See how Energetek improved these companies’ bottom line.
Cardone Industries is a spare car parts manufacturer based in Philadelphia but also holds locations in Texas, California, and Mexico. Energetek met with Cardone over the course of 5 months, getting to know their industry and the inner workings of every location. Energetek negotiated a fixed product with 100% swing for the Philadelphia locations, protecting the facilities from future usage changes. The Etek team took a block and index approach for Texas, fixing a portion of Cardone’s electric and hedging against the market for the remainder.
S.D. Richman Sons is one of the largest scrap metal and iron recyclers in the city of Philadelphia. Energetek started working with S.D. Richman while they were still under contract with a third party supplier for electric. Energetek was able to show value in the form of market trends, futures trading, and competitive pricing. By paying close attention to electric pricing lows, the client was able to secure their next contract which will provide S.D. over 20K in annual savings. Energetek also uncovered an issue regarding sales tax on S.D. Richman’s utility bill. Energetek is now working with the client to secure up to $12,000 in discounts from the supplier and filed a case with the state to secure the remaining $12,000.
Energetek provided this client a fixed electric supply contract. With the steady usage and favorable load factor, a fixed rate guaranteed price protection and savings. Energetek reviewed a year of utility bills from the client to determine average rate from PSE&G. Taking the average rate, market conditions, and seasonality into account, Energetek secured Mayfield Greenhouses a rate that will protect them from market fluctuations.
With the high volume of natural gas that Mayfield Greenhouses incurs monthly, Energetek was able to hedge consecutive fixed 10-month terms, while floating back to PSE&G for each January and February. Energetek’s team compared the hedged option to longer term contracts and determined that is was more cost effective to incorporate a market-based option. Factors led to the contract decision were PSE&G’s price to compare from 2006 to 2019 and natural gas futures through 2023. The client’s new term and rate keeps their weighted yearly average lower than staying strictly with the utility or selecting a longer term. Energetek fully monitors this client’s transfer from the energy supplier back to the utility company, leaving no room for error or the possibility of a variable rate from the supplier.
Nupro Industries was under an electric supply contract with another third party at the time of negotiations with Energetek. Energetek not only provided future pricing to coincide with the existing third party contract end date, but also conducted a bid on behalf of Nupro. Energetek provided a fixed product to ensure protection during high usage months that culminated in a $7,000 savings for Nupro Industries.
Upon an in-depth look of Nupro Industries’ current natural gas contract, provided by another third party, Energetek’s team discovered that the competing contract only offered 40% swing option where excess usage was billed at market value plus $0.40. Being a high usage refinery, the discrepancy has cost the company an estimated $40,000 and will continue to incur during the winter of 2019. Energetek is now working with the client to unwind the contract and recoup overpayments from the supplier. Energetek also future priced Nupro providing a fixed product contract with 100% swing to protect them from unfavorable market conditions during high usage months. The contract Energetek presented will save Nupro Industries $90,000 over the term.
Castor Materials is multi-site and multi-account concrete manufacturing and supply operation in the PECO territory. Castor was not under contract with a third party supplier at the time Energetek started working with the company, but were seeking to lock into a contract to lower overhead. Energetek entered into a competitive energy bid situation and won, securing a rate that exceeded Castor’s savings goal by $2,000. Energetek entered Castor Materials into a fixed contract that would protect them from market volatility. As with all manufacturing companies in PA, Energetek made sure to submit Castor’s sales tax exemption form, guaranteeing they would not be wrongfully taxed during the term of the agreement.
With every new client, the Energetek team starts by reviewing energy contracts currently in place and compares energy rates to ensure the client is benefiting from the market. Like most manufacturers, Del-Wood Kitchens was under contract for third party electric when Energetek started working with them. By utilizing their supplier relationships, Energetek renegotiated Del-Wood’s current contract and secured the client’s next electric contract with future pricing. This product is referred to as “blend and extend”, which offered the client immediate and significant savings without having to wait for the current contract to end. With this unique product, Del-Wood Kitchens is now on track to save $10,000 over the term.