Case Studies

Fortune 50 Company

When the Fortune 50 Company’s real estate subsidiary was facing significant infrastructure costs for positioning its real estate holdings, STEP developed and implemented a strategic plan to intervene in a rate proceeding, thus bringing the investor owned utility to the negotiating table. As a result of this strategic positioning and leverage against the utility, a special agreement was negotiated that gave a major strategic advantage to the real estate subsidiary, thus allowing them to avoid millions of dollars in infrastructure improvements.
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Telecom and Data Center Company (Midwest)

Full Analysis

STEP Resources provides a variety of services to this data center company, including our most recent project of developing a strategic plan to identify the location of the next data center.

In addition to the development of a strategic plan for site selection, STEP was successful in negotiating a rebate of more than $300,000 per year.

Once the new facility was operating, STEP has identified how to maximize the on-site generation by more than $250,000 per year.

STEP has recently completed a procurement effort for the telecom business, which resulted in more than $3 million annually in savings.

As a result, STEP is now developing an integrated energy plan for the customer, which will identify a sustainable means to keep driving value to the customer’s bottom line, in both regulated and deregulated markets.
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A Midwestern University

Full Analysis

After learning of STEP’s success [reduction of electric spend by more than $1milion] with Miami University, the university officials contacted STEP to see if we could free them from the then deal they were engaged.

STEP provided the university education about the market and where the existing contract stood in comparison. STEP then worked with the university to negotiate with the incumbent supplier, which ultimately led to a new agreement with other suppliers. These negotiations resulted in savings in excess of $600,000 annually.

When forward market prices retreated, STEP was again requested to analyze the offer being made, and to assist in negotiating an extension to the contract, further increasing the university’s savings.
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Miami University

Full Analysis

STEP has assisted Miami University (“Miami”) over the past several years, including the development of an electric procurement strategy.

This effort has been comprised of index and fixed priced transactions that were completed as part of a hedge strategy.

Savings have been in excess of $1.5 million annually.
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Large Holding Company

Full Analysis

STEP was retained to review and execute on energy and infrastructure opportunities for this major holding company, which is now being managed by the US Bankruptcy Court.

STEP has provided the client millions in dollars of savings through electric and natural gas procurement. STEP has performed various levels of energy audits and managed more than $1 million in energy projects over the past 12 months.

We have performed the business case analysis on a build vs. buy decision, which resulted in the replacement/installation of 800 tons of chilled water capacity.

We also have handled emergency situations, including the provision of 300 ton of chilled water capacity which was located on the 26th floor. STEP performed this task at unprecedented speed, having assessed the issue, ordered and installed replacement chillers, in just over a one week period.
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Energy Intensive Technology Company

Full Analysis

STEP Resources was retained by this energy intensive technology company to lead the company’s negotiations with the local utility for energy infrastructure and transaction structure for the new facility being built.

On a tight time line, STEP not only completed the infrastructure evaluation, but was able to negotiate a transaction structure that gave the customer access to the wholesale markets, despite the utilities municipal status and not having to grant such access.

The infrastructure and transaction structure agreement was not only negotiated and completed on time, but STEP was able to demonstrate its value by negotiating price reductions of more than $1 million NPV. STEP has been retained to manage the customer’s energy portfolio of more than 15 megawatts and growing, and has executed energy strategies locking in forward rates 30% below existing rates.

We recently completed the assessment and negotiation of both line extensions and operating expenses for another facility to be built, bringing this customer’s electrical load to nearly 40 MW. The recent hedges put in place will provide millions of dollars for its share holders.
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Fortune 500 Company

Full Analysis

STEP provides a variety of services to the company and its various divisions. In one case, this national mining company recently received an offer for electric supply from a local utility subsidiary marketing company. STEP Resources was requested to review the offer and provide guidance.

STEP recommended that the company not sign with the utility subsidiary, and consider other options. STEP Resources researched the alternatives and ultimately assisted the company in signing a procurement deal that will provide more than $1 million in savings over a three year period.

STEP Resources also provided strategic advice for one of the mining company’s local operations to relocate its facilities. After assisting the implementation of the strategy, the company obtains more than $200,000 annually in savings.

STEP has moved the company to a much more sophisticated procurement approach, thus reducing energy procurement by more than 20%. Our strategies are now being shared incorporated within other divisions.
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Ohio Governmental Entity (County)

Full Analysis

The county was approached by various suppliers with lower cost procurements offers. STEP Resources was retained by the county to lead the procurement effort.

STEP completed the drafting of the Request for Proposal, solicitation of bids, and evaluation of offers from different suppliers on an accelerated basis.

This effort resulted in the county obtaining the most favorable contract that saved the county more than $2.2 million over the twenty for month contract period.
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City of Cincinnati

Full Analysis

STEP provides a variety of services to the City of Cincinnati. STEP assisted in the effort to renegotiate a major agreement with the local investor owned utility, resulting in more than $10 million in savings in the first year for the City of Cincinnati.

Since that agreement was executed, STEP has provided other procurement hedging strategies that have added an additional $1 million to the bottom line.

STEP represents the City of Cincinnati on a variety of energy related issues including rate case strategies and negotiations with the local utility, solar project evaluations, selling solar renewable credits (SRECS), and natural gas procurement. We also work with the City Manager’s office on other strategic issues such as franchise agreements.

We recently completed the natural gas RFP and procurement for the City’s loads, and were able to lock in the basis for the next five years lower than any historical basis.

“STEP Resources was instrumental in developing a strategy, negotiating and the implementation of a major power supply agreement for the City of Cincinnati that resulted in over $10M in savings”

The Then Assistant City Manager
City of Cincinnati

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