Aquilon Energy Services: Collaborative, Automated Wholesale Energy Transaction Settlement

Technology industry veteran, Jeff Wagner, President and Founder of Aquilon is eager to channel his years of technical expertise into the modernization of the wholesale energy industry’s settlement infrastructure. “I was actively involved during the adoption of electronic trading and settlement at one of the world’s largest commodities futures exchanges. Today’s scalable technology is much more capable of swiftly connecting critical business activities. At Aquilon, we are connecting the nation’s wholesale energy settlement departments into a collaborative network – the Energy Settlement Network – so that each company’s settlement department can immediately match large volumes of energy transactions with multiple counterparties prior to exchanging cash,” says Wagner.

Wagner is excited by the wholesale energy marketplace in North America. As growing supplies of natural gas and renewables drive change deep into the generation stack supplying the nation’s power grid, the business of trading wholesale energy products including power, natural gas and oil is growing rapidly.

The company’s unique service, the Energy Settlement Network, automates the settlement of bilateral wholesale energy trades between counterparties. “I was surprised that automated settlement technology had not been deployed in the marketplace. Over time, I realized that the service was perfect for the SaaS model because the process requires two counterparties to match, approve and reconcile very detailed energy specific activity prior to making payment,” notes Wagner.

By joining ESN, an organization automatically matches and ties-out their transactions with each energy counterparty. Automated matching enables companies to reduce settlement time-frames from weeks to days resulting in reduced risk and improved corporate performance. Aquilon has also introduced an industry-first look into settlement data analytics.