It takes a lot of energy to produce energy. Natural gas and oil producers use significant amounts of both natural gas and electricity to extract, process, and transport the raw materials that are ultimately refined into various sources of energy and fuels. In 2012, an oil and gas producer in Texas turned to 5 for assistance in managing their electricity supply. This company required a robust and dynamic way of managing its electricity expenses given that its own revenues are closely correlated to volatile oil and gas prices.

Retos

• La compañía llevaba tiempo haciendo esfuerzos desarticulados para evaluar opciones para la compra de electricidad, encabezados por diversos actores dentro de la compañía, lo cual generaba confusión e ineficiencia.
• Como es de esperarse en esta etapa de desregulación, existía una falta de conocimiento del marco regulatorio, del mercado, así como de la industria.
  La compañía experimentaba incrementos substanciales en sus costos de

A large financial institution with multiple facilities across the country began to work with 5 in 2016 to create a more substantive approach to managing its electricity costs. Prior to hiring 5, this Fortune 500 company waited until the end of its current electricity agreements before considering renewal opportunities.

After an exhaustive review process, one of the nation’s fastest-growing quick-serve restaurant chains selected 5 to serve as their comprehensive advisor for everything energy-related. In addition to 5’s initial analysis of usage data and subsequent electricity procurement process, the client also voiced concerns related to their new construction utility process and the financial impact of delayed store openings.

In late 2018, a world-class academic medical center in NYC engaged Luthin Associates, 5’s regional brand in the tri-state area, to process Gross Receipts Tax (GRT) refunds. This hospital group has already come to expect excellence when working with our team through various programs and projects that we were doing on an ala carte basis. After only a few years of the GRT program, the hospital system had already realized over $700,000 in refunds.

The Opportunity

Prior to partnering with 5, the Irving Convention Center (ICC) had procured energy by issuing RFPs directly to suppliers. While this process met their basic needs, the ICC lacked the time and tools to track and analyze market conditions or conduct usage analyses that would allow the facility to capitalize on periodic market fluctuations. As a result, the ICC had little opportunity to reduce baseline energy costs or pursue operational efficiencies. Additionally, the ICC had initiated a new lighting project but lacked the funding to complete it.

The Fort Worth Zoo was founded in 1909 with one lion, two bear cubs, an alligator, a coyote, a peacock and a few rabbits. It is the oldest, continuously operating zoo in Texas. From these humble beginnings, the Zoo has grown into a nationally recognized facility, housing more than 7,000 native and exotic animals, representing more than 500 species.

The City of Mansfield looked to 5 to help identify better ways of purchasing electricity and operating their facilities. This included moving away from a municipal aggregation and into a favorable supply contract that will save the city approximately $9 million in electricity expenses. 5 also worked with the city to improve the operations of its water treatment plant. Adjustments to the operating profile of the main water pumps and training provided to the staff reduced demand charges by over $100,000. 5’s energy expertise enabled the City of Mansfield to significantly lower their operating expenses and improve the efficiency of the water utility that serves the city.

Houghton College had a number of exciting energy projects on campus prior to engaging the team at 5. These projects were driven by their commitment to sustainability and featured a campus-wide LED lighting retrofit project, a 2.6 MW solar array and other initiatives to reduce their carbon footprint. 5 was able to partner with Houghton College’s sustainability and finance teams to put all of the pieces together into a comprehensive strategy for energy procurement and demand-side management.

New York City passed a set of laws under the Climate Mobilization Act to transition New York toward clean electricity and drastically lower Greenhouse Gas (GHG) emissions. This new legislation intends to counter the threat of climate change and involves four local laws which require: