Here’s an example of how one of our clients locked up long-term energy savings in a down market…Cigas Machine Shop is a metal fabrication company in the PECO utility area. Their current electricity supply contract ends in May of 2018 – more than a year in the future at the time of our auction.
Recognizing that we are in an historic buyer’s market, Cigas asked us to explore what kind of savings we could generate by conducting an auction through The Energy Exchange, our powerful reverse-auction energy procurement process.
Cigas has two locations with similar load profiles, so we aggregated the locations into a single auction. The results were spectacular: 16 suppliers competed head-to-head for the business, and Cigas saved 33% versus their existing contract!
In total, they will enjoy over $60,000 in savings over the course of their new 4-year contract. That’s why we say it’s a no-brainer: buy now and go long.
Craig Cigas -President Cigas Machine Shop
Since working with Applied Energy we have been able to significantly reduce our energy spend. Applied Energy has provided us with excellent market intelligence and advice on market timing. Consequently, we were able to save over 30% on our electricity costs for a contract that starts in late 2018.