Luthin Services: Energy Procurement & Risk Management

Energy Procurement & Risk Management

It is difficult for consumers to navigate deregulated energy markets in which some of the risks include price volatility, supplier capability, contract issues, and regulatory changes. Unlike most energy consulting firms, Luthin Associates excels in managing these financial hazards with extensive experience and procedures developed over decades of working in competitive and regulatory arenas.

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Luthin Associates treats your energy account portfolio as an asset worth developing, instead of merely an expense to be minimized. Applying proprietary software and sophisticated buying techniques, Luthin evaluates your Value-At-Risk (VAR) and provide guidance during both the procurement process and throughout the terms of your contracts. By actively managing your account portfolio, Luthin continually finds buying opportunities to maximize savings.

Our proprietary energy management software audits energy invoices for errors and has successfully recovered over $20 million to date. Our “Luthin Access” energy management dashboard provides clients access to track and monitor their portfolio and generate customized reports. Utilizing decades of energy procurement experience, our staff of certified professionals bring to the table a variety of proven tools for securing energy at the lowest cost while balancing your institution’s acceptable risk.

Luthin Associates is committed to full disclosure. We are vendor-neutral and unlike many competitors, we proudly certify the source and transparency of all fees. All of our revenue derives from the services we provide to you. As a matter of principle, we reap no unwarranted revenues from vendors or clients, nor do we improperly boost revenue percentages by tacking on extra charges. We work solely for you.”

Energy Supply Procurement

Luthin Associates has provided Energy Consulting Services for electric, fossil fuels (natural gas and fuel oil) and steam since 1994, and we can offer an unparalleled wealth of experience across deregulated energy markets. We currently manage and procure energy for clients who have a total energy portfolio spend in excess of $700 million dollars per year. The size of our procurement portfolio provides us with strong purchasing power and an ability to negotiate very favorable contract terms for our customer base.

At Luthin Associates, we practice a multipronged, five-step approach in developing a Customized Lifecycle Energy Procurement Strategy (CLEPS). The initial step in the procurement process is to understand your risk tolerance and budget objectives, followed by a comprehensive load analysis. A variety of hedging options are discussed and presented to the decision-makers, taking into account market timing and established client goals. This ensures management-buy-in on the appropriate hedging strategy. We provide clients with an array of effective alternative solutions to exceed your energy management goals. We actively monitor your account, continuously assess risk factors, and capture savings. We have detailed on the next page the means and methods employed utilizing our proprietary CLEPS model. Learn More

Renewable Energy Procurement

Luthin Associates is your expert in renewable energy procurement. We assist you in meeting your institution’s sustainability requirements, green goals, and/or attaining Leadership in Energy and Environmental Design (LEED) certification, Luthin Associates is your expert in renewable energy procurement. Our specialists assist organizations with identifying the appropriate levels of participation to meet your needs, at the lowest possible cost. Where renewable energy is not available from the local grid, Luthin secures Renewable Energy Credits (RECs) that counter the carbon output of local power by supporting the generation of renewable power elsewhere.

Unlike many of its competitors, Luthin understands how the carbon value of RECs may vary based on the type of renewable asset (e.g., solar, wind, biomass, low impact hydro), the location of the renewable source, vintage (i.e., date of production), and other factors. To ensure that RECs represent real power production, Luthin specifies renewable resources certified by the Green-e program of the Center for Resource Solutions, which is the gold standard in the United States. As desired, Luthin can also provide carbon accounting, tracking of Solar RECs (where available), the output from nameplate renewable energy projects, and procurement of biofuel and carbon offsets (another carbon management tool).

Bill Auditing & Reporting

While many customers try to cut their energy bills by focusing on efficiency projects, significant savings may be secured without capital or operational investment.  By finding and fixing billing errors, and securing lower tariff rates, Luthin Associates applies its sophisticated understanding of energy invoicing and pricing to save money.

Through decades of experience, Luthin has developed a comprehensive bill reporting and analysis process that has recovered, or avoided, millions of dollars in energy charges. Its online energy management dashboard, Luthin Access, actively monitors energy invoices to ensure accuracy and enforcement of tariff as well as contract pricing.

To pinpoint errors, the dashboard runs monthly, quarterly, and annual consumption analyses by meter, account, and contract. Through access to our proprietary system, Luthin, and its customers, identify outliers based on usage, load factor, and other characteristics. For one customer, Luthin found incorrect tax payments that, when refunded, amounted to more than $700,000. This service also helps customers make informed decisions regarding their energy usage and purchasing strategies. To date, Luthin Associates’ efforts in bill auditing have recovered more than $20.5 million in errors for its clients. Learn More

Tariff Analysis

Few customers understand that a utility is only required to place a customer on an appropriate rate, not necessarily the one yielding the lowest annual cost. Fortunately for its customers, Luthin Associates has extensive experience in interpreting and modeling utility tariffs. In one case, Luthin secured a Business Incentive Rate (BIR) offering a substantial discount off the utility bill for a customer that was rehabilitating a building. For another, it worked out a deal to re-price a utility charge for a data center’s electric service expansion savings the customer $17 million. Under a State program tied to job creation, Luthin secured a discounted electric rate for another customer that saved more than $3 million during the life of the award. Through such work, Luthin has saved more than $150 million for its clients.

Despite the increasing complexity of tariffs, we successfully guide our clients by analyzing details of the rates and characteristics of our clients’ facilities. We have, for example, modeled electric and steam standby rates as well as natural gas tariffs for distributed generation. With the same keen eye, we help customers choose between standard or voluntary time-of-use (TOU) rates. Large customers (subject to hourly supply pricing) are advised that it may be more beneficial for them to contract for third-party power supply instead. To determine which options will annually cost less, Luthin performs a sophisticated analysis using complex utility data. The same technical precision is applied to modeling standby rates, redistribution to tenants, and rate switching, just to name a few. We are known for our ability to negotiate favorable long-term discounted rates for our electric, natural gas, and steam clients. Learn More