A small bakery submitted utility natural gas invoices in response to Reliable Energy’s bill assessment program offered through the Michigan Restaurant & Lodging Association.
Our initial evaluation of utility invoices for this bakery uncovered the following issues:
- The utility was charging sales tax at 100%. (gas used for manufacturing is exempt)
- The utility was passing through an undefined variable supply rate that was ~15% higher than it would have been with proper oversight.
At the customer’s direction, Reliable Energy facilitated the following account changes:
- Tax exemption paperwork was filed with the utility including a directive to refund amounts previously collected.
- The utility was directed to move the account to a flat supply rate with no exposure to market volatility.
With Reliable Energy’s assistance, the following results were achieved:
- Refunded sales tax collected in the amount of ~$10,000.
- Supply charges on their utility invoice were reduced by ~$1,500/yr vs previously charged amounts.
- Fixed supply rates provided budget certainty for future billing periods.