Experience

Tradition Energy has been advising clients in energy commodities markets since 1986. Our professional energy consultants are the trusted advisers to more than 1,350 Commercial and Industrial and Governmental clients ranging from Fortune 500 companies to medium-sized businesses to local municipalities. Over 124 billion kilowatt-hours in annual electricity usage and more than $131 billion in electricity and natural gas spend managed on behalf of our clients.  Click on the industries below to learn more about our experience.

Key Industries We Serve

 
Communications

Case Study: Communications

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Global communications leader learns how leaving the local utility can substantially reduce costs

Opportunity

  • A prime contractor in aerospace systems who is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms was getting its energy directly from their local utility and not taking advantage of the competitive marketplace
  • Tradition Energy was chosen to make a specific approach to managing energy procurement for the company, based on Tradition’s market intelligence

Approach

  • After analyzing the client’s usage profile and billing history, discussing the current energy price outlook, and formulating a procurement strategy, Tradition Energy sought out all Tier 1 suppliers in the market for pricing
  • Tradition analyzed the different pricing options and presented a proposal to the company, along with options and Tradition’s recommendations.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Tariff Analysis
  • Energy Bill Auditing

Results

  • After selecting and contracting with one of Tradition’s recommended suppliers, the client is projected to reduce its annual electricity supply costs by approximately 12% during the contract period.
  • Tradition’s market intelligence and strategy recommendations have enabled the client to achieve its goal of minimizing energy costs. Tradition’s rigorous vetting process and highly competitive pricing platform ensured that at execution, the client had the supply agreement that best meet its needs.
  • In the past several months, Tradition has been monitoring the market for additional cost reduction opportunities and continues to advise the client as these opportunities present themselves.

Case Study: Communications

One of the nation’s largest communications companies gains negotiation leverage and reduced electricity prices by aggregating procurement for its facilities

Opportunity

  • Energy management was decentralized within this large communications company, and many of their sites were on the utility rate because of difficulties in negotiating terms with energy suppliers
  • Tradition was chosen to help centralize their procurement activities and to create leverage for the company in order to procure electricity at a more competitive rate

Approach

  • Tradition first defined the company’s entire energy exposure by assessing the impact each state had on the total energy spend
  • A plan was developed to improve efficiency and to aggregate sites thereby creating procurement leverage within each market
  • Energy suppliers were chosen within each market based on their ability to meet client-specific contract terms

Services Provided

  • Market research & intelligence,
  • Supply management & procurement: electricity
  • Energy data management & reporting

Results

  • Tradition developed a pool of approved suppliers that would meet the specific contract terms required by the client
  • Since the plan was implemented the client has generated more than 17% in savings across all transactions, resulting in estimated annual savings of over $700,000
 
energy management advisors Data Centers

Case Study: Data Centers

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Data center turns to Tradition Energy for risk management strategy and procurement advice and saves millions

Opportunity

  • One of the largest and longest operating mission-critical telecommunications and data center facilities in the nation was spending too much on their electricity bills every month, and was looking for a way to reduce costs
  • Tradition produced a risk management plan to help the company meet their goal, which was to achieve the lowest possible rates and minimize their energy bills
  • The company was also willing to assume some risk in order to do reduce their costs, allowing Tradition to be creative with the procurement plan

Approach

  • Tradition understood the client’s detailed budget requirements and appetite for risk and made minimizing costs its top priority in identifying an appropriate product strategy.
  • After a lengthy evaluation of the client’s historical and projected energy usage and load profile, Tradition recommended a variable-rate product structure that had the potential to outperform the default utility rate as well as enable the client to shed some risk when the market dictated it necessary.
  • Tradition implemented the variable-rate product, which had an immediate impact on the price our client was paying, and then leveraged its proprietary energy market intelligence to reduce risk over the term.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity

Results

  • Tradition conducted two separate transactions for the company, the first with more risk and the other with less risk
  • Tradition’s guidance and expertise helped the client outperform the default utility rate offer by over $3 million and counting.

Case Study: Data Centers

Enterprise Data Center seeks budget stability while ramping-up their operations

Opportunity

  • A brand new facility with an aggressive usage ramp-up schedule needed assistance with electricity procurement
  • Tradition was selected to design a procurement plan based around the ramp-up schedule that the facility was implementing

Approach

  • Based on the facility’s projected building occupancy, Tradition teamed with the facility to develop a detailed usage ramp-up schedule.
  • Budget certainty was the client’s main objective and we worked with them to identify a fixed-price target and a long-term agreement.
  • Tradition leveraged its wholesale market intelligence and took advantage of sharp downward intra-day market movement to contract at a favorable rate

Services Provided

  • Market research & intelligence,
  • Supply management & procurement: electricity

Results

  • With Tradition’s help, the contracted price for the facility’s electricity procurement was $0.003 per kWh cheaper than what they could have gotten from the utility.
  • This lower price is expected to produce savings of more than $450,000 over the life of the contract.
 
Education

Case Study: Education

Tradition Energy has advised more than 310 Education clients totaling 9.6 billion kWh in energy usage & $10.8 billion in energy spend.

Case Study: Education

OMNIA Partners

Tradition Energy is the exclusive awarded supplier of a full suite of energy-related services through the OMNIA Partners, Public Sector (subsidiaries National IPA and U.S. Communities), the nation’s largest and most experienced cooperative purchasing organization dedicated to public sector procurement and developed by government agencies utilizing the pooled power of public agencies and non-profit organizations, such as K-12 schools, colleges and universities.

With the Energy Consulting & Management Services Contract (#2018-017), competitively solicited by the City of Mesquite, Texas, public agencies will be provided comprehensive advice in managing their energy expenditures and the most competitive pricing available in the public sector.  This contract fulfills the bidding requirements via the Joint Powers or Inter-local Contracting Authority of each state and allows government entities to avoid the time consuming and expensive process of issuing their own RFP.

For more information on these programs, click below:

To request membership information for the above organizations or the energy services, click here.

Case Study: Education

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Private school reduces energy costs, and “helps to make the world a better place” through renewable energy purchase.

Opportunity

  • A coeducational, independent school of 900 ethnically-diverse students from the New York and New Jersey area, was paying a variable price for electricity from their local utility.
  • One of the ways the school “meets the challenges of a changing world and makes it better”, as stated in their mission, is through various green initiatives in which each division of the school partakes. Initiatives such as creating a green-orientated campus with environmentally sustainable buildings, and adding classes to their curriculum that teach students the importance of sustainability and renewable energy. Since the school lacked the experience necessary to “green” their energy, they asked Tradition to help due to its expertise in this area.

Approach

  • Tradition educated the school on the benefits of procuring renewable energy and then advised them on a procurement strategy to meet their “green mission.”
  • The resulting strategy incorporated electricity procurement as well as renewable energy options, such as how to take advantage of Renewable Energy Certificates (RECs) and Green Power.

Services Provided

  • Market research & intelligence
  • Strategic risk management
  • Supply management & procurement: electricity
  • Sustainability Services: Renewable Energy Certificates (RECs)

Results

  • Through Tradition’s advice the school is expected to reduce its energy costs by 15% while meeting their renewable energy goal to have a 100% green campus.
  • The school also has been able to take advantage of the budget stability that comes with having a fixed energy price and the marketing benefits of purchasing renewable energy.

Case Study: Education

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Magnet Schools stabilize energy budgets and reduce costs by almost $1 million

Opportunity

  • The Capitol Region Education Council (CREC) delivers a wide array of cost-effective and high-quality programs and services – professional development, special education, staffing, and more – to meet the educational needs of children and adults in Greater Hartford,
  • Tradition Energy offers energy risk management and procurement services to members through a cooperative purchasing contract (OMNIA Partners, Public Sector) with CREC. The contract enables districts and towns to use Tradition’s services without having to go out to bid themselves, which saves the members time and

Approach

  • Tradition analyzed how and when the school was using electricity. The energy usage patterns at the schools were consistent with many Tradition Energy education-related clients, which use energy from the early morning hours to late at night to support extracurricular school activities.
  • With its analysis complete, Tradition pursued a strategy that would leverage its experience advising hundreds of K12 schools, as well as deliver a competitively-solicited and publicly-awarded cooperative contract to achieve the most efficient energy procurement process, available through OMNIA.

Services Provided

  • Supply Management & Procurement: Electricity
  • Energy Risk Management
  • Utility Bill Auditing
  • Peak Load Monitoring

Results

  • Tradition Energy negotiated a multi-year electricity supply agreement on behalf of the CREC Magnet Schools that locked down their costs and reduced annual spend by 16%, saving the schools close to $1 million over the term.
  • Tradition is also providing CREC with Utility Bill Auditing Services, which will allow them to reduce billing errors and recover costs from past invoices.

Case Study: Education

Public School District implements solar net metering to create long-term energy cost reductions and sustainability benefits for its local community

Opportunity

  • Tradition Energy introduced a Massachusetts school district to solar Net Metering services. Net Metering is a system in which solar panels or other renewable energy generators are connected to a public-utility power grid and surplus power is transferred onto the grid, allowing customers to offset the cost of power drawn from the utility.
  • The District was locked in to a long-term fixed price electricity contract, so they were optimistic about implementing a solar project that could lower their overall energy spend with no upfront costs.

Approach

  • Tradition’s Renewable Energy Group assessed the Net Metering program opportunity, which involved identifying a local solar project, and then reported the findings to the District.
  • Substantial future cost reductions were forecast, which resulted in an efficient District approval process for the project.
  • A Power Purchase Agreement (PPA) payment option was chosen because there was no upfront cost for a long-term agreement.
  • The Renewable Energy Group facilitated the Net Metering agreement between the District and the local solar facility.

Services Provided

  • Renewable Energy Services: Solar Net Metering
    • Determined total annual quantity of solar credits to purchase for entire account
    • Allocated total credits across applicable meters within account
    • Ongoing: Adjusting solar credit allocations by meter as needed

Results

  • The District is forecasted to reduce its overall energy costs more than $50,000 per year, with cumulative savings over $1.3 million for the length of the agreement.
  • By reducing its conventional electricity demand from the grid the District will reduce utility delivery charges.
  • The District has implemented a long-term commitment to clean energy and sustainability benefits to the local community by reducing its conventional electricity generation.

Case Study: Education

Rapidly growing university cuts energy costs through a strategic approach and more effective procurement practices

Opportunity

  • The oldest continuously operating college in Texas was procuring energy through an in-house team that was sorely in need of assistance
  • Tradition was selected to advise the team on the development of energy procurement “best practices,” and to help them manage the energy needs for their rapidly growing campus

Approach

  • Tradition evaluated the university’s internal procurement practices and developed procedures for looking at energy exposure and assessing opportunities
  • A flexible procurement strategy was designed that would support their continued growth and expected future energy usage increases
  • A vetted pool of suppliers was created based on criteria the university requested

Services Provided

  • Market research & intelligence
  • Strategic risk management
  • Supply management & procurement: electricity

Results

  • Tradition was able to improve the university’s procurement process efficiency, along with giving them stronger control over energy costs and the flexibility to grow campus facilities without incurring additional charges
  • Our procurement process saved the university over $300,000 over the initial term of the contract, and an estimated $400,000 over each renewal term

Case Study: Education

Budget-driven school district ensures certainty and generates millions of dollars in cost reductions through improved procurement planning

Opportunity

  • One of the largest Independent School Districts in Texas was evaluating its options to reduce costs and create budget certainty
  • Tradition’s U.S. Communities co-operative purchasing contract was utilized as a way to save time and expense associated with a competitive RFP process

Approach

  • Tradition strategic risk management process involved identifying electricity and natural gas consumption and usage patterns as a means to predict future market exposure
  • With a clear understanding of the ISD’s risk tolerances and organizational objectives defined, an energy procurement strategy was developed and implemented with a focus on cost reduction and budget stability

Services Provided

  • Energy Procurement: electricity & natural gas
  • Strategic Risk Management
  • Market Research & Intelligence

Results

  • Through Tradition’s procurement strategy and the U.S. Communities contract pricing, the ISD was able to reduce energy costs more than $600,000 over the length of their new contract
  • Budget certainty for the ISD’s energy costs was ensured for several years

Case Study: Education

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Large, rapidly growing college combines procurement for multiple sites and saves millions

Opportunity

  • Our client, the largest institute of higher learning in the region, began working with Tradition four years ago.
  • They needed an advisor to help them manage their rapidly growing energy needs – and Tradition worked with them to develop a plan to keep pace with their development.

Approach

  • Tradition consulted at length with the client and clearly defined their energy exposure by assessing opportunities for natural gas and electricity procurement.
  • Due to our experience with numerous diverse accounts spanning multiple power and gas markets, Tradition quickly designed a plan to aggregate sites within each market to maximize leverage.
  • Based on the data we collected, Tradition was able to create a vetted pool of suppliers agreeing to the college’s specific terms, including those approved by government entities.

Services Provided

  • Supply Management & Procurement: Electricity and Natural gas
  • Market Research & Intelligence
  • Energy Data Management,
  • Budgeting and Reporting
  • Demand Response
  • Sustainability Services: Renewable Energy Certificates & Marketing

Results

  • With Tradition’s experience and knowledge base in market monitoring, research, budgeting, and reporting, we were able to provide stronger controls over energy costs for the college.
  • Tradition has provided reports and financial updates that illustrate the ways in which energy expenditures were being reduced. Consequently, the college’s estimated total energy savings has been over $11 million since 2011.
 
Food & Beverage

Case Study: Food & Beverage

Tradition Energy has advised more than 285 Food & Beverage clients totaling 8.0 billion kWh in energy usage & $9.0 billion in energy spend.

Case Study: Food & Beverage

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Comprehensive approach to energy management helps national food and beverage service company to streamline procurement operations and maximize opportunities

Opportunity

  • After completing a competitive RFP process, Tradition Energy was hired to advise a national food and beverage service company with 104 locations across 41 U.S. states.
  • While evaluating the company’s comprehensive usage and spend information we realized that there was no system in place for managing their data. This made information gathering time consuming and inefficient.
  • Prior to hiring Tradition, the client’s lack of industry expertise and a formal energy management plan resulted in several costly missed risk management opportunities for many of their facilities.

Approach

  • Tradition was able to accurately evaluate energy exposure across the client’s national footprint as well as current procurement practices.
  • Using a broad range of industry expertise, Tradition worked with the client team to establish an overarching plan that identified multiple energy service opportunities across their national footprint.
  • In order to help the client reduce operational expenses quickly, Tradition’s plan prioritized savings opportunities by region and by service type.

Services Provided

  • Market Research and Intelligence
  • Strategic Risk Management
  • Supply Management and
  • Procurement: Electricity and Natural gas
  • Energy Data Management

Results

  • Tradition has worked closely with the client to develop and implement a highly customized strategic procurement analysis and plan. Based on Tradition’s recommendations, the company has begun the energy procurement of highest risk sites.
  • Tradition Energy’s proprietary energy data management portal, TEAMView, is being used to organize and report on all of the company’s energy usage and spend.
  • Taking advantage of the current market opportunity the Tradition team capitalized on the procurement window yielding more than 16% in savings.
 
Government

Case Study: Government

Tradition Energy has advised more than 615 Local Government clients totaling 22.8 billion kWh in energy usage & $25.5 billion in energy spend.

Case Study: Government

OMNIA Partners

Tradition Energy is the exclusive awarded supplier of a full suite of energy-related services through the OMNIA Partners, Public Sector (subsidiaries National IPA and U.S. Communities), the nation’s largest and most experienced cooperative purchasing organization dedicated to public sector procurement and developed by government agencies utilizing the pooled power of public agencies and non-profit organizations, such municipalities and state and local governments.

With the Energy Consulting & Management Services Contract (#2018-017), competitively solicited by the City of Mesquite, Texas, public agencies will be provided comprehensive advice in managing their energy expenditures and the most competitive pricing available in the public sector.  This contract fulfills the bidding requirements via the Joint Powers or Inter-local Contracting Authority of each state and allows government entities to avoid the time consuming and expensive process of issuing their own RFP.

For more information on these programs, click below:

To request membership information for the above organizations or the energy services, click here.

Case Study: Government

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Largest renewable energy project in the history of the military reduces consumption and costs at Fort Hood

Opportunity

  • Fort Hood is a Military Base located near Killeen, Texas, currently supporting approximately 218,000 military personnel and their families, the most populated American military area in the world.
  • In 2014, Fort Hood issued an RFP with the goal to reduce its overall spend on energy and incorporate renewables into its energy procurement.
  • The Fort wanted to structure a deal that would provide them with offsite wind and onsite solar energy as part of a long-term retail electricity supply agreement.

Approach

  • For the Base to receive power from a specific renewable project, the energy needed to be physically served to Fort Hood by a Retail Electricity Provider (REP) who would “stand in-between” the green project and the Base in order to provide the structure, and all other required retail services to deliver the power.
  • Apex Clean Energy (Wind Developer) and MP2 Energy (REP) collaborated to provide retail electricity supply with an onsite-solar and offsite-wind hedge that was combined into a single product.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Renewable Energy (Solar, Wind), Conventional Electricity

Results

  • Members of Tradition’s team led the internal team at MP2 Energy that developed and structured the innovative solution. The end product enabled Fort Hood to install onsite solar, take physical delivery of 65 Megawatts offsite wind, and combine both into a single retail electricity supply agreement, which resulted in the single largest renewable energy project in the history of the military.
  • This innovative renewable energy/retail product provided Fort Hood with a simple structure to receive the desired renewable energy via a familiar contracting mechanism with much of the renewable-related risk managed by the retail electricity provider (MP2 Energy).

 

Case Study: Government

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Rapidly growing municipality fixes costs in a fluctuating market and finds a customized procurement solution reduces their costs dramatically

Opportunity

  • A large city experienced tremendous growth and expansion in infrastructure over the last decade, and had previously procured electricity through a buying group in the state
  • The city decided to bring in Tradition to create a more customized approach based on the city’s needs

Approach

  • Tradition met with City leaders, facilities, procurement, and finance to develop a plan to procure electricity based upon the City’s unique needs.
  • This plan led to securing better rates and contract structure than what they had experienced through buying groups and aggregations in the past.

Services Provided

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity
  • Energy Data Management

Results

  • A blended rate was negotiated, which saved the City $500,000 over the 24 months of their contract.
  • Ongoing support with the energizing/disconnection of new meters as the City grows.
  • Helped create a data management structure that lists all meters by type and department.

Case Study: Government

Humanitarian aid organization centralizes procurement process to increase efficiency and lower energy costs

Opportunity

  • Our client provides critical services and response throughout the US.  Previous to hiring Tradition, all decisions regarding energy procurement were made by staff at the local sites
  • The organization selected Tradition to assist in centralizing all procurement through a shared services center.

Approach

  • Tradition gathered and analyzed data for all sites nationwide to understand the organization’s load
  • Opportunities for data and cost reduction were prioritized for initial savings
  • Sites were bundled by state to create leverage in the procurement process

Services Provided

  • Market research & intelligence,
  • Supply management & procurement: electricity,
  • Bill auditing

Results

  • Through the centralized energy procurement process and customized energy strategy, the organization’s energy costs have been reduced more than 20%
  • Composing a stable of pre-negotiated supplier contracts to enable a more efficient procurement process nationwide
  • Through their newly created shared Services Center, master billing procedures were established further increasing operational efficiency

Case Study: Government

Housing Authority exits energy aggregation group and finds independent and customized procurement plan reduces costs

Opportunity

  • The Housing Authority has provided decent, safe and sanitary housing to the residents of their city and the surrounding areas for over 70 years
  • They are responsible for ensuring electricity supply to many of their residents and for their own facilities throughout the city
  • Tradition was selected to assist them in creating a customized energy procurement strategy

Approach

  • Tradition created a tailored solution addressing the Housing Authority’s needs as they had previously been participating in an aggregation of similar entities in their state, which prevented them from  acting independently
  • The created solution included bundling all the housing authority facilities along with the numerous housing complexes for the residents under one, consisten contract

Services Offered

  • Market research & intelligence,
  • Supply management & procurement: electricity

Results

  • Through the tailored approach, the housing authority saw savings of 10% over their previous rate
  • Ongoing support with the energizing/disconnection of new meters as residents move in and out of units

Case Study: Government

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Holistic approach to energy risk management results in millions of dollars in savings for growing municipality

Opportunity

  • Our client was voted by the national media as one of the top 100 places to live in the US.  The growing Connecticut Town, with a population of 60,000, was looking for an advisor to navigate the complexities of energy procurement and utility bill management

Approach

  • To begin the energy risk management process, we defined the Town’s energy exposure and assessed energy usage across large facilities, including schools and government offices, as well as many various types of smaller meters.
  • The Tradition team designed a holistic plan that included all of the Town’s energy assets; aggregated the school’s facilities with the Town’s facilities, in order to maximize supplier competition and reduce rates.
  • Additionally, Town-specific contract terms were negotiated with a vetted pool of top-tier energy suppliers.

Services Provided

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity
  • Energy Data Management & Reporting

Results

  • Utilizing its unique access to wholesale market prices and intelligence, Tradition optimized purchase timing, budgeted 18 months in advance, and powered-up 16 schools and several municipal government facilities.
  • The winning supplier contract secured a highly competitive electricity product and reduced the Town’s cost for power by over $3 million dollars, and allowed them to accurately budget their future energy expenditures.

Case Study: Government

Housing Authority aggregates properties to reduce exposure and costs while creating budget stability

Opportunity

  • A housing authority that provides affordable housing through the management of over 2,600 units was unsure how best to achieve savings and budget stability long term.
  • Changes in the state’s electricity market, the housing authority selected Tradition to help take advantage of new opportunities in the market.

Approach

  • Tradition explained the function of the market, and potential opportunities for the housing authority
  • All properties under management were pulled together under one contract and away from the standard utility rates to reduce exposure
  • A contract was secured with high degree of budget certainty

Services Offered

  • Market research & intelligence,
  • Strategic risk management,
  • Supply management & procurement: electricity
  • Utility Rate Analysis

Results

  • Tradition was able to eliminate certain utility rate penalties that the authority had been paying
  • With the new contract, the authority saw savings of 15% on the initial move from utility, then further 8% savings on subsequent contracts
  • Assisted with HUD Rate Reduction Incentive
 
Healthcare

Case Study: Healthcare

Tradition Energy has advised more than 200 Healthcare clients totaling 5.1 billion kWh in energy usage & $5.7 billion in energy spend.

Case Study: Healthcare

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Healthcare provider utilizes its Premier Inc. membership to streamline procurement activity, create efficiency and reduce costs

Opportunity

  • Our client is a national network of health and human services providers offering home- and community-based services across the country.
  • The healthcare provider’s energy procurement decisions were made at the local facility level, making it challenging to understand and manage budgets nationally. Tradition was hired to help centralize energy cost management across their national portfolio consisting of multiple business units and facility types.

Approach

  • Our client utilized their Premier Inc. membership to engage Tradition Energy as their exclusive national energy procurement advisor.
  • Given the large number of accounts in a diverse portfolio spanning multiple power and gas markets, Tradition developed recommendations tailored to each property’s geographic location, regional energy market price outlook and client’s risk tolerance. We evaluated multiple procurement options including multiple product structures, short and long-term agreements and the default utility service.
  • Tradition recommended the procurement option that best suited client’s risk profile and procurement objectives given each region’s market environment. These documents were used to clearly articulate the procurement recommendation to the client’s central procurement team and obtain the necessary approvals for its implementation.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity
  • Sustainability: Renewable Energy Procurement Analysis

Results

  • Tradition Energy facilitated contract negotiation and execution for 359 accounts across 8 states based on the client’s risk profile and procurement objectives.
  • As Tradition Energy continues monitoring the market for additional electricity procurement opportunities, we are also helping evaluate the feasibility of renewable energy projects and natural gas supply opportunities.

Case Study: Healthcare

Healthcare information services company seeks positive energy advisor relationship to redesign their energy procurement plan

Opportunity

  • A leading provider of information services for the healthcare industry was looking to reduce its energy spend through a positive relationship with their energy advisor
  • Energy procurement had been centralized for their multiple facilities with advisory support for procurement coming from another firm
  • The company was unhappy with their current energy procurement process after getting stuck on expensive default utility rates, and was seeking an energy advisor to create a new procurement process
  • Tradition was selected to advise the client with the goal of reducing energy spend and limiting risk

Approach

  • Tradition first defined the client’s energy exposure by assessing each facility’s impact in each State.
  • A procurement strategy was proposed that was designed to aggregate sites within each market to maximize leverage and simplify contract management.
  • Tradition managed an iterative, reverse auction for all facilities from a pool of top tier suppliers.
  • Client specific contract terms were then negotiated, including a provision relating to a recent business acquisition.

Services Provided

  • Market research & intelligence,
  • Strategic risk management,
  • Supply management & procurement: electricity

Results

  • Tradition was able to reduce the company’s risk profile and increase budget certainty by contracting low fixed rates for electricity supply
  • The secured contracts reduced the company’s energy spend by $265,000, or 21%, versus the prior year, exceeding all initial targets.

Case Study: Healthcare

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Regional healthcare provider lowers costs by implementing multiple energy strategies

Opportunity

  • Tradition Energy was selected through a competitive RFP process to help manage energy for the region’s largest healthcare provider.
  • The client required assistance in forming an energy risk management strategy and procurement plan.
  • At the time Tradition was selected the client’s energy budget was several million dollars a year.

Approach

  • Tradition Energy assisted this client in reaching its goal of reducing risk and eliminating price volatility.
  • To accomplish this, our risk management team conducted a thorough analysis of historical energy usage and expenditures for all facilities, and formed a strategy that achieved budget certainty on the electricity portion (80% of the budget) with significant savings.
  • For the natural gas portion of the project (20% of the budget), Tradition implemented a floating strategy, which minimized the premium to fix costs over time and further reduced overall expenditures.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity & Natural gas

Results

  • When all energy procurement activity was completed, the client realized an immediate 15% reduction across the board in energy spending.
  • As a result of the successful implementation of Tradition’s energy risk management strategies, the client is better able to continue reducing expenditures in other energy areas as well.
 
Hospitality

Case Study: Hospitality

Tradition Energy has advised more than 220 Hospitality clients totaling 3.9 billion kWh in energy usage & $4.4 billion in energy spend.

Case Study: Hospitality

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National hospitality company lowers costs by adopting a nationally-focused procurement plan

Opportunity

  • A growing North American hospitality company that owns more than 30 hotel properties in 9 states was searching for an energy advisor with a national presence
  • Their procurement strategy had been based on procurement for each property individually
  • Tradition was selected to assist in creating a strategy that was built for a national scale

Approach

  • Tradition began by defining the client’s energy exposure in each state, which clarified ways in which the client could find more competitively priced energy offers.
  • A custom procurement strategy was put together, designed to aggregate sites within each market to maximize leverage and simplify supply agreement management.
  • After designing a procurement strategy, Tradition managed an iterative, reverse auction from a pool of top-tier suppliers

Services Provided

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity and Natural gas

Results

  • Tradition’s initial procurement efforts reduced energy expenditure by 22%. Tradition helped further reduce costs more than $300,000 on additional sites and through well planned supply agreement renewals.
  • Tradition’s national deregulated market presence supports the client’s effort to stay apprised of local market prices and regulatory developments, ensuring they remain on track to continue reducing costs and receiving optimal customer service.
 
Manufacturing & Industrial

Case Study: Manufacturing & Industrial

Tradition Energy has advised more than 760 Manufacturing clients totaling 20.9 billion kWh in energy usage & $23.4 billion in energy spend.

Case Study: Manufacturing & Industrial

Manufacturing Company utilizes existing relationship with Tradition to personalize their procurement plan based on company needs

Opportunity

  • A leading manufacturer and provider of electrical connector solutions and application tooling has been working with Tradition as their energy advisor since 2009
  • In March of 2012, as part of Tradition Energy’s ongoing support for the company, an opportunity was identified to lock in forward contracts for our client’s facilities at a time when electric and gas prices were at 12-year lows.

Approach

  • Historically, the client had preferred fixed rate contracts to ensure budget certainty
  • Tradition used the company’s preferences towards fixed-rate contracts to create a market research strategy that would pinpoint the perfect time to lock in forward contracts for the firm

Services Offered

  • Supply Management & Procurement: Electricity and Natural gas
  • Market Research & Intelligence

Results

  • Year-over-year, Tradition has helped reduce our client’s energy budget approximately 20%.

Case Study: Manufacturing & Industrial

Construction Contractor learns procurement best practices to drastically improve their energy procurement process and plan

Opportunity

  • One of the top U.S. construction contractors for the past 14 years was seeking assistance with energy procurement during the construction of two power plants in Texas.
  • Tradition was identified as the energy advisor best suited to their procurement needs

Approach

  • Tradition met with the company to determine their energy exposure and current procurement practices in order to fully understand the procurement that was needed
  • Tradition then educated the client on service opportunities, and a plan was designed that allowed for the company to participate in the energy market based upon their risk tolerance

Services Provided

  • Market research & intelligence,
  • Energy Risk Management,
  • Supply procurement: electricity.

Results

  • Through the procurement plan that was put in place, Tradition was able to improve the client’s procurement practices to ensure long term procurement success
  • The plan put in place reduced power expenditure by approximately 40% versus the client’s historical procurement practices.

Case Study: Manufacturing & Industrial

Global Brewing Company incorporates a new facility into their existing procurement plan with a specialized procurement approach

Opportunity

  • Prior to working with Tradition, a global brewing company managed all energy procurement decision-making internally, but the team’s responsibilities did not extend to all facilities.  Tradition was chosen to assist in incorporating the additional facilities into the existing procurement plan
  • This included a facility in Ohio, which at the time was a newly deregulated market

Approach

  • Tradition first created a list of vetted suppliers operating in the Ohio market, including a local firm Tradition had not worked with before, in order to price with as many tier-1 suppliers as possible
  • After understanding the load and procurement requirements for the facility, a strategy was put in place for long-term procurement success
  • Other services were also included in the strategy created, including considering Demand Response programs in the region

Services Provided

  • Market research & intelligence
  • Strategic risk management
  • Supply management & procurement: electricity & natural gas
  • Demand Response

Results

  • The company preferred to proceed with procurement with a local supplier that Tradition had not worked with previously that did not offer the most cost reduction opportunities
  • Through our wholesale market intelligence we determined the local supplier’s pricing was $2 per MWh above the market, but was willing to negotiate for a more competitive price
  • The contract put in place resulted in several hundred thousand dollars in savings

Case Study: Manufacturing & Industrial

Tradition assists large produce grower in evaluating new locations and crafting a procurement plan for the chosen site

 Opportunity

  • One of the largest produce growers in North America needed assistance evaluating locations to site a new growing facility
  • Tradition was selected to assist in both locating a site for the company, and setting up a procurement plan based around the sites that were considered

Approach

  • Tradition first researched deregulated markets to identify the utility zone that would maximize the grower’s energy usage profile and financial requirements
  • Tradition’s Market Research Group built extensive models to evaluate multi-year operating scenarios
  • Multiple budget and forecast scenarios were developed to analyze utility gas service vs. direct pipeline gas service

Services Provided

  • Market research & intelligence
  • Strategic risk management
  • Supply management & procurement: electricity and natural gas
  • Data management & reporting
  • Demand Response analysis

Results

  • The company accepted Tradition’s recommendation of the site facility in a utility region that provided beneficial off-peak pricing
  • A custom heat rate power product was developed and procured, which reduced cost on a five-year contract by over $1.5M per year
  • Tradition also assisted the client in obtaining direct pipeline gas service resulting in several hundred thousand dollars per year in avoided costs
  • Demand Response participation was also coordinated to further reduce the client’s energy expenditures

Case Study: Manufacturing & Industrial

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Global Fortune 200 manufacturer centralizes energy management, increases efficiency and lowers costs

Opportunity

  • A Fortune 200 global science and technology manufacturer lacked an enterprise-wide strategy for global energy procurement
  • The company chose Tradition Energy as its energy advisor, based on our experience with similarly-sized companies

Approach

  • Tradition worked with the client to centralize their global activities and develop an energy management policy that would serve as the basis for localized facility strategies serving individual country needs.
  • Clear procedures and points of contact were established to ensure efficient and effective communication and procurement activities between the client and Tradition Energy.
  • Ongoing monthly meetings were scheduled to ensure ongoing review of procurement programs, decision making, feedback among the team members and constant improvement.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Energy Data Management

Results

  • Tradition was able to pinpoint a number of ways in which the client could reduce costs, resulting in realized savings of over 32%, or $2.3 million, over 41 transactions
  • Tradition established a data management portal that allows continual monitoring of client facilities to ensure they stay on track with their savings and cost reduction goals
  • Because Tradition has provided the client with a set program of procedures and budget forecasting for global facility management personnel, they have attained their goal of implementing an enterprise-wide strategy for global energy procurement
 
Media and Entertainment

Case Study: Media and Entertainment

The world’s leading live entertainment company centralizes energy management, reduces costs and generates incremental revenue through energy supplier sponsorships 

Opportunity

  • Energy procurement was decentralized at this Fortune 1000 owner and operator of music venues across the US, with individual venue managers taking on the task of negotiating electricity and natural gas contracts
  • Tradition was selected through a competitive process to help coordinate and centralize procurement on a market by market basis

Approach

  • Tradition evaluated opportunities to bundle venues to achieve maximum market purchasing leverage
  • Locations with unfavorable contracts or utility rates were moved to more favorable terms and pricing
  • Our process also included marketing venue and ticketing sponsorship opportunities for energy suppliers

Services Offered

  • Market research & intelligence,
  • Supply management & procurement: electricity, natural gas
  • Sustainability: Energy Efficiency Project Consultation, Renewable Energy Certificate (REC) procurement
  • Energy Data Management

Results

  • Our centralized and leveraged approach to procurement resulted in savings of over $200,000 annually
  • Negotiated sponsorship agreements with suppliers leading to lower rates and marketing revenue for the venues

Case Study: Media and Entertainment

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Tradition assists large Media Corporation with centralizing procurement and taking advantage of sustainability options

Opportunity

  • Global energy procurement was decentralized at this Fortune 200 company, and the corporation lacked an enterprise-wide strategy for procurement
  • Tradition was selected to advise the client through a competitive procurement process that would centralize the entire process

Approach

  • With hundreds of locations, ranging from billboards to skyscrapers, Tradition developed a phased energy plan focusing on the quickest cost reduction activities first
  • The initial product strategy was to quickly lower costs and to eliminate price volatility through fixed products
  • As the relationship has evolved, Tradition has identified several opportunities to execute more sophisticated strategies involving management of different products

Services Offered

  • Market Research & Intelligence
  • Supply Management & Procurement: Electricity, Natural gas
  • Solar Analysis
  • Sustainability Consulting

Results

  • The corporation was able to develop a centralized procurement strategy for the US, along with a vetted pool of suppliers that could meet specific criteria that the corporation wanted
  • The contracts in place provide over 10% in savings, with current annual savings estimated at over $1 million
  • Tradition also assisted in the evaluation of using fuel cells at different sites and the procurement of the natural gas used to run the fuel cells, leading to more sustainable sites
 
Oil and Gas

Case Study: Oil and Gas

Tradition Energy has advised more than 100 Oil & Gas clients totaling 10.0 billion kWh in energy usage & 11.2 billion in energy spend.

Case Study: Oil and Gas

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Oil Producer discovers how to get paid thousands of dollars for curtailing energy usage

Opportunity

  • A natural gas well operator in Texas was looking for information on Demand Response programs in ERCOT (Electric Reliability Council of Texas) and how to participate
  • Tradition was selected to come in and educate the company about ERCOT Demand Response (DR) programs and how participating can lead to earning incremental revenue.

Approach

  • Tradition defined the client’s electrical usage and demand for facilities in regions of Texas where the DR programs are available.
  • After providing information and clarification to the client about the various DR programs that were available, Tradition explained how these programs could be beneficial to the client and submitted the client’s program application.
  • Before applying to a DR program, Tradition spent the necessary time studying the client’s specific needs. Then client was directed to the precise DR program that best met their requirements, including curtailment scheduling and kilowatt load shedding commitments.
  • Tradition researched all DR programs that matched the client’s specific requirements and situation and performed an opportunity analysis, providing a pricing report that considered equipment installation costs, expected revenue, and payback period.

Services Offered

  • Demand Response

Results

  • Tradition monitored the chosen DR provider’s costs, schedule, and performance and communicated that information to the client. The client received reports on revenue and performance relative to the plan to ensure accuracy.
  • Since available load reports affect client revenues, Tradition monitored those results closely in case further action was warranted.
  • With the implementation of Tradition’s strategies, the client has realized over $120,000 in incremental revenue.

Case Study: Oil and Gas

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Skillful negotiation helps natural resources company dramatically reduce its costs

Opportunity

  • Tradition was selected to assist a natural resources energy company in achieving their objective of reducing operating costs and increasing net operating income for each of its wells by capitalizing on its on-shore producing properties.
  • Electric utility-associated costs accounted for 40% of this client’s total operating costs, and although the client had a centralized strategy in place for all producing wells, they had been advised to purchase an energy product that resulted in “overbuying” their power.

Approach

  • Tradition analyzed this client’s block energy strategy by looking at their historical hourly load settlement data and determined they were “over hedged” by about 1.5 MW annually.
  • Comparing the risk exposure and lost dollars on their current product versus a fixed energy product helped Tradition’s experts illustrate to the client precisely what problems to address.
  • With recommendations from Tradition, the client flipped to a fixed energy product for the remaining six months of their contract terms.
  • Tradition simultaneously negotiated a new contract in the forward market for a longer term fixed energy product.

Services Offered

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Budgeting and Forecasting
  • Demand-Side Management
  • Demand Response

Results

  • Tradition assisted the oil producer in negotiating a fixed delivery product for the remaining six months of the client’s previous contract, which delivered a savings of $140,000.
  • After executing a new contract using Tradition’s recommendations, the client realized over 37% in savings totaling $1.8 million over 24 months.
  • Tradition continues to work closely with this client’s accounting and field operators to make sure adding more wells is a seamless process as exploration and acquisitions increase.
 
Real Estate energy management advisors Real Estate

Case Study: Real Estate

Tradition Energy has advised more than 910 Commercial Real Estate clients totaling 27.6 billion kWh in energy usage & $30.9 billion in energy spend.

Case Study: Real Estate

Tradition’s data management expertise identifies large cost reduction opportunities for NYC building

Opportunity

  • As the second largest privately owned office building in the country, our client was looking to improve their procurement execution and data reporting capabilities
  • Tradition was chosen to assist with data management and procurement based on our experience with similar clients

Approach

  • Tradition first defined the client’s energy exposure by assessing current opportunities in the NYC electricity market
  • A vetted pool of suppliers agreeing to client-specific terms was created for easier pricing from suppliers
  • Tradition also identified an intraday anomaly that presented a backward-dated pricing opportunity

Services Provided

  • Market research & intelligence
  • Supply management & procurement: electricity and natural gas
  • Data management & reporting

Results

  • From the assistance Tradition has given the client, they have noticed stronger controls over energy costs and over 20% savings across all transactions to date
  • Total estimated annual savings have been over $5.25 million

Case Study: Real Estate

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Real estate firm streamlines procurement activity, creates efficiency and reduces costs

Opportunity

  • Our client, a residential real estate property manager for over 180 properties in eight states across the country, needed a streamlined process to manage their energy procurement for common spaces.
  • Wanting a research-based recommendation that could be presented to the asset owners, Tradition was selected to assist with cost minimization and to create budget certainty with an accountability component
  • Tradition was also selected to provide assistance with sustainability efforts

Approach

  • Due to the large number of accounts in a diverse portfolio spanning across multiple power and gas markets, Tradition developed recommendations tailored to each property’s geographic location, regional energy market price outlook and ownership’s risk tolerance.
  • Tradition evaluated multiple procurement options including fixed and index pricing structures, short and long-term agreements and the default utility service.
  • Tradition recommended the procurement option that served each of the properties’ best interest and supported each recommendation with a rationale document. These documents are used by our client to clearly articulate the procurement recommendation to property ownership and obtain the necessary approvals for its implementation.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Sustainability Services: Renewable Energy Certificates

Results

  • Tradition provided the client with cost saving analysis reports for each transaction, weekly status updates and performance reports. Where agreements were in place, Tradition’s performance reports evaluated how the transacted rate compared to the default utility for the duration of the contract.  Our weekly updates and streamlined processes resulted in timely execution and increased annual savings on average between 10-20% on the energy budget.
  • Tradition continues to communicate on a weekly basis with our main points of contact and quarterly we present new market research affecting procurement decisions.
  • With Tradition’s market intelligence, advisory service and energy procurement efforts, the client has substantially reduced energy costs during the past two years.   Additionally, Tradition has helped the client meet sustainability goals through the procured Renewable Energy Certificates for certain properties.
 
Retailers

Case Study: Retailers

Tradition Energy has advised more than 155 Retail clients totaling 3.9 billion kWh in energy usage & $4.4 billion in energy spend.

Case Study: Retailers

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Tradition’s national deregulated market expertise helps a global retailer improve its bottom line

Opportunity

  • Energy management was centralized within this major national upscale department store chain
  • The client lacked knowledge about national deregulated markets, and Tradition was selected to provide guidance and expertise in communicating the various service options this client could consider to achieve their goal of reducing energy costs

Approach

  • Tradition defined the client’s energy exposure and current energy procurement practices across their national footprint and identified areas in which their lack of local market knowledge resulted in higher energy costs and missed opportunities to find the best energy solutions to fit their needs.
  • Then, Tradition educated the client on a variety of service options across several states so they could go forward making better, more informed decisions related to their energy expenditures.

Services Provided

  • Market Research & Intelligence
  • Strategic Risk Management
  • Supply Management & Procurement: Electricity and Natural gas
  • Demand Response

Results

  • By helping the client understand their local market options and guiding them toward an informed decision, Tradition helped the retailer save over $2.5 million in energy costs over 36 months.
  • In addition to helping the retailer save more money, Tradition was able to help them identify and create new, additional revenue streams through Demand Response programs in New York, Illinois, and Maryland.