APPI Energy News

Case Studies Details

Uncertain of how deregulation will affect business

Customer:

Small Manufacturer

Request:

Assist customer with first-time procurement of electricity and natural gas. New opportunities for budget certainty and cost reduction became available.

Solution:

This small manufacturer of wire products for a vast client list ranging form Aerospace to Food had never procured energy for their facility before working with APPI Energy. Their core competence is running the daily operation of their facility, not procuring energy. While energy costs are a significant expense for the organization’s operations, procuring it from anyone other than the local utility was not an option before. The manufacturer had two choices; either do nothing and stay with the local utility, or “Shop” for a better rate with a competitive supplier.

The manufacturer learned about the NAM Energy Procurement Program at a Small and Medium Manufacturers board meeting. An APPI Energy representative at the meeting took the client’s information and within days, the manufacturer was contacted by a consultant who then reviewed their electricity bills and usage information. Upon the first analysis of the account, APPI Energy actually recommended that it was in the client’s best interest to stay with the utility in the short term. After several months of monitoring the market, APPI Energy contacted the client to advise them that the market was changing and that it would be advantageous to lock in a fixed rate while prices were low. By following APPI Energy’s recommendations, the client signed a 36-month fixed-price agreement with a reliable electricity supplier.

Added Benefits:

Budget certainty with a fixed electricity price over time