Method for pooling commodity purchases
OwnerVlado Slavov, John H. Wengrafinventors
Life of this patent
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Abstract
A method for producing a price index model is described, illustrated and claimed. The method includes the steps of setting up a customized price index, generating a periodic price index, calculating periodic call payouts and calculating periodic swap payouts. One aspect of the present invention is to optimize an entities spending for an entity having a plurality of geographically diverse facilities that purchase commodities.
Claims19
A method for generating a price index for the purchase of a commodity by an entity, said entity purchasing said commodities at a plurality of locations that are geographically diverse, the method comprising the steps of:
- receiving a quantity input for each of said locations, each of said locations utilizing an expected quantity;
- receiving a price input for each of said locations, each of said locations utilizing an expected price;
- and
- generating a price index in response to receiving said quantity input and said price input for each of said locations.
A method for generating a price index for the purchase of electricity by an entity, said entity having a plurality of electric consuming facilities that are geographically diverse, the method comprising the steps of:
- receiving history data for the plurality of electric consuming facilities, each electric consuming facility utilizing an expected load;
- selecting a group of geographically diverse electric consuming facilities from said plurality of electric consuming facilities in response to said history data;
- determining a call strike price for said group of geographically diverse electric consuming facilities based at least in part on said history data;
- receiving a periodic load input for each facility within said group of geographically diverse electric consuming facilities;
- receiving a periodic price input for each facility within said group of geographically diverse electric consuming facilities;
- generating a periodic price index for said group of geographically diverse electric consuming facilities in response to receiving said periodic load input and said periodic price input;
- and
- calculating a periodic payout in response to said call strike price and said periodic price index.
A method for reducing the cost of electric power by an entity, said entity having a plurality of electric consuming facilities that are geographically diverse, the method comprising the steps of:
- negotiating electric prices for said plurality of facilities;
- receiving history data for the plurality of electric consuming facilities;
- selecting a group of geographically diverse consuming facilities from said plurality of electric consuming facilities in response to said negotiated prices and said history data;
- determining a call strike price for said group of geographically diverse consuming facilities based at least in part on said history data;
- determining a swap price for said group of geographically diverse consuming facilities based at least in part on said history data;
- receiving a monthly price and load input for each of said group of geographically diverse consuming facilities;
- calculating a monthly price index for said group of geographically diverse consuming facilities in response to said periodic price and load input;
- calculating a monthly payout in response to said monthly price index.
Dependencies are inferred from the claim text.