Part of the responsibility of a CFO or Procurement Manager of a large facility is to find a way to cut costs to add to the bottom line. Many companies do not have the needed motivations in place in these positions to urge the CFO or Treasurer in really working to get energy rates down. On the side of the Procurement Manager they have a lot to gain in some companies if they were to show how they were able to add $100,000 to the bottom line by working with a Facility Management company that specializes in Energy risk management.

What positions in a large industrial or commercial facility needs our type of services?

Working with a Texas Energy Consultant

By working with a Texas energy risk management specialist you can have a complete undertaking of your energy shopping needs taken care of and delivered in a detailed straightforward presentation. Graphs, charts, direct reasons and explanations for why energy was able to be bought at below industry averages are presented in an easy to understand format. How the hedging and management of this Texas energy is capable of keeping the energy price consistently below market averages presently and into the future is also outlined and made clear.

Questions about the Process

If you have questions related to purchasing your energy for your facility at a discount Texas power rate then please call one of our consultants today. We would be glad to go over the process and tools we use that many energy companies don’t work with simply because it is an added headache they are able sell without. We specialize in taking the additional time and effort involved in producing a tailor made Texas power product that beats anything else available in the market. Not only will you be able to walk away with the best commercial energy rate in Texas but you will have a presentation detailing why. No one will be able to look at the electric rate presentation and say, “no I just don’t see it”, as we have done everything we can to make the process and end result understandable to everyone. We turn uncertainty into clarity to all those concerned about the need to budget for energy costs.

Even though you may live in the state of Texas doesn’t mean energy prices are only affected by crisis situations in your state. Liquified natural gas being transported from China accounts for part of the storage in the ground here in the state. This is only one example of just how global your Texas electric price is. Natural gas produces your electricity and is held in storage in salt domes and other unique locations to meet peak demand. Transportation costs to ship and move natural gas costs money as does the cost to convert natural gas to electricity (known as the Heat Rate).

Texas Needs More Energy Generation Diversification

Price volatility and uncertainty exists to a large extent in Texas because natural gas is a hard to transport and store commodity. Relying on shipments from China as well as new natural gas generation facilities coming online assists in creating more of a problem as Texas needs to diversify their energy generation sources such as using nuclear, hydro, and coal more.

Budgeting Energy Prices Can be an Uncertain Hassle

Many industrial businesses in Texas see energy costs as a significant source of uncertainty. A mature energy risk management company like Facility Energy Management has evolved over the years with a proper understanding of the nature and mitigation of Texas energy price risk. With our expertise a commercial or industrial company can make well-informed decisions about how to precisely handle this source of uncertainty.

We Can Help Make Certain the Energy Price

We can help identify, categorize and quantify sources of energy risk, what hedging tools are available and how they can be used to achieve a company’s energy risk management goals.

Texas Energy market participants make up three main categories. Below are examples of each. We primarily assist the Texas “Consumer” category and have a limited energy consulting role with Producers and Transformers in the form of large wholesale energy sales and transactions:

Texas energy price swings are usually larger then in other markets and last longer. For instance if you were used to paying a cheap energy rate last month and now wonder why only a month later when you went electric price shopping rates were several cents a kWh higher then you are familiar with the price volatility experienced in the state of Texas. Texas utilizes natural gas power plants to produce much of the electricity here. Because the transportation and storage of natural gas is a bit harder to control in comparison to electricity you have to deal with quite a few factors. Transportation and storage of natural gas as well as the cost of turning natural gas to electric power are a part of this price volatility in Texas. As Texas uses more coal, nuclear, hydro, wind energy as well as other power generation approaches the playing field will even out and we will not be relying upon one of the most volatile energy sectors in the market.

Should I Hold Out and Wait for Rates to Drop?

If you have come up on the end of your Texas commercial energy contract and need to price shop again for a low electric rate don’t try and hold out for a drop in prices. When natural gas and or electricity in Texas goes above a certain price threshhold it may stay there for several months before it begins to come back down. When the price does come down it many times will come down quite fast. This type of price volatility causes Texas businesses to react emotionally to what looks like an unstable market. The truth is that what goes up in the commodities market eventually must come back down. Because no one knows exactly when energy will drop it is important to have a energy risk management strategy to still be able to remain confident when procuring power in a volatile market. Certain electric power products out there allow you to purchase energy cheaper then most would feel comfortable doing. The key to purchasing power at an affordable level is to know how to hedge it correctly based upon accurate data. Texas Facility Energy Management company’s sole purpose is to educate and assist in the purchase of a discount electric rate product while protecting your company against any possible price swings that could jeopardize the savings potential of that rate.

Learn More About Texas Industrial and Commercial Energy Options

To learn more about how Facility Energy Management Company can work with your business to obtain a competitive electric rate in the face of higher electric prices we ask that you give one of our energy consultants a call. We can be reached at 817-929-7095.