• 7 min read
Commercial Electricity Savings: A 12-Month Playbook
This simple calendar gives commercial property owners a month-by-month plan to reduce electricity and natural gas costs. You’ll align procurement with market windows, right-size contract structures, and fix operational peaks that inflate demand charges—all without distracting your team from core operations.
Q1: Baseline, Budget, and Procurement Plan
January: Gather the last 12 months of bills and any interval data. Identify average usage, demand peaks, and seasonal patterns. Note contract expiration dates and create reminders at 120/90/60 days.
February: Define budget targets and risk tolerance. Decide what portion of your load should be fixed versus indexed. Establish a supplier RFP template for apples-to-apples comparisons.
March: Engage a commercial energy broker to test the market. Request multiple quotes on the same day and compare total landed costs across fixed, block-and-index, and index-plus options.
Q2: Execute and Eliminate Demand Waste
April: Lock contracts for meters expiring in the next 3–6 months if pricing hits your target band. Consider layering—secure part of expected usage now and retain flexibility for future dips.
May: Run a demand audit. Find overlapping equipment starts and shift flexible loads outside peak windows. Coordinate with operations to implement low-friction changes.
June: Validate the first bill under any new contract. Confirm rates, fees, and pass-throughs match the agreement. Correcting errors early prevents compounding costs.
Q3: Tune Portfolio and Prep for Winter
July: Review portfolio balance across fixed and indexed positions. For facilities with predictable baseload, consider adding fixed coverage; keep opportunistic exposure for variable loads.
August: For natural gas, evaluate basis and transportation components ahead of heating season. Explore seasonal blocks to pre-hedge a portion of expected winter usage.
September: Re-run supplier interest and refresh quotes if market conditions change. Maintain competitive pressure on renewals.
Q4: Renew, Report, and Plan
October: If renewals are within 90–120 days, run a fresh RFP. Don’t rely on auto-renewals or single-supplier offers.
November: Publish a short energy cost report: savings achieved, demand reductions, and lessons learned. This builds organizational support for next year’s plan.
December: Set pricing triggers and calendar reminders for the next cycle. Update targets based on budget guidance and market outlook.
Keys to Success
- Create competition among suppliers with standardized quotes.
- Match contract structure to your load profile, not the other way around.
- Attack demand peaks—small changes can lower capacity and transmission charges.
- Use reminders and triggers to time decisions without guessing market bottoms.
For more detail on the mechanics, read What to Know Before Switching Commercial Energy Providers and the broader strategy in Cut Energy Costs in 2025.
Keywords: commercial electricity savings, reduce business electric bill, energy rate quotes commercial property, lower natural gas rates for businesses.