A Retirement Community Case Study
When it came time for a nonprofit continuing care retirement community (CCRC) to review procurement options for their electric and natural gas supply, officials at the Pennsylvania-based retirement community chose to work with Burton Energy Group. By choosing Burton, the CCRC was able to ensure a customized approach to electricity and natural gas supply procurement that focused on the facility’s unique needs and goals. At the same time, the community’s decision to work with Burton meant conducting an RFP to solicit the most competitive offers available and take advantage of professional market expertise to lock in contracts at the right time to attain competitive fixed pricing. During the past five years of working together, this CCRC has saved nearly $110,000 in their electric and natural gas spend, compared to the utility rates.
How It Was Done
In initial discussions with clients looking to take a strategic approach to their energy contracting, Burton aims to understand the organization’s goals related to energy procurement. Since the retirement community serves senior citizens on fixed incomes, it became clear that the chief concerns included price management, long-term budget certainty with limited risk, as well as year-over-year savings.
Equipped with these goals, Burton Energy Group continues to take a proactive approach to layer in competitive pricing, utilizing an RFP process to set contracts, and a hedge tracking strategy to execute fixed prices. Burton reviews the procurement strategy with the CCRC and then continuously tracks the market. When the market presents opportunities to hedge or extend pricing, Burton communicates this pricing for consideration and approval. The structures of the electric and natural gas contracts may vary, depending upon market conditions and changes at the facility, but the goal remains to manage their price risk and capitalize on market opportunities to drive savings.
“Clear and consistent communication with the client allowed Burton to look beyond the short-term and take action to secure savings for the next four years.”
Burton Energy Group maintains a hands-on approach when it comes to the retirement community’s energy portfolio. Open lines of communication and continuous monitoring of the market has allowed Burton to take advantage of market lows, limit exposure to price risk, and maintain some budget certainty. Burton’s proactive method provided price protection during a national pandemic and has driven more than $36,000 in savings during the past year.
- Yearly Energy Savings: 11%
- Supply Solution: Long term contracts with a proactive approach to hedge and extend when the market presents an opportunity.
- Projected future/additional savings: 5% y-o-y
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