Case Study

Global Communications Company Achieves 15–20% Lower Electricity Costs

Global Communications Company Achieves 15–20% Lower Electricity Costs

The opportunity

A global satellite communications company sought greater budget stability and a more strategic approach to managing electricity costs.

The company had historically purchased electricity on variable rates, leaving its facilities exposed to changing market prices and making future energy expenses more difficult to predict. As the organization evaluated its energy strategy, it identified a need for greater cost certainty and more proactive management of its electricity portfolio.

Through OMNIA Partners, the company engaged Tradition Energy to evaluate available procurement opportunities and develop a strategy that could reduce market exposure while maintaining flexibility for future operational and energy efficiency initiatives.

Analysis

Tradition evaluated the company’s existing variable-rate structure and electricity requirements across key facilities. The analysis identified opportunities in Maryland and Illinois to transition to more predictable contract structures while capturing meaningful savings compared with the existing approach.

Tradition reviewed the company’s existing electricity purchasing strategy and assessed the financial impact of continued variable-rate exposure. Moving toward contracted pricing offered an opportunity to improve budget predictability while reducing exposure to market fluctuations.

Market analysis of the company’s Maryland and Illinois facilities revealed the potential for approximately 15–20% savings. Tradition used these findings to develop a procurement strategy designed to capture available savings while providing greater cost stability.

Tradition structured the agreements to accommodate potential projects that could reduce future electricity demand. This provided the company with flexibility to pursue efficiency and demand-reduction initiatives without undermining its broader procurement strategy.

The Result:
Lower Costs, Greater Budget Stability

15–20% In Projected Savings

Tradition identified opportunities to reduce electricity costs by approximately 15–20% at the company’s Maryland and Illinois facilities compared with its previous variable-rate approach.

24-Month Price Stability

Tradition procured 24-month electricity agreements for the eligible facilities, providing greater protection from market volatility and improving visibility into future energy budgets.

Flexible Energy Management

The procurement structure preserved flexibility for potential demand-reduction projects, while Tradition continues to manage upcoming renewals and identify opportunities to optimize the company’s energy strategy.

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Global Communications Company Achieves 15–20% Lower Electricity Costs