Industrial
Energy Portfolio Design
Natural Gas- Let Energy Analytics Corporation design a portfolio mix suited to your
specific supply needs. Henry Nickell, President of Energy Analytics Corporation, has managed a 65 BCF per year gas supply portfolio since
the beginning of deregulation in the natural gas industry. He has created city gate transportation, capacity release, balancing, and
gas marketing programs purchasing and transporting over 20 BCF per year on behalf of industrial customers. He also managed industrial
customer relations for one of the largest three service utilities in the nation during the same period and understands the needs of
industrial customers and the complexities of natural gas acquisition.
Electric- Is your company having a difficult time in deciding on an appropriate mix between firm and interruptible electric purchases
and generation or cogeneration? Are the complexities of electric industry deregulation leaving you confused and understaffed? Henry
Nickell of Energy Analytics Corporation has dealt with electric energy supply options for over 20 years. Early in his energy career, he
evaluated and built cogeneration and alternative energy generation plants to serve industrial customers and served as an advisor to the
Gas Research Institute's industrial cogeneration group. He later managed an extensive evaluation of the Tennessee Valley Authority's
generation and nuclear construction program. He managed an evaluation of the feasibility of constructing generation facilities and
acquiring a portfolio of short and long-term electric supply contracts to meet the needs of a 2500 MW customer using least cost planning
methodology to identify the appropriate mix of generation technologies and purchases to optimize cost based on the customers load
duration curve. Mr. Nickell has dealt with regulatory comments which precipitated orders 888 and 889. He has considerable experience
in evaluating in negotiating electric supply contracts for industrial customers in the California electric markets.
Evaluation of Supply Alternatives
Is the best supplier always the lowest bid? What do you do when you like the
reliability of one supplier and pricing options of another?
Generally, best overall pricing is achieved when the supply portfolio meets the reliability and flexibility requirements of the
industrial customer's plant operations. There are quantitative methods to identify the optimum supplier mix and pricing options for a
particular customer's load profile as identified by their load duration curve. Is alternate fuel capability appropriately arbitraged in
your company's energy supply portfolio? Are the primary points of receipt for your natural gas supplier the platforms that are ground
zero for every hurricane that blows in the Gulf Coast? Energy Analytics Corporation can provide you considerable assistance ranging from detailed
quantitative evaluations to "common sense" review and advice on your energy portfolio.
Least Cost Planning
There are quantitative methods to identify the optimum supplier mix and
pricing options for a particular customer's load profile as identified by their load duration curve. A load duration is the number
of hours per year a facility operates at a given load level (natural gas or electricity). Once these load levels are identified, it
is possible to identify the least cost generation technology or supply contract structure to meet the needs of your facility for that
particular segment of your load duration curve. If your facilities experience large swings because of process or weather and you are
considering capital intensive investments to offset these swings, let the experienced staff at Energy Analytics Corporation help you
identify how to get the most for your capital expenditure.
Evaluate Generation/Purchase Mixes
Least cost planning methodologies allow comparisons between the construction of
different generation technologies and power and energy acquired under contract. If you are considering building electric generation and
want to look at trade-offs between constructing your own facilities and continuing to purchase power contact Energy Analytics Corporation.
Risk Management
Are you 100 percent sure that energy prices are going up? Then you should be 100
percent hedged. Are you 100 percent sure the market is going down? Then you should be zero percent hedged.
If you're not in of the categories above, Energy Analytics Corporation can help you. Even though your company may not be sure which
direction energy prices are heading, companies can develop a realistic appraisal of their market situation based on fundamental,
quantitative, and technical analysis and apply the resulting outlook to a balanced, common sense approach to hedge the price of their
energy portfolio.
Henry Nickell of Energy Analytics Corporation has been involved in the NYMEX natural gas futures contract since before the contract's
inception in 1991. His group was the first municipal group to obtain approval to operate a futures hedging program for the NYMEX
contract. He has extensive experience in the use of options and financial derivatives to assist in providing long-term
stability in hedging programs.
If your objective is to identify longer-term trends, probable breakout levels, and long-term reversal signals, Energy Analytics
Corporation can help you get up the learning curve so that you can manage your hedging program in an informed but simple manner by
identifying longer-term trends, support and resistance levels, and proven long-term market signals.
Negotiate Supply Contracts
When you meet with energy producers and marketers do you feel like Daniel in the
lions' den? Let the experienced staff of Energy Analytics Corporation help balance the scales and steer you away from the pitfalls in
energy supply negotiation.
Negotiate Transportation Contracts
Do you do your own contracting for pipeline transportation or city gate delivery?
Are you familiar with capacity bidding and capacity release? Do you have questions about how your bid may stack up against others
that may bid on the same capacity? Are you having a problem identifying your options? If you need experienced assistance in negotiating
or bidding on natural gas transportation arrangements contact Energy Analytics Corporation.
Rate and Contract Negotiation
Are you certain that your company is on the most cost-effective rate schedule
offered by your utility? Do you know that the parameters of your energy supply contracts are appropriate for your consumption and
demands and that your company is not paying penalty charges in excess of cost of service on other more appropriate rate schedules?
Are you paying taxes on your energy bill as a matter of routine for which your company has an exemption and therefore not owe?
It is astounding how many companies can save money by a simple evaluation of the rate and contract options available to them. Many
utilities offer negotiated rates, services, and contracts to large industrial customers as well as incentive rates for location of new
facilities. If you need assistance in evaluating your options or negotiating special arrangements call Energy Analytics Corporation.
Demand Side Management
Do you have curtailable processes? Do you have generation capacity that is
generally unutilized? If so, it may be possible to negotiate arrangements with your LDC or electric utility to mutually share savings
if you are successfully able to help them lower their electric demand. Henry Nickell of Energy Analytics Corporation helped to devise and
managed the implemention of such a program that helped save industrial customers hundreds of thousands of dollars per year in shared
savings.
Energy Management
With the recent volatility in energy prices and the current economic slowdown,
the old standby, energy conservation is again becoming economic. The staff of Energy Analytics Corporation and its strategic partners
have extensive experience in industrial energy management.
Energy Accounting
Do you know where your energy dollars are going? Do you have a mechanism in
place that promptly identifies unexplained changes in energy consumption and cost so that action may be taken immediately?
In most companies, the accounting department is accurately tracking where the dollars went. It usually takes very little additional
effort to design spreadsheets which compare not only the energy cost but the energy consumption and demands year over year, breaking out
process and weather related consumption and demand. Such a simple procedure can help identify wasteful diversions from normal operation
in early stages and minimize the waste in energy expenditure associated with a production or equipment problem.
Budgeting and Forecasting
Do you find yourself struggling with preparing your company's energy budgets
every year? The energy and demand components of an established energy accounting procedure mentioned above can be combined with energy
price forecasts from standard industry forecasting groups, futures, or financial derivatives markets to help make the energy budgeting
process as reasonable, efficient, and accurate as possible.
Billing Verification
Does anyone at your company take rate schedules, supplier agreements, and other
charges and compare the calculated cost under these schedules and agreements to the amount billed by your supplier or utility? Does
anyone at your company check supplier imbalances or ancillary service charges charged to your account? Many suppliers take the view
that it is your responsibility to identify the imbalances not in your favor on your accounts. Depending on your supplier and your
utility, your company may have a huge opportunity. If you know or suspect you have a problem in this area, Energy Analytics Corporation can offer
experienced advice and assistance in your efforts to rectify problems in this area. If necessary, Energy Analytics Corporation can develop or help
you develop the spreadsheets necessary to verify your accounts payable or historic billing.
Evaluation of Alternative Energy Options
The staff of Energy Analytics Corporation and its strategic partners have
considerable experience in evaluating the cost-effectiveness of alternative energy technologies in industrial markets ranging from low
head hydro projects to fuel cell field testing. Contact Energy Analytics Corporation for more information.
Legislative and Regulatory Affairs
Does your company actively participate in pipeline rate cases, electric
transmission rate cases, utility rate cases, before the FERC or local PUCs that affect your business? Does your company stay in contact
with state and federal elected representatives on energy related matters that affect your business?
If not, and you feel that your business continually "gets the short end of the stick" when decisions are reached in these matters,
maybe it's time to consider becoming more proactive. Call Energy Analytics Corporation for assistance in developing a systematic
approach toward making your company's voice heard in legislative and regulatory matters.
Enron Electric Contracts in the Southern California
Edison Service Territory
The principal of Energy Analytics Corporation has had considerable experience in
dealing with Enron since the advent of
natural gas industry deregulation. We also have pricing models that can be used to verify billing by Enron or any other electric
supplier in the Southern California Edison service territory.
Energy Analytics Corporation provides energy consulting, energy portfolio design, management and consulting,
industrial energy engineering, utility consulting, natural gas deregulation consulting, electric deregulation consulting,
least cost planning for energy portfolios, energy futures consulting, utility billing consulting, energy risk management,
energy personnel and recruitment, energy supply alternatives, energy budgeting and budget forecasting, electric, gas,
and energy contracting, MLGW, Memphis Light Gas and Water consulting, TVA, Tennessee Valley Authority consulting. Henry Nickell,
( H.B. Nickell ), President.