CRMBC Energy Program: Natural Gas Update
OVERVIEW
More than 600 restaurants including McDonald's, Burger King, Taco Bell, IHOP, Sizzler, KFC, Panera Bread and many others as well as several country club operations have signed up to buy energy through the CRMBC Energy Program.
NATURAL GAS
In late 2009 and early 2010, the charter group of about 250 facilities began purchasing natural gas from the winning bidders - Constellation NewEnergy in PG&E territory and Sierra Southwest in southern California.
The Energy Program is continuously enrolling new restaurants for natural gas. Then, several times per year, we solicit bids from suppliers for the new members and for renewing contracts.
There are about 350 facilities awaiting the next natural gas offer that is being conducted in July. If you have already signed-up but not yet switched to a new supplier, you will receive a packet by email with your new contract offer next week.
For the past two months, the Energy Program deferred the next round of natural gas contracts. During that time, natural gas prices were volatile; and, the utilities were making irregular rebates to customers for overcharges in 2009. The rebates were made in the form of reduced natural gas prices, so we delayed switching members away from the utilities until the 'rebates' were complete.
NATURAL GAS CONTRACTS & FIXED PRICE OFFER
The price of natural gas is very competitive currently. Aviva Energy expects that energy prices may continue downward for a few more weeks until a consensus emerges on the direction of the economy, inflation and industrial energy demand. However, it is our recommendation that you consider locking-in a fixed price for several reasons: a) to avoid potential price spikes during hurricane season; b) to take advantage of low prices; and, c) to achieve budget certainty.
The Energy Advisory Committee of CRMBC has authorized Aviva Energy to seek fixed price offers from several natural gas suppliers. Because of the large number of new and charter members, and in order to provide you as much time as possible to respond to the offers, the procedure will include a floating price 12-month contract plus an optional "fixed price trigger authorization." The trigger authorization will allow you to instruct your supplier to switch your account from an index (floating) price to a locked-in price if the market moves to the pre-authorized price during a specified period of time.
Details on locking-in prices will be discussed at the Webinar on July 8 beginning at 9 a.m. Please see below for more information.
DIRECT ACCESS ELECTRICITY
A separate Newsletter discusses the status of Direct Access. In general, about 50,000 applications were submitted to the utilities in April. Less than 8% were accepted. The cap limit was reached within a few seconds of the opening at 9 am.
The next round of DA Transfer Notices are due on Friday July 16. There are significant differences between the terms and processes of the first round and the year two service that begins in January, 2011. We will discuss DA electricity and natural gas in the Webinar on July 8. Please refer to the DA Newsletter or call Aviva Energy for more information.
JULY 8th ONLINE WEBINAR
In order to keep you fully informed about the Energy Program as well as the energy markets and your opportunities, Aviva Energy hosts online Webinars. The next Webinar is Thursday July 8 at 9 a.m. Pacific Time.
The session includes a twenty minute presentation followed by plenty of time for questions and answers. You will receive an invitation by email in the next few days. Please RSVP to assure that you have a place at the Webinar on July 8. Attendance is limited to 100 per session to assure you have time to ask questions and discuss issues. Additional Webinar sessions will be scheduled should there be demand.
Copies of the presentation as well as a summary of the Q&A will be provided to all participants and interested parties. We look forward to meeting with each of you online on July 8.
INVITATION TO JOIN THE ENERGY PROGRAM
The Energy Program leverages the size of our group to achieve better energy terms. We handle all contract details and negotiations, but you make your own decisions about accepting a supply offer. You are under no obligation to accept any offer - the decision is yours alone. You incur no costs until you sign a new supply contract
You are not required to be an insurance client of CRMBC to join the Energy Program. Sign-up is easy, there are no long-term obligations, all terms are simple and fully disclosed. CRMBC and Aviva Energy are proud of the growth of the Energy Program and equally proud of the benefits and savings that members are achieving.
If you are interested in becoming a part of the Energy Program for natural gas or power, please provide a copy of a recent utility bill for each location by fax to (888) 646-3355 or scan and email to Aviva Energy at the email address below. Please include both sides of all pages of the utility bills along with a cover sheet with your contact name, phone and email. If you have already provided this information to Aviva Energy, you do not need to resubmit.
The Energy Program thanks you for joining this cooperative effort to reduce energy costs. We have experienced a few growing pains in making the switch to the new suppliers, but are pleased with the contract terms and negotiated index margins. Further, we have fought the utilities over Direct Access rules to your advantage.
Please contact Aviva Energy if you have any issues such as missing locations, billing questions, etc. Aviva Energy is your first point of contact and will quickly resolve your questions. See the full contact information below.
QUESTIONS? CONTACT INFORMATION
Please contact either the Committee or the Energy Consultants at any time.
CRMBC Energy Committee
Dennis Graspointner - McDonald's owner/operator - dennis@mcdgmi.com
Mike Whitehurst - Burger King owner/operator - mwhite4@aol.com
Mark Green - Strings Italian Grill owner/operator - strings1@sbcglobal.net
