A potential $9 million is at stake when talking about real-time trading of energy, reports a new audit the Imperial Irrigation District accepted Tuesday.
The board accepted audit findings about its real-time energy trading that say the district could save money if it were to bring the trading in-house.
The internal audit and risk management departments analyzed the energy sales and purchasing activities to determine the potential savings if real-time trading is done completely in house. The district currently contracts some of its real-time energy trading to Coral Energy, a subsidiary of Shell Oil Co.
The auditing department compared off-peak months of February and April with on-peak months in July and August. If the district were to move its real-time energy trading in-house there would be an average off-peak month savings of $1.17 million, said Betty Voroveanu, internal auditor. The average on-peak monthly savings is almost $8 million.
The potential annual savings would be $9.1 million, she said.
However, if the district were to fully staff the real-time trading floor, hiring six people, it would only cost about $810,000.
The recommendation was to bring the real-time trading in house, which some board members supported.
It’s unfortunate the district hasn’t moved to in-house real-time energy trading, said Board Vice President Matt Dessert. Putting it in place would save money for the district and create jobs.
“This is great,” he said. “It’s going to create jobs in Imperial County that are now being outsourced to Coral, and it’s going to save us at least $5 million (conservative total saving totals minus new expenses).”
Bringing those functions in-house are in the district’s six-point plan that is set to be voted on next week. Initiating real-time trading capabilities are going to be brought back in the second quarter of the year, said General Manager Kevin Kelley.
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
The board accepted audit findings about its real-time energy trading that say the district could save money if it were to bring the trading in-house.
The internal audit and risk management departments analyzed the energy sales and purchasing activities to determine the potential savings if real-time trading is done completely in house. The district currently contracts some of its real-time energy trading to Coral Energy, a subsidiary of Shell Oil Co.
The auditing department compared off-peak months of February and April with on-peak months in July and August. If the district were to move its real-time energy trading in-house there would be an average off-peak month savings of $1.17 million, said Betty Voroveanu, internal auditor. The average on-peak monthly savings is almost $8 million.
The potential annual savings would be $9.1 million, she said.
However, if the district were to fully staff the real-time trading floor, hiring six people, it would only cost about $810,000.
The recommendation was to bring the real-time trading in house, which some board members supported.
It’s unfortunate the district hasn’t moved to in-house real-time energy trading, said Board Vice President Matt Dessert. Putting it in place would save money for the district and create jobs.
“This is great,” he said. “It’s going to create jobs in Imperial County that are now being outsourced to Coral, and it’s going to save us at least $5 million (conservative total saving totals minus new expenses).”
Bringing those functions in-house are in the district’s six-point plan that is set to be voted on next week. Initiating real-time trading capabilities are going to be brought back in the second quarter of the year, said General Manager Kevin Kelley.
Staff Writer Elizabeth Varin can be reached at evarin@ivpressonline.com or 760-337-3441.
