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Managing Your Energy Costs

Engaging an expert for better cost control

Better Cost Control, LLC2274 Washington St.Newton, MA 02462

Tel: 617-332-7767 x150Steve Garson

sgarson@bettercostcontrol.com

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• Energy markets are volatile

• Customers have many choices

– Local, regional, and national suppliers

– Numerous pricing packages

• Navigating the options is time-consuming and time-sensitive

Energy costs are complicated to manage

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Flexible pricing adds complexity

• Index pricing ensures you pay actual costs, but you sacrifice predictability• Combination strategies accommodate risk tolerance while allowing you to react to

market changes– LMP Index Pricing

• Based on the Locational Marginal Price plus a fixed index• Can be converted to a fixed price

– Block and Index Pricing• A mix of a fixed price “block” with the rest of usage LMP Index.• Allow you to take advantage of potentially lower prices, while limiting

your risk– Trigger Pricing

• LMP Index pricing with a specified trigger price when the contract converts to a fixed contract automatically…if the trigger price is reached

Fixed Prices assure predictability, but if energy markets head downward, you miss out on savings

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• Contracts are about reducing price risk

– Different types of contracts provide manageability

– Depends on risk tolerance

– Required unbiased information, not advice from a salesperson trying to close a contract

• Price movements today point to level prices or slight reduction

– Improvement to economy will raise prices

There is no perfect crystal ball

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• Many end up overpaying• It takes vigilance to spot

impending price changes• Price comparisons need to

be made on the same day due to market fluctuations

• Complex contracts complicate “apples” to “apples” comparisons

– Arcane terminology– Intricate terms and

conditions

It takes agility to capitalize on buying opportunities as they arise

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It takes a specialist to get the best deal

• Procuring energy is unlike any other item in your annual budget

– Specialized skill is required

– Impossible to adequately develop that skill unless it is a dedicated responsibility

• There is value in having an advisor focused on your company’s interests that watches the market

– Requires an agreed upon process for action

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• We’re energy management and procurement specialists– Monitor the energy markets– Protect the energy budgets of our clients– Operate ethically to look out for the welfare of customers

• Licensed for both electricity and natural gas• Trained and certified by Association of Energy Engineers

Better Cost Control is that specialist

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• Watches and forecasts market trends• Enables you to make informed

decisions– Provide independent unbiased advice– Takes the mystery and fear out of

decision making

Better Cost Control empowers you to manage energy budget risk

•Helps negotiate advantageous deals before they disappear

•Looks out for your interests

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Independent advice

• Not affiliated with any single supplier• Broker relations with ALL suppliers• Our interest is a long-term

relationship– If a short-term contract is in your

interests, that is what we recommend

• Able to advise the you on opportunities that may be more beneficial, yet more complex

• Obtain the best prices and terms– Better than you can do on your own!

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• Our personal relationships with the suppliers helps us to negotiate better prices for your benefit

– We don’t just get bids– We pit the suppliers against each

other• There are different energy products to

choose from that can reduce costs at minimal risk

• Differences in contractual terms are unclear to the average buyer

• Watching the market helps you time your purchases

Working with a Broker saves money

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• Two options– Fixed fee– Small fee built into the price of

electricity used

• We consistently outperform direct bids by clients– Knowledge is power

What does our service cost?

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The value of timingThe value of timing

The value of dedicated focus

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• Based in Newton, MA• Managing energy costs since 2002• Trusted advisor to large companies and county &

municipal governments nationwide• Learn more at http://www.bettercostcontrol.com

About us