Firm rides wave of energy procurement outsourcing
Staff -- Purchasing, 6/3/2004 2:00:00 AM
Purchasing energy for industrial process operations is a complex business, which is why more and more manufacturers are turning over this task to energy management firms. (See How to Improve the Energy Buy ) One of the growing number of such companies is Summit Energy Services, Inc. The Louisville, Kentucky firm says that over its 13-year history it has returned an average of $3 in energy savings for each $1 its industrial clients pay to it in fees.
Much of this benefit, says Summit, comes from avoiding the hassle and expense of dealing directly with energy suppliers. 'Our services include the expertise necessary to develop and implement energy strategies that bring hard dollar savings to our clients,' while freeing them to focus on their core competencies, says Summit president Steve Wilhite. Among these services is negotiation with more than 160 providers of natural gas and power in North America who meet Summit's standards for financial stability and reliability. Summit also provides its clients, which now number about 85, with the tools to monitor, benchmark and control their own energy expenses.
Included in Summit's package of services is market and regulatory intelligence that keeps its clients abreast of energy issues at the city, state and national level. The company uses this information, says Wilhite, to develop client-specific energy strategies that 'avoid the pitfalls and budget issues associated with the volatility in the energy marketplace.'
Now Playing: 