Case Study · Energy Procurement / Healthcare
Prospect Resources Beat the Fixed-Price Alternative by 11.42% and Turned Weeks of Reporting Into an Instant One
Client
Prospect Resources
Industry
Energy Procurement / Healthcare Facilities
Focus
Layered Hedging · Savings Analysis · Budget Modeling
Cost Advantage vs Fixed Price
11.42%
Held across all twelve months of 2024, on 2.32 million kWh of electricity at a single healthcare facility.
Electricity Saved, 2024
$12,961
$100,528 actual against a $113,489 fixed-price equivalent, measured rather than estimated.
Reporting Cycle
Instant
Savings analysis that took weeks to assemble by hand now generates on demand, whenever a client or a board asks.
The Opportunity

Eighteen years of judgment, waiting on data that arrived too slowly to use

Prospect Resources has run energy procurement for healthcare facilities for eighteen years. The leadership team was not trying to fix a broken operation. They were trying to sharpen a working one, and they were specific about where: faster access to performance reporting, a systematic benchmark against the fixed-price contracts their clients could otherwise have signed, and clearer visibility into hedged and unhedged exposure across the consumption calendar.

The strategy was already good. What was missing was the ability to prove it quickly. A savings analysis took weeks to assemble, which meant it could confirm a decision after the fact but could not inform the next one.

Reporting arrived weeks late

A performance report took a multi-week cycle to build. By the time it existed, the decisions it should have informed had already been made.

The value was hard to show

Beating a fixed-price contract is only persuasive if you can put a number on it. Without a systematic benchmark, the advantage was real but difficult to demonstrate to a client.

Hedge exposure was not visible

Layered hedging works by holding several contract terms at once. Without a clear view of hedged against unhedged volume across the calendar, timing the next layer was harder than it needed to be.

CFOs wanted a whole budget

A finance team planning a year needs hedged cost, unhedged exposure, utility charges, non-energy charges, taxes and a variance buffer in one place, not five.

The Solution

A data layer that turns the hedging strategy into a report anyone can read

The hedging strategy is Prospect Resources’ own, built over eighteen years. What was added is the infrastructure underneath it: every hedge position, actual cost and market comparison captured as structured data, then surfaced automatically as a savings analysis and a forward budget. The work that used to take weeks of assembly now takes a request.

Layered hedging

Multiple contract terms executed at different points in the market, so no single pricing environment sets the whole year. Applied across electricity and natural gas alike.

Savings analysis reports

Actual performance benchmarked automatically against the fixed-price equivalent, month by month, so the value of the strategy is a figure rather than an argument.

Forward budget modeling

A projected annual budget per facility, split into hedged cost, unhedged cost, utility and non-energy charges, taxes and an allowed variance, ready for board review.

Electricity, 2024

Twelve months, twelve wins against the fixed-price alternative

Across January to December 2024 at a single healthcare facility, the hedged position cost less than the fixed-price equivalent in every single month. Not on average across the year, and not in the months that happened to suit it. Every month, including the winter peaks where exposure is highest and a bad hedge would show.

Actual cost against the fixed-price equivalent, month by month
Relative monthly cost. Solid red is what was actually paid, outlined grey is what a fixed-price contract would have cost.
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Actual cost
$100,528
$0.0433 per kWh
Fixed-price equivalent
$113,489
$0.0489 per kWh
Saved
$12,961
11.42% on 2.32M kWh
Forward Budget Visibility

A CFO can plan the year without asking anyone to build a spreadsheet

The same data that produces the savings analysis produces a projected annual budget for each facility, split into every component a finance team needs. For 2026, one facility’s electricity budget comes to $373,400 across a projected 2,499,534 kWh, with 40% of that volume already hedged.

That headline figure is worth reading carefully, because the components below it total $355,620. The difference is the 5% allowed variance buffer sitting on top, which is how the budget stays a planning number rather than an optimistic one.

Projected 2026 electricity budget, one healthcare facility
$355,620 in components, plus a 5% variance buffer, for a total of $373,400.
Hedged cost

$46,203 · 13% · $0.0459 per kWh
Unhedged cost

$98,234 · 28% · $0.0658 per kWh
Utility charges

$126,087 · 35%
Non-energy charges

$68,059 · 19%
Taxes

$17,037 · 5% effective rate
Hedged cost $0.0459 per kWh
Unhedged cost $0.0658 per kWh
All-in cost, including delivery and taxes $0.1423 per kWh
Volume already hedged 40%
Allowed variance 5% buffer

“We have done as best we could for 18 years. We are ready to move to another level with our data management and the information we are able to get from our data.”

Prospect Resources · Project initiation
Natural Gas

The same approach on gas, with a wider margin

Layered hedging covers natural gas alongside electricity, benchmarked the same way against the fixed-price alternative across winter heating load and the quieter shoulder months. On gas the gap is proportionally larger than on electricity: $4,965 actually paid in 2024 against a $7,847 fixed-price equivalent, which is a 36.7% advantage.

$4,965
Actual gas cost, 2024
Against a $7,847 fixed-price equivalent for the same deliveries
$0.453
Actual cost per therm
Against $0.716 per therm on the fixed-price alternative
$23,616
2026 gas budget
Across 16,269 therms of projected deliveries, hedged at $0.5007 per therm
The Result

A strategy that was always working, now provable on request

Prospect Resources can put a number on what its clients would have paid under a fixed-price contract, month by month, across both electricity and gas. The full 2026 energy budget for a facility, roughly $397,000 across the two, is available the moment a CFO or a board asks for it rather than several weeks later. The judgment behind the hedging did not change. What changed is that the evidence now arrives at the speed of the conversation it belongs in.

12 of 12
Months that beat fixed price
Every month of 2024, including the winter peaks where a weak hedge would have shown
$397k
2026 budget, on demand
Electricity and gas together, broken into every component a finance team plans against
36.7%
Gas cost advantage, 2024
$4,965 paid against a $7,847 fixed-price equivalent on the same volume
Energy Procurement
Healthcare
Cost Reduction
Analytics
Budget Modeling