Portfolio

Interstate Products Pipeline

Issue

Similar to the cellular phone operator, an interstate products pipeline spanning 15 states required a comprehensive energy supply plan to better manage their procurement processes. With more than 800 locations across numerous geographies, the need for a coordinated approach to energy procurement and risk management was required.

Solution

After first taking inventory of all of the relevant locations, DaCott developed a procurement strategy that is geared towards a more structured, risk sensitive approach to energy procurement. In less than three months, DaCott has been able to not only provide the client with a more structured process, but has also enabled them to save in excess of $800,000 on their energy supplies. DaCott continues to work with this client and anticipate total savings to exceed $2.0 million for this project.

Association of Local Governments

Issue

Regulatory changes in Illinois in August of 2007 established the means for local governments to aggregate their resident’s electric loads with voter approval. This act, working in conjunction with the state’s deregulated electricity market, allowed municipalities to solicit bids for aggregated residential and commercial loads. A local government association comprising of 32 cities, required assistance in developing, executing and maintaining their member aggregation program.

Solution

DaCott assisted the client in all aspects required to run and maintain a successful multimember aggregation program including education materials and forums, collection of data, market analysis, contract negotiation and continued support.

Chamber of Commerce

Issue

Regional Chamber of Commerce wanted to offer its members an innovative electric savings program that would be an additional benefit to becoming a member of the chamber.

Solution

DaCott assisted the client in establishing a truly unique program through which the Chamber could provide a service tailored to each chamber member while offering discounted pricing through the use of the chamber group. The program continues to be successful cutting cost for program participants by approximately $300,000 annually.

Interstate Natural Gas Pipeline

Issue

Due to changes in the US regulatory environment, a large interstate natural gas pipeline was required to establish new processes to manage supply activities for legacy customers.

Solution

DaCott assisted the client in establishing the inventory of customer requirements, the services required to meet those requirements and the system required to effectively provide the services.  As a result of this analysis, DaCott was asked to implement the systems and processes and provide management support on an on-going basis.  DaCott has continued to provide theses services for more than ten years.

Multi-State Rehabilitation Center

Issue

A multi-state rehabilitation center required a comprehensive energy procurement plan to better manage the costs related to their energy needs across regulatory regimes, utilities and geographic locations.

Solution

DaCott provided a complete review of the client’s energy requirements across the various jurisdictions and developed strategies to optimize energy supply costs.  This optimization plan included participation in competitive supply markets as well as a restructuring of the entire billing process. In addition to reducing energy costs DaCott was able to significantly decrease the amount of man hours required to keep all 250+ accounts current. DaCott continues to provide advisory services to this client on a day-to-day basis.

Municipal Power Providers

Issue

A group of five municipal power providers in Michigan required assistance in developing power procurement strategies for their long term supply needs.

Solution

DaCott worked with the municipal group to establish the needs of the group as well as the individual members:

o   Establishment of a standardized process for determining the risk profile of each member as it related to unfulfilled power supply needs.

o   Development of a power supply strategy, incorporating the requirements of the risk policy so that supply decisions could be made in an objective manner.

o   Meetings with the City councils of each of the members to educate the council members on the need for and the benefits of implementation of a defined strategy coupled with a robust risk policy to ensure proper authority is vested in the city manager to pursue supply decisions effectively in a volatile environment.

DaCott provides on-going analytical support to the group and to the individual members on topics ranging from risk management, supply strategy, rate design and other ad hoc analytical needs.

Medical Complex with Combined Heat and Power Facilities

Issue

An institution that operates one of the largest thermal energy systems in the world was installing an additional generating plant for added reliability and overall cost savings. The new construction added 50 MW of generation and eight million gallons of chilled water storage. They needed assistance syncing to the Independent System Operator, optimizing the pricing and minimizing the attendant risks.

Solution

DaCott managed the required registration of the new generating plant with the local utility and the governing Independent System Operator. DaCott prepared a comprehensive hedging strategy for the facility once the new generating plant and chilled water storage were in operations. The main focus of the hedging strategy was maintaining reliability of the facility which supplies steam and chilled water to the member institutions while providing secure pricing. The hedging strategy incorporated the utilization of the new generating plant, natural gas supplies and chilled water storage.