Experience

Tradition Energy is one of the world’s largest, independent full-service energy management advisors with over $8.5 billion in annualized energy spend managed for more than 1,500 regional and multi-national companies and thousands of facilities worldwide.  We advise Fortune 500 companies as well as operators of single locations on trends affecting the energy markets and assist them in minimizing the level and volatility of their energy expenditures and in meeting their sustainability goals.  The majority of our clients fall in to the market segments listed below. Click on the photos to learn more.

Who We Serve

 
agriculture energy management advisors Agriculture

Case Study: Agriculture

Opportunity

  • One of the largest produce growers in North America needed assistance evaluating locations to site a new growing facility.

Approach

  • Researched deregulated markets to identify the utility zone that would maximize the grower’s energy usage profile and financial requirements.
  • Built extensive models to evaluate multi-year operating scenarios.
  • Developed multiple budget and forecast scenarios to analyze utility gas service vs. direct pipeline gas service.

Geography and Scope

  • North American deregulated markets

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity and natural gas, Data management & reporting, Demand Response analysis

Results

  • Client accepted Tradition’s recommendation to site facility in utility region that provided beneficial off-peak pricing.  Custom heat rate power product was developed and procured, which reduced cost on a five-year contract by over $1.5M/yr.  Assisted client in obtaining direct pipeline gas service resulting in several hundred thousand dollars per year in avoided costs.  Coordinated demand response participation to further reduce client’s energy expenditures.
 
Real Estate energy management advisors Commercial Real Estate

Case Study: Commercial Real Estate

Opportunity

  • A full-service commercial real estate firm specializing in office and retail developments. Based in Dallas, the company is engaged in all aspects of investment oversight including, property management, acquisitions, dispositions and project leasing.  Utilizing an electricity broker, the firm executed a variable product contract and converted it to a fixed position during a period of high market prices, which caused their budgets to increase more than 25%.

Approach

  • Defined client’s energy exposure, and current procurement practices; educated client on service opportunities.
  • Designed plan to prioritize opportunities in order to reduce operational expenses quickly.

Geography and Scope

  • 13 Class A high rises surrounding D/FW

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity, Demand Response

Results

  • Delivered over 45% savings on new asset versus agreement entered into with previous broker.
  • Introduced additional revenue streams through Demand Response services.

Case Study: Commercial Real Estate

Opportunity

  • As the second largest privately owned office building in the country, our client was looking to improve their procurement execution and data reporting capabilities.

Approach

  • Defined client’s energy exposure by assessing current opportunities in the NYC electricity market.
  • Created vetted pool of suppliers agreeing to client-specific terms.
  • Identified an intraday anomaly that presented a backward-dated pricing opportunity

Geography and Scope

  • New York City

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity and natural gas, Data management & reporting

Results

  • Stronger controls over energy costs and 20+% savings across all transactions to date
  • Estimated annual savings of over $5.25 million
 
energy management advisors Data Centers

Case Study: Data Centers

Opportunity

  • Brand new facility with an aggressive usage ramp-up schedule

Approach

  • Based on the client’s projected building occupancy, Tradition teamed with client to develop a detailed usage ramp-up schedule.
  • Budget certainty was the client’s main objective and we worked with them to identify a fixed-price target and a long-term agreement.
  • Tradition leveraged its wholesale market intelligence and took advantage of sharp downward intra-day market movement

Geography and Scope

  • Two facilities, NY and NJ

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity

Results

  • Improved client’s target strike price by $0.003 per kWh, which is projected to reduce costs more than $450,000 over the life of the contract.

Case Study: Data Centers

Opportunity

  • Energy management was decentralized within the organization.
  • Many sites left on utility rate because of difficulties in negotiating terms.

Approach

  • Defined client’s energy exposure by assessing impact in each State.
  • Designed plan to aggregate sites within each market to maximize leverage.
  • Created vetted pool of suppliers and negotiated agreement to client-specific contract terms.
  • Centralized procurement process, increasing efficiency and effectiveness of approach

Geography and Scope

  • 69 sites across 13 States

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity, Energy data management & reporting;

Results

  • Developed pool of approved suppliers and contract terms.
  • 17% savings across all transactions to date.
  • Estimated annual savings of over $700,000
 
Education

Case Study: Education

Education Experience

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 and non-profit organizations, such as K-12 schools, colleges and universities.

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: Education

Opportunity

  • Our client, one of the largest education collaborative purchasing groups in New England, was searching for a full-service advisor to help them manage procurement for natural gas and electricity supply.  The collaborative selected Tradition Energy through a competitive proposal process.

Approach

  • Defined client’s energy exposure by assessing opportunities for natural gas and electricity procurement
  • Designed plan to assist with effective purchase timing
  • Created a vetted pool of suppliers agreeing to the group’s specific terms
  • Pricing with suppliers included various product structures to ensure most cost effective strategy

Geography and Scope

  • Greater Boston, MA

Services Offered

  • Market research & intelligence, Strategic risk management,  Supply management & procurement: electricity & natural gas, organizing group purchasing meetings, and arranging for multiple contract signatures for same-day purchasing

Results

  • Budget certainty through fixed-price contracts was the approved strategy by the group
  • Maximized purchase timing

Case Study: Education

Opportunity

  • Our client is among the largest providers of private post-secondary education in North America.  Traditionally, all colleges had done their own procurement of energy.   Tradition was engaged to help create leverage in all markets by bundling the needs of each college.

Approach

  • Defined client’s energy exposure by assessing opportunities in each market throughout the US
  • Designed plan to aggregate sites within each market to maximize leverage
  • Created a vetted pool of suppliers agreeing to client-specific terms

Geography and Scope

  • United States

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas

Results

  • More control over utility costs
  • Pre-negotiated terms with pool of suppliers for more efficient contracting
  • Savings of up to 8% in many key markets

Case Study: Education

Opportunity

  • As the oldest continuously operating college in Texas, our client was looking for a full-service advisor to amplify the efforts of their in-house procurement team and to help them manage energy needs for their rapidly growing campus.

Approach

  • Evaluated client’s internal procurement practices
  • Developed procedures for evaluating energy exposure and assessing opportunities
  • Designed a flexible procurement strategy that would support their continued growth and expected energy usage increases
  • Created a vetted pool of suppliers agreeing to the facility-specific terms

Geography and Scope

  • Central Texas

Services Offered

  • Market research & intelligence, Strategic risk management,  Supply management & procurement: actively-managed product strategies requiring daily market monitoring

Results

  • Increased procurement process efficiency
  • Stronger control over energy costs and flexibility to grow campus facilities without incurring additional charges
  • Estimated initial term savings over $300,000 
  • Estimated renewal term savings up to $400,000 per year 

Case Study: Education

Opportunity

  • Our client, with over 15,000 students, was looking for assistance in lowering energy costs to meet cuts in state budgets.  Although the school district had an energy manager they lacked the sophistication in energy procurement and demand side management.  Tradition teamed up with the school district to identify and evaluate opportunities.

Approach

  • Identified and inventoried electricity and natural gas consumption and usage patterns
  • Identified current and future exposure
  • Developed and implemented an energy procurement strategy
  • Quantified cost reductions
  • Evaluated energy supply agreements
  • Identified and evaluated demand side management programs

Geography and Scope

  • North Texas

Services Offered

  • Energy Procurement, Demand-side Management, Strategic Risk Management, Market Research & Intelligence

Results

  • Reduced energy costs over $400,000 initially and subsequently more than $600,000 over the contract term
  • Development of a formal energy procurement process
  • Budget certainty into the future

Case Study: Education

Opportunity

  • Being a mid-size school district in a fast growing county, they lacked the resources to properly plan and implement a thorough energy procurement process.  Tradition was brought in to assist.

Approach

  • Created a plan to properly secure a new electricity contract upon expiration of their current contract.
  • Identified contractual concerns in their current contract which had cost the district thousands of dollars in penalties.

Geography and Scope

  • North Texas

Services Offered

  • Market research & intelligence, Strategic risk management, Supply management & procurement

Results

  • Saved 30% on initial procurement, and 10% thereafter by actively managing their exposure

Case Study: Education

Opportunity

  • When we first spoke to the ISD (+15,000 students enrolled) the District was comfortable and pleased with its energy expenditures since it had fortunately procured its last electricity contract during a 10-year low in the power markets.  As we discussed their upcoming renewal, they realized that the markets had moved up significantly since they last signed their current contract. 

Approach

  • At the client’s request we evaluated multiple product strategies, including index and heat rates. 
  • Tradition’s market forecast indicated future prices would likely remain stable, which resulted in our recommendation to continue averting risk and lock-in a fixed price.  
  • Utilizing our U.S. Communities contract gave us the leverage to gain more supplier participation, and even though the overall electricity market prices were higher we were able to secure a new rate 2.5% lower than the school district’s current rate.   

Services Offered

  • Electricity Procurement

Results

  • Development of a formal energy procurement process through an advisor, which was a new experience for the District.
  • We saved the District close to $200,000 over the term of the new contract and achieved budget certainty into the future

Case Study: Education

Opportunity

  • As one of the premier private college preparatory schools in NYC, our client was looking for a regional full-service advisor help them manage their energy needs in the volatile New York city electricity and natural gas markets.

Approach

  • Defined client’s energy exposure and assessed opportunities for natural gas and electricity procurement
  • Estimated future natural gas usage and helped facilitate oil to gas conversion
  • Created a vetted pool of suppliers agreeing to client-specific terms

Geography and Scope

  • New York City

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas

Results

  • Stronger controls over energy costs
  • 15% savings across all transactions to date

Case Study: Education

Opportunity

  • As the sixth-largest institute of higher learning in Texas, our client was looking for a regional full-service advisor to help them manage their rapidly growing energy needs.  Aided by their global real estate management consultant, we competed and won the opportunity to advise them.

Approach

  • Defined client’s energy exposure by assessing opportunities for natural gas and electricity procurement.
  • Designed plan to aggregate sites within each market to maximize leverage.
  • Created a vetted pool of suppliers agreeing to client-specific terms

Geography and Scope

  • North Texas

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas, Energy data management & reporting; Demand Response

Results

  • Stronger controls over energy costs
  • 29% savings across all transactions to date
  • Estimated annual savings of over $2.7m
 
Food & Beverage

Case Study: Food & Beverage

Opportunity

  • Our client is the global leader in selling, marketing and distributing food products to restaurants, healthcare facilities, educational institutions, and lodging establishments. The client was looking to control of their operating expenses and achieve budget certainty by locking into fixed-price contracts in national markets.

Approach

  • Tradition analyzed the energy usage of the operating company’s distribution centers, which are large refrigerated warehouses with large energy loads in the millions of kilowatt hours.
  • After developing an understanding of how energy expenditures fit into the bigger picture of our client’s business and determining the organization’s goals.  The client’s goal was to achieve budget certainty by locking in a price for a short period of time.  Tradition’s market intelligence reporting revealed strong buying opportunities for longer term contracts and increased savings potential with fixed price contracts.

Geography and Scope

  • 80+ US sites

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity & natural gas

Results

  • Coordinated procurement in three states at one time and addressed over $1.8 mil in energy spend.
  • Securing 24 mo terms allowed client to keep future budgets from rising.

Case Study: Food & Beverage

Opportunity

  • Although energy management was partially centralized within the client’s organization, they lacked important knowledge of national deregulated markets and service options beyond electricity procurement.  As a result, risk management opportunities were being missed for many of their facilities.
  • Tradition was selected to provide energy advisory services through a competitive RFP process.

Approach

  • Evaluated energy exposure across the client’s national footprint, and current procurement practices; educated client on service opportunities across multiple states
  • Designed plan to prioritize opportunities by region and by service type in order to reduce operational expenses quickly.

Geography and Scope

  • 104 locations across 41 states

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas, Energy data management & reporting

Results

  • Strategic Procurement Analysis Plan has been developed and implemented.
  • Procurement of highest risk sites has begun. Energy data managent is currently in process.
 
Government

Case Study: Government

Government Experience

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.

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

Opportunity

  • As one of the top twenty largest cities in Texas, 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.

Geography and Scope

  • The City is located in Dallas, and comprises more than 750,000 square feet of building space along with infrastructure including water pumps, treatment plants, and street lighting.

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 & department.

Case Study: Government

Opportunity

  • This housing authority administers provides affordable housing through the management of over 2,600 units.  Following changes in the state’s electricity market, the housing authority was unsure how best to achieve savings and budget stability, so Tradition was called upon to help.

Approach

  • Explained the function of the market, and potential opportunities
  • Pulled all properties together under one contract and away from the standard utility rates
  • Secured contract with high degree of budget certainty

Geography and Scope

  • Eastern Pennsylvania

Services Offered

  • Market research & intelligence, Strategic risk management, Supply management & procurement, Utility Rate Analysis

Results

  • Elimination of certain utility rate penalties
  • 15% savings on initial move from utility, then further 8% reduction on subsequent contract
  • Assisted with HUD Rate Reduction Incentive

Case Study: Government

Opportunity

  • Our client provides critical services and response throughout the US.  Previously, all decisions regarding energy procurement have been made by staff at the local sites, however the they are in the process of centralizing all procurement through a shared services center.  Tradition was introduced to the client by our partner who is a Fortune 50, international business consulting firm.

Approach

  • Gathered and analyzed data for all sites nationwide
  • Prioritized data and cost reduction opportunities based on spend by state and contract expiration, and then created statewide bundled procurement efforts

Geography and Scope

  • Over 1,000 sites comprised of local offices, medical facilities, and the National Headquarters

Services Offered

  • Market research & intelligence, Supply management & procurement: electricity, Bill auditing

Results

  • Reduced energy costs more than 20% to date
  • Created a centralized energy procurement process and strategy
  • Composing a stable of pre-negotiated supplier contracts to enable a more efficient procurement process
  • Created master billing procedures for use through their Shared Services Center

Case Study: Government

Opportunity

  • In November of 2010, our client, a city with a population of over 50,000, conducted their own RFP process and signed a 3-year electricity contract amidst a run up in market rates that were heavily based on projections for colder weather that year.  Industry energy market intelligence at the time was indicating to either address 2011+ pricing much earlier in 2010, or to secure a short-term contract to weather the pricing bubble.  In contrast, a longer-term contract was signed in the midst of this bubble.  As the current contract is expiring Dec 2013, the City opted to engage the services of Tradition Energy and their U.S. Communities contract to coordinate the procurement of the upcoming electricity contract. 

Approach

  • With only two months prior to the expiration of the current contract, it was extremely important that procurement be concluded quickly since market prices were trending upwards leading in to winter. 
  • Amid the upward movement in pricing, a dip was seen the week of Oct 25th.  As prices came in, Tradition evaluated the financial benefit to the City by not having to pay Gross Receipts Taxes and PUC Assessment (GRT & PUCA) through the General Land Office (GLO) contract, however this still did not put the GLO contract as the best option for the City.  
  • By leveraging our knowledge of where the underlying wholesale cost of power was, Tradition pushed the GLO price lower to bring the overall cost to the City just below the second best offer available.  Soon, all documentation was in place and ready to execute, however the market moved upwards during the day.  Tradition put additional leverage on the GLO to hold the price, even though prices had gone up.   

Services Offered

  • Electricity Procurement. Natural Gas, Demand Response, Bill Auditing & Tariff Analysis, & Bill Processing Services are also being evaluated by the City.

Results

  • With the new contract the City will see an overall estimated term savings of close to $6 million dollars.  In addition, because the City is under contract with the GLO, additional savings will be achieved by not paying Gross Receipts Taxes and PUC Assessments, which would normally be paid if the City were contracted with any other supplier.  This leads to a total estimated annual savings of over $1.2 million.

Case Study: Government

Opportunity

  • Our client is a Housing Authority with over 500 housing units. Previous to working with Tradition that had been paying more than $500,000 annually for their electricity costs.  Their existing contract did not expire for close to two years, and due to a lack of resources they had planned on not addressing electricity procurement until later in 2014.  

Approach

  • We educated the Housing Authority on the U.S. Communities program, and in addition to Tradition’s energy consulting contract, they also saw several other contracts they could utilize. 
  • After establishing an energy procurement strategy and evaluating market conditions, we were able to move forward with securing a new contract to start in 2015.

Services Offered

  • Electricity Procurement

Results

  • Following Tradition’s advice, the Housing Authority executed an energy contract to start in 2015 that will save them 15% on their electricity costs each year.

Case Study: Government

Opportunity

  • The Housing Authority has provided decent, safe and sanitary housing to the residents of Waco, Texas and the surrounding areas since 1938.  They are responsible for ensuring electricity supply to many of its residents and for its own facilities throughout the city.

Approach

  • We created a more tailored solution addressing the Housing Authority’s needs as they had previously been participating in an aggregation of entities in Texas
  • This approach included bundling all the housing authority facilities along with the numerous housing complexes for the residents under one contract.

Geography and Scope

  • Housing to over 3000 families and continues to be the largest housing provider in the city.

Services Offered

  • Market research & intelligence, Supply management & procurement: electricity.

Results

  • Most recent negotiated contract provides a 10% in reduction in cost over the current rate.
  • Ongoing support with the energizing/disconnection of new meters as residents move in and out of units.

Case Study: Government

Opportunity

  • After becoming the largest city in Galveston county, this City was challenged with rethinking its approach to utility procurement.  Having participated in a long running government aggregation, they decided to hire Tradition to develop a more customized approach and strategy to control costs in a rising market.

Approach

  • Determined specific needs for the city creating a more customized approach
  • This approach proved to create more favorable opportunities with regards to market timing and price

Geography and Scope

  • Southeast Texas

Services Offered

  • Market research & intelligence, Strategic risk management, Supply management & procurement

Results

  • Even though market had risen since previous contract, we secured 3% savings over current rate.
  • Created website which houses information on all meter changes and requests.

Case Study: Government

Opportunity

  • This Texas County with over 65,000 residents had been part of an electricity aggregation because it allowed them to procure electricity without having to issue a bid/RFP themselves.  After discovering the benefits of a more customized procurement approach by utilizing Tradition, their concern was that there was not enough time to do a bid, as would normally be required.  

Approach

  • We presented the U.S. Communities contract as an option that allowed the County to secure a new contract while bypassing the time consuming and costly RFP process. 
  • Client was concerned with price security since leaving the comfort of the aggregation.

Services Offered

  • Electricity Procurement

Results

  • Utilizing our wholesale energy market intelligence we identified an advantageous time to execute contracts resulting in a 2% savings long-term for the County.

Case Study: Government

Opportunity

  • Our client was voted by the national media as one of the top 100 places to live in the US.  The growing Connecticut town, with a population of 60,000, was looking for an advisor to navigate the complexities of energy procurement and utility bill management.

Approach

  • Defined client’s energy exposure and assessed energy usage across large facilities, including schools and government offices, as well as many various types of smaller meters.
  • Designed plan to aggregate schools with the town to maximize supplier competition.
  • Negotiated town-specific contract terms with vetted pool of top tier energy suppliers

Geography and Scope

  • Southern Connecticut

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity, Energy data management & reporting

Results

  • Market timing, budgeting 18 months in advance, and powering-up 16 schools and several municipal government facilities are not easy tasks.  Tradition Energy provided invaluable service on market timing and secured very competitive rates from reliable energy sources, which has significantly reduced the town’s cost for power and allowed them to accurately budget our energy needs.
 
Healthcare

Case Study: Healthcare

Medical Experience

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 and non-profit organizations, such as hospitals, nursing homes, assisted living centers and other healthcare facilities.

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: Healthcare

Opportunity

  • One of Massachusetts’ oldest private, not-for-profit hospitals approached Tradition with the goal to minimize costs while avoiding significant price risk.

Approach

  • Tradition’s risk management team conducted a thorough analysis of historical energy usage and expenditures and provided sufficient market insight to allay volatility concerns.  A floating strategy was implemented with safeguards that allowed a change in structure should market conditions change.  Tradition continues to monitor market conditions closely and advised the client.

Geography and Scope

  • One large regional hospital, one assisted living center, multiple annex facilities.

Services Provided

  • Market research & intelligence, Supply procurement: electricity & natural gas

Results

  • An immediate across the board reduction in energy spending.  Increased control over costs.

Case Study: Healthcare

Opportunity

  • A leading provider of information services for the healthcare industry, was looking to reduce its energy spend for 2012.
  • Energy procurement was centralized with procurement advisory support
  • A review was underway evaluating energy auctions, and other advisory firms.
  • Operates multiple facilities in deregulated markets and had already procured power from competitive suppliers for four of those facilities.
  • One of the sites was floating (2 meters) on expensive default utility rates.
  • Tradition Energy was introduced to the client with the goal of reducing energy spend and limiting risk.
  • We were selected to advise the client after they included our firm in a competitive bid for its energy procurement business.

Approach

  • Defined client’s energy exposure by assessing impact in each State.
  • Proposed a procurement strategy designed to aggregate sites within each market to maximize leverage and simplify contract management.
  • Identified potential savings, which was greater than other providers evaluated: $235,000, or 19% versus prior year.
  • Managed an iterative, reverse auction for all seven facilities from a pool of top tier suppliers.
  • Negotiated client specific contract terms, including a provision relating to a recent business acquisition.

Geography and Scope

  • New Jersey, Pennsylvania, 5 facilities (7 meters), 12.8 million kWh of annual load

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity

Results

  • Secured contracts, which reduced the company’s energy spend by $265,000, or 21%, versus prior year, exceeding initial targets.
  • Reduced client’s risk profile and increased budget certainty by moving all sites away from unpredictable tariff rates to lower fixed rates for supply.
  • After several rounds of pricing and contract negotiation, Tradition negotiated with the winning energy supplier to honor their previous day’s rates even though the market had increased in value by the time the contract was signed.

Case Study: Healthcare

Opportunity

  • Tradition was selected through a competitive RFP process to help manage energy for the Mid-Hudson Valley’s largest healthcare provider. The group required assistance in forming an energy risk management strategy and procurement plan.
  • Client’s annual energy spend is more than $3.5 million.

Approach

  • The client’s goal was to reduce risk and eliminate price volatility. Tradition’s risk management team conducted a thorough analysis of historical energy usage and expenditures 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 (20%), a floating strategy was implemented, which minimized the premium to fix costs over time and further reduced overall expenditures.

Geography and Scope

  • 3 regional hospitals, 1 assisted living center, multiple annex facilities across multiple utilities in New York State.

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas

Results

  • An immediate 15% across the board reduction in energy spending.  Increased control over costs. Additional opportunities currently being negotiated.
 
Hospitality

Case Study: Hospitality

Opportunity

  • One of the largest hospitality owners in the country was looking to improve the firm’s energy procurement performance, which historically had been handled internally.

Approach

  • Researched deregulated markets in the Northeast to identify locations and markets where opportunity was the greatest.
  • Prepared procurement strategy and conducted reverse, auction process, made  recommendations.
  • Assisted customer with contract execution and market monitoring for future opportunities.

Geography and Scope

  • Several states in the Northeast

Services Provided

  • Market research & intelligence, Supply procurement: electricity and natural gas.

Results

  • Recently, the client acted on Tradition’s recommendation to secure energy and gas contracts for 2013.  Customer has outperformed the market thru multiple variable and fixed product agreements and reduced overall costs by nearly 20 percent.
  • Assisted client in reducing risk for hotels in vulnerable markets.

Case Study: Hospitality

Opportunity

  • Our client owns and operates over 30 hotel properties in 17 states.  They were dissatisfied with the customer service they were receiving from their energy broker, and concerned they were not getting the best advice for their national facilities.

Approach

  • Defined client’s energy exposure by assessing impact in each State.
  • Proposed a procurement strategy designed to aggregate sites within each market to maximize leverage and simplify contract management.
  • Managed an iterative, reverse auction for all seven facilities from a pool of top tier suppliers.
  • Negotiated client specific contract terms, including a provision relating to a recent business acquisition

Geographical and Scope

  • More than 30 hotel properties in 17 states

Services Provided

  • Market research & intelligence, Supply procurement: electricity & natural gas

Results

  • Initial procurement efforts lowered the client’s costs average of 22%.  Tradition further reduced costs more than $300,000 on additional sites and renewals.
  • Tradition’s national deregulated market presence simplifies the client’s effort to stay on top of local market prices and regulatory developments.
 
Manufacturing & Industrial

Case Study: Manufacturing & Industrial

Opportunity

  • Our client, a leading manufacturer and provider of electrical connector solutions and application tooling, and a division of Hubbell Corporation, has been working with Tradition as their energy advisor since 2009.  Over the years, we have helped with many procurement activities.  In March of 2012, Tradition Energy’s account team identified an opportunity to lock in forward contracts for our client’s facilities at a time when electric and gas prices were at 12-year lows.

Approach

  • Historically, our client has preferred fixed rate contracts to ensure budget certainty while continuing to seek to maximize future market opportunities through Tradition’s ongoing market research and intelligence services.

Geography and Scope

  • 4 locations in Connecticut and New Hampshire

Services Offered

  • Electricity & Natural Gas Procurement, Market Research & Intelligence

Results

  • Year-over-year, Tradition has helped reduce our client’s energy budget approximately 20%.

Case Study: Manufacturing & Industrial

Starting Point

  • One of North America’s largest uniform companies rents, leases, and sells uniforms, protective clothing, custom corporate work wear, floor care, and other facility services products to over 100,000 businesses.  When Tradition Energy first met with our client, their special projects manager was managing electricity and natural gas procurement for all their locations in addition to his other duties.  They needed help managing multiple facilities with varying usage requirements and contract expiration dates.

Activities 

  • Tradition Energy began by focusing on locations whose contracts would expire soonest.  With Tradition Energy’s vetted list of over 140 of the nation’s most respected energy suppliers, we were able to prepare proposals for each location with data from multiple suppliers, demonstrating a variety of options for saving over the utility rate for both natural gas and electricity.

Contracting Flexibility

  • Our client’s corporate policy dictated that they could not sign consulting agreements.  Tradition Energy’s approach allowed our client to engage with us without having to sign consulting agreements, so they were able to work within established company policies but still reap the benefits of working with an advisor with wholesale and retail experience and deep supplier relationships.

Approach

  • Our client valued cost savings over budget certainty, so Tradition Energy was able to help them with procurement arrangements that allowed them have a deal structure that met their corporate objectives.  By understanding our client’s primary goal, which was savings, and risk tolerance, which was high, we helped them realize ongoing savings through index priced energy contracts.

Geographical and Scope

  • More than 50 locations across the US and Canada.

Services Provided

  • Natural gas procurement; electricity procurement; data management; market monitoring; aggregation.

Case Study: Manufacturing & Industrial

Opportunity

  • Global energy procurement was decentralized at this Fortune 200 company and the corporation lacked an enterprise-wide strategy. Tradition was selected as their energy advisor after successfully procuring energy for several facilities in the US.

Approach

  • Tradition worked with client to centralize their global activities and develop an energy management policy and plan that would serve as the basis for localized facility strategies serving individual country needs.

Geography and Scope

  • 221 facilities across 34 countries
  • Energy spend: $35 million

Services Provided

  • Natural gas and electricity procurement; market intelligence and monitoring; energy data management  services.

Results

  • To date, more than 32% savings over 41 transactions.
  • $2.3 million in reduced costs.
  • Established data management portal; set program procedures and budget forecasting for global facility management personnel.

Case Study: Manufacturing & Industrial

Opportunity

  • Recognized by industry trade media as the top U.S. construction contractor for the past 14 years, our client is seen as the top choice for engineering, construction, and project management.  While erecting two new power plants in Texas, our client identified Tradition as the energy advisor who best suited their procurement needs.

Approach

  • Defined client’s energy exposure, and current procurement practices; educated client on service opportunities.
  • Designed a plan that allowed for client to participate in the market based upon their risk tolerance.

Geography and Scope

  • Texas

Services Provided

  • Market research & intelligence, Supply procurement: electricity.

Results

  • Reduced power expenditure by approximately 40%, versus the client’s historical procurement practices.

 

Case Study: Manufacturing & Industrial

Opportunity

  • Prior to working with Tradition, a global brewing company managed all energy procurement decision-making internally.  The internal team responsibilities did not extend to all facilities, including a facility in Ohio, a newly deregulated market.

Approach

  • Tradition developed a procurement strategy and vetted suppliers operating in the Ohio market – including a local firm Tradition had not worked with before.

Geography and Scope

  • Ohio

Services Provided

  • Market research & intelligence, Strategic risk management, Supply management & procurement: electricity & natural gas, Demand Response.

Results

  • The client preferred to contract with the local supplier that was new to Tradition, but their price was substantially higher than the other offers. Through our wholesale market intelligence we determined the local supplier’s pricing was $2 per MWh above the market.  Using this information we were able to negotiate a more competitive price with the local supplier, which resulted in several hundred thousand dollars in savings.
 
Media and Entertainment

Case Study: Media and Entertainment

Opportunity

  • Energy procurement was decentralized at this Fortune 1000 owner and operator of music venues across the US, with individual venue managers taking on the task of negotiating electricity and natural gas contracts
  • Tradition was selected to help coordinate and centralize the process on a market by market basis

Approach

  • Tradition looked for opportunities to bundle venues to achieve maximum market leverage
  • Many locations were moved from unfavorable contracts or utility rates, to more favorable terms and pricing
  • Opportunities were also created to allow for sponsorship by energy suppliers as part of the process

Geography and Scope

  • Includes music theaters, clubs, and amphitheaters throughout the US

Services Offered

  • Market research & intelligence, Supply management & procurement: electricity, natural gas, & RECs
  • Consulting on energy efficiency projects, data management, & sustainability

Results

  • Centralized, leveraged approach to procurement resulted in increased savings each year, with a savings of over $200,000 annually in 2012
  • Negotiated sponsorship agreements with suppliers leading to lower rates and marketing revenue for the venues

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 combinations of different products.

Geography and Scope

  • Portfolio of TV stations, radio stations, publishers, studios, signage, and a power plant.
  • Primary focus on US, however we provide support in EU as well.

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity, natural gas, & steam, 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.
 
Retailers

Case Study: Retailers

Opportunity

  • Energy management was centralized within the organization, however client lacked knowledge of national deregulated markets and service options.

Approach

  • Defined client’s energy exposure, and current procurement practices; educated client on service opportunities across multiple states.
  • Designed plan to prioritize opportunities by region and by service type in order to reduce operational expenses quickly.

Geography and Scope

  • 40 Stores across 10 states

Services Provided

  • Market research & intelligence, Supply management & procurement: electricity & natural gas, Demand Response.

Results

  • Delivered over $2.5 million in savings over the last 36 months.
  • Introduced additional revenue streams through Demand Response programs in New York, Illinois and Maryland.
 
Oil and Gas

Case Study: Oil and Gas

Opportunity

  • A large oil and natural gas well operator was unaware of ERCOT’s Demand Response (DR) programs and the opportunity to earn incremental revenue through participation

Approach

  • Defined client’s electrical usage and demand for facilities in regions of Texas where the DR programs are available
  • Educated client on the various DR programs available and submitted program application
  • Advise client on the DR program that best met their requirements, including curtailment scheduling and kilowatt load shedding commitments
  • Performed opportunity analysis and provided pricing report considers equipment installation costs, expected revenue and payback period

Geography and Scope

  • Texas, 4 well sites

Services Offered

  • Demand Response

Results

  • Monitored the chosen DR provider’s costs, schedule and performance
  • Provided client reports on revenue and performance relative to plan
  • Monitored customer “Available Load” reports, which affects client revenues, for possible action
  • Since 2012, the oil and gas operator has realized $117,700 incremental in revenue

Case Study: Oil and Gas

Opportunity

  • Natural resources energy income trust set up to capitalize on its on-shore producing properties in Texas
  • Objective to reduce operating costs and increase net operating income for each well.  Current electric utility associated costs account for 40% total operating costs
  • Centralized energy strategy in place for all producing wells, however they had been previously advised to purchase a 5 MW block energy product, which resulted in “over buying” their power

Approach

  • Analyzed the 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
  • Compared the risk exposure and dollars (lost) on their current product vs. a fixed energy product
  • Flipped to a fixed energy product for the remaining 6 months of their contract term
  • Simultaneously  executed a new contract in the forward market for a longer term fixed energy product

Geography and Scope

  • 32 operating wells in  Texas (with additional wells coming on-line)

Services Offered

  • Market research & intelligence, Supply management & electricity procurement, Budgeting and Usage Forecasting
  • Recalibrating meter profiles
  • Demand Response Programs and Opportunities

Results

  • Delivered $140,000 in savings by renegotiating to a fixed electricity product for the remaining 6 months of contract
  • Executed a new contract and found over $1.8 million (37%) in savings over 24 months
  • Continue to work closely with accounting and field operators to make sure adding more wells is a seamless process as exploration and acquisitions increase