Annual Energy Budgets

PRI developed sophisticated software for the purpose of preparing detailed and comprehensive annual budgets (including local utility charges and taxes) for natural gas and electricity.

Budgets incorporate the following data:

  • Usage – estimated based on an average of the last five years (if available)
  • Contracted Prices – the weighted average price of all the hedged energy at the time the budgets are prepared
  • Index Prices – the cost of the energy that is not currently hedged is calculated based on the current forward or future price with a 10% buffer for price fluctuation
  • Non-energy costs – capacity, transmission, losses, margin, basis, ancillaries, etc. are calculated based on usage and the prevailing and/or contracted rates
  • Utility Costs – calculated on the expected usage and demand and the prevailing rates, item by item. If a rate change is projected, it is accounted for
  • Taxes – calculated based on the prevailing tax rates and expected usage
  • Variance – an overall 5% variance is added to allow for fluctuations of usage and cost
Annual Energy Budget
Annual Energy Budget
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