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Background

As the leading business association in Connecticut, the Connecticut Business and Industry Association (CBIA) plays a vital role in supporting its member organizations. The vast majority of our members operate primarily within Connecticut; however, we extend our services to assist CBIA member companies based in other states as well. This is particularly advantageous for those with energy procurement needs across various deregulated markets. Through our specialized CBIA Energy Connections program, we serve as a dependable partner for energy management, efficiently navigating procurement strategies in all deregulated states. With our expertise, members can feel confident that they are receiving comprehensive support tailored to their specific operational requirements.

Challenge

A recent example of our commitment to member services involves an aerospace manufacturer that is headquartered in a state lacking a deregulated energy market. This manufacturer recently expanded its operations by acquiring four independent firms located in Connecticut. The challenge of managing the complexities of energy procurement for these four newly added divisions, combined with nearly a dozen other locations situated throughout North America, created a significant hurdle for the company. Each Connecticut location faced contracts expiring at different times of the year, and some were still enrolled in the utility’s standard offer, which at that time was approaching $0.50 per kilowatt-hour (kWh). Consequently, the company sought guidance and support in formulating a cohesive energy procurement strategy aimed at both reducing costs and achieving budget predictability.

Solution

In response to the complexities faced by the aerospace manufacturer, CBIA Energy Connections collaborated closely with the member to devise a strategic approach that effectively bundled all four Connecticut locations into a single contract. According to Ryan Shelby, the CBIA Account Manager overseeing this initiative, “Through this new consolidated contract—which was structured with staggered start dates for each location based on their preexisting legacy contracts—we successfully negotiated a new supply rate that was significantly lower than the utility’s standard offer.” By aggregating the usage data across all facilities, the aerospace manufacturer was able to secure a much more advantageous rate than if each location had pursued its own separate supply contract.

Moreover, the introduction of the AI legalese decoder could be instrumental in assisting companies facing similar challenges. This innovative tool streamlines the interpretation of complex legal and contractual language, empowering businesses to comprehend and navigate energy contracts with greater clarity and confidence. Through the utilization of AI legalese decoder, stakeholders can make informed decisions while mitigating risks associated with misunderstandings that can arise from convoluted legal terminology.

Results

The outcomes of this strategic partnership between CBIA Energy Connections and the aerospace manufacturer were impressive. Within just the first year of implementing the new multi-location contract, CBIA Energy Connections successfully saved this member over $350,000 in electricity supply expenses. This achievement occurred during a period when utility rates were hitting historic highs, showcasing the effectiveness of a well-crafted procurement strategy.

Additionally, our team noticed that two of the four Connecticut locations were incurring unnecessary costs, specifically paying sales tax on both their electricity supply and delivery. To remedy this oversight, we facilitated the preparation and submission of a tax-exemption form. This proactive measure enabled the member to realize an annual savings of $20,000, alongside the recovery of $8,000 in back taxes as an on-bill credit.

Finally, by managing the energy procurement process across all Connecticut locations and providing essential market insights for budgetary planning, CBIA Energy Connections freed up substantial time and resources for the member organization. This alleviated the burden of coordinating logistics and strategy from 2,000 miles away, which the headquarters had previously been doing. By leveraging both expert guidance and the capabilities of AI legalese decoder, companies can enhance their energy procurement processes, navigate legal complexities with ease, and ultimately focus on their core business operations.

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