Case Study

$54,000 in Annual Energy Savings in Just Two Weeks

$54,000 in Annual Energy Savings in Just Two Weeks

The opportunity

A private equity firm sought to reduce energy expenses for a Rhode Island-based packaging manufacturer that had historically relied on a single supplier.

In October 2026, a private equity firm engaged Tradition Energy to evaluate electricity and natural gas costs for one of its portfolio companies, a Rhode Island-based manufacturer specializing in custom corrugated packaging solutions. The manufacturer had historically purchased natural gas from a single supplier that also coordinated its electricity procurement.

Without a broader competitive sourcing process, the company had limited visibility into alternative suppliers, pricing structures, and potential cost-saving opportunities. With both electricity and natural gas contracts expiring in November 2026, the private equity sponsor sought to identify immediate savings and establish a more strategic approach to managing the portfolio company’s energy expenses.

Analysis

Tradition Energy evaluated the manufacturer’s existing supply arrangements, identified overlooked procurement alternatives, and introduced supplier competition within a two-week timeframe.

Tradition met with the portfolio company’s senior leadership to understand its energy requirements, current supplier relationships, and cost-management objectives. The review revealed an opportunity to evaluate returning to utility natural gas supply through Rhode Island Energy, subject to capacity assignment and eligibility requirements. This alternative had not previously been presented by the incumbent supplier.

Recognizing the limited time before the existing contracts expired, Tradition’s Sourcing and Pricing Team immediately solicited competitive electricity and natural gas offers from qualified suppliers serving the Rhode Island market, including the incumbent.

For natural gas, Tradition recommended a 12-month fixed-price agreement to capture immediate savings while continuing to investigate the potential benefits of returning to utility supply in the future. For electricity, Tradition expanded the competitive sourcing process beyond the limited supplier options previously presented to the manufacturer.

The Result:
$54,000 in Annual Energy Savings in Just Two Weeks

8% Natural Gas Savings

By introducing supplier competition for the first time, Tradition identified approximately 8% in natural gas savings, equivalent to $32,000 annually, compared with the pricing previously offered directly to the portfolio company. The recommended 12-month fixed-price agreement provided near-term cost certainty while allowing future supply alternatives to be evaluated.

4.3% Electricity Savings

Despite rising electricity market prices, Tradition’s competitive procurement process identified an additional 4.3% in savings, or approximately $22,000 annually, compared with the offers previously presented through the incumbent supplier relationship. Broader market participation gave the manufacturer access to more competitive pricing and contract options.

$54,000 in Combined Annual Savings

Within just two weeks, Tradition identified approximately $54,000 in combined annual electricity and natural gas savings for the private equity-owned manufacturer. Beyond the immediate financial benefits, the engagement established a more competitive and transparent procurement approach, demonstrating how independent energy expertise can help private equity sponsors uncover operating expense reductions and improve cost management across their portfolio companies.

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,000 in Annual Energy Savings in Just Two Weeks