From Fixed to Flexible: Monmouth College’s Energy Evolution

Founded in 1853, Monmouth College is a private liberal arts institution located in Monmouth, Illinois, with a long-standing commitment to academic excellence and community engagement. Like many institutions of higher education, Monmouth College must carefully manage operating expenses while planning for long-term stability, a responsibility that has become increasingly complex amid volatile energy markets.

5 began working with Monmouth College in 2019, prior to the COVID-19 pandemic, when energy markets were relatively stable and predictable. At that time, the college utilized a fixed-price energy purchasing strategy, which aligned well with prevailing market conditions and provided budget certainty. This approach served Monmouth College well during a period of declining prices and lower volatility.

As the pandemic unfolded and markets experienced unprecedented disruption, energy pricing dynamics shifted dramatically. Extreme volatility, supply constraints, and rapid price movements fundamentally changed the risk profile of both natural gas and electricity markets. Recognizing that the pre-pandemic strategy was no longer sufficient on its own, 5 worked closely with Monmouth College to adapt its energy procurement approach to better reflect the realities of a post-COVID environment.

Together, 5 and Monmouth College transitioned to a layered hedging strategy, allowing the college to make multiple, strategic purchases over time rather than relying on a single fixed-price decision. This more flexible approach helped manage risk, reduce exposure to sudden market spikes, and improve long-term budget planning. Throughout this transition, 5 has provided ongoing guidance across both natural gas and electricity procurement, monitoring market conditions, and offering recommendations aligned with the college’s financial and operational goals.

Beyond procurement strategy, 5 has also supported Monmouth College in evaluating sustainability-related initiatives, helping leadership assess how various options fit within the institution’s broader priorities. This has included reviewing opportunities and considerations associated with Demand Response programs, ensuring the college has a clear, informed perspective before pursuing these kinds of initiatives.

Holly Tharp, Monmouth College’s Vice President of Finance and Business, said the advisory relationship has been instrumental in navigating turbulent market conditions, “Partnering with 5 as our energy advisor has helped us adapt our strategy as energy markets changed during and after COVID. In a world of continued volatility, their team has provided insights and advice that goes beyond pricing to one where they are helping us manage risk, plan for expenses, and make informed decisions that support the college’s long-term financial stability.”

5 is proud to partner with Monmouth College, an important institution of higher education in Illinois, and to serve as a trusted energy advisor during a period of significant market change. By combining market expertise, strategic flexibility, and a collaborative advisory approach, 5 remains committed to helping institutions like Monmouth College navigate uncertainty while planning confidently for the future.