Learn how one facilities director has used The Megawatt Hour to improve cost control and to support and reinforce decisions he’s made. Mark Gordon, Director of Facilities at Collegiate School, uses all the information that he can access to ensure long term, stable, predictable costs.

Before MWh

Before we worked with The Megawatt Hour, we bought power the way most organizations do, without a forward looking view and without insights that were specifically targeted to us. We didn’t know whether we had made a good decision or not. I didn’t think that there was any objective way to evaluate how we were doing, so I tried dealing directly with suppliers. I also used a broker. I also looked at NYMEX information and used whatever information resources I could cobble together to inform our decision making process. None of it was transparent.

What tactics did you try before you started using MWh? What were the results?

We tried using a broker, we tried doing this by ourselves and working directly with suppliers. We are not energy experts, although we learned a lot by doing research. I had to do all the work to get piecemeal information. I knew I needed better information, information that I could trust.

The other issue I had was that I was constantly getting calls about energy. I can’t count the number of voice mails and phone calls that I receive on a weekly basis from people in the energy industry promising savings, or claiming that their approach was the best. I kept thinking, there has to be a better way.

Experience Using The Megawatt Hour…

Why did you decide to try MWh?

I had known the principals from The Megawatt Hour from back when they started Juice Energy, which was a supplier that was built around the concept of transparency. We were considering a new contract. The prices that I got from suppliers seemed reasonable, but I wasn’t sure. I decided I needed real pricing information. When I got re-introduced to The Megawatt Hour, I thought, “finally I can validate the information that I receive from suppliers with arms-length, un-biased information”.

What are the top 3 features you love about MWh? Why do you love them?

1. We love that there is an actual pricing model in the software. We know what the price of electricity is supposed to be.
2. Forward-looking view. I don’t like to make decisions at the last minute. I know that if I wait, my options become more limited, and we become a price taker. The Megawatt Hour allows us the ability to identify buying opportunities 3, 6, 12 months before our contract term is up. That’s power. We’ve used The Megawatt Hour to blend a current contract down when the market falls; we’ve used The Megawatt Hour to sign a new contract well in advance of our contract end so that we can continuously manage and lower our costs.
3. We love that we can track how we’re doing compared to a benchmark. It all gives me peace of mind.

Your Results With MWh

What specific problems has MWh addressed that other Facilities Directors at Schools might be able to relate to?

Energy costs always used to feel out of control. With The Megawatt Hour, we have continuously managed and even lowered our energy costs over time. I know, because I receive management and finance reports that compare how we’re doing to relevant benchmarks, like Con Edison’s market supply charge.

Did you experience any direct “big win” business results for your company because of the MWh?

I just gave a presentation to my boss on how we’ve done on energy costs over the last 3 years. I was able to show that we’ve saved over 20% on electricity costs compared to the utility tariff. Our goal when we signed our fixed price contract, and then when we extended it, was to get reliable, predictable, budget-able costs. We knew thanks to The Megawatt Hour that it was a good time to buy, but we didn’t know for sure how much money we would save. It has been very gratifying to know that the money we saved on electricity could go to other School needs.

The Megawatt Hour makes it simple and easy to act on market movements and plan ahead. We have found that this process leads to savings.

What is the single biggest reason you would recommend MWh?

The transparency and trust I get from The Megawatt Hour reinforces my decision making process. With The MWh, I receive reports that demonstrate the positive impact I’ve made at the School.