Utility Rate Optimization
Whether your facilities are located in regulated or deregulated regions, utility rate optimization could have a significant impact on increasing your bottom-line. This is especially the case if your energy cost per meter exceeds $5,000 per month. The local utilities classify you as a large commercial customer and various rate classifications exist for your usage profile.
Usage profiles typically change over time. At the same time, utility companies frequently update their tariffs. It’s not a perfect system! Prudential Energy collects ongoing utility tariff data. By analyzing your historical usage profile, we’re able to recreate your invoices and identify the most cost-effective utility rate classification for your account.
Prudential Energy analyses both seasonal and daily load profiles vs. the utility tariff. This is a highly technical process that requires a comprehensive understanding of rate components as well as access to updated utility tariffs. this service must be performed manually by a specialized analyst who has a comprehensive understanding of the market components that impact utility rate class assignment. Our full-service rate optimization services include utility communications, rate case creation and transition validation.
Once the rate optimization analysis and application is applied, we utilize our Prudential360 utility data intelligence platform to identify future utility rate mis-classifications. This creates active cost controls and eliminates costly utility mistakes.
Existing Contract Rate Reduction
To drive down your existing contract rates, Prudential Energy utilizes expansive supplier leverage in combination with our proprietary TrueCost program.
Conventional contract renegotiations can lead to high incumbent supplier finance/ risk premiums. Our TrueCost program utilizes internal financing and incorporates a full multi-supplier RFP. This makes contract re-negotiations a competitive bidding scenario and drives down your net effective rate immediately.
- Maximize immediate rate reduction
- Eliminate unnecessary incumbent supplier fees.
Also visit our Proactive Cost Reduction page to learn more about how Prudential Energy is able to identify market buying opportunities.
Invoice Audit & Refunds
Approximately 17% of invoices contain errors. Utility invoices include complex commodity, distribution, taxes and fees. related line items. These invoices often include hidden overcharges: incorrect rate class charges, duplicate line-items, tax miscalculations and incorrect usage figures. Unfortunately, many organizations overlook these costly invoice errors – assuming the invoices are correct and rushing to pay the invoices before the due date.
Prudential Energy’s 3-step approach:
- Historical Audit & Refund Claims
- Utility Rate Class Optimization
- Automated Ongoing Invoice Validation via our Prudential360 Energy Intelligence Platform
Prudential Energy has a 15 year track record for successfully recovering millions of dollars in refunds for our national clients. It takes specialized expertise to conduct a comprehensive historical invoice audit. Our granular invoice audit process includes electronic historical utility data acquisition and a complete invoice recreation. Errors and overcharges are identified through utility tariff benchmarking and require an in-depth understating of applicable utility taxes and fees.
As a part of our full-service utility audits, we also:
- Conduct Predominant Use Studies, where applicable
- Maximize refund claims as allowed by statute of limitations
- Handle all audit related legwork including communication with utilities and state agencies, completing claim related paperwork and seeing the entire process through — until you have the refund in hand.
Once the historical audit is complete and utility rates are optimized, automated and ongoing invoice validation and discrepancy alerts are set up via our Prudential360 utility data intelligence platform. This is the definition of active cost controls.
Prudential Energy is a data-driven energy advisory firm with an ongoing commitment to delivering on promised savings and proactively adding value.
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