Refining a Better Energy Service Solution: ACES’ History

The Beginning

In 1999, ACES’ trading and support functions were designed to promote short-term, typically hour-ahead and intraday, opportunities to purchase power below the cost of online generation, or sell excess power above the cost of online generation, resulting in lower electric rates.  This provided a significant new opportunity for ACES’ Members and Customers: to have ACES optimize individual portfolios in the market, and create a benefit for the end-use Member distribution cooperatives. The value created by portfolio optimization translated into millions of dollars in savings and margins that benefit Members at the end of the line through reduced cost for their electricity.

Expanding our Footprint

The next logical step was to expand the scope and term of optimization and portfolio management. As ACES’ geographical and market footprint increased, new resources could be brought to bear for ACES’ growing Member base. Some of those new resources included dedicated personnel focusing on one or several specific markets, instead of having to know just the basics of every market. They also included new tools, like a portfolio model that looked out years ahead, instead of a day or weekend, as well as a transmission model that simulated market dispatch of resources and loads across the entire interconnect and market footprint, instead of merely looking at the utility’s footprint. With these new tools, ACES was able to partner with its Clients to derive longer-term strategies for power supply.

Pushing into the future

As this expanded time horizon took hold, ACES pushed for more proactivity with recommendations and the associated portfolio components and commodities. Adding regulatory expertise allowed Members to be better prepared to address changing market rules. Adding origination services provided Members with representatives that combined an understanding of portfolios and market players, as well as knowledge of how those two can combine to benefit the Member. Additionally, incorporating servicing of renewables gave Members and Customers the ability to focus on renewable energy credit markets and their underlying fundamentals to help craft strategy.