This American bank is one of the nation’s largest financial holding companies. With assets of $200 billion, the bank operates more than 1,700 retail branches and 2,500 ATMs. That much real estate translates to significant energy expenses.
Financial institutions are judged by their numbers, and decreased costs have a positive impact on the bottom line. This bank decided to improve its financial efficiency by focusing on its corporate-wide energy costs. They chose the experts at Cost Control Associates to help accomplish their goal.
The bank’s bill processing was centralized to one facility that processed 3,600 energy bills monthly and made payments to utility providers across 12 states. The bank’s management team wanted to perform a complete review of rate structures and tariffs but didn’t have the manpower to do it in house. In addition, certain geographic areas within the bank footprint were now deregulated, but the bank didn’t have the resources to structure an RFP process to identify possible procurement opportunities.
“We appreciated their direct help in releasing us from an unauthorized energy supplier arrangement.”
Cost Control Associates responded to the challenge with two of its signature cost savings programs. Through its Cost Recovery and Reduction program, they examined all of the bank’s energy bills. They reconstructed incomplete billing records by getting histories from the utility providers and created a master database of meter, usage and billing data for all 3,600 accounts. Cost Control identified 215 refund and savings opportunities. The bank approved them and were soon on their way to reach their goal of reduced energy expenditure. Because the work was performed on a contingency fee basis, payment was based on the refunds and cost savings produced.
Using its Energy Procurement program, Cost Control Associates helped the bank secure a new electricity supplier for its deregulated markets in Maryland and District of Columbia. As an added benefit, Cost Control worked with the bank to uncover “slamming activity,” the illegal practice of switching a customer’s utility provider to another without authorization. Cost Control was integral obtaining the bank’s release from an unauthorized energy supplier.
In the end, Cost Control Associates reduced first year energy expenses by more than $500,000 and established a new framework to allow the bank to better control their energy costs and take advantage of future procurement opportunities.
“Cost Control Associates reduced our energy costs by more than $500,000.”
Lisa Miller is marketing and communications manager for Cost Control Associates. She joined Cost Control Associates in 2015, bringing more than 25 years of experience in marketing and corporate communications to her position. Lisa earned her BA from Skidmore College. Learn more.