How a Fortune 100 Company Caught a $70K Error Using LevelTen's Performance Monitoring Software
A renewable power purchase agreement (PPA) is a terrific way for organizations to meet their climate goals in a financially prudent manner while helping to bring more clean energy onto the grid. Virtual or financial PPAs use a fixed-for-floating swap agreement, meaning both parties agree to compensate one another based on how wholesale electricity market prices fluctuate around the unchanging, long-term PPA price they’ve agreed upon. These settlements occur at regular intervals — weekly, monthly, or otherwise — and typically require the accounting team at the generating facility to invoice the PPA offtaker at the predetermined settlement intervals. Sometimes discrepancies arise that result in under- or over-payment to the PPA owner. As with all financial contracts, PPA offtakers should “trust, but verify” their periodic settlements.
LevelTen’s Performance Monitoring Software provides PPA managers with an unparalleled view into future and historical PPA performance. Rather than requiring teams to navigate a sea of spreadsheets and PDFs to compile and analyze financial, environmental, and production data, LevelTen’s Performance Monitoring Software concentrates a project’s direct data feeds into a single unified, easy-to-understand online dashboard tailored to the terms of your PPA. The software can also be used to manage a portfolio of multiple projects. By automatically calculating RECs generated, emissions avoided, production data, and settlements, the software provides PPA managers with all the most important information directly at their fingertips.
Data is updated close to real-time, empowering PPA managers to make timely adjustments to hit sustainability goals, balance budgets, and issue frequent updates to leadership. LevelTen’s cloud-based software safeguards against invoicing vulnerabilities by auditing direct data feeds of project financials and calculating settlement payments for verification based on market data and production data provided by the project developer. The following case study illustrates an incident in which LevelTen’s Performance Monitoring Software helped protect the interests of involved parties by finding PPA invoicing discrepancies immediately, allowing for accounting professionals to act swiftly and resolve the error.
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