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After analyzing the power bills of more than 3,000 Commercial & Industrial customers in 11 states, over twenty years – We’ve proven that the Fixed Price Fable results in customers over paying an average of 28%. PES GUARANTEES to eliminate this over payment and return it to you.
Politicians, Utilities, their Spinoffs and Cohorts have masterfully created the Illusion of competition in retail electricity resulting in inefficient markets with substantially overpriced risk premiums baked into retail contracts nationwide.
Since 1995 we’ve been revealing, reducing and returning Risk Premiums set with monopoly-type pricing power and returning the money to our clients with surgical precision.
For generations utilities delivering electricity throughout the nation have operated their companies in an entitlement economy having their returns guaranteed and their risk transferred to ratepayers – Risk Free & Profits Guaranteed.
As retail electricity “competition” was introduced in the late nineties, it was the same “entitlement minded” utility executives that populated these new “competitive” retail companies. They brought along an expectation of Monopoly-style Guaranteed Profits and Total Risk Transference that simply cannot exist in an efficient competitive market. Rather than a new vibrant retail market, we were left with a re-shuffling of the same marked deck of cards – Where a majority of C&I customers are served by the utility’s proxy (unregulated subsidiary) with the same pricing power to bake excess risk premiums into their fixed price contracts, offering little to no assistance in determining how the price for risk was determined and how much of it is included in the total. EP3 unlocks this Fixed Price Fable and Returns Excess Risk Premiums to you.
Everywhere we look, pressure is increasing on profits. With Globalization, Heightened Regulatory Intervention, and an Insatiable Taxing Authority, the Squeeze on Margins is as tight as ever. Knowing these market truths, why continue to unwillingly donate any part of your bottom line to your power company? Simply stated – you would stop it if you could.
The best Defense is a potent Offense. PES focuses on one thing only – Removing Risk Premium from Electricity rates. We follow the markets daily and leverage market movement to our client’s benefit. By capping the highs and capturing the lows, we manage volatility out of the market for you – Guaranteed. If we fail, we write the check.
If you’re like most C&I firms, electricity is your third or fourth largest expense. Because it is not widely understood or largely misunderstood – Electricity is an expense that gets delegated to the point that bills are simply reviewed for “accuracy” and paid monthly. After that, fixed price bids may get solicited every year or so.
We prioritize getting back risk premiums for our clients and applying them directly toward their bottom line. With the priority you place on profitable operation – PES Guarantees to add to your effort.
Facing increasing pressure from international competitors, an Ohio Plastics company had transitioned the manufacturing of its products – but still had outsized electricity expense. PES reduced their Electricity Risk Premiums by 28%.
In the Hyper competitive packaged food business, a major food processor asked us to help their eastern US plants after we succeeded out west. PES returned more than $570,000 in excess risk premiums between the Pennsylvania and California locations.
A high end resort chain with locations in New York and California wanted assurance that their hotels were not over paying for power. They asked PES to review the work that their corporate Energy Procurement team had performed for their locations. PES was able to improve upon their work by reducing their risk premiums and returning more than $160,000.
As operating costs continue to challenge administrators, it is becoming more difficult to pass along those increases in the form of tuition increases. To ensure they were doing everything possible to reduce operating costs, a prominent Christian College asked for our help. We returned more than $340,000 in risk premiums that don’t have to be passed along in tuition increases!