California Grocery Chain Overcomes Gas Pricing Volatility and Locks in a 76% Price Reduction Worth $3.5 Million Per Year
Client
Super Center Concepts Inc. operates one of the largest independently-owned grocery supercenter chains in the greater Los Angeles metropolitan area, with more than 40 outlets under the Superior Grocery name.
Challenge
Gas rates in California experienced a significant surge during the period spanning 2022 and early 2023. The utility’s supply rates exhibited extreme volatility, leading to monthly increases in our client’s bills—making it difficult to predict and manage their overall costs. At the peak of the price hike, the utility charged as much as $3 per therm. (In January 2022, observed rates were $.83569, but by January 2023, they had risen to $3.44892)
Solution
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Utilize CCA’s Energy Procurement Services to help Superior Grocery better manage their natural gas spending and empower them to better manage their business. CCA provided detailed market information and access to its parent company, SIB, to uncover additional opportunities for cost savings.
Result
Cost Control Associates sources energy in deregulated marketing for electricity and gas by leveraging buying power and managing volatility in energy markets.
During February 2023, the expenses for utility supply totaled $381,500. We secured a fixed price and reduced their monthly cost by 76% to $89,400. Considering utility prices tend to fluctuate monthly, our client can potentially save $3.5 million by maintaining this level of savings for a full year.
CCA Services
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Joe Scicutella is an energy procurement analyst for Cost Control Associates. He helps his clients obtain energy supply at the optimal price. He keeps his thumb on the pulse of the energy marketplace by monitoring supply, providing insights, working with suppliers to obtain pricing and negotiate contracts. Joe currently manages more than $2.5 billion in total client annual spend and has saved his clients more than $2.8mm on costs since July 2019. Learn more.