New 36-month power contracts are netting more than $400,000 in savings for 157 Massachusetts stores.
Tedeschi Food Shops has successfully secured new electricity contracts for 157 of its stores in Massachusetts, with help from World Energy Solutions Inc., an energy management services firm.
Through a series of competitive auctions run on the World Energy Exchange, World Energy has enabled Tedeschi Food Shops to lock in attractive rates from Feb. 1, 2011 through Jan. 31, 2014, providing the retailer valuable budget certainty and potential savings in excess of $400,000 over its prior rates.
In advance of the auctions, World Energy worked closely with Tedeschi Food Shops to understand its energy needs across its business and develop an appropriate go-to-market strategy. Acting on Tedeschi’s behalf, World Energy collected usage data from all the retailer’s Massachusetts locations, more than 200 accounts in total, and synthesized that information into electronic RFPs marketed to the supplier community. This expert preparation contributed to a highly liquid, competitive, and transparent event that attracted multiple suppliers behind two different utility service territories, ultimately delivering the retailer excellent price discovery and favorable contract terms.
“Sourcing power effectively for this many locations, accounts, and service territories is very challenging,” said Bob McGann, vice president of store development for Tedeschi Food Shops, which operates 189 convenience store locations throughout Massachusetts, New Hampshire, Rhode Island, and Connecticut. “World Energy did a great job of listening to us and simplifying the process so we could capitalize on favorable market conditions, lock in long-term fixed rate contracts and really take control of our energy spend,” he added.
“Less than 10% of B2B energy buyers are availing themselves of technology-based approaches to extract the best price from the market,” added Phil Adams, president of World Energy Solutions. “As a result, they are leaving money on the table and often settling for terms that don’t advance their business goals. Tedeschi Food Shops serves as a powerful reminder that a more strategic approach to energy management pays dividends.”
Tedeschi Food Shops continues to work with World Energy as it explores opportunities for further energy savings and budget certainty for its stores in New Hampshire and Rhode Island. Additionally, the retailer is considering reinvesting its recent savings in renewable energy, building on its current efficiency initiatives that include the implementation of white roofs, LED lighting and more energy-efficient equipment.