Industrial News

Demand side management - cost cutting initiatives aimed at reducing the amount of energy consumed – is working. Now, further opportunity for cost control lies in enhancement of supply side management. Supply side management focuses on energy procurement and associated processes.

Unfortunately, many who purchased energy at market prices this past winter were shocked by a confluence of events that pushed daily energy prices to over $15.00 on the New York Mercantile Exchange. On only a few brief occasions in years 2000 and 2003 has it climbed over $9.00, and has remained under $10.00 for at least the past 10 years.

According to Andrew Coppola, President of AC Energy, LLC in Plymouth, MI: “In many companies, the existing supply management approach was designed not only under a different set of prevailing circumstances and assumptions, but in most cases with price volatility expectations based on past experience. We know that when many buyers are caught off guard, the problem exacerbates, as 2005-2006 revealed. It is imperative that organizations maintain procurement processes and associated technologies that are current and proactive.”

Following a 24 year career with three major Michigan energy companies in the deregulated natural gas and electricity markets focused on Midwest client companies, Coppola has started AC Energy, LLC to provide independent, expert energy procurement services to organizations – primarily in Michigan and the Midwest. “We become a team member and assist the client organization through a proven, disciplined process that effectively incorporates pertinent data, market information, and controls within a customized process that is actionable, modifiable, and explainable. The resulting strategic energy plan restores control and confidence to the organization,” explains Coppola.

If your business purchases energy in the competitive marketplace, now is a good time to evaluate the strengths and weaknesses of your procurement plans and process. And take note, the annual hurricane season (that produced records of 27 named storms and 15 hurricanes in 2005) is just underway.

AC Energy, LLC in Plymouth, Michigan, specializes in Supply Side Energy Management Services. During his 24 year career in the deregulated energy arena, Mr. Coppola has held senior level positions with industry leading companies. He has been responsible for purchasing up to $500 million annual energy supply and has provided energy management services to utilities, large industrials, schools, associations, residential and commercial customers. Questions related to energy management for your organization can be directed to (734) 667-4188.