Manufacturer Achieves 48% Reduction in Electricity Costs

The opportunity

A global outdoor products manufacturer sought to address rising electricity costs and improve budget predictability at its Texas facility.

The facility had experienced steep increases in electricity costs, creating a need for meaningful savings and greater control over future energy expenses. The client recognized an opportunity to reassess its existing procurement strategy and identify a more effective approach to managing costs and market exposure.

Following the initial engagement, Tradition Energy conducted a complimentary review of the client’s electricity procurement approach. The analysis identified immediate opportunities for improvement and provided a path toward reducing costs, strengthening budget certainty, and establishing a more strategic approach to electricity purchasing.

Tradition’s invoice review found the client had rolled into a month-to-month variable supply rate after its prior agreement expired—resulting in nearly double the cost for electricity supply.

This post-contract pricing structure gave the incumbent supplier flexibility to embed higher margins, limiting transparency into the true cost of power.

Tradition recommended moving quickly to a competitive sourcing event with Tier 1 suppliers to secure the earliest available contract start and restore pricing stability.

The Result:
Turning Market Competition into Savings

Competitive Evaluation

Tradition guided the client through a competitive evaluation of Tier 1 supplier proposals to identify the most favorable pricing and contract terms.

Strategy Implementation

A long-term procurement strategy was implemented to stabilize energy budgets and reduce exposure to future market volatility.

Thousands In Cost Savings

The strategy is projected to reduce electricity costs by approximately 48%, delivering an estimated $240,000 in savings over the contract term.

Client Testimonials

The Energy Advisors we work directly with at Tradition are excellent partners. They have significantly helped us improve our energy procurement practices over the past year.

Category Manager,
Manufacturer

Tradition Energy has done a fabulous job helping us mitigate post-contractual rate issues and identify renewal agreements aimed at operating expense savings and responsible rate management.

Procurement Manager,
Auto Part Manufacturer

Our Energy Advisor always goes above and beyond when communicating with us, ensuring information is shared clearly and in a timely manner. Solid and valuable recommendations are consistently provided by her. Additionally, their leadership team has introduced us to an incredible connection, affording us the benefit of their network and market knowledge. We are collectively grateful for the relationship and business with Tradition Energy!

Vice President of Finance,
Manufacturer

Looking back at this year’s accomplishments for our facility, it’s impressive to see the tremendous value Tradition has delivered. Thanks to your efforts, we’ve eliminated taxes, reduced electricity costs compared to our previous contract, and leveraged legislative credits, with past and future tax recoveries totaling over $300,000. Your team’s dedication and expertise are invaluable, and I truly appreciate all that Tradition has done for us. Keep up the great work – together, we’re on an exciting path of growth!

Sr. Mgr. of Environment & Sustainability,
Manufacturer

My Energy Advisor has particularly been a great resource and advisor for us in making our decisions.

Vice President,
Chemical Manufacturing Company

My Energy Advisor has taken the time to educate me over the years which helps in our analysis.

CFO,
Automobile Company

I personally would use him again down the road. He allowed me to do my role but was always available and responsive. When I had questions, he gave excellent technical support and documentation. He was persistent but not overly aggressive. To me, the perfect balance in an advisor role for an organization like ours.

Purchasing Manager,
Industrial Manufacturing Facility

Tradition Energy has an excellent team supporting us along with your supporting staff. I’ve NEVER been unable to reach one or both of my primary contacts immediately. The level of customer support daily, along with firepower for my executive presentations, has been TOP NOTCH. Keep up the good work!

Senior Manager of Environment & Sustainability, Americas,
Materials Testing Company

Tradition has cemented itself among the premier energy consultants operating in the market. Our team has been in a unique position to watch Tradition Energy’s growth within the retail energy industry since its entrance a few years ago, and in this short time, it has cemented itself among the premier energy consultants operating in the market. In our most recent survey, Tradition was listed as a top three channel partner by over 20% of retailer respondents, representing the unique position Tradition has carved out among an already crowded field.

Head of Department,
Retail Energy Consulting Firm

We have engaged Tradition Energy for the past 5 years. They have provided a non-complicated format which enabled us to negotiate our electrical needs. Last year they assisted us with our gas agreement. The experience has been exceptional and has benefited our company in reductions for two major costs within our facility. Their level of expertise and knowledge has been a proven advantage with their daily market updates in the energy sector. We have found that the market reports for the futures have been very much on the mark and consistent with short term predictions and long term predictions. The level of professionalism, responsibility, and care for a customer go well beyond what we had received with previous providers. They are a full service oriented company. I would gladly recommend them to anyone entertaining pricing in the energy markets.

General Manager,
Steel Manufacturer