Case Study

Arkansas State University Utilizes OMNIA Partners and Tradition Energy to Eliminate Long-Term Cost Increases

Arkansas State University Utilizes OMNIA Partners and Tradition Energy to Eliminate Long-Term Cost Increases

The opportunity

Arkansas State University sought to introduce supplier competition, secure favorable natural gas pricing, and protect its budget from future cost increases.

Arkansas State University (ASU), the second-largest university in Arkansas, had historically purchased its natural gas supply from the same energy supplier. Without evaluating alternative suppliers, the University lacked the competitive pricing opportunities available through a broader procurement process.

Through its participation with OMNIA Partners, ASU gained access to Tradition Energy’s procurement expertise and competitive supplier network. The University sought to evaluate alternative natural gas suppliers, secure favorable contract terms, and establish a more strategic approach to managing long-term energy costs.

Analysis

Tradition Energy evaluated ASU’s procurement practices, introduced market intelligence, and developed a competitive sourcing strategy to secure long-term price protection.

Tradition Energy conducted a comprehensive review of ASU’s historical natural gas procurement practices, revealing that the University had never solicited pricing from the broader supplier market. By relying on a single supplier, ASU had limited its ability to generate competition and evaluate more favorable rates and contract terms.

Tradition also identified an opportunity to strengthen ASU’s purchasing strategy through wholesale market research and intelligence. By providing insights into historical and projected natural gas prices, market fundamentals, and potential price movements, Tradition helped the University develop a forward-looking procurement strategy aligned with its financial objectives.

With the strategy established, Tradition’s Sourcing and Pricing Team issued a competitive Request for Proposal (RFP) to all natural gas suppliers serving Northeast Arkansas. Recognizing ASU’s preference for budget certainty, Tradition focused on securing a fixed-rate agreement that included all costs, protecting the University from future price increases and unexpected pass-through charges.

The Result:
Competitive Pricing, Long-Term Savings

Competitive Natural Gas Pricing

Tradition Energy introduced competition among natural gas suppliers serving Northeast Arkansas, enabling ASU to evaluate multiple offers and secure competitive natural gas rates and favorable contract terms through a comprehensive procurement process.

Five Years of Budget Protection

Through a fixed-rate natural gas agreement with all costs included, Tradition helped ASU secure long-term price stability, preventing natural gas budget increases for the next five years while protecting against unexpected pass-through costs and future market volatility.

Additional $10,000 Savings

Beyond securing competitive natural gas pricing, Tradition negotiated a payment plan for an outstanding natural gas bill, saving Arkansas State University an additional $10,000 and delivering financial value beyond the procurement agreement.

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For decades, organizations have trusted Tradition Energy to navigate increasingly complex energy markets. As the nation’s largest independent energy procurement and sustainability solutions advisor, we bring clients resources, market reach, and transaction activity other advisors cannot replicate.

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Arkansas State University Utilizes OMNIA Partners and Tradition Energy to Eliminate Long-Term Cost Increases