Over 12 months ago, FirstEnergy Services, a third party electric supplier announced that they would not be renewing most of their existing customer contracts as they were going to wind down their competitive supply business. However, they don’t seem to have done a very good job of telling their customers that information.
Recently, a Printing Industry of Ohio • N.Kentucky member contacted the Association after they saw their monthly utility increase materially. When they questioned the utility company about this, they learned that they were buying regulated supply at a higher price because FirstEnergy Services was no longer supplying them.
KOREnergy on behalf of the Association gathered information from the member and within approximately (1) week, presented the member with 12, 24 and 36 month prices. The member chose the 36 month plan, and this competitive supply contract will save the Member an estimated $5,000 annually versus their previous utility rate.
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member story:
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case studies
member stories are key to the industry we work in. Being approached by numerous brokers can be exhausting and misleading. below are a few association member examples of how we were able to save them money and time.
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Bob Korandovich,President
(614) 883-6401
bobk@korenergyltd.com
A Printing Industries of Ohio • N.Kentucky member is enrolled in the KOREnergy Demand Response Program. They receive electric supply from the Printing Industries of Ohio • N.Kentucky’s supply partner, Constellation NewEnergy, and is enrolled in their Peak Response Program. The member spends approximately $25,000 per month for electric supply and utility service.
The member began supply purchasing in 2013. Earlier in 2012, the wholesale electric market hit a 10 year low in prices, which carried their prices into 2013 and benefitted the member. Their first year savings after moving to competitive supply was approximately $140,000.
The contract cycle for this Member is in Q4 each year. In November 2014, power prices unexpectedly ran up in anticipation of another cold winter (Polar Vortex Q1 2014). Rather than lock into a 12 month price which reflected the market run up, KOREnergy recommended locking in just a three (3) month winter contract. The strategy was to buy time and let the “market hype” settle down.
Subsequently, the winter weather for 2013/2014 turned out to be about normal. That along with strong natural gas production from shale wells, contributed to both power and natural gas prices dropping and close to 10 year lows.
As a result of KOREnergy’s daily involvement in the energy markets and their collaboration with Constellation NewEnergy, this member to was able to avoid close to $100,000 in additional cost by delaying their execution of a 12 month or longer contract.