PITTSBURGH, Pa., Feb. 21, 2005 — WeatherWise USA announces the addition of Risk Management to its portfolio of products. WeatherWise is best known for its support of energy companies offering fixed bill products to their consumers. They provide the analysis critical to successful electric or gas fixed bill implementation by factoring in variability in usage patterns, weather, and energy prices. This results in reduced risks and operating costs to the energy companies and to their consumers. WeatherWise utilizes its proprietary computer models and expert analysis to provide appropriate fixed bill quotes for each individual consumer.
WeatherWise’s Risk Management is a formal structure to provide utilities offering fixed bill products with advanced risk management technology, and even more importantly, a guarantee of program performance. “We are confident of our capabilities in electric and gas fixed bill programs and are certain of our ability to manage all the underlying risks,” states Rand Warsaw, CEO of WeatherWise USA. “So much so that we are willing to back our product by putting our own money at risk.”
WeatherWise is no stranger to risk. Their entire business is built around energy risk management and financial engineering. “In any fixed bill program there are risks to the company offering the product, such as market penetration levels, energy purchasing, pricing, consumer behavior, and model issues that include temperature bias or selection bias, and numerous weather-hedging concerns,” explains Severn Wright, Manager of Financial Engineering. “WeatherWise actively manages those risks and we work with our customers to control their specific risk factors.”
Board member Barry Fingerhut, of Wheatley Partners, sees the addition of Risk Management to the fixed bill product line as changing the entire competitive landscape. “Companies in the fixed bill support marketplace compete on the capabilities of their modeling technology,” Fingerhut contends. “WeatherWise has proven the superior capability of their models. By adding Risk Management to their fixed bill support services, they’ve created a sustainable advantage. If I were an energy company offering a fixed bill program to my customers, I would want support from someone who is willing to back their work with their own money.”
About WeatherWise USA, Inc.
WeatherWise USA, located in Pittsburgh, PA, is the premier provider of customized products for energy suppliers to offer their customers-including fixed bills, capped bills, energy efficiency reporting, and billing support services. WeatherWise’s unique use of computerized models based on engineering, rather than econometric, principles enables the development of products and services that reduce financial risk for energy providers and their residential and commercial consumers. WeatherWise is the only supplier of fixed bill products that can provide warranties of fixed bill program performance for programs offered in the United States and in Canada.