Fuel Oil & Steam Procurement

“Our longtime client is a preeminent hospital in NYC that uses over 170,000 MLBs of steam at their research facility. Our team demonstrated the favorable economics of switching the facility to electric chillers and then used the same analysis to secure a 5-year discount on steam from Con Edison, resulting in savings of over $860,000 for the client.”

- Rakesh Parasuraman, Vice President, Luthin Associates

Steam and fuel oil are important sources of energy that many businesses utilize to support ongoing operations. Like electricity and natural gas, commercial and industrial clients have options when it comes to the procurement of these commodities.

For steam, 5 assists with utility tariff rate negotiations, as well as performing economic analyses to determine if steam produced from internal processes, such as Combined Heat and Power (CHP), is more cost-effective than procurement through the utility. Fuel oil is often used as a backup source of energy for clients on interruptible natural gas contracts. For these clients, 5’s fuel oil procurement process is comparable to the process used for natural gas and electricity. 5 reviews offers from local oil companies and determines a purchasing strategy that is aligned with a client’s risk tolerance and budgets.

Utility steam tariffs can be complex and often clients do not even realize that steam rates can be negotiated. 5 serves as an advocate for customers that use steam and regularly obtains discounted rates that save thousands of dollars over default utility tariffs. In evaluating fuel oil options, 5 applies technical and fundamental analyses of the oil market together with how each specific client uses fuel oil to develop an effective procurement strategy. 5’s analysis and due diligence ensure that clients obtain the best fuel oil offers from local suppliers with a robust and reliable delivery fleet.

Contact Us to learn more about how 5 can help with your fuel oil and steam procurement needs.