Case Study: Delivering $450K in Energy Commodity Savings over 2 years for PECO Energy's Facilities

Client Overview: PECO Energy Company

PECO Energy, a subsidiary of Exelon Corporation, is Pennsylvania’s largest electric and natural gas utility, serving more than 1.6 million electric customers and 545,000 natural gas customers in the Greater Philadelphia region. As part of its broad infrastructure footprint, PECO owns and operates multiple service buildings, field offices, and its corporate headquarters in Center City Philadelphia—facilities that require consistent, reliable, and cost-effective electricity supply.

As a utility, PECO maintains a strong focus on operational efficiency and environmental responsibility. Yet like many large enterprises, its internal facilities were still exposed to buying energy for its own properties in the open markets.

Challenge: Buying Power for its Corporate Headquarters and Regional Service Buildings and reducing its energy costs in a rising energy market.

Despite its expertise in delivering energy to others, PECO’s internal load was being managed under conventional fixed-rate electricity supply contracts that didn’t reflect its unique load profile or market buying power.

Challenges included:

Lack of customized load shaping or block scheduling for facility usage
Paying above-market rates due to use of generic retail electricity products
Missed opportunities to leverage PECO’s strong credit and volume for better market access
Minimal integration of futures market insights or capacity charge mitigation strategies
Purchasing 100% Green Power to meet its Carbon Mitigation Strategy.

Solution: Proprietary Energy Procurement Strategy

Bakey Energy Consulting introduced a proprietary procurement model designed specifically for institutional clients with predictable, non-interruptible facility loads. We collaborated with PECO’s facility and finance teams to implement a multi-layered supply strategy across all office and service buildings.

1. Portfolio-Level Aggregation

Consolidated electric accounts across PECO’s service centers and headquarters to create a single buying block.
Enabled wholesale market access typically reserved for much larger end users.

2. Custom Shaped Energy Blocks

Designed a load-following procurement strategy using on-peak/off-peak block purchasing tailored to each facility’s actual usage profile.
Secured structured products through retail suppliers that closely mirrored load curves.

3. Market-Timed Execution

Used forward curve modeling and futures data to identify soft market windows.
Executed long-term energy purchases during dips in PJM forward prices, securing below-market fixed prices for 24 months.

4. Capacity & Transmission Optimization

Analyzed historical interval usage data to implement a Peak Load Contribution (PLC) reduction strategy, reducing transmission and capacity obligations across all accounts.
Coordinated minor operational adjustments during PJM's forecasted 5 CP events.

Results & Impact

Achieved $450,000 in annual cost savings over traditional fixed-rate products
Enhanced budget predictability for non-regulated internal facility operations
Reduced exposure to capacity-related charges through PLC management
Increased internal alignment between PECO’s operational efficiency goals and its own energy procurement practices

Conclusion

Helping an energy utility save money on its own electricity may seem counterintuitive—but in this case, PECO realized that its traditional procurement methods were leaving significant savings on the table. By trusting our proprietary strategy, PECO was able to optimize internal costs while demonstrating to stakeholders that even regulated energy providers can benefit from modern, data-driven procurement techniques.

This partnership exemplifies the value of applying wholesale market expertise and custom structuring—even within the walls of an energy company itself.