Avoiding Trouble with Expertise




An industrial client had an expiring contract, and the entire market was significantly higher than it was when the contract began. The client was looking at a $70,000 per year increase if it locked in a fixed rate at current market conditions and had not budgeted for such a large increase.


Satori Energy’s analytics team evaluated the client’s load profile and usage patterns and applied that profile to historical index energy rates. The results showed that there would be slight savings if the index performed exactly as it had over the previous 24 months. That knowledge, along with Satori Energy’s market intelligence that the wholesale market could decrease in the near future, led us to recommend that the client enter into an index contract with the ability to lock a portion of the electricity usage at any time.

Satori Energy continued to monitor the wholesale market and advised the client when the wholesale market had decreased by 10 percent. At that point, we helped the client lock in 50 percent of their energy usage. The results included $60,000 in savings versus the fixed rate at the end of the year, and a greatly mitigated increase in the client’s budget that fiscal year.