Energy Risk Mangement

Electricity

Energy Paradigm helps multi-site entities manage electricity price risk in deregulated markets. We utilize our knowledge of power markets to assess both short and long-term market conditions to enhance our clients financial positions. 


Our Approach

 

Evaluate opportunities in every market to reduce enterprise-wide electricity costs.

Business case analysis comparing utility rates against competitive offerings to optimize annual energy spend.

Determination of annual energy budget and assessment of risk profile to manage market volatility.

Opportunity assessment of savings, suppliers, contract terms, and product structures to tailor the appropriate solution.

Execution of supply agreements and ongoing management of changes in the market to reduce costs. 

Product Structures

Fixed Price - ​negotiated fixed cost per kWh for budget certainty 

Index Priced - ​priced based upon wholesale clearing market. Weighted average cost approach with seasonal fluctuation historically lower than retail prices. 

Block +Index Priced Structure - ​provides flexibility to purchase fixed cost per kWh for historically high-priced periods and float remaining load on wholesale clearing market.

Heat Rate Products - ​allows you to float electricity load based upon natural gas prices, but the flexibility to lock fix price during market downturn 

Managed Products - ​gives you the opportunity to actively manage electricity portfolio by blending index, heat rate, and wholesale block pricing. 

Natural Gas

Natural gas markets have been deregulated since 1993. Despite this longevity, natural gas markets remain very fragmented and regionalized. This requires multi-site commercial firms to work with a large number of natural gas suppliers in order to realize cost savings across their entire portfolio. Energy Paradigm has forged strategic alliances with suppliers that have a national presence. This allows us to help our clients source the most competitive price, products, contract terms, and dramatically reduce the number of suppliers needed to manage natural gas on an enterprise basis. 


Our Approach

 

Evaluate opportunities in every market to reduce enterprise-wide electricity costs.

Business case analysis comparing utility rates against competitive offerings to optimize annual energy spend.

Determination of annual energy budget and assessment of risk profile to manage market volatility.

Opportunity assessment of savings, suppliers, contract terms, and product structures to tailor the appropriate solution.

Execution of supply agreements and ongoing management of changes in the market to reduce costs.


Product Structures

 Fixed Price - ​provides budget certainty by fixing your per unit cost and protects you from market volatility. 

 Blended - ​allows you to lock-in a portion of your gas load and float the remaining portion on index. 

 Managed Products - ​gives you the opportunity to actively manage your natural gas portfolio with a blend of fixed, index, and vanilla options.​