Case Study

Indianapolis Hotel Reduces Natural Gas Costs by Approximately $25,000 Annually

Indianapolis Hotel Reduces Natural Gas Costs by Approximately $25,000 Annually

The opportunity

A large Indianapolis hotel faced rising utility budgets and significant monthly fluctuations in its natural gas costs.

A large hotel in downtown Indianapolis was experiencing significant month-to-month fluctuations in its natural gas unit costs, contributing to increasing utility budgets and making energy expenses more difficult to predict.

Tradition Energy proposed a comprehensive review of more than 12 months of the hotel’s electricity, natural gas, and water and sewer invoices. The analysis would identify potential billing and rate optimization opportunities while also evaluating whether competitive natural gas purchasing could provide additional value.

Analysis

Tradition identified a more favorable natural gas tariff and an opportunity to transition the hotel to competitive natural gas supply.

Tradition analyzed the hotel’s utility invoices, consumption patterns, and applicable utility rate schedules. The review confirmed that its electric accounts were on the appropriate rate schedules, although low power factor was contributing to higher monthly charges. Water and sewer billings were also reviewed and determined to be correct.

For natural gas, Tradition determined that much of the hotel’s monthly cost volatility was being driven by Citizens Energy’s Normal Temperature Adjustment Rider, which can result in charges or credits depending on heating-season temperatures. More importantly, the analysis found that the hotel’s consistent year-round natural gas usage qualified it for Citizens Energy’s D5 distribution rate rather than its existing D4 rate.

Tradition worked with the hotel and Citizens Energy to transition the account from the D4 to the D5 rate. Because the D5 rate required competitive natural gas supply, Tradition also conducted an RFP among suppliers and facilitated a new commodity supply agreement on the hotel’s behalf.

The Result:
Lower Costs, Reduced Volatility

Approximately $25,000 in Annual Savings

Tradition’s tariff analysis identified an opportunity to move the hotel from the D4 to D5 natural gas distribution rate. The change was projected togenerate approximately $25,000 in annual cost savings, providing a meaningful reduction in the hotel’s overall energy spend.

Greater Natural Gas Cost Stability

By identifying the source of the hotel’s natural gas cost fluctuations and transitioning the account to a more appropriate rate structure and competitive supply arrangement, Tradition developed a strategy expected to reduce monthly volatility in natural gas unit costs.

Competitive Supply Strategy

The hotel’s consistent natural gas load made it well suited for competitive commodity purchasing. Tradition conducted an RFP among natural gas suppliers and facilitated a competitive supply agreement, giving the hotel a more strategic approach to managing its natural gas procurement.

Client Testimonials

Our Energy Advsior is a true asset to Tradition Energy and her professionalism and knowledge of the industry are nothing short of the best!

Staff Accountant,
Regional School District

The energy advisors I have the pleasure to work with go above and beyond. They provide great insight and support, constantly. Most notably, they assisted me at great lengths prior to an energy agreement being reached and that support has only improved since our agreement was finalized.

Energy Manager,
Public School District

My energy advisor does a fantastic job. Seven years ago I think I was Tradition’s smallest customer with an annual load of 25,000 kWh, but my energy advisor treated me like a big customer. Now we are working on a 4 million kWh load in my latest position.

School Business Administrator,
Public School District

Whether you have a full-time Energy Manager on staff, or not, a collaboration with Tradition Energy will prove to be beneficial. Their team of energy experts has the knowledge and research capability to assist your organization in maximizing utility cost savings.  They operate with a “partnership” approach and we’ve partnered with Tradition Energy since 2008 and it’s one of the best financial decisions our district has made! I highly recommend you give them an opportunity to show how they can enhance your bottom line.

Executive Director of Business Services,
Public School District

My Tradition Energy advisor is responsive and understands our objectives. The process is transparent.  There are no surprises and we always know what we will be paying.  I appreciate the frequent market updates.

CFO,
Private School Facility

By aligning with Tradition Energy and their wholesale energy expertise, we have consistently made more effective and timely procurement decisions for our facility.

Director of Facilities,
University

Our Energy Advsior is a true asset to Tradition Energy and her professionalism and knowledge of the industry are nothing short of the best!

Staff Accountant,
Regional School District

The energy advisors I have the pleasure to work with go above and beyond. They provide great insight and support, constantly. Most notably, they assisted me at great lengths prior to an energy agreement being reached and that support has only improved since our agreement was finalized.

Energy Manager,
Public School District

My energy advisor does a fantastic job. Seven years ago I think I was Tradition’s smallest customer with an annual load of 25,000 kWh, but my energy advisor treated me like a big customer. Now we are working on a 4 million kWh load in my latest position.

School Business Administrator,
Public School District

Whether you have a full-time Energy Manager on staff, or not, a collaboration with Tradition Energy will prove to be beneficial. Their team of energy experts has the knowledge and research capability to assist your organization in maximizing utility cost savings.  They operate with a “partnership” approach and we’ve partnered with Tradition Energy since 2008 and it’s one of the best financial decisions our district has made! I highly recommend you give them an opportunity to show how they can enhance your bottom line.

Executive Director of Business Services,
Public School District

My Tradition Energy advisor is responsive and understands our objectives. The process is transparent.  There are no surprises and we always know what we will be paying.  I appreciate the frequent market updates.

CFO,
Private School Facility

By aligning with Tradition Energy and their wholesale energy expertise, we have consistently made more effective and timely procurement decisions for our facility.

Director of Facilities,
University

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Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Hospitality Operator Saves $250,000+ Annually Through Strategic Energy Procurement

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Urban Air Locations Reduce Annual Energy Costs by Nearly 10%

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Hotel’s Portfolio-Wide Energy Strategy Improves Costs and Budget Stability

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Pebblebrook Hotel Trust Achieves $3 Million+ in Annual Energy Savings

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

SNHU Energy Review Identifies Immediate, Zero-Cost Natural Gas Savings

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Apple Hospitality Avoids $20,000 Fee and Reduces Natural Gas Costs

Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually

Hospitality Operator Saves $250,000+ Annually Through Strategic Energy Procurement

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Indianapolis Hotel Reduces Natural Gas Costs by Approximately ,000 Annually