Forecasting Energy Prices
With the fluctuating energy market, pension funds like the comfort and protection that comes with predictable costs. Advanced energy buying strategies and the expertise of a roster of professionals that is familiar with all aspects of the energy picture helps provide that protection.

"With deregulation of electricity and natural gas commodity markets in Canada, there is the potential for a dramatic upswing in prices. This increases the financial risk for any purchaser of the commodity. There's a highly variable price that end-users pay if they're not actively and strategically managing that price component," notes Jeremy Newhook, Director of Business Services for Energy Advantage.

"Cadillac Fairview was exposed in deregulated commodity markets and needed to enact a strategic program to help them manage the bottom line. In response to this need, we put together a proactive commodity management program for them."

Negotiating the Deals
Having an independent energy management partner at the table in commodity negotiations also works to Cadillac Fairview's benefit, says Newhook. "The major suppliers know our process. They know that we're completely objective and working only for our customer. So they also know they'll have to really sharpen their pencils and provide a good price or they are going to miss out."

And it's a great deal for suppliers. Pooling together all of Cadillac Fairview's properties across the country in one negotiation represents a huge amount of buying power, giving suppliers strong motivation to provide a preferred price. The supplier makes the deal with a national portfolio at the corporate level, rather than having to deal with individual purchasers. It's a bonus for the company too, because it allows the property managers at individual locations to manage energy consumption without worrying about the price.

Energy Advantage is completely independent, not affiliated with any supplier or commodity source. This impartial advice and customer-focused stand in negotiations means that Cadillac Fairview will always get the best price for the commodity.

"As prudent landlords, we want to make the most of our energy budget. That means astute procurement, monitoring consumption, and accurate billing," says Delorme. "Energy Advantage has shown us the opportunities in each of those areas. We were a bit surprised at how complicated the energy market could be, even just the billing, but we've made great progress in getting a comprehensive energy management program in place. It's really paying off."