Roy Morrison & Associates, LLC is a leader in developing long term financial hedge contracts between renewable power developers and energy users. We believe financial hedges present a crucial path for both stable energy prices and renewable resource development.
- As oil and other fossil fuel energy prices have soared, sustainable energy sources like wind and hydro are now competitive with fossil fuel energy.
- Wind, hydro and solar have zero fuel costs. But high capital costs. For wind and hydro today the problem is the difficulty to negotiate fair long term contracts with existing utilities.
- Hedge contracts can break the renewable development log jam and let users take advantage of the long term cost advantages of the zero fuel cost of renewables.
- Hedge contracts between energy developers and energy users assure long term price stability to users and the necessary long term income stream for developers to finance and build sustainable energy.
The following presents the basics of how energy developers and energy users can craft mutually beneficial long-term financial contracts. These agreements are designed to be win-win arrangements. They will allow users to control and budget for energy costs, provide a long-term income stream for the developer’s projects, and therefore support accelerated renewable power development.
Energy Buyer's Agent
As energy buyer's agents we offer our clients a variety of standard and innovative purchase options for electricity and natural gas including:
- Solicit and Negotiate Short and Long term contracts from competitive Wholesale and Retail Suppliers;
- Establish your Direct Membership in ISO-New England Wholesale Electricity Market. we manage your participation in both wholesale spot and bilateral contract markets
- Negotiate Long Term Financial hedge contracts for electricity with renewable power Developers
As a buyer's agent, we act at all times in the interest of the buyer. Under the buyer's agent model, the seller of energy pays all fees.
Roy Morrison and Associates, LLC is Registered as electricity and natural gas buyer's agents with the New Hampshire Public Utilities Commission.
20 Year Hedges Between Energy Users and Renewable Power Developers
We specialize in negotiating long term financial hedge agreements between energy users and developers. These are win-win financial hedge agreements between users and renewable developers.
- Renewable developers get an assured stream of income at a fair price that supports low-cost, long-term financing.
- Energy users get long-term price stability at a fair price that avoids the risk and escalating costs of fossil fuel based energy.
- The Contract for Differences (CFD) is a financial contract that is not subject to utility regulation. Users can choose to remain as default or standard offer customers with their local utility. The hedge acts to control long-term costs.
Under a CFD, developers and users agree on a strike price and how that may change over time. If the market price for the power generated by the renewable facility exceeds the strike price, the generator pays the user. If the market price received by the generator is below the strike price, the user pays the generator.
Since it is a financial contract, the renewable generation facility and the user do not have to be in the same geographical region. We carefully analyze the different markets to avoid basis risk. As long as the markets move in the same manner, for example, in response to changes in the price of natural gas, both the generator and the user are protected by the hedge.
The CFD allows energy users and renewable energy developers to avoid risk, control costs, and build a renewable resource energy future.
Energy Efficiency and Energy Production Analysis
We have extensive experience in plant and facility an energy studies and
analysis. We work with you not only on developing cost effective energy
solutions but also in the application for measure grant funding available
from utilities and states.
Our studies can be linked to your sustainability planning and help
establish the basis for long term success. For example, we can review plant
operations and in addition to improving efficiency we can recommend cost
effective renewable energy options as part of our analysis.
Sustainability Planning and Analysis
RMA can work with you to develop a comprehensive and cost effective sustainability strategy for your business or institution.
We bring to sustainability planning a focus on your ability to operate highly efficiently and profitably in accord with the triple bottom line of the economic, the ecological, and the social.
Sustainability planning can include;
- Engineering analysis of your operations to improve efficiency and to determine cost effective opportunities to use renewable resources.
- Cost containment and renewable resource energy purchase strategies including the use of innovative renewable resource hedge and purchase plans.
- Purchasing, resource use, and recycling opportunities that contribute to the triple bottom line.
- Educational and organizational plans to involve staff and users in the sustainability effort.
- We offer innovative engineering solutions to sustainability challenges.
Sale of Renewable Resource Energy Attributes
Working with the Sustainable Energy Cooperative, Inc., RMA offers to end users affordable Prairie Wind renewable resource attribute certificates.
Our Prairie Wind renewable resource e certificates come from the Basin Electric Power Cooperative in North Dakota, probably the nation's leading wind resource region.
Our Prairie wind certificates differ from other renewable resource certificate offerings:
- We show you the wind farms where the certificates you are buying come from.
- The price for the wholesale cost of the certificates and the coop retail market charges are clearly spelled out.
- We show you what competitors are charging.
- Anyone can buy our Prairie Wind certificates. You don't have to join the Sustainable Energy Coop.
- If you do join the coop you will get money back as a patronage refund at the end of the year.
