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UTILITY RATE OPTIMIZATION

 

Occasionally a client will have a usage profile that is unique enough to the point where it possibly warrants its own rate with the servicing utility.

 

 

By going to the CPUC on our behalf and crafting a unique rate for us, McKenzie & Associates caused a very large ongoing savings for us.
Alex Wong
Finance Director, Fortune 500 Media Company

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UTILITY AUDIT
AND TARIFF ANALYSIS
UTILITY BILL PROCESSING
LEASE MANAGEMENT OUTSOURCE
UTILITY SITE SETUP SERVICE
PROCUREMENT
UTILITY RATE OPTIMIZATION

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bullseyeOccasionally a client will have a usage profile that is unique enough to the point where it possibly warrants its own rate with the servicing utility.  This could occur for one of several reasons:

The characteristics of the client’s usage profile are such that the “cost of service” to the utility for that client is substantially less than to serve other customers in the customer’s same pricing category.  Any one customer is not supposed to “subsidize” the other ratepayers, and if it is determined that this is the case, a rate specific for that customer is warranted.

In other instances, if a customer’s particular needs are not being addressed by current tariffs, a customer-sponsored rate or Rider may be warranted.  For example, this might be the case in the situation where meters are not practical or cost effective, and the customer needs a “non-metered” rate.

The steps listed below are part of this service:

  • Analyze the current pattern of usage to develop accurate load shapes
  • Research and analyze alternative rates & tariffs, interpretations, applications and qualifications
  • Compare current rate vs. alternative rate
  • Determine need for customer-sponsored rate at the utility company by offering an alternative utility rate design
  • Correspond and negotiate with utility companies
  • Represent client with the appropriate regulatory agencies (i.e. Public Utility Commissions)
  • Implement and monitor approved account changes
  • Calculate monthly savings for client
  • Stay informed on regulatory policy changes at Public Utility Commissions

When successful, a customer-sponsored rate campaign can yield very large savings; savings which continue for the life of the location.

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