A 125,000 sq ft Houston distribution warehouse reduced electricity costs by 22% through broker-negotiated rates and demand charge optimization, saving $31,800 in the first year.
Distribution & logistics warehouse
Houston, TX (northwest suburbs)
125,000 sq ft warehouse with office space
98,000 kWh average
285 kW (summer months)
CenterPoint Energy
24/7 operations (3 shifts)
Mid-tier retail electric provider
The warehouse had been with the same provider for 4 years on a 24-month fixed-rate contract at 10.9¢ per kWh plus significant demand charges. Their contract included a demand ratchet clause that penalized them for peak usage, resulting in consistently high bills even during lower-usage months.
The warehouse operations manager contacted Power My Business 60 days before contract expiration. Our team analyzed 24 months of billing data, identified the demand ratchet issue, and negotiated a 36-month fixed-rate contract at 8.5¢ per kWh with no demand ratchet clause—a 2.4¢ per kWh reduction plus elimination of punitive demand charges.
Reviewed 24 months of billing data to identify usage patterns, peak demand periods, and the financial impact of the demand ratchet clause. Discovered the ratchet was costing $8,400/year in unnecessary charges.
Solicited quotes from extensive network of Texas providers, specifically requesting contracts without demand ratchet clauses. Identified 6 competitive offers below 9¢ per kWh with favorable demand charge structures.
Negotiated with top 3 providers to secure best possible rates and eliminate demand ratchet clause. Final contract: 36-month fixed rate at 8.5¢ per kWh with straightforward demand charges based on actual monthly peak (no ratchet).
Provided facility manager with demand monitoring recommendations and operational strategies to reduce peak demand by 10-15% through equipment scheduling and load management.
Managed entire switching process including paperwork, coordination with CenterPoint Energy (TDU), and meter reads. No operational disruption to 24/7 warehouse operations.
Reduced per-kWh energy rate from 10.9¢ to 8.5¢ (22% reduction) plus eliminated demand ratchet clause, resulting in $2,650 monthly savings.
Total first-year savings of $31,800 based on actual usage. Over the 36-month contract term, projected savings exceed $95,400.
Elimination of demand ratchet clause reduced monthly bill variance from $3,300 to less than $800. Operations manager can now accurately forecast electricity costs within 5% accuracy, improving overall budget management.
Switch completed in 28 days with no service interruption to 24/7 warehouse operations. No changes to equipment, no staff training required, and no impact on logistics operations.
Operations manager contacted Power My Business 60 days before contract expiration. Provided 24 months of billing data and facility details.
Analyzed usage patterns, peak demand periods, and identified demand ratchet clause costing $8,400/year. Created detailed demand profile and cost breakdown.
Solicited quotes from extensive network of providers, specifically requesting contracts without demand ratchet clauses. Identified 6 competitive offers below 9¢ per kWh.
Presented top 3 offers with detailed cost comparison. Negotiated final terms with selected provider: 36-month contract at 8.5¢ per kWh with no demand ratchet.
Reviewed Electricity Facts Label (EFL) with operations manager, completed contract signing, and submitted switch request to new provider.
New provider coordinated with CenterPoint Energy (TDU) for meter reads and service transfer. Old provider processed final bill. No action required from warehouse operations.
New provider activated service. Operations manager received confirmation and first bill at new rate. Immediate savings of $2,650/month began.
A demand ratchet clause requires you to pay for a percentage (typically 70-80%) of your highest peak demand every month, even if your actual demand is lower. For example, if your peak demand in July is 300 kW, you'll pay for at least 240 kW every month for the next 11 months—even if your actual demand in October is only 180 kW. This clause cost the warehouse $8,400/year in unnecessary charges. Our new contract eliminated this clause entirely.
No. The switch was completely seamless with zero service interruption. CenterPoint Energy (the TDU) continued providing physical electricity delivery without any changes. Only the billing provider changed. The warehouse's 3-shift operations continued uninterrupted throughout the entire switching process.
We provided the operations manager with demand monitoring recommendations including: (1) staggering equipment startup times to avoid simultaneous peak loads, (2) scheduling high-energy tasks (forklift charging, HVAC cycling) during off-peak hours, and (3) installing demand monitoring software to track real-time usage. Implementing these strategies could reduce peak demand by 10-15%, saving an additional $3,000-4,500/year.
$0 to the warehouse. Power My Business is compensated by the electricity provider through standard industry commissions. The warehouse paid no fees, no upfront costs, and no hidden charges. The 8.5¢ per kWh rate was the final all-in energy rate.
Yes. The 8.5¢ per kWh energy rate is locked in for the entire 36-month contract term regardless of market conditions. The only variable costs are TDU delivery charges (set by CenterPoint Energy) which typically change less than 2-3% annually. As long as usage remains consistent, the warehouse will save approximately $31,800 annually for 3 years.
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