Like most companies, Albertsons Companies continually looks for ways to reduce cost and mitigate risk across its operations. Albertsons Companies operates grocery stores under 19 well-known banners across 35 states and the District of Columbia and is one of the largest food and drug retailers in the United States.
With energy being one of its largest operating expenses, Albertsons Companies proactively looks for ways to reduce costs and manage price risk. By coupling sophisticated tools with an understanding of how complex energy markets operate and how the different components of the energy equation can be managed, the company has successfully kept energy costs down. Albertsons Companies has partnered with kWantera and its Faraday platform to help manage its market (RTO/ISO) cost exposure in competitive markets.
After learning about kWantera’s Faraday platform, Albertsons Companies decided to pilot the service to augment its energy strategy. The service has delivered savings and assisted the company in meeting its goals. “Albertsons Companies strives to couple technology and best-in-class energy practices across our business,” said George Waidelich, Albertsons Director of Energy Operations, “and kWantera is on the forefront of the Big Data revolution in the energy sector.”
Faraday uses artificial intelligence technologies like machine learning and pattern recognition to predict electricity prices at hundreds of locations around the country on an hourly basis. Using this forecasting capability, Faraday optimizes schedules for the electricity markets where Albertsons Companies’ stores are located. These schedules help identify optimal scheduling strategies to procure and deliver electricity in competitive power markets.
The electricity markets are complex, particularly for a company with stores in thirty-five states and the District of Columbia that receives service from hundreds of different utilities. To help manage energy procurement and delivery, Albertsons Companies utilizes several wholesale and retail energy providers to meet its electricity needs.
“We needed a solution that could seamlessly integrate with our various energy suppliers and kWantera’s Faraday platform does just that,” said Mr. Waidelich. “Faraday helps Albertsons Companies manage electricity costs, and provides the required information to the appropriate suppliers each morning, allowing us to implement our strategy, and requiring minimal intervention.”
Using Faraday, Albertsons Companies expects to reduce the costs of managing its energy portfolio. “Our relationship with kWantera has been beneficial to our bottom line and we plan on looking for ways to further leverage Faraday’s platform,” says Mr. Waidelich.
About Albertsons Companies: Albertsons Companies is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. The company operates stores, manufacturing plants, and distribution centers across 35 states and the District of Columbia under 19 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs. Albertsons Companies is committed to making a meaningful difference, neighborhood by neighborhood. In 2015 alone, with the help of generous customers, Albertsons Companies and the Albertsons Companies Foundation gave more than $270 million in food and financial support to the more than 2,300 communities they serve, improving the lives of millions of people in the areas of hunger relief, education, cancer research and treatment, programs for people with disabilities, and veterans outreach.