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Customer: ABF Packing

Jason Beyer, CEO and owner of ABF Packing, a leading meat processing and packing outfit based in Dublin, TX, is accustomed to taking the lead. An influential member of the Southwest Meat Packing Association and respected representative of his industry in Washington, D.C., Beyer knows how to get things done. And when it comes to energy – namely buying it for his meat processing and cold-storage facilities – that means working with Transparent Energy.

Already “long” in the market – Transparent Energy had helped ABF Packing secure attractive electricity prices at a fixed rate near $.04/kWh well into 2026 – he wasn’t necessarily surprised when Transparent Energy encouraged him to consider going out even longer in 2021. Used to Transparent Energy’s proactive approach, he had learned that when the company had a suggestion for him pertaining to energy markets and buying energy, it was worth his time to listen.

A few things had happened since ABF had entered into its long-term, $.04/kWh electricity contract: the company had added new cold-storage capacity; the winter freeze of 2021 had rattled the Texas energy market and impacted the financials of key suppliers there; and a confluence of health, geo-political, environmental, and business factors were in the process of turning energy markets on their head. And this was all before Russia’s invasion of Ukraine.

“Energy is a big operating expense at my company. That’s why I work with Transparent Energy. They are knowledgeable and proactive and not afraid to tell me things that I might not want to hear but that are necessary for me to know to keep my business running smoothly today and in the future. They are energy experts, and their help managing our exposure to energy-price volatility has proven invaluable.”

-Jason Beyer, CEO, ABF Packing

Managing Risk: Getting Ahead of New Market Realities

2020 had seen natural gas prices, a proxy for electricity prices, sink to historic lows, but those days were over. Natural gas prices were on the rise in 2021, and Transparent Energy warned Beyer this was no mere blip. Fundamentals had changed, and the data suggested enormous upside risk.

Always looking for opportunities to help clients mitigate their risk and reduce their exposure to higher energy prices – for many, including ABF, a major operating cost – Transparent Energy suggested a way to k ill t wo birds with one stone. B y going back to market in December 2021, ABF could minimize the impact of rising energy prices by procuring power through 2028 at only a slight premium to its current rate – an increase of only $.0025/kWh – and successfully move to a supplier with a stronger bottom line.

ABF took the suggestion, signing a new contract to power its facilities in Mineral Wells, Stephenville, and Dublin – 12.3 million kWh in all across 10 delivery points – from May 1, 2026 through May 1, 2028.

Since securing the new contract, ABF has watched energy prices enter one of their most volatile periods in recent history, hitting decades-long highs that make the small increase it did take seem like money in the bank.



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