Economic Analysis and Rate Negotiation

Client
Large fiberglass pool manufacturer located in Indiana operating out of a 62,000 square foot state-of-the-art manufacturing facility.

Scope
The client uses a considerable amount of natural gas in the production process and was spending approximately $175,000 per year in natural gas costs.  Energy Impact was tasked with decreasing natural gas spend through rate negotiation and adjustment, tax incentive, and/or usage recommendations.

Methods
Energy Impact began the project by conducting an economic analysis which included:

• facility and manufacturing process evaluation
• detailed invoice review
• competitive rate evaluation of local Independent Service Operators (ISO’s) and Regional Transmission Organizations (RTO’s)
• comprehensive report with recommendations

Result
Energy Impact’s ultimate recommendation was to maintain the current natural gas provider but to negotiate a lower competitive rate.  The basis of the negotiation with the current energy provider was the detailed evaluation of local competitive rates. Energy Impact led the preparation/brief prior to the formal negotiation session and facilitated the session between the energy provider and client. The negotiation was successful and resulted in a 21% average annual savings.