Want to share a positive broker experience for once since we see so many horror stories here. Working with a consultant in Louisville who specializes in LG&E industrial accounts. They've been completely transparent about their process, showed us detailed rate comparisons, and only charge 20% of first-year savings. No long-term contracts, no hidden fees. Helped us identify $47,000 in annual savings by moving from Rate Schedule IS to FIS and optimizing our power factor. Sometimes the good guys do exist in this business.
Good broker relationship - worth sharing
Steve, that's refreshing to hear. Mind sharing their name? We've got some SMUD accounts here in Sacramento that could use legitimate help. Most brokers I've encountered want multi-year contracts and won't show their work. A transparent approach is exactly what this industry needs more of.
I'll PM you their info Jennifer. They work primarily in the Southeast but might have contacts in your area. The key thing that impressed me was they spent two hours explaining exactly how they calculated the savings, showed me the tariff language, and even helped me understand the billing determinants better. That's the kind of education-focused approach that builds trust.
Hey Steve, I'm also in Louisville - different firm but always looking for good broker relationships. LG&E industrial rates can be tricky and it sounds like they really know their stuff. The power factor optimization piece is often overlooked but can yield significant savings. Did they help with the actual correction equipment or just identify the opportunity?
Ray, they identified the opportunity and connected us with a qualified electrical contractor for the capacitor installation. Didn't try to sell us equipment directly which I appreciated. They stick to what they know best - rate analysis and utility negotiations. The $12,000 capacitor bank investment will pay for itself in 8 months based on the demand charge reductions alone.
This is exactly the kind of broker relationship we need more of in this industry. Here in Atlanta working with Georgia Power, I've seen too many consultants who promise everything and deliver nothing. Transparency and education should be the baseline, not the exception. Sounds like you found one of the good ones Steve.
Steve, this gives me hope. We've been burned by brokers here in St. Louis promising Ameren savings they couldn't deliver. The fact that they only charge on first-year savings and don't lock you into long contracts shows real confidence in their work. Most of the fly-by-night operations want guaranteed revenue streams because they know their 'savings' won't materialize.
Exactly Pam. The contract terms were a dead giveaway about their confidence level. They said if we're not seeing the promised savings after 12 months, we can walk away no questions asked. Compare that to the usual 3-5 year exclusive deals with escalating fees. It's night and day. Six months in and we're actually exceeding their projections by about 8%.
This thread should be required reading for anyone considering broker services. The red flags vs green flags are so clear when you lay them out like this. Here in Seattle, PSE has fairly straightforward industrial rates but I still see brokers trying to complicate things to justify their fees. Simple, transparent, results-focused - that's what we need.
Great thread Steve. Xcel Energy territory here in Denver and we've had similar positive experiences with regional brokers who really understand the local market. The national firms often apply cookie-cutter approaches that don't work well with our specific rate structures. Local expertise makes all the difference, especially when dealing with complex demand charges and time-of-use rates.
Update - Steve connected me with his broker and they've been fantastic. Just completed analysis on three of our LG&E accounts and found legitimate savings opportunities totaling $89,000 annually. Their approach is methodical, documented, and completely transparent. Finally found a broker worth recommending to other auditors.
This is why our industry forum is so valuable. Real recommendations from real professionals who've done the work. Too many of us waste time with questionable brokers when the good ones are out there if you know where to look. Thanks for sharing the positive experience Steve - we need more success stories like this.