Case Studies Details
Non-profit Agency with several locations
Customer:
Non-profit Agency with several locations
Request:
Agency was looking at reductions in government assistance. CFO was asked to reduce budget. Assist in the review of each location’s electricity and determine opportunities for reduced costs.
Solution:
Agency needed to be educated on the deregulation of electricity. Although electricity costs had increased over the past several years, the increases were not enough to garner the attention of the CFO. An initial call with an APPI consultant resulted in the discovery of the Agency’s locations in competitive regions yet all locations were still with the local utility.
Next recommendation was to advise the CFO to participate in an APPI webinar that was state specific and outlined the bigger picture with reference to the opportunities. The 45 minute webinar allowed the CFO to increase his knowledge and understanding of the opportunity.
Data was exchanged for all of the Agency’s locations. APPI conducted an RFP with several electricity suppliers who were competitive with smaller commercial customers such as non-profits. In addition to pricing discovery, the process provided the CFO with a complete “apples to apples” analysis of the contract terms and conditions. The CFO was surprised at how complicated the contracts first appeared and how the APPI overview of the contract made the process easier.
After three rounds of price discovery, the CFO was ready to make a buying decision. Total electricity costs for all locations were reduced.
Added Benefits:
The fixed-priced contract provided budget certainty for the Agency’s energy expenses, an added bonus given the uncertain financial times the Agency faces.