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UE - Presentation
- 1. Unified Energy Services A unified approach to energy procurement and load management
- 2. History of Unified Energy Unified Energy Group August 2008 In 2005, full production sales of our completely automated real-time price control and demand response system began. In January of 2008, RTP partnered with Gatekeeper Systems, RTP now called Vexia In 2000, we filed our first patent in real-time price control, laying a foundation of strong intellectual property. Patents Production Partnership Expansion Company History Acquisition Tullett Prebon acquires Unified Energy Unified brand remains
- 3. Unified Energy Services History More than 150 years of combined financial, wholesale, retail, and supply side energy experience International leader in power purchasing and negotiations Specialize in price discovery and timely market assessments simplifying the purchase and management of energy. Navigate complex energy markets and buying energy more cost effectively Holistic approach to energy procurement, demand side management, demand response and facility management Unified Energy is acquired by Tullett Prebon Tullett Prebon, rated #1 interdealer commodities broker in the world, rated #1 in 25 commodity categories in 2012, and rated #1 in Electricity Products for 2012 http://www.tullettprebon.com/products/prod_energy.aspx Tullett Prebon is a public company based out of the U.K. with annual revenue in excess of 1 Billion Dollars. Here is a link to their 2011 Annual Report www.tullettprebon.com/Announcements/.../2012/RA20120731.pdf
- 4. International Capabilities of Tullett Prebon
- 5. Holistic Energy Management Unified Energy Services Commodity Demand Response Energy Efficiency Asset Management
- 6. Commodity Procurement Leveraging the Portfolio of Unified Energy
- 7. More than 75 Suppliers
- 9. Proprietary Demand Response Shaping Retail to take Advantage of Wholesale Index Mitigation and Long Position Creation
- 10. Proprietary Demand Response The following green and yellow blocks above represent the wholesale allocations associated with a daily load profile of a University. Wholesale markets transact in whole megawatts of power in amounts of 7x24 (first number days; second number hours), 5x16, 7x8 and 2x16. If you are on a fixed price product, the retail energy provider buys these blocks for both your load as well as their entire portfolio. You can also buy these blocks on your own in a take-or-pay product. The gray area above shows either what is not hedged, or what reductions can be made to create the long position for the supplier. By implementing the strategy above, we create a voluntary program that you control. Decisions are made based upon specific monetary decisions. Because the program is not ISO based, you cannot be penalized or removed for underperformance or otherwise incorrectly participating. Additionally, there are no base-lines that have to be proven to a third-party, rather we show the hedged load versus the curtailed load and settle based on index prices. You receive 100 percent of the reduction in consumption as a further cost reduction. In order to best determine options for curtailments, our team will meet with the applicable facility management staffs and do due diligence on how the systems and infrastructure integrate. Then round-table with your staff to discuss the options we have found and more importantly which options we may have missed. Opposed to other companies in the demand response space, we know that your team understands your assets better than we do as well as what they can and cannot afford. We encourage their input every step of the way.
- 11. Load Profile
- 12. Buying Blocks
- 13. Buying Blocks
- 14. Load Shaping
- 15. Demand Response Event Index Mitigation Curtail at high index prices and receive share of transparent value Creates value that is a multiple of capacity option payments Customized to customer ability to curtail and to turn retail product into wholesale value
- 16. Unified Energy Services Proprietary Demand Response Voluntary economic demand response program embedded into the commodity procurement agreement Day ahead notice, *No penalties or time limitations* No obligations to curtail Shared compensation programs that work to create long positions for REPs Much larger returns than restrictive ISO Programs Take advantage of the commodity markets when prudent for BAIN, not just for the grid Depending on the selected retail energy provider and the contract put into place, we will create a voluntary program where defined curtailment amounts create transparent, market based compensation back to Bain. Effectively, we create a no-risk long position for the retail energy provider that can be sold back into the index market. The following is a diagram of what we are proposing: Yellow: Index prices Blue: Hedged load from LSE* Green: New consumption line Gray: Value from selling into Index * Load Scheduling Entity
- 17. Financial Structuring Utilizing Wholesale and Retail Market Margins to Monetize Savings
- 18. Wholesale Procurement EEI and ISDAs brokerage Large and small market makers Margins clear within 45 days of contract signing Immediate dollars available thru the wholesale trades Retail Procurement 75+ suppliers Large and small market makers Multiple product structures and terms Immediate savings versus existing contracts or tariff Demand-Side Project Work Lighting retrofits Cogen and solar projects ISO and proprietary demand response Demand reduction projects and carbon footprint reduction Wholesale, Retail and Project Work
- 19. Disbursement of Funding Via Wholesale Trade LOA REP REP REP REP REP REP REP REP Contract Executed Contract UE Paid Wholesale Margin Clears in Full within 45 days of contract UE Paid Monthly by Winning REP After Customer Pays Bills 1) Assume 7c/kWh existing contract. Market rate at 5c/kWh. Move to 5.5c/kWh instead of 5c/kWh. 2) Assume 200,000 mWh hedge 3) Include $5/mWh in wholesale hedge 4) Transparent contract between Tullett Prebon and Bain for increased wholesale margin 5) $1,000,000 to Customer within 45 days of contract executioninterest-free and unamortized Customer
- 20. Data Management Systems Budgeting, Bill Auditing, Trend Analyses and more
- 21. Energy management is comprehensive, not singular Unified Energy Metering Technologies Building Automation Systems Utility Management & Analysis Best Practices & Conservation Energy Management Systems
- 22. Energy Star Certification Proactive Cost Saving Strategies Best Practice Conservation Initiatives Energy Management Organization Monitoring Historical Data Comparison Analysis Contract Compliance Full Bill Auditing Data Services Exception Processing Advocacy Competitiveness & Economic Development Renewable Energy & Sustainability Public Energy Policy Utility Rate Case Representation Spectrum of Unified Energy Services
- 24. Compare Usage and Demand Information
- 25. Page 25 Compare Actual versus Billed Demand
- 26. Compare Usage at Multiple Levels
- 28. Benchmarking
- 30. Page 30 Automated Full Bill Auditing In 3-5% of bills audited, Unified finds and resolves issues which in return saves the customer money
- 31. Page 31 Cost Avoidance and Weather Normalization
- 32. Page 32 Monitoring Contract Locks and Pricing
- 33. Additional Premium Services Tariff analysis Quarterly reviews Budgeting Energy Star registration and certification Energy bill payment Annual review certification Historical bill audit Energy policy creation Sub-metering Assessment and audit
- 34. Unified Energy Data Management Services Results Natural Gas Midstream Company Analysis of tariff & other service options Time of Use tariff savings of $28,000+ per year Major hospital system Savings of almost $1M from bill auditing in first year Large corporation Refund of $350,000 from bill auditing the first year Oil Producer Integrated bill processing with internal accounting system Saved 18% due to tariff analysis and correction of invoice calculations $75,000 Refund due to incorrect metering found Retail Store chain 14% Savings w/tariff analysis Identified Peak Shaving Strategy Recommended Tariff Schedule Change
- 35. Commodity Procurement Consistent and verifiable market settlements National footprint for market participation Low hurdles for entry into demand response Fast installations and market participation Demand Response The ability to shape retail load to match wholesale supply Mitigates risk associated with index markets Moves beyond energy conservation to synchronize energy use with market prices & events Energy Structuring Conclusion Unifieds national footprint for electricity and natural gas Immediate opportunities for year over year savings and managed planning In-depth knowledge of markets leads to better pricing and overall decision making
- 36. Thank you for your time and hospitality. Do You Have Any Questions?