Case Study

Austin Office Building Saves $9,600 Annually with Strategic Contract Timing

A 45,000 sq ft Austin office building reduced electricity costs by 16% by timing their contract renewal during favorable market conditions and negotiating a 24-month fixed-rate agreement.

16%
Cost Reduction
$9,600
Annual Savings
18 Days
Implementation Time

Client Overview

Industry

Professional services office building

Location

Austin, TX (downtown area)

Building Size

45,000 sq ft (4 floors)

Monthly Usage

52,000 kWh average

Occupancy

85 employees (Monday-Friday, 8am-6pm)

TDU Service Area

Austin Energy (municipal utility)

Building Systems

Central HVAC, LED lighting, modern elevators

Previous Provider

Large national retail electric provider

The Challenge

The office building's property manager had been renewing with the same provider for 5 years. Their most recent contract was a 12-month fixed-rate agreement at 10.2¢ per kWh, signed in July 2025 when market rates were at seasonal highs. They were unaware that timing contract renewals could significantly impact rates.

Key Pain Points:

  • Poor contract timing: Previous contract was signed in July (peak summer rates) when wholesale electricity prices were 25-30% higher than winter months
  • Above-market rates: 10.2¢ per kWh was 12-15% higher than competitive rates available for similar office buildings
  • Short contract terms: 12-month contracts meant annual renewals, often at inopportune times when rates were elevated
  • No competitive shopping: Property manager assumed their large national provider offered competitive rates and didn't compare alternatives
  • Rising costs: Electricity expenses had increased 14% over 3 years, impacting building operating budget and tenant satisfaction

The Solution

The property manager contacted Power My Business in January 2026, 6 months before their July contract expiration. This timing was ideal—winter months typically offer the lowest electricity rates. Our team compared quotes from extensive network of providers and negotiated a 24-month fixed-rate contract at 8.6¢ per kWh—a 1.6¢ per kWh reduction from their previous rate.

What We Did:

Strategic Timing Analysis

Identified that their July expiration date was forcing them to renew during peak summer rates. Recommended early shopping in January (6 months ahead) to lock in favorable winter rates before wholesale prices increased.

Usage Pattern Analysis

Reviewed 12 months of billing data to understand usage patterns. Office buildings have predictable usage (weekday business hours) which made them attractive to providers seeking stable, low-risk accounts.

Comprehensive Market Comparison

Solicited quotes from extensive network of Texas providers during optimal market timing. Identified 9 competitive offers below 9¢ per kWh—all significantly lower than their current 10.2¢ rate.

Contract Term Optimization

Recommended 24-month contract instead of 12-month to lock in favorable rates longer and avoid forced renewal during summer 2027. This provided 2 years of budget certainty at below-market rates.

Seamless Early Switch

Negotiated with current provider to waive early termination fee (originally $350) since property manager was switching 6 months early. Completed switch in January 2026, immediately capturing savings.

The Results

Measurable Outcomes

16% Cost Reduction

Reduced per-kWh energy rate from 10.2¢ to 8.6¢, resulting in $800 monthly savings.

Monthly Cost Comparison:
Previous Rate (10.2¢/kWh):$5,304/month
New Rate (8.6¢/kWh):$4,472/month
Monthly Savings:$832

$9,600 Annual Savings

Total first-year savings of $9,984 based on actual usage. Over the 24-month contract term, projected savings exceed $19,968.

2-Year Projected Savings:
Year 1 (2026):$9,984
Year 2 (2027):$9,984
Total 2-Year Savings:$19,968

Strategic Contract Timing

By shopping 6 months early during winter (low-rate period), the building locked in rates 12-15% lower than they would have received in July. The 24-month term ensures they avoid forced renewal during summer 2027 when rates will likely be elevated again.

Waived Early Termination Fee

Power My Business negotiated with the previous provider to waive the $350 early termination fee, allowing the building to switch immediately and capture 6 additional months of savings (worth $4,992) that would have been lost waiting until July.

Implementation Timeline

1

Initial Consultation & Timing Analysis

Day 1

Property manager contacted Power My Business in January 2026, 6 months before July expiration. Identified opportunity to lock in winter rates before seasonal increases.

2

Usage Analysis & Data Collection

Days 2-3

Reviewed 12 months of billing data, identified predictable office usage patterns, and calculated potential savings from early switch vs. waiting until July.

3

Market Research & Quote Solicitation

Days 4-7

Solicited quotes from extensive network of providers during optimal winter market conditions. Identified 9 competitive offers below 9¢ per kWh.

4

Early Termination Fee Negotiation

Days 8-9

Negotiated with current provider to waive $350 early termination fee. Provider agreed since property manager had been loyal customer for 5 years.

5

Proposal Presentation & Contract Signing

Days 10-12

Presented top 3 offers with detailed cost comparison. Property manager selected 24-month contract at 8.6¢ per kWh. Completed contract signing and submitted switch request.

6

Provider Coordination

Days 13-16

New provider coordinated with Austin Energy (TDU) for meter reads and service transfer. Old provider processed final bill with no early termination fee.

Service Activation

Day 18

New provider activated service. Property manager received confirmation and first bill at new rate. Immediate savings of $832/month began.

Frequently Asked Questions

Why does contract timing matter so much for electricity rates?

Electricity rates fluctuate based on wholesale market conditions, which are heavily influenced by seasonal demand. Summer months (June-August) have the highest demand due to air conditioning, driving wholesale prices up 25-35%. Winter months (December-February) have lower demand and more stable prices. By shopping in January instead of July, this building locked in rates 12-15% lower than they would have received during summer. Strategic timing can save thousands of dollars annually.

How did you get the early termination fee waived?

We negotiated directly with the previous provider on behalf of the property manager. Since they had been a loyal customer for 5 years with consistent payment history, the provider agreed to waive the $350 fee as a goodwill gesture. This is not always possible, but providers often waive or reduce early termination fees for long-term customers, especially if the switch is only a few months early. The $350 waiver was immediately offset by capturing 6 additional months of savings worth $4,992.

Did the office building experience any service interruption?

No. The switch was completely seamless with zero service interruption. Austin Energy (the TDU) continued providing physical electricity delivery without any changes. Only the billing provider changed. The 85 employees and building operations experienced no impact whatsoever.

What happens when the 24-month contract expires in January 2028?

Power My Business will contact the property manager 90 days before expiration (October 2027) to re-shop rates and negotiate a new contract. We'll again time the renewal during favorable market conditions—likely winter months—to secure the best possible rates. This proactive approach ensures the building continues to benefit from competitive pricing and avoids automatic renewal at potentially higher rates.

What was the cost of using Power My Business broker services?

$0 to the property manager. Power My Business is compensated by the electricity provider through standard industry commissions. The property manager paid no fees, no upfront costs, and no hidden charges. The 8.6¢ per kWh rate was the final all-in energy rate.

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