Strategic Energy Management for Astra Foods – Upper Darby & Aston, PA

Client Overview: Astra Foods​

Astra Foods is a leading manufacturer of high-quality prepared meats, specializing in gyro meat, steak, chicken, and custom-seasoned products for foodservice distributors, restaurants, and major retail brands across the United States. With facilities in Upper Darby and Aston, Pennsylvania, Astra operates 24/7 production lines that demand significant electricity and natural gas resources to support refrigeration, cooking, processing, packaging, and facility operations.

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As a refrigerated and frozen food manufacturer, Astra's core business depends on maintaining product quality and consistency, which in turn depends on reliable and cost-effective energy supply. The company’s profit margins are sensitive to volatility in utility costs, especially amid rising wholesale energy prices and capacity market charges in PJM territory.

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Challenge: Rising Energy Costs & Market Volatility​

Astra Foods faced several energy-related challenges:

- Lack of forward procurement strategies, leaving them exposed to short-term market volatility.

- Increased electric capacity and transmission charges tied to uncoordinated peak usage during PJM’s critical peak hours.

- Escalating natural gas costs due to outdated purchasing contracts and high utility pass-through charges.

- Limited visibility into usage trends across the two production facilities.

 

Without a comprehensive energy strategy, Astra was vulnerable to budget uncertainty and missed opportunities to optimize procurement and usage patterns.

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Solution: Strategic Electricity & Natural Gas Procurement Plan​

Our energy consulting firm partnered with Astra Foods to develop a proactive energy management plan tailored to their operational needs and risk tolerance. The solution included:

 

1. Competitive Supply Procurement

• Issued a competitive RFP to vetted electricity and natural gas suppliers.

• Analyzed fixed vs. index pricing models and secured 12-, 24-, and 36-month pricing options.

• Executed a laddered procurement strategy, locking in favorable fixed prices for portions of load while leaving some open to benefit from potential market dips.

 

2. Demand Response Management

• Signed up with a Curtailment Service Provider to reduce loads between 1,200 and 1,300 kW with an existing natural gas generator. 

• The Demand Response Initiative should provide a revenue payments of at least $65,000 depending on their actual response.

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3. Natural Gas Cost Minimization

• Reviewed their 3rd party gas supplier and PECO utility tariffs.

• Negotiated both basis and NYMEX triggers to keep costs under budget

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4. Ongoing Energy Budgeting & Reporting

• Delivered electricity and natural gas pricing updates looking for opportunities to extend the contracts.

• Conducted semi-annual market update briefings with Astra’s leadership

• Provided regulatory updates regarding energy credits, rebates, and local utility programs.

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