In 1994, LWG was asked to look into whether the larger Agencies of the State of Indiana were paying an excessive amount for their utility services.
We spent a year or so examining the utility bills of the 20 larger facilities, including all of the larger correctional facilities and hospitals in Indiana. While we did help them save money, our examination resulted in creating a system for buying natural gas for the State of Indiana.
Indiana was the second State in the Union to buy natural gas through a nascent futures market that was just beginning to function. To manage this well, we set up a team consisting of a representative of each of the user agencies to sit on a Board. The Board included some very bright and experienced board members, one whose experience as a commodities trader was very helpful, as well as the CFO of the Indiana Department of Correction, who was a wonderful steward of the resources of the state.
I assisted the Board in learning how the market worked, and how to buy gas to meet the needs of the facilities. There were approximately eight Board members who chose a natural gas marketer. This individual worked tirelessly to learn how the markets worked, how to determine the amount of natural gas should be purchased, and how it would be delivered to the Local Distribution Companies and on to the burner tip at the facilities.
At one point, we calculated that our new system of purchasing natural gas had saved the State of Indiana $21,000,000 over those purchasing natural gas through utility meters.
We worked as a team, learned as a team, and made decisions only when the team agreed.
Twenty-four years after we set up the first Board, we still have a natural gas purchasing board, and we still make decisions only when the team agrees.
Teamwork is critical to accomplish the best results. The professionals at LWG CPAS & Advisors believe that teamwork is the best way to accomplish the goals of our clients. Contact us today to learn how we can help you! www.lwgcpa.com