Diversegy Assists Fort Myer Construction
Diversegy is a wholly owned subsidiary of Genie Energy Ltd. and is an energy advisor, serving the needs of those in diverse commercial and industrial markets. Their client portfolio stretches from hotels, resorts and motels, to restaurants, retail stores, gas stations, manufacturing facilities, construction companies and many more. One recent example of their value can be seen with the example of Fort Myer Construction.
Based in Washington D.C., Fort Myer Construction has been working with Diversegy energy experts since 2012 and has renewed two natural gas contracts with a savings of almost 21% over what it would have cost receiving energy supply from the local utility company.
Midway through their first supply agreement, Fort Myer Construction ran into a tricky situation. In three out of four months in late 2015, For Myer’s consumption of natural gas exceeded their contracted NYMEX quantities and also their three year average. They projected that this would be a continuing trend and would have serious cost implications, potentially costing the company much of its already realized savings. Diversegy quickly proposed a shift in their procurement strategy with a percentage of the Fort Myer load on an indexed supply priced product and a percentage on a traditional fixed rate plan as a way to mitigate their market risk.
Here is what Chris Kerns, Vice President and Senior General Counsel for Fort Myer Construction had to say about the changes and the assistance from Diversegy:
“Due to the nature of our business, a standard, fixed-rate agreement doesn’t suit us. With our consumption ramping up due to increased asphalt production demands, we were concerned, but Allison, our Diversegy account manager, took our company objectives and risk tolerance into account. She recommended a more sophisticated product which, when combined with Diversegy’s active account management, provides us with a consistent savings against the utility, shields us from some risk, and still allows us to reap some benefit when the market drops below our fixed price.”