Direct Energy Business Helps School District Realize $630K Energy Savings Using PowerBuy™

The Challenge

Direct Energy Business works with more than 2,000 school districts across deregulated energy markets in North America. One of the main goals of school boards and school administrators is to help control costs for their school districts and adhere to strict operational budgets, so that education funding remains intact. In addition to cost control, school boards are often concerned with price transparency for their energy supply costs. 

A group of school boards, whose districts had been served by Direct Energy Business for several years, had approximately 700,000 MWh of renewal load, that they wanted to immediately lock in at a fixed price due to favorable market conditions, which were at relative lows. The load was split between two different regional pricing zones.

The Bright Idea

A dedicated Direct Energy Business Energy Strategist, who had been working with the school boards’ energy consultants, recommended the deployment of the patented PowerBuy platform for this renewal load. PowerBuy’s online event format offered the school boards the opportunity to procure their load at the lowest pricing offer during their events, while also providing transparency into the wholesale market and delivering reporting and executable contract capabilities that were necessary for the districts’ reporting process—all in just two 10-minute events.

The Powerful Solution

Direct Energy Business’ Energy Strategist set up two events in PowerBuy—one for each of the two regional load zones where the power was needed. In advance of the start of the two events, the Strategist worked closely with the schools’ energy consultants to calculate their fixed adder charge (which is a bundle of other retail cost components, including losses, ancillaries, renewable portfolio standard, and system operator administrative fees) for the term of their purchase so that, together with the price of energy, they could determine what they wanted to pay for their supply and set their desired strike price for their PowerBuy events.

There were five wholesale suppliers logged in for the two consecutive 10-minute PowerBuy events, with three suppliers actively bidding on the first event and two suppliers actively bidding on the second. The customers’ energy consultants, along with their Direct Energy Business Strategist, observed the events in real-time, allowing for the most transparent approach to these power purchases.

In both events, the winning bid came in below the school boards’ strike price, allowing the organization to realize more than $630,000 in savings for the 36-month term of the purchases—which more than exceeded their expectations.

Note: Results such as those described in the case study are not guaranteed and will depend on many factors, including, but not limited to, your company’s risk tolerance, profile, and past and future decisions regarding energy purchases.



Coffe

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