UMass Chan Medical School, in close partnership with UMass Memorial Health, is focused on training the next generation of physicians, conducting life-changing research, and delivering exceptional care to the communities of central Massachusetts.
As the commonwealth’s first and only public academic health sciences center and the region's largest health care provider, the work at UMass Chan never stops. Neither does its need for energy.
That's what made rising energy costs and market unpredictability such a serious risk. Electricity and natural gas are among the institution's largest operating expenses, and in a volatile market, that meant budget uncertainty, defensive financial planning, and resources held in reserve in the event of cost spikes — money that could have gone toward clinical programs, research, and student support instead.
We knew there was a smarter way.
Finding the Right Partner
After a competitive evaluation, UMass Chan selected PowerOptions for its advanced energy procurement and decarbonization analytics and reporting capabilities, and our collaborative approach to meeting client's needs.
"There's more to this relationship than just the nuts and bolts of buying energy. Choosing a partner that is invested in understanding the clients' needs and then finding a way to deliver them is a true partnership" - David M. Flanagan, Deputy Executive Vice Chancellor of Facilities, UMass Chan Medical School
Together, we assessed UMass Chan’s current purchases and created a disciplined, data-driven strategy. The core move was aggressive hedging, covering more than 80 percent of the institution's energy demand and actively monitoring markets to lock in value at the right time. In energy markets, windows of opportunity can close in hours. Having a partner ready to act just as quickly made all the difference.
The Impact
The results came quickly and compounded over time.
- $2.8 million in net cost avoidance across the fiscal year through February.
- 80%+ of energy demand hedged, reducing exposure to price spikes.
- Long-term positions secured through 2030, building on cost certainty for years ahead.
But the bigger win wasn't just the savings — it was what those savings unlocked. With greater cost predictability, leadership could redirect resources toward the priorities that matter most.
"With UMass Chan's strategic methodology for monitoring markets and securing future value as a guide, PowerOptions developed an interactive reporting system to capture market conditions and make recommendations in real time. The partnership secured value, reduced risk and provided cost certainty for the institution." - David M. Flanagan, Deputy Executive Vice Chancellor of Facilities, UMass Chan Medical School
A Model Worth Following
What started as an energy procurement engagement has grown into a genuine strategic partnership, one built on shared goals, continuous collaboration, and a commitment to thinking well beyond the next budget cycle.
"We are blazing the trail on how to think about risk, not just next year, but years out." - David M. Flanagan, Deputy Executive Vice Chancellor of Facilities, UMass Chan Medical School
For UMass Chan, this means a more resilient institution, better protected against market shocks and extreme weather events, with a financial foundation strong enough to support its mission for the long term. It's a model that's setting a new standard for energy management.