Client: A manufacturer of automotive supplies in the Midwest region of the United States engaged NUS to review its electricity service agreements and invoices

Result: A cost savings in excess of $70,000 per annum.

Details: Upon receipt of the client’s historical utility bills, NUS entered the pertinent information into its central database. The information was audited against existing rate schedules and service agreements to ensure each invoice was correctly computed and no overcharges existed. During this process, the NUS analytical team noted that one of the client’s plants was being serviced by a municipality. In many parts of the United States, local municipalities provide utility services including the supply of electricity. The relevance of this discovery is that most local municipalities are not governed by any state or federal regulatory body and are free to set utility pricing as they see fit.

After undertaking a detailed review of the electricity billings and related service agreement, NUS noted that the plant’s pricing and demand measurements were out of line with the surrounding investor-owned utility company rate schedules. NUS submitted a recommendation, contacted the municipality and had the client’s plant transferred to a more appropriate rate in line with surrounding market conditions.

Source : NUS Consulting