Wanted to share a positive broker experience since we see a lot of horror stories here. Worked with a broker last year to optimize our Alabama Power accounts across three manufacturing facilities in Huntsville. Our annual spend was around $890K and we were on standard Rate LPL (Large Power and Light). The broker identified we qualified for Alabama Power's Economic Development rate schedule and helped us restructure our demand management. End result: $47K in annual savings with a one-time broker fee of $12K. Sometimes they actually deliver!
Success story: Broker saved us $47K annually with Alabama Power
That's a solid ROI Albert! What convinced you this broker was legit vs all the questionable ones out there? I'm curious about your vetting process since we're considering similar help here in Washington with Avista territory.
Larry - few things stood out. First, they were upfront about their fee structure (flat fee, not ongoing percentage). Second, they provided references from three similar-sized Alabama Power customers I could actually call. Third, they spent two days on-site understanding our operations before making any recommendations. Most importantly, they showed me the math on Alabama Power's website tariff sheets so I could verify everything myself.
The on-site visit is a great sign. Too many brokers try to work just from bill copies without understanding the operational context. Albert, did they help with the actual application process for the Economic Development rate or just identify the opportunity?
Scott - they handled the entire application process. Economic Development rates require proving job creation/retention commitments and the broker helped structure our application to meet Alabama Power's criteria. They also coordinated with our local economic development authority for additional documentation. Saved us weeks of back-and-forth with Alabama Power.
That's comprehensive service Albert. Mind sharing what the demand management piece involved? Always curious about practical applications since load management is often the biggest opportunity for large users.
Jan - the demand piece was actually straightforward but something we'd never considered. We had three facilities with separate meters but similar production schedules. The broker helped us stagger our major equipment startup times across sites to reduce coincident peak demand during Alabama Power's 4-hour summer peak window. Dropped our system-wide demand charges by about $18K annually with just operational changes.
Smart approach on the demand management. Albert, how are you tracking the actual savings vs the broker's projections? I always worry about the gap between projected and realized savings.
Larry - great question. We're 8 months into the new rate schedule and tracking about 94% of projected savings. The slight difference is due to higher than expected production volumes (good problem to have). The broker provided an Excel model that updates with our actual usage data so we can track performance monthly. Very transparent process.
94% realization is excellent. Most energy projects I've seen come in around 80-85% of projections. Albert, would you mind sharing the broker's name? I have some colleagues in Alabama who might benefit from similar analysis.
Scott - I'll send you their contact info privately. Don't want to turn this into advertising but happy to share with AAUBA members who might benefit. They specialize in southeastern utilities and seem to really know the Alabama Power territory well.
Albert, one more question if you don't mind. Did the broker provide any ongoing monitoring or was it a one-time engagement? I'm always curious about the long-term relationship aspect.
Jan - it was structured as a one-time project with optional ongoing monitoring for an additional annual fee. We opted for quarterly check-ins at $2K per quarter to track performance and watch for new opportunities. So far it's been worth it - they caught a billing error last quarter that saved us another $3K.
Albert - thanks for sharing this success story. It's refreshing to hear about brokers who actually deliver measurable results with transparent processes. The combination of rate optimization AND operational demand management is exactly the kind of comprehensive approach that creates real value. Your experience should give others confidence that good brokers do exist - you just have to know how to find them.