Project Description

Radiant Energy provides energy solutions to senior living developers

MULTI-DWELLING GROUP DEVELOPS SAVINGS WITH RADIANT ENERGY’S PRICING STRATEGIES

Highly effective pricing strategies: By recommending an integrated energy procurement and energy risk management strategy, Radiant Energy led a well-known multi-dwelling company to year-over-year savings of more than $5 million.

Price Option Analysis Beneficial in a Volatile Market: Savvy energy procurement experts know that when it comes to buying energy, there’s several rate types for consumers in different industries and choosing the suppliers with the right products is not an easy decision. Among the various and large number of components to finding the best energy solutions for you, the energy industry is constantly evolving with different products, changes in suppliers’ billing or practice and incredibly volatile energy pricing, making the wrong choices can be detrimental. With so many decisions and fluctuating patterns, companies that have concern for energy expenses and risk management must have a disciplined and strategic energy strategy in place. Without it, unnecessary costs pile up and operations suffer.

SITUATION

The volatile Texas power market offers energy users with a wide array of pricing and product options from an unfathomable number of suppliers. However, many companies do not know which options best fits their energy needs or goals. A large multi-dwelling builder and management company operating 15 properties in Texas that uses 32 megawatts of power, required a pricing option from a reliable energy supplier that would complement its overall strategy. The company turned to its energy partner, Radiant Energy, for guidance.

LEADERSHIP

Prior to securing prices, Radiant led the multi-dwelling group through the process of determining its risk appetite for energy rates, concerns and goals centered around opportunities, concluding that the company would generally take a moderate position in balancing its risk strategy but had particular needs for service for them and their residents. Radiant used this position as a parameter for how to best manage their pricing and service needs.

Despite the fact that electricity prices were at historic lows, Radiant recommended that the company wait to lock-in to a fixed rate and advised “floating the market” temporarily with a variable rate product. Why? Radiant’s expertise and knowledge of energy service changes that would impact multi-dwelling buildings allowed the company to wait for these changes, giving them the opportunity to lock in at a lower rate as prices continued to fall with better energy solutions from their supplier.

RESULTS

Radiant Energy’s market judgement formed millions of dollars in savings and provided better energy solutions to meet their needs. By following Radiant’s recommendation and not immediately contracting, the group was able to take advantage of numerous savings opportunities. Each opportunity lowered the cost of their overall energy expenses and streamlined their energy operations. The total first year savings Radiant Energy created for the multi-dwelling firm was more than $3.4 million for their 15 locations.