SourceTEC – Energy Procurement

ICETEC’s energy procurement services typically result in 10-15% annual savings for our clients. We incorporate a range of tactics to achieve SourceTEC program goals including supplier contract renegotiation, tax adjustments, energy source evaluation, usage parameters, proprietary hedging strategies, and our industry leading energy procurement technology.

ICETEC frequently finds opportunities for enhancing existing energy supplier contracts. We also ensure that tariffs and tax rates are accurately assessed based on rate class, consumption pattern, and future use.

ICETEC uncovers additional cost reduction opportunities and suggests further cost savings strategies that are customized to individual facilities, plants, or sites.

  • Existing contract review – Determine necessary structural changes and recommendations to reduce total cost
  • Tariff evaluation – Rate class evaluation and third-party assessment
  • Supplier selection consultation/negotiation
  • Execution of customized energy procurement plan
  • Usage evaluation – Examine historical energy consumption and create a load profile for implementing our recommended hedging strategy

Before negotiating or executing any procurement tactic, ICETEC will work with the client and together determine the appropriate risk tolerance and establish an energy procurement strategy tailored to meet it.

  • Conservative (reduce risk as much as possible)
  • Aggressive (open up energy cost to some risk of additional energy spend for the possibility of even larger reductions in total energy spend)

ICETEC employs our proprietary, math-based, disciplined procurement strategy to ensure lower purchase prices over time.

  • Commodity market intelligence performed in-house by multiple, full time analysts
  • Continuous market information gathering and analysis
  • Real-time, real world statistics are weighed against historical data to predict future needs and purchase points into the futures market based on varying horizon lines with the highest accuracy in the industry

SourceTEC’s proprietary energy procurement technology also supports a market-sensitive budget setting process that provides flexibility and control throughout the year.

  • Achieve transparency to accurately track real energy costs
  • Create a working budget by tracking hedges and using financial reporting
  • Replace budgeting based on the time of year, and implement budgeting based on mathematical forecasting to marry markets to usage

SourceTEC is a logical and statistical approach to achieving a more efficient energy budget and energy procurement strategy.