CASE SUMMARY: Utah-based smokehouse saves more than $80,000 each year by procuring their Natural Gas supply in the Wholesale market. Big Energy assisted them in taking their volumes to market, negotiating the terms and conditions of service with a supplier and making the upstream arrangements to move the gas from the well-head to their meter.
Details: Big Energy was retained by a food company to organize and manage their utility costs. In review of the Customer’s Natural Gas bills, the analyst modeled Natural Gas costs based on the pricing trends in the Wholesale market, as compared to the Public Utilities Retail rates for Natural Gas. At the time of the analysis, the utility was charging a retail price of $4.27 per MMBtu for the Natural Gas commodity compared to $2.80 in the marketplace. In spite of the fact that there were some equipment costs and annual administrative charges from the utility, the savings measure paid for itself after only a month and a half. The Customer now has firm service and the ability to fix its Natural Gas costs for years into the future.
