Manufacturer’s Largest Energy Expense Reduced by 13%
Expanding Relationships, Reducing Costs
Pleased with Cargill Energy and Risk Management Solutions’ success in managing their natural gas load, a major building products manufacturer turned to CERMS for our expertise in controlling electricity costs in multiple locations across the U.S. and Canada.
Minimizing Price Exposure in an Upward-Trending Market
With electricity supplying the bulk of the customer’s
manufacturing power in multiple states, a power
contract due to expire, and electricity prices
trending upward, CERMS identified a significant
opportunity to minimize
price exposure. Leveraging
our multi-state energy
procurement experience,
we recommended holding
online reverse auctions to
identify the most appropriate
and cost effective suppliers
for their energy needs.
Making Competition Work to Our Customer’s Advantage
The CERMS team
gathered interval load data
and conducted detailed
statistical benchmark analysis to determine the
customer’s optimal pricing based on load profile,
available product alternatives, and load aggregating
opportunities.
We advised our customer on potential suppliers,
developed clearly defined RFPs and conducted
online reverse auctions to secure the best price
through competitive bids. Only creditworthy suppliers,
who agreed to Cargill’s recommended terms and
conditions, were approved by the customer and
invited to the auction. By the close of the auctions,
we were able to negotiate a final price that averaged
13.9% lower than the market benchmark.
Adding Value Through Industry Knowledge & Expertise
Unlike some auction platforms, Cargill Energy and Risk Management Solutions focuses our efforts exclusively on energy markets. That expertise translates into deeper industry knowledge, more accurate benchmarking, better negotiating leverage and more informed regulatory insight. Whether you operate in a regulated or deregulated market, we can give you every possible advantage.
Contact Eric Hoegger, Cargill Energy and Risk Management SolutionsSM, at 952-984-4025 or Eric_Hoegger@cargill.com.
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