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Energy / utilities

Utility costs—electricity, gas, heating oil, water and increasingly phone and internet service—are among the most critical, yet volatile, of indirect spend categories. Businesses in healthcare, manufacturing, distribution and other sectors that have multiple, widespread facilities with challenging operational demands are especially sensitive to energy and other utility market fluctuations.

Regulations constrain business energy options

Limited suppliers and a patchwork of federal, state and local government rules and practices add to the spend management complexity of utility costs. While deregulation has been advancing across the United States, with Texas going the furthest at about 85% of the state, energy remains regulated to some degree in all 50 states.

Partially regulatedSome states with partially-deregulated gas and/or electricity markets

  • California
  • Colorado
  • Illinois
  • Michigan
  • New Jersey
  • New York
  • Ohio
  • Texas

Some states with fully-regulated gas and electricity markets

  • Arizona
  • Minnesota
  • North Carolina
  • South Carolina
  • Washington
  • Wisconsin

How companies can save on energy costs

Unless all your expenses are in Texas, your regulatory environment may constrain your ability to reduce energy costs through competitive bidding. Yet other tactics and strategies are available no matter where you operate. The spend management consultants at LAC Group are available to explore and assess all your options, including the following:

  • Audit and benchmarking of energy consumption patterns across all locations.
  • Assessment of current rate structures and terms across all locations.
  • Energy-saving strategies to reduce overall heating, cooling and lighting expenses.
  • Identification and implementation of “green” tactics and initiatives.
  • Collaboration with plant and facility managers for ways to consolidate and share ideas and best practices for energy savings.

Can we help you control your utility costs?

Assessing utilization patterns, identifying available options to help you choose the right one, guiding contract negotiations and management for terms and conditions, invoicing accuracy, renewals and other key performance indicators—these are a few of the ways we can fulfill your MRO procurement and cost-saving needs.

As a leader in managed services, consider LAC Group your partner and guide. Working with the staff and systems you have in place, our programs and services are structured on a spectrum that ranges from “help us manage” to “manage for us”, with any level in-between based on your needs and circumstances.

Let us know your operational and financial concerns and we’ll let you know how we can help you manage and reduce your company’s expenses for energy and other utilities.