counting.
 
Education

Case Study: Education

Large, rapidly growing college combines procurement for multiple sites and saves millions

Opportunity

  • Our client, the largest institute of higher learning in the region, began working with Tradition four years ago.
  • They needed an advisor to help them manage their rapidly growing energy needs – and Tradition worked with them to develop a plan to keep pace with their development.

Approach

  • Tradition consulted at length with the client and clearly defined their energy exposure by assessing opportunities for natural gas and electricity procurement.
  • Due to our experience with numerous diverse accounts spanning multiple power and gas markets, Tradition quickly designed a plan to aggregate sites within each market to maximize leverage.
  • Based on the data we collected, Tradition was able to create a vetted pool of suppliers agreeing to the college’s specific terms, including those approved by government entities.

Services Provided

  • Supply Management & Procurement: Electricity and Natural gas
  • Market Research & Intelligence
  • Energy Data Management,
  • Budgeting and Reporting
  • Demand Response
  • Sustainability Services: Renewable Energy Certificates & Marketing

Results

  • With Tradition’s experience and knowledge base in market monitoring, research, budgeting, and reporting, we were able to provide stronger controls over energy costs for the college.
  • Tradition has provided reports and financial updates that illustrate the ways in which energy expenditures were being reduced. Consequently, the college’s estimated total energy savings has been over $11 million since 2011.
 
Food & Beverage

Case Study: Food & Beverage

Comprehensive approach to energy management helps national food and beverage service company streamline procurement operations and maximize opportunities

Opportunity

  • After completing a competitive RFP process, Tradition Energy was hired to advise a national food and beverage service company with 104 locations across 41 U.S. states.
  • While evaluating the company’s comprehensive usage and spend information we realized that there was no system in place for managing their data. This made information gathering time consuming and inefficient.
  • Prior to hiring Tradition, the client’s lack of industry expertise and a formal energy management plan resulted in several costly missed risk management opportunities for many of their facilities.

Approach

  • Tradition was able to accurately evaluate energy exposure across the client’s national footprint as well as current procurement practices.
  • Using a broad range of industry expertise, Tradition worked with the client team to establish an overarching plan that identified multiple energy service opportunities across their national footprint.
  • In order to help the client reduce operational expenses quickly, Tradition’s plan prioritized savings opportunities by region and by service type.

Services Provided

  • Market Research and Intelligence
  • Strategic Risk Management
  • Supply Management and
  • Procurement: Electricity and Natural gas
  • Energy Data Management

Results

  • Tradition has worked closely with the client to develop and implement a highly customized strategic procurement analysis and plan. Based on Tradition’s recommendations, the company has begun the energy procurement of highest risk sites.
  • Tradition Energy’s proprietary energy data management portal, TEAMView, is being used to organize and report on all of the company’s energy usage and spend.
  • Taking advantage of the current market opportunity the Tradition team capitalized on the procurement window yielding more than 16% in savings.
 
Government

Case Study: Government

U.S. Communities

Tradition Energy is the exclusive awarded supplier of a full suite of energy-related services through the U.S. Communities Program, a national purchasing cooperative developed by government agencies utilizing the pooled power of public agencies, such as villages, towns, cities, states, federal agencies, special districts, religious centers and non-profit organizations.

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With the Energy Consulting & Management Services Contract (#2013-069), competitively solicited by the City of Mesquite, Texas, public agencies will be provided comprehensive advice in managing their energy expenditures and the most competitive pricing available in the public sector.  This contract fulfills the bidding requirements via the Joint Powers or Inter-local Contracting Authority of each state and allows government entities to avoid the time consuming and expensive process of issuing their own RFP.

Tradition is also under agreement with the National Institute of Governmental Purchasing (NIGP) through their Professional Services offerings to provide a “Standard Energy Market Analysis” to NIGP members and non-members.  Tradition is the only advisory firm to hold such a relationship with NIGP.  For more information on these programs, click below:

To request membership information for the above organizations or the energy services, click here.

Case Study: Government

Rapidly growing municipality fixes costs in a fluctuating market and finds a customized procurement solution reduces their costs dramatically

Opportunity

  • As one of the top twenty largest cities in the region, our client has experienced tremendous growth and expansion in infrastructure over the last decade.
  • They had previously procured electricity through a buying group in the state, but decided to work with Tradition to create a more customized approach.

Approach

  • Met with City leaders, facilities, procurement, and finance to develop a plan to procure electricity based upon the City’s unique needs.
  • This plan led to securing better rates and contract structure than what they had experienced through buying groups and aggregations in the past.

Services Offered

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity
  • Energy Data Management

Results

  • Negotiated blended rate, which will save the City close to $500,000 over the remaining 24 months of their current contract.
  • Ongoing support with the energizing/disconnection of new meters as the City grows.
  • Helped create a data management structure that lists all meters by type and department.
 
Healthcare

Case Study: Healthcare

Regional healthcare provider lowers costs by implementing multiple energy strategies

Opportunity

  • Tradition Energy was selected through a competitive RFP process to help manage energy for the region’s largest healthcare provider.
  • The client required assistance in forming an energy risk management strategy and procurement plan.
  • At the time Tradition was selected the client’s energy budget was several million dollars a year.

Approach

  • Tradition Energy assisted this client in reaching its goal of reducing risk and eliminating price volatility.
  • To accomplish this, our risk management team conducted a thorough analysis of historical energy usage and expenditures for all facilities, and formed a strategy that achieved budget certainty on the electricity portion (80% of the budget) with significant savings.
  • For the natural gas portion of the project (20% of the budget), Tradition implemented a floating strategy, which minimized the premium to fix costs over time and further reduced overall expenditures.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity & Natural gas

Results

  • When all energy procurement activity was completed, the client realized an immediate 15% reduction across the board in energy spending.
  • As a result of the successful implementation of Tradition’s energy risk management strategies, the client is better able to continue reducing expenditures in other energy areas as well.
 
Hospitality

Case Study: Hospitality

National hospitality company lowers costs by aggregating procurement within several states

Opportunity

  • A growing North American hospitality company that owns more than 30 hotel properties in 9 states was searching for an energy advisor with a national presence.

Approach

  • Tradition began by defining the client’s energy exposure.
  • We assessed the company’s energy usage in each state, which clarified ways in which the client could find more competitively priced energy offers. Then we put together a custom procurement strategy designed to aggregate sites within each market to maximize leverage and simplify supply agreement management.
  • After designing a procurement strategy, Tradition managed an iterative, reverse auction for seven facilities from a pool of top-tier suppliers. In our competitive pricing process, the prices fell with each round of bids, which resulted in significant savings for the client.
  • With Tradition’s expertise, a new, customized agreement was negotiated,
    including a provision relating to a recent business acquisition.

Services Provided

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity and Natural gas

Results

  • Tradition’s initial procurement efforts helped lower the client’s costs by an average of 22%. Tradition helped further reduce costs more than $300,000 on additional sites and through well planned supply agreement renewals.
  • Tradition’s national deregulated market presence supports the client’s effort to stay apprised of local market prices and regulatory developments, ensuring they remain on track to continue reducing costs and receiving optimal customer service.
 
Manufacturing & Industrial

Case Study: Manufacturing & Industrial

Global Fortune 200 manufacturer centralizes energy management, increases efficiency and lowers costs

Opportunity

  • Our client, a Fortune 200 global science and technology manufacturer, lacked an enterprise-wide strategy for global energy procurement. The company chose Tradition Energy – which had successfully procured energy for other comparable U.S.-based facilities – as its energy advisor.

Approach

  • Tradition worked with the client to centralize their global activities and develop an energy management policy that would serve as the basis for localized facility strategies serving individual country needs.
  • Clear procedures and points of contact were established to ensure efficient and effective communication and procurement activities between the client and Tradition Energy.
  • Ongoing monthly meetings were scheduled to ensure ongoing review of procurement programs, decision making, feedback among the team members and constant improvement.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Energy Data Management

Results

  • Tradition was able to pinpoint a number of ways in which the client could reduce costs. To date, the client has realized savings of over 32%, or $2.3 million, over 41 transactions.
  • Tradition established a data management portal that allows continual monitoring of client facilities to ensure they stay on track with their savings and cost reduction goals.
  • Because Tradition has provided the client with a set program of procedures and budget forecasting for global facility management personnel, they have attained their goal of implementing an enterprise-wide strategy for global energy procurement.
 
Media and Entertainment

Case Study: Media and Entertainment

Opportunity

  • Global energy procurement was decentralized at this Fortune 200 company and the corporation lacked an enterprise-wide strategy. Tradition was selected to advise the client through a competitive process.

Approach

  • With hundreds of locations, including skyscrapers to billboards, Tradition developed a phased energy plan focusing on the quickest cost reduction activities first.
  • The initial product strategy was to quickly lower costs and eliminate price volatility through fixed products.
  • As our relationship has evolved, we have identified several opportunities to execute more sophisticated strategies involving management of different products.

Services Provided

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity, Natural gas & Steam
  • Solar Analysis
  • Sustainability Consulting

Results

  • Energy management centralized, coordinated procurements in U.S., created vetted pool of suppliers with client-specific terms, current contracts provide over 10% in savings, current annual savings estimated over $1.0 million.
  • Assisted in evaluation of use of Fuel Cells at West Coast Studios, managing the procurement of the underlying natural gas running the Fuel Cells, leading to a more sustainable studio.
 
Oil and Gas

Case Study: Oil and Gas

Oil producer discovers how to get paid thousands of dollars for curtailing energy usage

Opportunity

  • Tradition Energy educated a natural gas well operator about ERCOT (Electric Reliability Council of Texas) Demand Response (DR) programs and the opportunity to earn incremental revenue through participation.

Approach

  • Tradition defined the client’s electrical usage and demand for facilities in regions of Texas where the DR programs are available.
  • After providing information and clarification to the client about the various DR programs that were available, Tradition explained how these programs could be beneficial to the client and submitted the client’s program application.
  • Before applying to a DR program, Tradition spent the necessary time studying the client’s specific needs. Then client was directed to the precise DR program that best met their requirements, including curtailment scheduling and kilowatt load shedding commitments.
  • Tradition researched all DR programs that matched the client’s specific requirements and situation and performed an opportunity analysis, providing a pricing report that considered equipment installation costs, expected revenue, and payback period.

Services Offered

  • Demand Response

Results

  • Tradition monitored the chosen DR provider’s costs, schedule, and performance and communicated that information to the client. The client received reports on revenue and performance relative to the plan to ensure accuracy.
  • Since available load reports affect client revenues, Tradition monitored those results closely in case further action was warranted.
  • With the implementation of Tradition’s strategies, the client has realized over $120,000 in incremental revenue.

Case Study: Oil and Gas

Skillful negotiation helps natural resources company dramatically reduce its costs

Opportunity

  • Tradition assisted its client, a natural resources energy company, in achieving their objective of reducing operating costs and increasing net operating income for each of its wells by capitalizing on its on-shore producing properties.
  • Current electric utility-associated costs account for 40% of this client’s total operating costs. Although the client had a centralized strategy in place for all producing wells, they had been advised to purchase a 5 MW block energy product, which resulted in “overbuying” their power.

Approach

  • Tradition analyzed this client’s current block energy strategy by looking at their historical hourly load settlement data and determined they were “over hedged” by about 1.5 MW annually.
  • Comparing the risk exposure and lost dollars on their current product versus a fixed energy product helped Tradition’s experts illustrate to the client precisely what problems to address. With recommendations from Tradition, the client flipped to a fixed energy product for the remaining six months of their contract terms.
  • Tradition simultaneously negotiated a new contract in the forward market for a longer term fixed energy product.

Services Offered

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Budgeting and Forecasting
  • Demand-Side Management: Recalibrating Meter Profiles
  • Demand Response

Results

  • Tradition assisted the oil producer in negotiating a fixed delivery product for the remaining six months of the client’s previous contract, which delivered a savings of $140,000.
  • After executing a new contract using Tradition’s recommendations, the client realized over 37% in savings totaling $1.8 million over 24 months.
  • Tradition continues to work closely with this client’s accounting and field operators to make sure adding more wells is a seamless process as exploration and acquisitions increase.
 
Real Estate energy management advisors Real Estate

Case Study: Real Estate

Real estate firm streamlines procurement activity, creates efficiency and reduces costs

Opportunity

  • Our client, a residential real estate property manager for over 180 properties in eight states across the country, needed a streamlined process to manage their energy procurement for common spaces.   The client required research-based recommendations that could be presented to the asset owners, cost minimization, budget certainty with an accountability component and in some instances, assistance with sustainability efforts.

Approach

  • Due to the large number of accounts in a diverse portfolio spanning across multiple power and gas markets, Tradition developed recommendations tailored to each property’s geographic location, regional energy market price outlook and ownership’s risk tolerance.  We evaluated multiple procurement options including fixed and index pricing structures, short and long-term agreements and the default utility service.
  • Tradition recommended the procurement option that served each of the properties’ best interest and supported each recommendation with a rationale document. These documents are used by our client to clearly articulate the procurement recommendation to property ownership and obtain the necessary approvals for its implementation.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Sustainability Services: Renewable Energy Certificates

Results

  • Tradition provided the client with cost saving analysis reports for each transaction, weekly status updates and performance reports. Where agreements were in place, Tradition’s performance reports evaluated how the transacted rate compared to the default utility for the duration of the contract.  Our weekly updates and streamlined processes resulted in timely execution and increased annual savings on average between 10-20% on the energy budget.
  • Tradition continues to communicate on a weekly basis with our main points of contact and quarterly we present new market research affecting procurement decisions.
  • With Tradition’s market intelligence, advisory service and energy procurement efforts, the client has substantially reduced energy costs during the past two years.   Additionally, Tradition has helped the client meet sustainability goals through the procured Renewable Energy Certificates for certain properties.
 
Retailers

Case Study: Retailers

Tradition’s national deregulated market expertise helps a global retailer improve its bottom line

Opportunity

  • Energy management was centralized within this major national upscale department store chain. However, the client lacked knowledge about national deregulated markets, and Tradition was able to provide guidance and expertise in communicating the various service options this client could consider to achieve their goal of reducing energy costs.

Approach

  • Tradition defined the client’s energy exposure and current energy procurement practices across their national footprint and identified areas in which their lack of local market knowledge resulted in higher energy costs and missed opportunities to find the best energy solutions to fit their needs.
  • Then, Tradition educated the client on a variety of service options across several states so they could go forward making better, more informed decisions related to their energy expenditures.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Demand Response

Results

  • By helping the client understand their local market options and guiding them toward an informed decision, Tradition helped the retailer save over $2.5 million in energy costs over the last 36 months.
  • In addition to helping the retailer save more money, Tradition was able to help them identify and create new, additional revenue streams through Demand Response programs in New York, Illinois, and Maryland.
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