CASE STUDY
PRI and Loyola University of Chicago
In October 2013, Loyola University of Chicago (LUC) retained Prospect Resources, Inc. (PRI) to manage its energy procurement. In April 2014, natural gas supply started flowing under the PRI strategy, and electricity followed in 2015.
Average Annual Saving – Loyola U. would have paid an average of $300,000 more per year had they continued to implement the strategy of their previous suppliers.
Contractual Clauses: – PRI restructured the gas supply agreements from a fixed volume, fully hedged product to a partially hedged product with a managed storage component. This has mitigated the risks of monthly true-up transactions which cost LUC approximately $360,000 in FY 2012.
Meticulous Bill Reviews – PRI reviewed electricity bills from a previous supplier. While comparing the original contract to actual bills, PRI discovered that LUC had been erroneously charged over $700,000. PRI prepared a detailed analysis and Loyola was refunded the entire amount within a short period of time.
Advocacy with Suppliers and Utilities – Using its key industry connections, PRI helped resolve many outstanding and recurring billing issues, including the removal of tens of thousands of dollars in penalties and late fees.
Fee optimization: – PRI facilitated the consolidation of over 200 accounts, reducing bookkeeping work and saving LUC upwards of $40,000 annually in service fees to ComEd.
Renewable Energy – PRI facilitated contracts that allowed LUC to purchase Renewable Energy Credits (RECs) for varying percentages of its electricity procurement over the past several years. This expanded to 100% usage for the 2021-2022 Academic Year.
System Upgrade – PRI created new load and delivery profiles for the Health Sciences campus pursuant to investment in the Central Steam Plant. Annual gas savings were over 102,000 therms.
Flexibility – PRI assisted in altering natural gas delivery to buildings where occupancy fell drastically during the Covid-19 pandemic by readjusting and optimizing existing hedges based on facilities’ needs.
Key Takeaways
Prospect Resources is much more than an energy broker. We assist in almost every energy related matter on behalf of our clients, as they come to the realization that PRI is a truly trusted partner who relentlessly pursues whatever will help its clients – quite often without any financial benefit to PRI.
