Three Rivers Energy
Three Rivers Energy has structured and managed over $2 billion of energy transactions including electricity and natural gas contracts, tolling agreements, power purchase agreements, voluntary and compliance REC transactions, and fuel oil hedges for our retail, industrial and institutional customers.
Procuring Energy in a Restructured Marketplace
When the option exists for a business to purchase electricity outside of the regulated utility, many companies have taken advantage of the first opportunity to improve their supply – utilizing a bidding process with multiple full service suppliers to achieve a more competitive cost. Often, these businesses have also achieved a second advantage by gaining pricing certainty by entering into fixed-priced contracts over a multiple year time frame.
This is just the tip of the iceberg. A variety of additional opportunities exist that are available to the savvy business by exploiting some or all of the nodes of the electricity supply chain, rather than viewing electricity as simply a commodity provided by a full service supplier. Real time or day ahead market, capacity costs and node to zone to hub prices are just a few decisions that are often overlooked or never identified as part of an energy purchasing strategy.
The Electricity Supply Chain
The supply chain for electricity includes the generation itself including the commodity used to fuel the generation, as well as a variety of ancillary services required to maintain reliability, and retail operations necessary to meet a customer’s specific energy demand. Additionally there is the transmission and distribution of energy that continues to be provided by the regulated utility.
The complexity of the electricity market differs from all other commodity markets in that electricity cannot be stored and therefore requires coordinated processes to manage the balancing of supply and demand. This contributes to dramatic pricing volatility and seasonality.
Disaggregating the supply chain for electricity and examining the cost drivers and inefficiencies of each node provides further visibility into the potential opportunities. The objective is to maximize efficiency, minimize or eliminate mark-ups, and provide transparency in the transactions, without incurring unacceptable volatility in the commodity markets.
Three Rivers Energy, Inc. specializes in creating and managing these types of opportunities for our business customers. Inside the “black box” of the electricity supply chain is a series of processes and transactions, often provided by a variety of entities. Pricing provided by a full-service supplier consists of an aggregation of their costs and a variety of mark-ups and risk premiums. Three Rivers Energy is able to disaggregate this supply chain, utilize the wholesale energy markets and provide our clients with a custom solution with optimized counterparties that results in transparent pricing and reduced costs.
Three Rivers Energy develops customer focused products.
We believe the best approach to an energy risk management strategy is to develop a delivered product from the bottom up starting with the customer’s specific energy needs and risk profile. Once this is understood, we develop products that are liquid and are actively traded. This assures price discovery and costs tied to the true cost of energy. We then determine the best way to source all other components necessary for a complete full requirements product. Our goal is to eliminate unnecessary premiums and obtain pass-through costs on all ancillary products.
Three Rivers Energy creates synergistic partnerships between counterparties:
• matching energy users and energy providers with available and appropriate capacity
• creating financial relationships in which strong credit is rewarded with favorable terms
• mitigating volatility by hedging market risk with knowledgeable market players.
… making these arrangements sustainable throughout the term of the agreements.
We know that the energy market is a volatile place that requires constant vigilance to take advantage of ever-arising opportunities and avoid potential pitfalls. We constantly monitor all aspects of the market including commodity prices and fundamentals, supplier activities, the regulatory environment, and trading activity and trends so that our customers can keep their attention on their core business, not their energy costs. Three Rivers Energy recognizes that the inner workings of the “black box” of the electricity supply chain are complex, consist of multiple intertwined participants, and opportunities for errors and overcharging are high. We don’t walk away when the “deal is done”. We manage and oversee the details of these transactions for our customers on an ongoing basis to ensure that the value of the deal continues to accrue to our customers.
Doug Condon, Managing Director
Nina Richardson, Managing Director
Doug Condon has over thirty years of experience in the energy industry in engineering, business development and deal creation. Doug has structured and managed over $2 billion of energy transactions including tolling arrangements, electricity and natural gas derivative transactions, solar energy power purchase agreements, and wind energy transactions.
Prior to founding Three Rivers Energy, Doug was President of EF Consulting, LLC where he provided strategic analysis of energy purchasing strategies, cogeneration development, critical power marketing strategies, and negotiation support for companies involved in California’s energy crisis. Prior to EF Consulting, Doug was Vice President of Sales for Capstone Microturbine Corporation and held management and marketing positions at Southern Energy (now Mirant) and Enron. Doug began his career with Westinghouse Electric Corporation and ABB Power T&D Company.
Doug has a BS degree in Mechanical Engineering from the University of Pittsburgh where he was an All Big East conference swimmer. He also holds an Executive MBA from Pepperdine.
Nina Richardson has thirty years of experience ranging from small start-up environments to multi-billion dollar corporations in a variety of disciplines including manufacturing, design engineering management, operations, supply chain and account management. She has had full operating responsibility for international operations with annual sales in excess of $1B and has managed complex global accounts with staff and customers in a dozen countries. Nina has successfully negotiated numerous complex manufacturing and supply contracts and billion dollar pricing agreements.
Nina served as the Chief Operating Officer of GoPro, taking the company through rapid growth, an initial public offering and delivered exceptional operating results. She serves as an independent director at public companies, Silicon Labs, Resideo and Cohu; private companies Willow, Mythic and Exploramed V; and is an advisor to private companies, Zoox and Eargo.
She holds a BS in Industrial Engineering from Purdue University and an Executive MBA from Pepperdine.