1. Energy Purchasing LLC
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436 Main Street, Suite 203 | Franklin, TN 37064
P.O. Box 1549 | Franklin, TN 37065-1549
800.248.5187 | F 480.247.5787
www.Egotia.com
WHAT WE DO
Incremental Utility Purchasing
Egotia is about being the best. Our Incremental Utility Purchasing (IUP) program is a
market-leading strategy to provide advanced risk management and intrinsic budgeting
stability. Everyone knows that the energy market has frequent, violent volatility. Few
companies have ways to prevent the volatility from negatively affecting their bottom line.
The only way to minimize volatility exposure is through meticulous, careful and responsible
hedging. With our expertise, planning and management, your savings can be remarkable.
Pre-analysis
Egotia analyzes your current market position and determines your tolerance for risk, as well
as your requirements for budget and fiscal year responsibilities. Egotia determines any
constraints on your cash flow, and analyzes your goals in terms of requiring predictability,
maximizing cost savings, or whatever issue is most important to you.
Egotia then develops a hedging strategy. We consider the schedule for procurement, with
any limitations on dates, volumes, or amounts. We even include special considerations that
are circumstance specific, such as Natural Gas Storage management.
Once we thoroughly understand your situation, we will prepare customized RFPs (Requests
For Proposals) for all of the available suppliers (electrical and/or natural gas). Each RFP will
be purpose-built to match the criteria for your individual IUP plan.
We analyze
We do not receive all the offers that come in, hand them over to you, and then wish you
good luck. We go over each offer, paragraph by paragraph, clause by clause,
understanding and explaining to you every aspect of each proposal.
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Different risk assessments by different providers can result in substantial changes in price.
We compare their abilities to meet the hedging requirements for the IUP – always with your
goals and objectives in mind.
Post-analysis
You and Egotia then award a contract to the bidder who is the best match for you. We then
group you with our other clients that share a similar geographical location or contract terms,
so that you and every client receives the benefit of our daily price monitoring.
This is not a matter of set-and-forget. Layered hedging requires intimate familiarity with
the market; it requires continuous daily monitoring and the knowledge and experience to
know when to make purchases. This is not the place for a one time consultant if you expect
to save any money.
Egotia analyzes the market data daily. We know when it’s time for a hedging move. We
keep you apprised of every action, of all of our decisions, and we update them continuously
as to how the market is performing and your current hedge positions.
The Result
With our methodology there is a greater than 60% reduction of volatility in the
market. It can lead the way to more than 15% savings. We’re skilled at what we do, and
are most capable of being your outsourced Energy Department. We’re highly effective,
innovative and all our work is transparent so you can see your savings.
Budget
Egotia carefully prepares your energy plans for the
year. We look at every aspect, to insure that we
have a clear understanding of the energy
environment, so we can exploit it to your greatest
advantage.
Ø We look at up to five years of history of
energy usage to know where you have been,
and understand where you are going
Ø We will calculate the weighted average price
of all the energy that you have already contracted for
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Ø We will look at the current non-contracted (open market) cost of energy in your
area, based on forward cost averaging and future pricing with a 10% margin for
fluctuations
Ø We will carefully examine the associated costs based on usage and/or contractual
fixed rates (including delivery, transmission losses, capacity, storage, and other
ancillaries)
Ø We will perform an item by item calculation based on current demand and usage
expectations, including any projected rate changes
Ø We will account for tax expectations based on predicted use and prevailing rates
Ø We will also include an overall 5% fluctuation rate to make sure that you are not
surprised by a variance in either usage or cost
Your monthly budget report is broken down categorically. This allows Egotia and you to
monitor and report the state of the budget throughout the year. You will know exactly
where you stand.
Please contact us to understand the money that we can expect to save you.
Contact Information
Tillman R. Holloway, Principal
Tillman@Egotia.com
436 Main Street, Suite 203 | Franklin, TN 37064
P.O. Box 1549 | Franklin, TN 37065-1549
615.429.1929 | F 480.247.5787
www.Egotia.com
Energy Purchasing LLC