A New Jersey based healthcare leader, providing excellent personalized care to more than half a million patients in Southern New Jersey every year. Founded in 1887, they have over 700 doctors specializing in more than 75 areas.
Originally, they were a part of a cooperative buying group. The group lacked the ability to address their unique needs and did not create an effective energy management program for their extensive meter set (100 electricity meters and 50 gas meters). The buying group’s mismanagement wasted valuable company resources.
The healthcare provider wanted to, instead, partner with an energy management company that would create tailor-made solutions that addressed their goals.
In order to develop an effective energy management strategy for them, Incite Energy analyzed their energy profile. During the process, Incite found that many meters were not under contract, there were contracts with different start and end dates, employees spent 15 hours a month managing energy invoices, and they were paying high rates.
The healthcare provider’s old energy contracts did not address their electricity usage needs. Previously, they ran the risk of paying penalty charges based on how much energy they used above or below how much they were contracted for. Since Incite was able to negotiate a full swing agreement for all of their contacts, there was no limit to the amount of energy they could use above or below the expected amount they are contracted for. Thus, they would no longer face penalties related to their energy usage.
With their future growth in mind, Incite developed a cost effective way to add and delete meters from their contracts due to hospital, urgent care ,and private practice acquisitions. Incite Energy negotiated a 10% add/delete clause allowing them to add new meters at the low contracted energy rate and cancel meters without a penalty.
By aggregating all of their meters and working with retail energy providers (REP’s), Incite negotiated a strategy that allowed them to have a co-terminus end date on all of their meters, reduced time spent on utility management by 70%, and saved the healthcare provider $1.7 million on energy bills (an average of $57,310.74 per month) with lower electricity rates over the length of their new contracts.
Energy Procurement, RFP Management, Risk Management, Market Data, Data Management, Bill Auditing, Monthly Reporting