Portfolio Management

ENE is a Trusted Energy Advisor that tailors energy portfolios and procurement to specific customer needs. This includes mitigating price and supplier risk in a traditional risk management sense and considers decarbonization and renewable energy goals, along with the impact of distributed energy resources. This also considers a more dynamic consumption paradigm, with influences ranging from the short and longer term effects of the COVID-19 pandemic on energy demand, to electric vehicle adoption and heating and cooling electrification driving increased and changing consumption patterns. Our bias for market-based solutions has served our customers well, avoiding the fixed costs traditionally associated with asset development and ownership. This has led to greater flexibility and reduced risk by focusing on take-and-pay contracts where the only funds owed are for what is delivered.

Hedging Plan Development, Execution & Implementation

ENE realizes each customer is different and has different goals. We work on an individual basis to identify risk tolerances and desired portfolio results to develop procurement strategies to produce those results. This is a regular, iterative process and strategies are revisited regularly to reflect evolving market conditions and changing customer risk profiles. Our strong relationships with major market players allow for greater customer supplier choice which can mitigate supply concentration risk while providing access to the lowest available market prices.

Portfolio Modeling

ENE’s focus on both the short and long term results in a comprehensive approach ranging from mitigating hourly spot market risk to purchase power agreement (PPA) terms of 25 years. This analysis is fed by short-term hourly forecasts as well as longer term, macro level consumption projections. It requires a deep understanding of the interplay between generating unit entitlements, fixed and variable supply contracts, and intermittent renewable resources.

ENE’s combines a top-down approach considering long-term voluntary or mandated decarbonization goals with the bottom up analysis required to ensure customer portfolios remain in balance in light of growing interest and commitment to renewable resources. This requires creative solutions to balance lower carbon goals with less certain generation levels, and the potential to have too much power when it is not needed or too little when it is.

Credit & Contract Management

A deep understanding of ISO NE operational and settlement rules helps ensure customers receive maximum value from their contracts. For example, a unit contract that also provides capacity can require active management of that capacity position that an asset owner may not be aware of or incented to maximize value to the customer. This all starts with negotiating favorable commercial and credit terms, and later shows itself in smart middle office execution from scheduling to verification, tie out and settlement both in the ISO markets and with counterparties.

Most contracts run their course as expected. However, when a counterparty’s creditworthiness deteriorates, solid credit provisions are paramount to a good outcome. ENE monitors counterparty creditworthiness regularly, combining quarterly credit evaluations with daily exposure monitoring and squaring those exposures with key contract limits and terms. Here again, relationships matter, providing ready access to actions to protect our customers. This can range from changing from physical to financial settlement to drawing on letters of credit to working with customers to terminate contracts and establish settlement amounts.

• Quarterly counterparty credit evaluation
• Daily credit & mark-to-market reporting
• Contract scheduling, verification, tie out and settlement