Industry
Manufacturing
Challenge
A large manufacturer operating a 14.9MW fuel cell facility wanted to determine whether its utility‑based power purchase agreement was delivering the best possible value.
Results
NextEra Advisors ran a competitive natural gas RFP, delivering $767K in savings over 14 months and reducing supply costs by roughly 15% versus the prior contract.
Product
RFP
Challenge
As the exclusive energy advisor to The Connecticut Business & Industry Association (CBIA), NextEra Advisors has provided gas and electric consulting services to a variety of commercial and industrial businesses in Connecticut and New York for over two decades. Through CBIA, NextEra Advisors has had a longstanding relationship with a large designer and manufacturer of fuel cell technology and fuel cell systems. A large manufacturer and fuel cell generator approached NextEra Advisors and CBIA to strategically supply natural gas for a 14.9MW facility in Connecticut.
The client had an existing power purchase agreement with a major utility for electricity. The contract pricing for the power generated was predicated on the utility default price. The client was interested in learning if they could get a better value and wanted NextEra Advisors to analyze their current contract and pricing structure.
Solution
Together, NextEra Advisors and CBIA developed a model to compare a forecast of where utility rates were predicted to be in Southern Connecticut versus the overall natural gas market. NextEra Advisors then issued a competitive request for proposal (RFP) to its vast base of suppliers. As part of the RFP process, NextEra Advisors evaluated various product types, focusing on daily versus monthly swing, and the associated gas daily adders. In addition, NextEra Advisors had to analyze responses as suppliers were pricing the swing gas from different natural gas pipelines.
Results
Through the competitive RFP process, and by identifying the right time in the market, NextEra Advisors delivered approximately $767,000 in savings over a 14-month period to the client. The consumption of 825,000 Dth per year should result in a 15% savings for the client compared to their previous contract with the utility. In addition to the savings generated through the RFP process, the client was able to regain a significant portion of their $600,000 letter of credit when they left the utility.
*Savings may vary.
