With Electric Bills, A Few Cents Here and There Add Up to $850,000

Save of the Month - May 2019 (Featured)

Every company pays an electric bill. Sometimes they are paying too much.

Recently, we found some discrepancies with a client’s electric bills. This particular client has 43 different locations around the country. They had assumed that their varying office bills were simply the result of the cities in which they reside. We checked.

We do this for all of our clients when evaluating all electric bills. First, we confirm their current rate tariff schedule. Then, we can search for and secure market prices for them moving forward. For this client, we found discrepancies after evaluating just 4 of their 43 locations. It turned out that none of those locations were on the proper rate tariffs.

To put things in perspective, current rates for electricity in Massachusetts is about $.08/kWh. Our client had been paying $.12/kWh at one of their offices. In fact, they were paying higher rates than we have seen in over 5 years. Additionally, they were paying for “time of use” at another location, which can get expensive during high demand. By switching them to a “general use” plan, they were able to save dramatically on their bills. We then continued to help them by switching and confirming all of their locations where on the correct tariff schedules.

With these changes in place, our client will save a total of $850,000/year in delivery, supply, and usage tax overages. This is just for 4 of their locations. The savings will go into effect at their next billing cycle.

You could be overpaying for your energy costs too. It is really to find out – send us an email and we’ll take a look. You’ll pay nothing out-of-pocket, and if we find any way you can save on energy costs, we’ll split the savings with you.

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Marc Freedman

Marc Freedman

To help you achieve your company's financial growth goals, Marc serves as our Chief Cost Advisor, providing advice to client management teams. He is highly regarded as an expert in his field, and he frequently collaborates with and contributes to other spend consultants to develop and implement cutting-edge strategies for their respective clients.

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