EMEX provided a transparent, easy to understand platform that allowed us to procure energy at a below market price
Houston, Texas (PRWEB) September 19, 2014
EMEX, LLC, a leading technology firm that is revolutionizing how energy is being bought and sold through its live Exchange, partners with the Nelson Management Group, Ltd for the Group’s Natural Gas procurement and is forecasted to see a $400,000 reduction in energy costs through EMEX’s live Reverse Auction. In order to mitigate and manage energy commodity risk, EMEX provided a thorough review of Nelson Management Group’s portfolios. Evaluation of consumption patterns and an assessment of both commodity and ownership risk-tolerances leads EMEX to advise Nelson Management Group to hold a Reverse Auction for Natural Gas supply.
“Most established Asset Management Firms are in a constant state of transition due to the continual acquisition and liquidation of commercial assets, so this business sector requires tightly managed procurement strategies to facilitate efficient purchases of retail energy commodities.” commented Todd Bennett Director, National Energy Portfolio for EMEX. “Central to EMEX’s individualized client procurement strategies is evaluating commodity risk and negotiating supplier contract parameters, two of the most important variables in any major commercial transaction.”
Robert Nelson, President of Nelson Management Group, discussed his energy strategy, “One of our primary management and ownership goals is to vigorously pursue energy efficiency at our buildings, and we’ve always had great success in that arena with reductions of up to 25%. The final step is to make sure we can lock in a supply price that limits future volatility and projects to improve cash flow at the same time. EMEX provided a transparent, easy to understand platform that allowed us to procure energy at a below market price.”
Nelson Management Group, Ltd., which is a full-service Real Estate Management firm specializing in the management of multi-family properties within the 5 boroughs of New York City, held a live wholesale Natural Gas Reverse Auction through EMEX with 6 of the Country’s top Natural Gas suppliers. By the end of the fast-paced and highly competitive reverse auction that lasted around 10 minutes, the Group was able to take advantage of a forecasted reduction in natural gas costs worth approximately $400,000 in savings. The savings will be realized over the term of the 24 month term contract which encompasses two of Nelson Managements facilities in NY.
Bennett added, “Our opportunity to have a hands-on partnership with the Nelson Management Team allowed us to uncover hidden risk by evaluating the forecasted longevity of ownership at each facility. In doing so, we were able to recommend commodity terms that best complimented the management team’s outlook for each site. The Asset Management sector carries higher financial risk-exposure for their energy contracts than your typical industrial or commercial client. This in part is due to their continual acquisition and liquidation of assets, which leads to a greater possibility of incurring Early Termination Fees (ETFs) when assets still under contract for energy are sold off. EMEX and Nelson Management Team worked together to mitigate the potential for ETFs through the custom terms negotiated in their natural gas contracts.”
EMEX has observed an increasing trend in Asset Management Firms seeking outside consultancy from Energy Management Firms to identify the best value propositions in the market for retail natural gas and electricity contracts, and then leveraging their smart energy purchases as a value-add when marketing a given property.
EMEX’s Flagship platform, The EMEX® Reverse Auction - recognized for its Innovation and Excellence in Electricity Procurement - is now available for Natural Gas Procurement throughout the Northeast and Midwest. Through this platform, EMEX already helps procure billions of kilowatt-hours of electricity for its customers throughout the deregulated states, reducing energy expenses by over one hundred million dollars annually.
About EMEX, LLC
EMEX, LLC is a leading technology firm that is revolutionizing how energy is bought and sold through its live Reverse Auction Exchange. The Exchange creates a real-time trading environment that compels sellers to compete, resulting in prices dropping precipitously for businesses procuring energy. EMEX continues to develop new platforms that specialize in Exchanges for all industry types in order to provide a real-time buying and selling environment for all commodities, products, and services. For more information, please visit: http://www.EnergyMarketExchange.com
About Nelson Management Group, Ltd
Nelson Management Group, Ltd is one of the premier owner/operators of workforce, middle class, affordable and luxury housing in New York City. The principals of Nelson Management Group, Ltd have owned and/or managed over 7,500 units of multifamily housing in New York City over the previous 28 years. Through its affiliate, Global One Investments, LLC, the principals have purchased real estate assets with a market value of over $325 million since 1996. For more information, please visit: