Expense Management Firm Completes Two Year Study of Electric Utility Rate Changes
May 25, 2004
Cincinnati, OH – May 25, 2004 – Upon completion of a two year study of utility rate structures from utility suppliers throughout the United States, Cincinnati based Cadence Network, Inc. discovered which utility providers are delivering the best rates to businesses. The results of the study allow Cadence experts to pinpoint ways to help clients secure better rates, more accurately budget for utility cost increases, and to proactively identify the best areas to invest capital dollars that mitigate these fluctuations.
“Overall, we have found that our clients have seen significant increases in the cost to supply electricity to their stores. Prices just keep going up and up, but there are savings out there if you know what to look for,” says Joseph Falci, Manager of Rate Analysis. “The study also shows our clients the specific utilities where they are taking the biggest hits, which allows them to be proactive in choosing which suppliers to do business with in a deregulated market, or which utilities they need to ask about a better plan.”
This study found that on average, 80 percent of a retailers’ energy spend is generated through only 30 percent of its vendors. Knowing that even minor changes with these top vendors could account for major cost fluctuations, proper management of these vendors allows Cadence experts to better prioritize corporate spend.
Some other key findings from the study include: · Of the top vendors, 25 percent have posted 10 - 30 percent rate increases in the last two years. · Half of those same vendors have posted rate increases of 2 - 9 percent in the last two years. · There were no rate decreases for any of the remaining top 30 percent of vendors.
Cadence president and CEO Jeffrey Hart said that Cadence clients have found this new research quite enlightening, because it provides a clear explanation as to why energy costs have been increasing.
“Instead of relying on conjecture about weather patterns and gas prices, and taking a broad stroke in hopes save unknown dollars, our clients can address issues specifically where they exist and apply capital improvement dollars where they will get the best return on investment,” Hart explained. “This may include lighting retrofits, heating and air conditioning upgrades, energy management system implementations, or simply educational pieces that improve the conservation initiatives of their employees.”
About Cadence:
Cadence Network, Inc., is an expense management firm that delivers comprehensive expense management solutions for chain store and multiple site businesses in the banking, restaurant, retail, and grocery industries. The people and products of Cadence allow successful businesses to monitor and manage the third largest costs of doing business – electric, gas, water, sewer, trash, lease and telecommunications. The solutions designed are customized to address the unique business requirements of companies with many sites and many departments managing many vendors across many geographically dispersed locations. Cadence offers accounts payable outsourcing, web based software applications and professional services.
CONTACTS
Cadence Network Contact: Ben Dolan, Cadence Network, Inc. 866-CADENCE (866.223.3623) bdolan@cadencenetwork.com