Nationally Recognized Retail Brand Locks in Long-Term Energy Costs Savings

A nationally recognized retail brand partners with Conectrix to future-proof its energy costs by locking in a long-term contract with a "blend-and-extend" option.

Client Profile: 

• National leader in retail, e-commerce, food, and merchandising.

• 15 locations across the central Texas region.

• Average annual energy consumption: 17,262,852 kWh.

Challenge:

• The client had no energy consultant or expert on staff to determine how to save costs on energy.

• The client's existing contract for the supply of electricity was approaching its end.

• The energy market is extremely volatile, with electricity costs per kWh predicted to continue rising.

Solution:

Conectrix assessed the client's energy situation and brought in seasoned experts from Abundant IoT to help show what expected forward curves looked like in the market and explain the state of the industry to enable the client to make the most informed decision on its next electricity supply contract.

With rates projected to steadily rise through the summer, and coupled with the effects of the data center and artificial intelligence boom, energy prices were projected to increase 3-5% annually. Abundant IoT was able to offer the client a five-year deal to lock it in at a favorable price and avoid the inevitable spikes in energy pricing.

Results: 

• The client was relieved of the burden of navigating energy decisions on its own.

• Contracted long-term at a competitive rate to avoid the inevitable rise in electricity costs.

• Received a "blend-and-extend" option in the event that rates decrease, allowing the client to take advantage of lower rates while remaining protected from further upticks in the market.

• Gained access to a customer energy portal to monitor market trends and energy rates.