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Case study · Small business

The $17,500-a-year increase that never arrived.

A Main Street professional-services firm in Lewisville was months from rolling onto the local market rate. This is the math that was waiting for them — and the contract that beat it.

500,000 kWh
Annual usage, one Lewisville site
$17,500/yr
Increase avoided by fixing the rate
20–35%
Savings vs market drift over the term
The story

Situation → exposure → structure → result

  1. 1

    The situation

    A professional-services firm a few blocks from our own office in Lewisville, using roughly 500,000 kWh a year across one site. Energy had never been anyone’s job: the contract auto-renewed, the bills got paid, and nobody looked at the rate.

  2. 2

    The exposure

    Their legacy rate was around 8.0¢/kWh — about $40,000 a year. But the local market for office and professional businesses had drifted to roughly 11.5¢/kWh, and the contract was months from expiring into it. Same usage, same building: $57,500 a year. That’s a $17,500 increase just for standing still — multiplied over 3–5 years, a margin killer.

  3. 3

    What UPG did

    We ran their bill through a free Energy Health Check: TDSP delivery charges reviewed, renewal window mapped, usage profiled. Then we priced the load across our supplier panel and locked a multi-year fixed rate well below the drifting market rate — timed to start the day the old contract ended, so no early termination fee was triggered.

  4. 4

    The result

    The $17,500-a-year cliff never arrived. The firm budgets one known energy number for the life of the term — 20–35% below where market drift was taking them — with no seasonal guesswork, no equipment, no site work, and renewal alerts already scheduled for next time.

The math

What standing still would have cost

$40,000/yr
Energy spend on the legacy rate
500,000 kWh at roughly 8.0¢/kWh.
$57,500/yr
Spend at the drifting market rate
The same usage at the local 11.5¢/kWh average.
$52,500–$87,500
The cliff over 3–5 years
What unhedged energy was set to take off the bottom line.

Unhedged energy is a margin killer precisely because nothing visibly breaks — the business just quietly pays more every month. Fixing the rate turned the energy line back into a number the firm chooses, not one the market assigns.

About this case study

Fix now. Save long. No infrastructure required.

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