A Year In Review and What To Expect in 2006: Proactive, Comprehensive Energy Management
Dec 31, 2005
Cincinnati, OH – November 29, 2005 – For executives responsible for the bottom line, be it facilities, operations or overall finances, 2005 will certainly be a year for the record books. The main reason – energy. In fact, energy management was listed as one of the top three threats for business earlier in the year. With understanding the new Energy Bill, regulations from Sarbanes-Oxley, and the fact that energy prices have more than doubled since the same period last year – many top business executives have had their hands full dealing with the intricacies of energy management.
Two major hurricanes struck the heart of America’s oil and natural gas production areas – at one point, shutting in more than 70 percent of the entire energy production capacity. And, after years of cooler than normal summer periods, the United States experienced a prolonged period of warmer-than-normal temperatures during the summer of 2005. Add to that significant geopolitical issues in key energy producing areas, such as Russia, Central America, and the Middle East, the worldwide supply chain is certainly in a state of flux – all coupled with the demand for oil surging in developing countries such as China, putting further pressure on energy prices.
Looking Ahead To 2006 . . .
Certainly in the near-term, energy experts say they believe that this upcoming winter could be an exceptionally tough period for businesses – particularly multiple site businesses such as retailers, banks and grocers. To make matters worse, if Winter 2005/2006 is in any way colder-than-normal for a majority of the continental United States, the existing slate of high prices could rise even more dramatically upward. And, although the early weather predictions for this winter are mixed, the tight energy supply situation is well known; in fact, over 40 percent of U.S. production capacity still remains unavailable due to hurricane damage.
For most businesses, this means a renewed focus on taking measures to reduce the amount of energy being consumed, in addition to simply seeking lower prices. Proactive and comprehensive management of energy expenses is a reality and many such businesses have taken positive steps to stay ahead of the situation – enabling them to stay ahead of their competition and bring a consistent return to the bottom line. One suggestion from the experts at Cadence is that during periods of rising energy prices, customers with sites in certain deregulated utility markets, such as New York, Michigan, Illinois, and Maryland, discontinue their existing supplier contracts and return back to utility-supplied generation. Additionally, in both regulated and deregulated markets, there are excellent opportunities for customers to apply for lower distribution rates from many local utility companies – savings that always go directly to the bottom line and are without any risk.
Overall, Cadence Network executives agree that although energy and gas will likely continue its volatility and general increase in pricing, there are proactive measures businesses can and should take. The company points proudly to its clients who have saved well over $125 million in hard dollar savings from operational expenses. Through Cadence Network, now in control of over 250,000 sites in North America, businesses can directly mitigate this volatility through proactive energy management through Cadence Network business intelligence, realize hard dollar savings and labor efficiencies, and cut down on the use of energy and other operational expenses.
About Cadence:
Cadence Network, Inc. delivers comprehensive utility, telecommunications and lease facility expense management to chain stores, multiple site businesses and government. The people, services and software of Cadence Network enable business and government to gain control over electric, gas, water, waste, lease and telecommunications expenses by streamlining such services as invoice auditing and payment, rate analysis, and procurement. At work in over 200,000 locations nationwide, Cadence Network is an EnergyStar Partner of the United States Environmental Protection Agency and a proud supporter of The Arbor Day Foundation.
CONTACTS
Cadence Network Contact: Ben Dolan, Cadence Network, Inc. 866-CADENCE (866.223.3623) bdolan@cadencenetwork.com