CASE STUDY

Natural Gas and Electricity Savings – Realty Group

A senior manager left a PRI client and was hired by a large real estate firm.  He approached Prospect Resources about providing services to his new firm.  He wondered if it made sense to bring in a “middleman” instead of dealing directly with the supplier. He asked PRI to compare results for four larges buildings served by PRI in his previous firm, with the same period results for 4 buildings of his new firm. Both sets of properties were served directly by the same supplier.

The results were astonishing – Our “worst” results for a client managed by PRI, were far better than the best results for supplier’s direct client!! See graph below.

  • The graph shows the weighted cost per therm for Jan – Mar 2014. A large sample of properties managed by PRI are in the blue zone, with the average cost indicated by the blue dotted line.
  • The supplier’s directly managed properties are above that zone, with the average cost indicated by the orange dotted line.

After obtaining the contracts for the new real estate portfolio, PRI crafted a hedging strategy for three different types of properties – commercial office buildings, rental apartments and a large distribution warehouse. Each type required its own strategy because of variances in usage and demand, load profiles, occupancy levels, utility rates, and tariffs.

While of working with this group, PRI successfully advised them on a wide variety of ancillary matters:

  1. An aged solar array installation at the company farm.
  2. Projected usage and demand for a new rental development built to LEED Certification with max energy efficiencies.
  3. Projected cost and utilization of EV car charges installed at company expense at a new property.
  4. A proposal for energy storage at the warehouse facility due to heavy peak usage.
  5. Coordinated contract termination upon sale of properties, avoiding liquidation charges.

PRI has generated natural gas and electricity savings of over $321,000 from 2017 to 2020, as compared to utilizing typical fixed price strategies

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