Data-Driven Energy Advisory
Taking the guesswork out of the energy decision making process. Prudential Energy delivers on promised savings by utilizing a highly intelligent data-driven approach to energy management. As an analytical resource, Prudential Energy provides its clients with the tools needed to make smarter energy purchasing decisions, on an ongoing basis.
Our supply desk takes an in-depth look at a variety of factors prior to making supply recommendations. Load shape and usage patterns are analyzed for opportunities to customize the purchasing strategy. Our in-depth expertise in understating rate structuring allows us to focus on energy products that yield a lower cost based on each facility’s unique consumption.
Tracking Market Index Rates Over Time Identifies “Buying Opportunities”
Energy markets and the inputs that drive them are constantly changing. Utilizing data insights and extensive market knowledge, our team brings the big picture into focus. By investing in resources and technologies, Prudential Energy has developed automated internal systems for capturing real-time energy market data points. Our systems track historical and futures market trends, which enable us to identify market low points for hedging opportunities.
Each regional market is unique with variable components, regulations and driving forces. Detailed utility rate examination, regional data and advanced metrics allow our team to deliver strategic energy cost reduction recommendations to our clients.
Wholesale & Retail Energy Supply Procurement
Prudential Energy’s expanded network of approved energy providers maximizes leveraged cost savings. Our energy supply partner network exceeds 150 provider relationships, dating back to 1998.
Our retail & wholesale procurement strategies will benefit your organization in the following ways:
- Our key indirect sales channel relationships yield near wholesale pricing
- Access to strategic energy products provided through energy providers
- Ability to Aggregate load across regions to capture favorable pricing
Dynamic RFP Process
Consumption profiles are unique. Our supply desk analyzes a variety of factors when determining a course of action and hedging strategy for an individual site. Our expertise in understanding load shape and usage patterns allow us to identify energy products that are best suitable for your usage profile.
Energy Suppliers respect Prudential Energy’s process and expertise. They understand that when you hire us to represent you, that they must set forth their most competitive pricing and favorable terms and conditions. You win when energy suppliers compete for your business through our channel. Aggressive negotiations yield significant savings.
Our dynamic procurement approach utilizes multiple RFP models:
- Multi-Stage RFP
- Reverse Auction
- Hybrid RFP
- Direct Leverage
Electricity Supply Cost Reduction
Our supply desk analyzes a variety of factors when determining a course of action and hedging strategy for an individual site. Load shape and usage patterns are analyzed for opportunities to customize a hedging strategy. Market specific cost components are examined, and supplier risk premiums are analyzed against actual historical risk to determine whether specific components should be hedged, or left to clear at market rates.
An in-depth consumption analysis of each site identifies the appropriate supply option to minimize cost:
- Pattern of load profile
- Timing of peak load
- Historical index vs. fixed rates for specific hours of operation
Risk vs. budget certainty analysis is conducted to outline risks associated with hedging or floating relevant market components:
- Supplier risk premium relative to past market conditions
- Known fixed component costs vs unknown future changes
- Regulatory changes which may impact the component cost.
Natural Gas Supply Cost Reduction
Analyzing Regional & National Price Trends and Market Data
Prudential Energy’s pricing and structuring group monitors gas indices on a daily basis, analyzing historical and futures market trends for opportunities to hedge advantageous fixed or basis/ index positions.
- Relevant indices are monitored for increasing/ decreasing spread differentials.
- Regional index settlement and futures pricing and volatility are compared against NYMEX benchmark to determine risk exposure and opportunity for regional price advantage.
- Predetermined client strike price positions are monitored, and immediate action can be taken.
Managing daily supply & demand strategic procurement:
- Targeted Market Intel: risk management, data based hedging strategies
- Consumption analysis
- Enhanced supplier leverage
- Contract strategy and procurement
- Proactive cost management
- Variance Reporting
- Daily communication with onsite personnel to identify inventory and volume allocations
- Daily modeling: loaded car analysis, shipment updates
- Incremental volume management
Customized Risk Management
Prudential Energy takes a proactive approach to risk management.
Each site must be reviewed based on the specific regional market and site-specific load profile. As with budget development, our team reviews the current hedging strategy with the client, and will discuss successes and failures experienced under the current strategy, as well as risk tolerance and potential variations in strategy moving forward. Our recommendations are client specific, and involve initial review of several components:
- Overall hedging strategy review: fixed vs index positions, triggers, techniques, etc:
- Percentage of volume under fixed vs market rate
- Review of any rate triggers, floors, ceilings, collars, etc. Where are triggers set, and how often?
Once we have a full picture of the entire strategy, our team will work within any previously discussed parameters to develop a hedging strategy formulated to match clients needs related to market exposure vs budget certainty.
Overall strategy will be monitored on a constant basis, taking effectiveness of strategy and constant changes to market dynamics into account. Our goal is to maintain a competitive portfolio position when compared with the market, while eliminating price risk volatility.
Energy Budgeting & Reporting
Prudential Energy believes in measurement and performance. We provide monthly, quarterly and annual portfolio savings reports which includes contract rate performance vs. utility/Market Averages on an ongoing basis. Measurement and performance. We provide our clients with ongoing portfolio performance data… Tools that enable you to keep a pulse on your energy expenditure and allow you to make prudent energy purchasing decisions.
Energy budgets are developed in close cooperation with our client personnel, with an emphasis on understanding the specific portfolio or site-level budgetary parameters for each client. Given the variety of products available in each commodity market, having a clear understanding of the client’s risk tolerance is paramount.
Our staff uses a variety of sources when compiling energy budgets, including:
- Client historical, current and projected usage/ load figures based upon operations and anticipated projects
- Client historical and current rate structures.
- Any existing projected energy budgets currently in place
- Benchmarking based upon historical and futures market dynamics (both wholesale and location-specific):
- Market-specific intelligence, i.e. grid load data, forward capacity auctions, pending regulatory developments,
- Pipeline construction projects, supply constraints, new market participants, alternative product options, etc.
- Futures market pricing, prevailing market forces, seasonal load/pricing data, long-range weather forecasts
Budgetary reports are developed during the initial stages of engagement with the client, and will be used to help inform recommendations on product, term, and timing of supply agreements. Targets can be set during the initial budget review process, and variance limits set to ensure metrics are met on an ongoing basis.
Midstream & Asset Monetization
We maximize the value of our clients’ energy assets. Prudential Energy partners with over 200 midstream and downstream energy partners to capture the most cost-effective/efficient process to move energy assets from producer to delivery point. Our goal on any specific project also revolves around mitigating associated risk amongst all involved parties.
We offer a turn-key RFP process for optimizing your energy assets. On any given project, we typically involve over 20 third parties to ensure competitiveness and drive down cost. Our value lies in our sourcing/structuring as well as our market intelligence. Our Midstream and Asset Monetization services include:
- Natural Gas Transport & Storage
- Natural Gas Scheduling & Volume Management
- Biofuels Procurement (Biogas/Biomass)
- Renewable Energy Sourcing
- Power Purchase Agreements (PPAs)
- Solar Power Purchase Agreements (SPPAs)
- Feedstock Procurement & Risk Management
- Other Energy Asset Planning & Procurement
Prudential Energy’s 3rd party network and field expertise yield maximum asset income and seamless project execution. We carry out a detailed market assessment. By exploring our strategic relationships, we’re able to drive up the value of your owned assets. This is our competitive advantage.
Global Energy Management
Prudential Energy offers energy cost reduction and risk management services throughout the US, Canada and select countries in Central America and Europe. Global energy markets are impacted by a variety of regional factors.
A data-driven approach is the key to managing risk and avoiding exposure to energy pricing volatility. We conduct market specific analyses of key inputs including historical commodity prices, energy demand projections, market outcomes and regulatory drivers.
- Market Intelligence: Focusing on factors that influence international markets: Nuclear, CO2, Hydro
- Market Analysis: Prudent approach to risk management. Evaluating alternate factors that influence international markets
- Utilizing leverage with international energy providers to capture competitive commodity pricing
- Energy Data Automation Capability in majority of international utilities.
Prudential Energy is a data-driven organization with a focus on delivering promised savings and proactively adding value. Clients trust our energy advisory services knowing that it’s backed by decades of experience and specialized market expertise. Combined with our energy data automation platform and practical energy efficiency solutions, we are the industry leader in comprehensive energy management.
Prudential Energy can help reduce your energy costs by monitoring and optimizing contracts, benchmarking market prices & volatility, and actively monitoring regional pricing data.
Ongoing Contact Rate Optimization
Our pricing and analytics team monitors contract status on an ongoing basis, benchmarking performance against utility tariff and/ or wholesale market changes. Benchmarks are updated constantly in order to ensure client contracts remain in an optimal position during the term of any supply contract.
Market / Utility Benchmarking
- Track average open market pricing & applicable utility tariff rate changes
- Outline volatility of each market alternative relative to contract structure & utility tariff rate.
Actively Monitoring Regional Pricing Data
- All regional indices are tracked to ensure facilities are receiving pricing based upon most competitive available index.
- Historical and future spreads are analyzed to formulate recommendations for future index positions.
- Seasonal differences may present an opportunity to find short-term savings over alternate index options.
Prudential Energy is a data-driven energy advisory firm with an ongoing commitment to delivering on promised savings and proactively adding value.
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