Milk Plant rate changed - costs reduced $300,000 per year ongoing.
The Full Story - The largest savings opportunity required UCM to revise electric company tariff language.
UCM was retained by the nation’s largest processor of milk and dairy products to evaluate utility costs at more than 80 facilities across the United States. UCM made dozens of billing changes that reduced costs by several hundred thousand dollars, but the largest opportunity required UCM to revise electric company tariff language.
UCM compared the way one state's major electric utilities classified milk processing facilities, and found inconsistencies that resulted in UCM’s client paying significantly more for electricity than competitors in other parts of the state. UCM also identified language from prior Public Service Commission decisions that strongly suggested regulators approved of the milk production facilities receiving the lower rate designation.
Through the utility company’s “General Rate Case” process, UCM explained the rationale for its position and provided ample evidence of how changing the utility’s regulations to make them consistent throughout the state was sound public policy. UCM’s position was adopted, the tariff language was changed, and UCM’s client reduced electricity costs by more than $300,000 per year.