Customized Supply Chain Creation and Sourcing

Three Rivers Energy develops energy products that are built from the bottom up starting with the customer’s specific energy needs, environmental/societal policies and risk profile. A customized energy supply chain can include:

Other energy needs can be enhanced using strategies such as:

Once we have established the best product, we will determine the best manner to source it and who can best provide the services that are needed. In some cases, this may be a formal RFP. In other cases, it may be more of a negotiated transaction where we work with a few qualified vendors. Three Rivers Energy has developed relationships with major investment banks, energy producers, generators, and marketers. We have confidence that we can properly source any product and receive optimal pricing.

Contract Review and Negotiation

We believe standardization of contracts is an important step to successful risk management. Most retail providers’ contracts are one sided and heavily weighted towards their needs. This pushes much of the risk on to the buyer. Three Rivers Energy believes that the best method of contracting is through counterparty agreements. These are truly bilateral contracts that provide equal sharing of risk between buyer and seller. We prefer to work with industry accepted agreements such as the EEI Master Purchase and Sale Agreement for electricity and the NAESB agreement for natural gas. We use these templates as the basis for standardizing terms and conditions for all our customers’ energy counterparty agreements. In order to capitalize on favorable market conditions, we work with our customers and qualified vendors to establish the necessary agreements that will enable our customers to act quickly to capture a market drop.

Ongoing Opportunity Monitoring

Three Rivers Energy accesses continual real-time market information from several sources. These include services such as Bloomberg™, Platt’s™, and Marketview™. Additionally we receive daily market updates from several large financial and banking market participants. Because we are in the market on a daily basis, we are able to obtain data on technical trends, fundamentals, and speculative long and short trading positions. We use this information to develop forward pricing curves specific to our customers energy needs. This information allows us to modify the energy strategy and prepare to take advantage of favorable market conditions. We also use this information to provide specific reports for our customers on issues that are relevant to their energy situation

Supply Chain Management

The final step is the day to day management of the energy supply. This includes making sure the energy supply is being properly delivered and accounted for. It also includes tracking forward market and regulatory activities and adjusting the supply agreements in order to meet or exceed budget targets and maintain risk parameters. One of the key metrics is the proper settlement of energy transactions. Three Rivers Energy prides itself on its ability to manage complex energy transactions and verify all cost components in the energy supply chain. Our goal is to structure energy transactions in which every price component can be verified. This creates a transparent cost structure and the ability to identify, audit, and confirm all costs either through third party data sources or the contractual obligations of the supplier. In several current transactions that we manage, we drill down to the ISO/RTO component costs to confirm that they are passed through at cost, thereby eliminating mark-ups and verifying proper data reporting. In additional to all settlement data, a monthly report is provided that tracks actual energy costs vs. budgeted cost, forecasts for the remainder of the year, market and regulatory events, and any other specific items that could affect the energy plan.