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This regional grocery chain operates more than 230 stores and more than a dozen fuel centers across seven states and Washington, DC. Because keeping shelves stocked is critical to success, the company also owns several distribution centers. Managing an extensive retail operation with 30,000 employees puts pressure on the bottom line. A large share of the company’s annual expenses are utility costs. 

The Challenge

Prior to being acquired by a much larger publicly traded grocery company, the management team contracted with a well-known energy management company to provide a full utility expense solution.

The company agreed to process and pay utility bills, analyze data, and regularly look at invoice details to make sure charges are correct and rates are optimal. But things were not going smoothly, and management suspected more could be done to manage their energy costs.

The acquiring company suggested that its new acquisition invite Cost Control Associates to take a second look at their energy expenses. Cost Control Associates performed its analysis work on a contingency basis, so there would be no costs unless refunds and savings were produced.

“Our current energy bill payer didn’t inspire confidence, and we thought more could be done to contain our energy costs. We asked Cost Control Associates to take a second look.”

The Solution

The experienced analysis team at Cost Control Associates is always ready to show what it can do, especially when another provider is failing to do the job well. With an average tenure of 14 years, Cost Control’s analysts are well-versed in the potential pitfalls of utility costs. They know where to look for savings opportunities, and they leave no stone unturned.

Cost Control Associates offered its Energy Cost Recovery and Reduction program for a complete review of electricity, natural gas and water/sewer charges. They used their proprietary software and a unique “team analysis” approach. Among the findings were a misread meter resulting in a $5,232 refund and a wrong meter multiplier resulting in a refund of more than $15,000!

When they were done, Cost Control Associates identified about $21,000 in refunds and $120,000 in ongoing cost savings.

“Cost Control Associates found close to $141,000 in refunds and cost savings that our current service provider had not!”

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