Utility Rate Negotiation
Luthin Associates’ analysis revealed that a major NYC medical center could substantially reduce electricity costs by switching from low tension to high tension rates. Such a change could only be accomplished by negotiating with the local Utility. Despite the fact that a previously available tariff provision had been eliminated, Luthin Associates negotiated terms with the Utility which allowed the client to become qualified under the previous tariff conditions. Working closely with the client, we successfully negotiated the rate switch and transfer of equipment ownership with the utility and managed the process from the inception. The negotiation included a requirement that the client purchase transformers and other equipment. The customer is now saving $300,000 per year on electric costs. With a project cost of $670,000, this resulted in a 2.2-year payback.