See how Energetek improved these companies’ bottom line.
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.
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.
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.