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NY Real Estate Group Procures Natural Gas Via EMEX

September 23, 2014 By Linda Hardesty

The Nelson Management Group procured natural gas through EMEX’s live reverse auction and is forecasted to see a $400,000 reduction in energy costs.

In order to mitigate and manage energy commodity risk, EMEX provided a review of Nelson Management Group’s portfolios, including consumption patterns and an assessment of both commodity and ownership risk-tolerances.

Nelson Management Group, which specializes in the management of multi-family properties within the 5 boroughs of New York City, held the live wholesale reverse auction with six natural gas suppliers. By the end of the fast-paced competitive reverse auction that lasted around 10 minutes, the Group was able to take advantage of a forecasted reduction in natural gas costs worth about $400,000 in savings, according to EMEX. The savings will be realized over the 24-month term contract which encompasses two of Nelson Managements facilities in New York.

EMEX says the asset management sector carries higher financial risk-exposure for its energy contracts in part due to its continual acquisition and liquidation of assets, which leads to a greater possibility of incurring early termination fees. EMEX worked with Nelson Management to mitigate the potential for these fees through the custom terms negotiated in its natural gas contracts.

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