Case Study: Spectro Alloys

Spectro Alloys is a secondary aluminum recycler that melts and reformulates scrap aluminum into alloys used to make car parts and other components. Company officials were investigating ways to lower energy costs when they connected with ERS Utility Solutions. The connection has significantly lowered the company’s electric rates and demand charges—while improving the relationship with its electric utility!

PAIN POINTS & CHALLENGES

• Aluminum recycling is a very energy intensive business, and electricity and natural gas are major operating costs.
• Company officials were unfamiliar with utility rate models, tariffs, metering equipment and calculations behind each line item on their bills.
• Electric service to the older facility was not metered in a way that made sense for current operations.

ERS UTILITY SOLUTIONS

• Pinpointed opportunities to convert secondary electrical services to a more beneficial Time of Day rate
• Identified and filed a sales tax exemption for a recently added service
• Advocated for and helped Spectro Alloys secure conjunctive (combined) billing for electrical services on multiple meters to significantly reduce demand charges

OUTCOMES AND BENEFITS 

• $65,000 in one time credit from electric utility 
• $80,000 in annual ongoing savings from combined billing of electrical services
• $15,000+ in annual ongoing cost savings due to electric rate correction on two services
• $10,000 in annual ongoing cost savings for a sales tax correction
• Improved relationship and better service from electric utility

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BOTTOM LINE

Spectro Alloys is on pace to save more than $500,000 in utility costs over five years thanks to the work of ERS Utility Solutions! 

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