Private College Applies Strategic Approach to Energy Procurement

A Supply Case Study

In an effort to procure its natural gas in a more strategic manner, a Private College decided to work with Burton Energy Group to develop a comprehensive strategy for procuring natural gas for their 23 buildings across the 150 acre campus. The College, located in Western New York State, met their goals of budget certainty and low costs which resulted in a contract that saved over $60,000 in calendar year 2015. Burton helped the College achieve this through a customized RFP process, the adoption of trigger prices, and industry expertise. Burton’s role did not end with contract execution – we continue to maintain a working relationship with the College through ongoing communication and proactive monitoring for future opportunities.

How It Was Done

In their initial kickoff meeting, Burton learned the key goals for the College included long-term budget certainty and keeping costs low. Burton used its industry knowledge to take advantage of natural gas transportation limitations in the region in which the College is located, and presented a long-term, fixed basis contract that saves the College about 17% in calendar year 2015 when compared to the utility’s default rate. Burton also put trigger prices in place and continues to watch the market for opportunities to hedge against price risk and protect the College’s budget.

The College is achieving year-over-year savings from this contract as well as long-term certainty of their budget via hedges put in place for coming years. Burton continues to provide an active role in their natural gas portfolio by providing reporting services and budget guidance, and by holding periodic review meetings with the College to reassess their energy supply strategy.


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