Strategic Hedging Advice

“The demands of a fast-growing school district are very real. We will add new elementary schools and a new high school in the coming years, and we need to be prepared from an infrastructure perspective to handle that growth responsibly and cost-effectively. 5 is helping us do just that.”

- Oscar Perez, CFO, Fort Bend ISD

There is a wide array of product options available to clients in deregulated energy markets and while fixed-price products have traditionally been the most popular option, there are also times when clients should consider a more customized approach. Many of these procurement options are considered “managed products” including load-following blocks, fixed quantity block and index products, fixed heat rates, and layered purchases over time to strategically limit portions of the client’s price exposure. Successful execution of a managed product depends on the quality of the hedging advice a client receives.

The analysts at 5 use the company’s internal market intelligence tool, Level5, along with a clear understanding of the client’s operations, goals, and constraints to create a customized hedging strategy. 5 recruits and retains the industry’s smartest (and most helpful) analysts to work alongside clients with managed products, ensuring successful execution throughout the contract term. Furthermore, 5 regularly meets with these clients to provide continued product education, evaluate open market positions considering both market and regulatory conditions, and update energy budgets and financial forecasts when necessary. Energy advising on this level is a game-changer and the analysts at 5 are providing industry-leading advice to clients.

Contact Us to learn more about how 5 can help with your strategic hedging needs.