Fuel Arbitrage
Many of our fossil fuel customers have the ability to burn either gas or oil. We typically negotiate their contracts a year or two ahead of time and we lock in a rate that requires the client to use different fuels from month to month. The exact months are specified at the beginning of the contract. This provides revenue-generating opportunities for our clients. As energy prices surge and fall, the market volatility can provide significant opportunities for our clients. Luthin Associates works with Clients to shift their load from oil to gas during periods of volatility so that the supplier can sell a previously purchased, inexpensive bundle of oil into the real time market and make a significant profit. This profit will be shared with the user to reduce their overall energy costs.