America's Leading Energy Consultant
The $850K "Impossible" Gas Rate Victory
The Challenge: Locked-In and Losing Money
A massive recycling facility consuming 3,000 MMBTU of natural gas daily was hemorrhaging money on distribution costs. Their previous energy consultants delivered the crushing verdict: "Your interstate distribution rates are locked in. Nothing can be done."
With propane backup systems costing even more, the facility faced an impossible choice: accept spiraling gas costs or shut down operations during peak pricing periods.
"We were told our gas rates were non-negotiable. We were looking at cutting production or closing the facility." - Plant Manager
The PSG Investigation: Finding the Loophole
While others accepted "impossible," we dove deep into interstate gas regulations and tariff structures. Our analysis uncovered something remarkable: an obscure delivery methodology provision that 99% of consultants never examine.
The discovery: Alternative delivery pathways with different rate structures - but only available to facilities meeting specific consumption and infrastructure criteria.
The twist: This facility's propane backup system actually qualified them for the alternative delivery method.
The "Impossible" Engineering Solution
The roadblock: Utility company claimed the alternative delivery method wasn't available in their region.
Our approach: Direct engagement with interstate pipeline operators and regulatory authorities, bypassing local utility limitations.
The breakthrough: Engineered a hybrid delivery system using existing infrastructure in a way the utility had never considered.
The Negotiation Battle
47 days of regulatory filings and pipeline negotiations
Direct intervention with interstate commerce authorities
Creative engineering of delivery methodology
Utility relationship leverage to overcome "impossible" barriers
The Results That Shocked Everyone
$850,000 annual savings (28% reduction)
Ongoing cost protection against future rate increases
Operational flexibility with optimized backup systems
Competitive advantage through lower energy costs
First year impact: Savings paid for facility expansion that created 40 new jobs
The Transformation
"PSG didn't just save us money - they saved our facility. We went from considering closure to planning expansion." - Plant Manager
The ripple effect: Lower energy costs allowed the facility to accept more recycling contracts, improving both profitability and environmental impact.
The Lesson
When energy consultants say "impossible," that's usually where the biggest opportunities hide. Complex regulations create loopholes that benefit those who know where to look.
Why This Case Matters:
Proves that "locked-in" rates often aren't actually locked
Shows how backup systems can become cost-saving assets
Demonstrates the power of regulatory expertise and relationships
Illustrates how energy savings can fund business growth
What "impossible" energy costs is your facility accepting?
