Building on the success of the recent energy efficiency infrastructure upgrades for lighting, controls and HVAC, Wyomissing Area School District engaged with Trane Energy Supply Services to review its current electricity supply contract.
Challenge
Wyomissing Area School District sought to capture energy supply cost savings as the next logical step in a broader energy plan. With its existing electricity supply contract nearing expiration, the district wished to lock in the best electricity rate possible. Additionally, moving from their current variable index contract to a fixed-price commodity contract would mitigate the risk of market fluctuations to establish budget certainty. Having previously purchased its electricity through a consortium, the district did not have experience with the energy procurement process, which includes dozens of electricity suppliers, the numerous variables involved and the various product types available.
Solution
Trane Energy Supply Services completed a thorough review of the district’s current electricity supply contract; the analysis included supply pricing components, existing product types and supplier mix. It was determined that the district’s objectives could be best achieved by using Trane® Energy Choice from the Trane Building Advantage® portfolio. The team’s extensive knowledge, energy market intelligence, and negotiation expertise helps organizations to competitively source and execute on an electricity supply product. The result of purchasing energy in this manner is that the organization limits its exposure to market conditions and the risks associated with aggregate purchasing through a consortium.
Selecting the right supplier
Drawing from 25 years of experience and a network of fully-vetted energy suppliers, Trane Energy Supply Services compiled a list of pre-qualified electricity providers. A Request for Proposal (RFP) was issued to obtain competitive pricing, products and contract terms. Through direct one-on-one negotiation with the energy suppliers, Trane captured the lowest price and contract terms that best fit the district’s needs. From this negotiation, the team was able to provide a comparative report which highlighted the differences among the suppliers’ offers. The report was used by the administration and school board to evaluate and select an energy supplier.
Results
Trane Energy Supply Services’ procurement process allowed the school district to select the supplier that would provide the best value based on their objectives. This resulted in the district saving 3.8 percent, or the equivalent of $6,300 a year. More importantly, the new three-year contract mitigates the risk of changing energy market conditions, helping to ensure budget certainty for the district. Additionally, the contract helps to lower energy costs due to a kWh price reduction, but also provides the opportunity to further drive costs down through strategic and guided efficiency measures. Trane Energy Supply Services continues to provide energy supply contract management support, monitoring the markets to help ensure the district is able to optimize energy supply savings now and in the future.
“Trane was knowledgeable about the electricity supply market and secure in that knowledge,” said Mark Boyer, Business Administrator, Wyomissing Area School District. "It was a good experience. The process, the bid tabulation, the key people who were brought in--all very professional. To do it on our own would have been a lot, and we didn’t have to do that. We were able to reduce our budget, and the savings was impactful."