A Retirement Community Case Study
When it came time for a nonprofit continuing care retirement community (CCRC) to review procurement for their nearly 6,000 megawatt hour annual electricity load, 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 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 a contract at the right time to attain competitive fixed pricing. This approach effectively saved the retirement community 6% on their electric supply spend in 2015.
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 electricity procurement. Since the retirement community serves senior citizens on fixed incomes, it became clear that the chief concerns included long-term budget certainty with limited risk, as well as year-over-year savings.
Equipped with these goals, Burton Energy Group conducted an RFP. Burton then strategically tracked the market down to a third-quarter low and worked with the CCRC to lock in a long-term, fixed price contract for electricity supply. The contract features tiered capacity rates and winds up saving the community about 6% when compared to the utility’s default rate.
“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 allowed Burton to take advantage when the market hit a multi-year low and present the client with a contract extension six months before their current contract was set to expire. Burton’s proactive extension allowed the facility to secure additional year-over-year savings of fifteen percent through the winter of 2019.
- Yearly Savings: 6%
- Client Goal: Long-term budget certainty
- Supply Solution: Proactive, long-term hedging
- Projected future/additional savings: 15% y-o-y
Click here to download a copy of the Retirement Community Case Study