Objective: Client A was in an electricity supply contract with a third party vendor. They looked for recommendations from us about a new energy procurement strategy. The goal was to procure the most competitive electric price in the market while managing risk of loss in the future.
Solution: We provided a full range of procurement options along with a procurement recommendation that matched the client’s risk tolerance. The options included procuring an index price, an index price with a dynamic hedging strategy during the most volatile periods historically and a fixed price from third-party energy suppliers. For each option, we provided a comprehensive risk/benefit analysis. Considering the unique characteristics of the property and energy market trend insight, we recommended a procurement strategy to the client that best suited their needs.
Outcome: The client decided to purchase the most competitive fixed price from a third-party energy supplier. This strategy helps the client to save almost $700,000 from their electric budget in a 6 month period.
Energy Efficiency Rebates
Objective: Client B is one of New York City’s most renowned and highly visible properties. The client requested our assistance in navigating their options to participate in available utility and NYSERDA energy efficiency programs.
Solution: We helped the client to define building system retrofit projects that would be eligible for the various rebate programs, provided total project cost vs. payback analyses, and spearheaded the rebate application process.
Outcome: The client received over $1,200,000 in total incentives for lighting, motors, HVAC and variable frequency drive retrofit projects in the past three years. The client is enjoying utility cost savings of over $600,000 annually as a result of implementation of numerous projects.
Rate Discount Negotiation
Objective: Client C is a large multi-building residential complex in NYC. The client had just taken ownership of the property and was informed by the utility that the previous owner’s utility rate structures would not be offered to the new entity, resulting in an annual utility increase of $1,500,000.
Solution: We analyzed all of the potential energy rate structures with the utility and found that we could negotiate a special discount for one of their energy sources. Additionally, we reviewed the existing third party energy contracts and found that the electricity service agreement had a unique circumstance. Based on our finding, we pursued a negotiation with the third party supplier.
Outcome: ES Partners was able to successfully negotiate a discount with the utility that resulted in a multi-year discount that saved the client $3,500,000. Additionally, the negotiation with the third party electricity supplier resulted in a client rebate of $400,000.
Objective: Client D is a major Class A building owner and operator. The building participated in the NYISO demand response program for several years. The client was looking to enhance their participation in Demand Response and improve the revenue that the building was able to earn as a result.
Solution: ES Partners was able to secure an $80,000 grant from the Department of Energy to enable additional demand response load control through the client’s building management system (BMS). Additionally, ES Partners evaluated the Con Ed Demand Response programs for suitability with the building’s operations.
Outcome: ES Partners was able to increase the annual revenue at the client’s property by $175,000 as a result of our assistance in increasing the load available for demand response and the programs that the client participated in.