Case Study:
The University of Minnesota (U of M) is the fourth largest public university in the USA, serving the needs of more than 70,000 students. Covering 360 acres and organized into 19 colleges, the U of M boasts world class research, medical, business, education, pharmacy, law, public health, management, engineering, and science schools.!!!
CUSTOMER:
INDUSTRY:
LOCATION:
UNIVERSITY OF MINNESOTA
EDUCATION
MINNESOTA, USA
Natural Gas & Electricity
Procurement Advisory
Customer Overview
Most large universities, including the U of M face unique challenges concerning energy management because of their geographic layout, differential age of facilities, and need for accurate energy budgeting.
The University of Minnesota consists of 5 geographically dispersed campuses. The customer was looking to outsource its energy procurement to a qualified partner who would help manage each campus as economically and efficiently as possible.
Challenge
World Kinect reviewed the university natural gas and electricity suppliers and energy management approach, conducted a tender bid process to select more competitive & quality 3rd-party suppliers in addition to the local utility, and became the one-stop shop provider for energy procurement, hedging, and professional energy advisory services.
World Kinect Solution
Procurement Advisory is the core of our energy management strategy. Monthly, World Kinect evaluates whether the U of M should receive natural gas supply through the local utility service or 3rd-party transport gas service. This method ensures that the U of M receives the lowest possible price for gas supply – coupled with higher reliability.
World Kinect also provides the U of M with a constant gas supply source even when the utility calls a curtailment during unusually high natural gas demand.
As part of our price risk management services, we execute gas hedges and purchases to meet the university’s price risk plan objectives. Ongoing assessments of market conditions are conducted to provide the U of M with the best-possible data guidance.
Bill Validation Services produce correct and timely invoice management including review, audit, reconciliation, and payment of U of M’s energy invoices.
Consumption & Cost Data Aggregation services deliver consistent flow of budget updates, hedge position reports, and cost/usage reports at the consolidated university level, campus, building, and meter levels.
University also consults with World Kinect regarding sourcing the best greener fuel blends that would not impair operations of the university boilers.
As requested, the University gained professionally guided energy management services, more predictable energy budgets, and highly competitive natural gas and electric supply costs, saving close to $1 Million over six years.
With multiple supply sourcing options even during tight supply events, substantial savings are also realized by not having to operate premium-priced fuel backup systems.
Business Impact
$1 MILLIONIN DECREASED ENERGY COSTS
REDUCED NEED FOR EXPENSIVE FUEL BACKUP
SINGLE SOURCE ENERGY MGT PARTNER
Since the University of Minnesota joined the World Kinect energy procurement program just six years ago, we have recognized savings of nearly a million dollars with their third-party procurement services. The Program also provides a customized risk management plan, execution of hedges, and valuable assistance with budgeting and forecasting.
JEROME MALMQUIST,
DIRECTOR OF ENERGY MANAGEMENT,
UNIVERSITY OF MINNESOTA, USA
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