Challenge: One of the world's largest collectors of human blood plasma, Blood Plasma Center, partnered with Diversegy to help consolidate and lower their energy costs, and to identify ways to reduce their carbon footprint. This particular client has aggressive expansion plans for opening up additional facilities, set to launch over the course of the next 24 months. With large cold storage facilities at each location, this client is a large user of electricity.
Solution: After analyzing this client's portfolio, it was determined that Blood Plasma Centers was using multiple energy service providers; each with differing products and rate structures. Utilizing our relationships, Diversegy was able to aggregate all locations and map out the expected load of the to-be-completed facilities, with one supplier per state, and with one rate structure across all utilities, for all locations. Additionally, Diversegy was able to negotiate add/delete language in Blood Plasma Centers' contracts to simplify the addition of new facilities over the course of the contract.
Savings: Diversegy was able to provide this client with substantial savings of just over 47%; totaling almost $460,000 over a 36 month agreement. Phase two of this process will include an evaluation of the client's natural gas trends, as well as the implementation of an LED lighting solution. These measures, in addition to various power factor correction solutions, can result in an additional reduction of the client's overall energy consumption and increase direct and indirect cost savings to the client's bottom line.
Challenge: One of the nation's largest family entertainment and restaurant chains, consisting of several hundred locations nationwide, turned to Diversegy to assist with managing their energy expenses. This client is a publicly traded company and the biggest challenge they posed, was that the product solution Diversegy proposed had to align with all of their corporate and industry guidelines.
Solution: Given the diversity of the client's real estate portfolio, Diversegy suggested they start with California to be the pilot market, to demonstrate Diversegy's brokering capabilities. Our client initially challenged this approach, but ultimately agreed and went forward with Diversegy's suggestions. Unbeknownst to the client, they had choice options in California. This fact further validated Diversegy's value proposition and service offering.
After an initial review of all the California locations, Diversegy recommended focusing on 2 of the 4 utilities: SoCal Edison and PG&E. Diversegy negotiated terms and conditions that met all of the client's guidelines as a publicly traded company. Diversegy then aggregated all of the locations within each utility with one supplier — one supplier for PG&E and one for SoCal Edison. This net result was a significant reduction of the administrative burden born by the client.
Savings: The analysis initially showed an ROI of 3 to 5 months from the date of contract execution. Once the contract went into effect, the results were 2 months earlier than forecasted. The client was extremely pleased with the outcome of partnering with Diversegy to handle their energy needs.
The Situation: As the energy supply markets were heating up back in 2013, an Ice Cream Store Chain needed an alternative to their existing energy supplier and a way to put ever increasing expenses on ice, across their portfolio of 15 locations, and 27 individual accounts, including commercial demand meters and commercial light meters.
Objectives: One of our energy experts ran a detailed energy analysis in an effort to uncover potential inefficiencies. The challenge was a multi-dimensional one: (1) improve the bottom line with a "best-rate" scenario where-by all store locations would realize benefit and (2) protect and insulate the client from any potential drastic changes in market conditions, affecting future pricing.
The Diversegy Advantage: In addition to securing rates that would save the client $50,000 over the next 24-months, Diversegy negotiated on behalf of the client to eliminate all ongoing meter fees and for them to maintain ultimate flexibility in their energy usage with 100% swing.
But that's not all: Diversegy accomplished all of the above in partnership with a green energy supplier, which enabled the client to take advantage of renewable energy credits. This helped meet sustainability goals that made it possible for the client to apply for the EPA's Green Power Partnership.
The Situation: A large construction company, based in Washington, DC is no newcomer to seeing the benefits of energy deregulation. In fact, the company has been working with the team of Diversegy energy experts for quite some time and has renewed two natural gas contracts since first becoming a client back in 2012, saving almost 21% versus the cost of supply from the local utility company. What was different this time around is that the client's consumption of natural gas in 3 out of 4 months in late 2015 exceeded their contracted NYMEX quantities and their 3-year average. The company projected this trend would continue, meaning significant cost implications.
The Diversegy Advantage: Taking advantage of natural gas trading at near historic lows, Diversegy proposed a strategic shift in procurement strategy and was able to continue favorable position, protecting savings and ensuring budget certainty, with a percentage of the client's load on an indexed supply priced product and a percentage on a traditional fixed rate plan. Supports were also put in place in anticipation of additional volumes during the upcoming shoulder seasons.
Testimonial: "Due to the nature of our business, a standard, fixed-rate agreement doesn't suit us," explains the Vice President and Senior General Counsel of the large DC based construction company. "With our consumption ramping up due to increased asphalt production demands, we were concerned, but our Diversegy account manager took our company objectives and risk tolerance into account. They recommended a more sophisticated product which, when combined with Diversegy's active account management, provides us with a consistent savings against the utility, shields us from some risk, and still allows us to reap some benefit when the market drops below our fixed price."
Challenge: A prominent day school in New York City, was looking to shed unnecessary overhead that did not further the mission in educating tomorrow’s future in the Jewish traditions. With Diversegy’s help, they hoped to lower their energy related operating expenses, freeing up much-needed resources to benefit their students.
Solution: To ensure we had a complete snapshot of the school’s energy expenses, Diversegy energy experts reviewed the prior months of utility invoices. Determining the facilities’ true cost of energy operations was a key step, as the school was not paying the same rate per unit of energy supplied every month since the utility only offered a variable/index rate option. Diversegy presented options to leverage cost savings and budget certainty by shifting their energy procurement structure to a fixed price and taking advantage of the right market timing.
Savings: Much to the administration’s surprise, Diversegy uncovered savings - projecting over $15,000/year for the duration of the procurement term. Given the lean nature of non-profit organizations like theirs, this reduction freed up bottom-line capital to serve the students directly, furthering the Day School’s critical mission.
Challenge: The mission of the local Jewish Community Center (JCC) in Washington, D.C. is to provide social, recreational, educational and cultural programs for individuals and families through all phases of life. However, since it survives largely on donations and member dues, reduction of operational costs is critical to the ongoing success of programs. Our client worked to find efficiencies using other energy service providers, and realized little success. As a result, the JCC was skeptical of Diversegy successfully completing any favorable cost-saving analysis.
Solution: With no cost or obligation, and nothing to lose, the JCC was open to one last review. It was clear they were spending $5,000/month on the distribution side and $8,000/month on the electricity supply slide with a total utility spend for power over $150,000 on an annual basis. Diversegy went to work. Engaging both local and national suppliers, including the JCC’s incumbent supplier, Diversegy produced an executive level energy analysis that highlighted their current position, potential risks, and future cost savings along with recommendations that demonstrated the potential for savings.
The Bottom-Line: Diversegy leveraged their relationships with the top 35+ suppliers to reduce the JCC’s operational energy spend by more than 10% annually. Needless to say, the JCC was thrilled with over $15,000 in annual savings of free, found money to cover their program costs.
Challenge: The management company had recently built 2 new office complexes from the ground up and was set up with the utility for supply. The properties had an annual energy usage of over 2.7 million kWh. With the ownership being commercial real estate experts and not energy experts, it wasn’t a high priority to complete a detailed review and identify savings.
Solution: After reviewing multiple months of invoices and knowing the advantageous timing of the market, Diversegy determined there was cost savings and budget certainty by moving the customer from the fluctuating utility rate to a fixed product with an alternative energy supplier. Diversegy leveraged their nationwide portfolio of over 35+ suppliers to identify the single outlier that provided the best pricing and contract terms for this type of customer.
Savings: Through Diversegy’s negotiation efforts, the client was able to reduce their utility expenses by an estimated $30,000 annually, or $60,000 over the term of the agreement. That translated into more than a 15% reduction in their supply costs.