Services Performed: Energy Procurement
Industry: Small Box Retailer
Number of Locations: 1,082
Annual Energy Spend: $20 million
Problem: Client signed an electricity supply agreement in Texas for 100 sites. The agreement was contracted at the top of the market with no add/delete clause. This contractual structure substantially increased annual electricity costs and created a severe financial penalty each time a store was closed.
Solution: Energy Paradigm helped client contract at a rate well below their current rate and negotiated a 30% add/delete clause with the supplier. The add/delete clause provided client the flexibility of adding and deleting stores to & from the electricity supply agreement with no penalty. These efforts resulted in a 44.3% reduction in supply costs in the first year of implementation.
Services Performed: Energy Procurement and Rate Analysis
Industry: Mid Box Retailer
Number of Locations: 800
Annual Energy Spend: $60 million
Problem: Client had 75 deregulated sites with no centralized energy purchasing strategy with stores either contracted at an unfavorable rate or paying a utility rate well above current supply costs.
Solution: Energy Paradigm performed a tariff analysis for all 75 accounts and developed a centralized and long-term energy procurement strategy. These efforts resulted in 28.6% savings the first year of implementation.
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