Risk Management and Tailored Strategies

The morning kicked off with the key focus on risk management – are your customers ready with this evolving landscape? Market risk is no longer just price based, it’s structural. As contracts are getting more complex, it’s important to help your clients understand optionality. The opening remarks also focused on how to tailor strategies to risk tolerance – inclusive fixed vs. index vs. layered strategies.

Decoding Impacts: A Broker’s Predicament

During additional sponsor remarks, it was highlighted that both ERCOT and PJM present regulatory and pricing challenges. This leaves brokers the need to decode: 1) transmission and ancillary impacts, and 2) PJM structural shifts and regulatory hurdles. Help clients by asking them “What problems can we solve for you?”

As these market complexities continue to evolve, they set the stage for a broader policy discussion. Next on stage sat Representative Roy Klopfenstein and Senator Shane Wilkin.

Ohio Legislation Updates

The two began by sharing their Ohio roots. Rep. Klopfenstein hails from the state’s ‘wind capital’, while Senator Wilkin recalled a time when Ohio was a net exporter of energy, rich in natural gas resources. Their remarks led to the focus on the impacts of the HB 15 and SB 2 bills. HB 15 and SB 2 are companion bills that propose significant changes to the state’s energy policy, focused on electricity markets and generation. Set to modernize the electricity market amidst growing demands for data centers and energy-intensive manufacturing, the bills were passed at the end of April. The bill is expected to be signed in early August.

Without delving into the nuances of the legislation, the focus at this conference was on how brokers must recognize how policy creates opportunity. It was discussed how HB 15 is favorable for end-users, through fairer bills, tax incentives, and there are tax incentives for developers to build on brownfield development. HB 15 promotes the adoption of behind-the-meter generation by large energy users and behind-the-meter service providers in various ways.

Being a ‘Grid Resiliency Advisor’

Further panels focused on understanding load profiles – with all loads not being created equal, it’s vital to position demand response and know the difference in how demand differs from AI, to Bitcoin, and more. Load profiles impact solutions.

Additional conversations highlighted that a broker’s strategic edge may just be behind-the-meter assets, as there’s an emphasis on the importance of battery storage and localized resiliency solutions, as a way for customers to save long-term and have some control over their supply, beyond the traditional mechanisms. There’s an opportunity to be a ‘grid resiliency advisor’ when it comes to proposing the right solutions for customers.

So, what is the right procurement strategy amid this volatility? Should customers lock in, float, or layer? With natural gas highs, political discourse, and pricing backwardation, what does this mean for the strategy you should propose? As the presenters offered, there’s an opportunity for price layering and custom proposals tied to customer goals. Providing peak alerts and demand response programs can be helpful to mitigate usage and price surges for customers. Encourage customers to participate in demand response to manage rising costs.

To focus on high-level takeaways to move forward, the panel outlined some guidelines for ways to engage with customers. These include:

• Identifying each customer’s risk posture
• Matching the right product and strategy
• Using HB 15 and other legislation as tools in your toolkit
• Promoting flexible load advantages
• Helping clients navigate volatility with confidence

So, what next?

A broker’s role is more critical than ever, which was a clear takeaway from the conference. Brokers are not just price hunters — they’re risk managers, policy translators, and load strategists. Use these insights to elevate client trust, deliver tailored strategies, and differentiate yourself in the market.

So, the question is – how can CPV Retail help you serve your customers’ energy needs? Let’s strategize a plan that can meet the energy needs you’re seeing.

And how can we make your role as an advisor easier? We’re here to partner with you to engage in meaningful solutions.

ICYMI: With the focus on Ohio right now, it’s exciting to be a part of the journey for the County Commissioners Association of Ohio (CCAO). CPV Retail was recently selected as a supplier for the CCAOSC electricity procurement program that provides electricity for county buildings and facilities throughout Ohio. Read the story here.