The University System
- System energy spend >$100 million annually
- 12 institutions pursued different contracting strategies for power since market deregulation
- It had not leveraged the system’s considerable portfolio buying power
- Energy prices and volatility were near historic highs
- To aggregate system demand to obtain the most attractive terms
- Apply Acclaim’s expertise to develop price risk management strategies, customized to each institution’s requirements
- Systematically make forward purchases as prices declined from near-historic highs
- Become trusted energy advisor to one of largest state agencies
- Changed the system and institution’s paradigm for strategic energy procurement
- Saved more than $69 million in the first five years: $20 million through portfolio benefits and $49 million through risk management
- Projected savings of $70 million during the current 10-year contract: $40 million through portfolio benefits and $30m through risk management