The energy market has undergone substantial transformations over the past 25 years. From advancements in technology to changes in regulations, the landscape has shifted dramatically. As we celebrate the 25th anniversary of Usource, we have seen our client needs change, and how we’ve innovated and expanded to remain a trusted source for energy expertise.
Usource began as a traditional electricity and natural gas supply broker, securing the best possible energy supply contracts for our clients. But as the dynamics of the energy markets evolved, so did we. Our services expanded, our knowledge deepened, and our role transitioned. We moved from solely focusing on negotiating energy supply deals to providing a comprehensive range of services and advice to diverse businesses, earning a reputation as a leading energy advisor.
Starting from electric and natural gas procurement to helping our clients plan and execute their decarbonization strategy, our experiences have shaped our identity and transformation over the last 25 years.
Early Years: The Foundation of Energy Procurement
In its early years, Usource focused on electric and natural gas procurement, using insights and market knowledge to develop robust strategies that balanced opportunities and risks for businesses investing in energy. Lindt Chocolate, a long-standing client and leading global chocolate manufacturer, took advantage of this expertise for many years. Driven by its strategic sourcing principles, Lindt worked with Usource for its electricity procurement, adhering to a plan with fixed electricity prices for budget stability. However, with escalating market volatility and a potential 40% rise in energy costs, Usource advised Lindt on the increasing dependence on natural gas and the opportunities that a milder winter might present to reduce costs.
Balancing Lindt's need for budget certainty and flexibility, Usource implemented a three-year energy buying strategy, which allowed for cost management and purchasing opportunities. With constant monitoring, daily reports and monthly update meetings, Usource ensures the success and necessary strategic adjustments of the plan. This customized strategy has continued to deliver on the objectives Lindt strives for as it prudently expands operations in the next decade.
Shifting Towards Energy Efficiency and Demand Response
Improving energy efficiency has been a cornerstone of US energy policy in the last decade. Advances in industrial processes, enhanced building codes and standards, and the adoption of energy management systems have reduced energy consumption in manufacturing and other sectors. With these advancements, Usource began helping clients understand when their facilities used the most energy, and how to make strategic adjustments to yield significant financial benefits. One key area where Usource has made a substantial difference is load management, which allows businesses to optimize their energy usage to avoid excessive costs during peak times.
A prime example of Usource's impact can be seen with Heartland Fabrication, a steel manufacturing company, which faced a 50% increase in capacity tag costs. Usource helped Heartland develop an energy strategy that utilized peak notifications to reduce energy consumption and costs. As a result, Heartland took advantage of 5 PJM peak days over the year, reducing energy consumption by 427 KW and saving over $11,000, nearly a penny per kWh. By leveraging Usource’s expertise, Heartland reduced their operating costs without making large-scale changes or altering their existing equipment.
Brightening the Path Towards Renewable Energy
In 2015, New York first launched community solar as part of the Shared Renewables Program. To help its New York clients navigate this new program, Usource introduced community solar consulting services that same year.
During this time, one of Usource’s clients, a New York State housing authority, approached Usource after being overwhelmed by offers from various companies for onsite solar installation. They needed guidance on financing, solar solutions, risk assessment and procurement. After reviewing their desired outcomes and current proposal for onsite installation, Usource recommended community solar based on the housing authority's financial goals and timeline.
Through Usource’s consultation and multiple community solar bids, the housing authority secured a comprehensive contract that mitigated future risks. They achieved 12% savings on their utility bills, exceeding the standard 10% bill credit, and have the potential to save up to $189,000 over the course of the contract.
Offsite Renewables Consulting
By 2020, renewable sources like wind, solar and hydroelectric power contributed nearly 20% of the country’s electricity generation.* The physical and virtual power purchase agreement (PPA) renewables markets have grown significantly, driven by increased corporate sustainability commitments and supportive government policies. Technological advancements and declining costs of renewable technologies have made PPAs and VPPAs more attractive. However, market volatility, regulatory challenges, contract complexities and regional resource availability have left many companies struggling to navigate this market with success.
When Usource became part of the NextEra Energy family of companies, the largest renewable energy company in the world, it strengthened its expertise to assist commercial businesses in navigating offsite renewables through strategic planning, financial modeling, risk management, contract negotiation, technical and regulatory support, market insights, and sustainability reporting. Our expertise helps businesses align renewable energy projects with broader objectives, manage risks and ensure regulatory compliance, ultimately optimizing the benefits of offsite renewable energy procurement.
Integrated Energy Optimization Approach
Leveraging its expertise, Usource expanded its portfolio in 2022 to include engineering services such as energy efficiency initiatives, building management systems, energy analytics, and mobility fleet electrification services. By continually advancing its integrated energy optimization approach, these technologies reveal cost-effective energy opportunities across all departments and functional areas for businesses.
Building on these advancements, NextEra 360™ enhances analytical capabilities by providing a comprehensive energy optimization platform. It processes approximately 23 billion data points daily, overseeing around 30 GW of renewables in operation and $160 billion in total assets. This vast analytical power delivers highly customized and actionable insights, enabling businesses to make informed decisions and optimize their energy strategies.
Artemis, developed in 2023 by Usource in collaboration with NextEra Analytics, further amplifies these analytical capabilities. This proprietary renewable marketplace automates the data-driven evaluation of offsite renewable projects. Artemis streamlines the bidding process, offers detailed market comparisons, and reports on portfolio performance, helping organizations identify the best renewable energy options efficiently and cost-effectively.
Furthermore, fleet electrification represents an environmentally friendly, economical, and reliable choice for organizational fleets. Usource provides strategic planning that identifies suitable assets and collaborates closely with clients to design, construct, and maintain the necessary EV infrastructure that fits with their holistic energy efforts. This ensures a seamless transition to electric vehicles.
Combining these advanced tools with our comprehensive service offerings, Usource helps commercial businesses seamlessly integrate various energy technologies to find economical solutions that fit within and strengthen their energy mix. Our expertise uncovers hidden opportunities for efficiency and carbon cautiousness, driving success in the energy optimization landscape.
Celebrating 25 Years
The energy market has seen profound changes over the last 25 years, driven by technological innovation, policy shifts and evolving market dynamics. The rise of renewable energy, advancements in energy storage, and a focus on the energy transition have collectively reshaped the energy landscape. As we celebrate our 25th anniversary, we reflect on the incredible journey we've undertaken alongside our clients and look forward to a successful future.
We’ve grown into a leading energy advisory firm, evolving to meet the ever-changing needs of those we serve, but our mission remains the same; to help businesses achieve their energy objectives in a cost effective, energy efficient and carbon-conscious way.
We are grateful for the relationships we've built, the clients we’ve helped and the progress we've made together. Thank you to all our clients for allowing us to walk alongside you in your energy journey.
*Center for Climate and Energy Solutions
