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Path to Recovery for an Upstate NY Cogenerator

Selkirk Cogenerating Plant

Introduction

PurEnergy’s expertise in revitalizing struggling energy assets was put to the test with a cogeneration plant in Upstate New York. The plant faced numerous operational and financial challenges, and our team was brought in to reverse its fortunes. Through strategic initiatives and cost-effective solutions, we successfully guided the plant on its path to recovery.

Key Actions and Outcomes

1. Lowering Operating Fees

  • Challenge: The client’s operating budget was strained by high fees charged by their previous management company.
  • Solution: We eased the client’s operating budget by charging a much lower fee than our predecessor.
  • Outcome: The reduced management fee provided immediate financial relief and increased available resources for other critical areas.

2. Finding a Strategic Energy Marketer

  • Challenge: The client needed a more strategic approach to energy marketing to maximize revenue.
  • Solution: We found a new energy marketer for the client that took a more strategic and innovative approach.
  • Outcome: The new marketer’s strategy improved the plant’s market positioning and revenue potential.

3. Selling Power into New England ISO

  • Challenge: The plant’s revenue was limited by the pricing structure of the New York ISO.
  • Solution: We began selling power into the New England ISO, which offered a better capacity pricing structure.
  • Outcome: This shift in market focus resulted in higher capacity payments and improved revenue.

4. Marketing Excess Gas Pipeline Capacity

  • Challenge: The plant was not fully utilizing its gas pipeline spur capacity.
  • Solution: We extracted maximum value from Selkirk’s gas pipeline spur by marketing the excess capacity.
  • Outcome: Marketing the excess capacity generated additional revenue and improved overall asset utilization.

5. Reducing Staff Headcount

  • Challenge: The plant had redundant positions that were increasing operational costs.
  • Solution: We reduced staff headcount by eliminating these redundant positions.
  • Outcome: The streamlined workforce led to significant cost savings without compromising operational efficiency.

6. Scrubbing the Budget and Optimizing O&M

  • Challenge: The plant’s budget and operations and maintenance (O&M) processes were not optimized.
  • Solution: We thoroughly reviewed and optimized the plant’s budget and O&M processes.
  • Outcome: This comprehensive optimization reduced unnecessary expenditures and improved operational efficiency.

Conclusion

By implementing a series of strategic and cost-effective measures, PurEnergy successfully guided the Upstate New York cogeneration plant on its path to recovery. Our actions resulted in immediate financial relief, increased revenue, and optimized operations. This case study demonstrates PurEnergy’s commitment to providing innovative solutions and delivering exceptional value to our clients in the energy sector.