Eliminating Risk Makes the Sale

CASE STUDY: RISK MANAGEMENT

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Situation

A commercial property owner was in the process of selling a property, which had an energy contract of 5 cents per kWh — a rate below current market levels. The potential property buyer was concerned that electricity costs would dramatically increase at the end of the contract.


Solution

Satori Energy worked with the existing supplier to structure a blended contract that mixed the existing 5 cents per kWh rate with forward market pricing. The result was a new long-term contract rate far below current market conditions. This comforted the buyer because he knew that the electricity rate was locked in below market prices for more than three years, which ultimately helped our client successfully sell the property. The result was a true win-win scenario for all parties involved.