Fortune 200 Manufacturer
Business Activity: Auto Parts Manufacturer
Project: Energy Strategy Development
Our client was an international automotive parts manufacturer, and faced significant energy expenditures in states where deregulation was forcing the restructure of the electric utility markets. In response to these changes in the energy landscape, our client wanted to evaluate how the company’s existing and prospective energy providers could better address their challenges, and therefore better serve the client.
Sieben Energy Associates (SEA) was retained to advise the client's senior management on energy management issues, to help the company develop a commodity management strategy, and to assist in structuring an optimal long-term commodity management solution. As part of this process, we created a Request for Qualifications (RFQ) for providing electric and gas commodity services to the client, which was distributed to numerous utilities, energy service companies, power brokers and marketers.
The firm also developed a set of criteria that was used to rigorously analyze and rank the responses. A Request for Proposal (RFP) was then generated and circulated to qualified respondents. The firm/client team interviewed selected RFP respondents to establish the short list of qualified energy providers.
The selected Energy Commodity Management solution resulted in a $2 million annual savings for our client. SEA also presented alternative energy commodity management options and developed a company-wide energy database.