Electricity Deregulation Market Update

     Changing electricity opportunities are available to your members.  During the past decade, the primary benefit of electricity deregulation for your members has been the opportunity to identify and take advantage of competitive pricing options.  In the $250 billion electric industry, a deregulated market separates the supply component from the transmission, distribution, servicing, and administration of electricity, allowing a business to negotiate with new suppliers to lower its cost of electricity.  This is done while the business remains with its incumbent utility for distribution services.  As electricity deregulation matures, opportunities continue to change.
     One decision your members face is choosing a fixed rate or a variable rate.  With electricity deregulation maturing, APPI believes that the ability to secure a fixed price, that is, choosing a fixed rate over a variable rate, is a prudent path for most businesses.  
     With a variable rate, businesses experience cost fluctuations from month to month.  The rate paid by the business will increase or decrease each month by varying amounts.  Historically, the electricity market experiences its highest rates in winter and summer, with lower rates available in the spring and fall.  While on a variable rate, there is no price continuity, and no guarantee of the next month’s rate.  Cost fluctuations can be difficult to manage and even more difficult to budget for most businesses.  
     In order to reduce the effects of market volatility on your members’ businesses, APPI can negotiate fixed rate pricing.  Fixed rates allow a business to guarantee the price that will be paid every month for the duration of the supply contract; there is no rate increase or decrease from month to month.  When operating with a fixed rate, businesses are unaffected by variable rates and market price changes.  Furthermore, if a fixed rate is secured, budgeting can be done with a high degree of accuracy, resulting in simplified account management for the business owner.
     As we all know, energy prices have consistently risen over the past several years.  As the price increase trend continues, it is prudent to consider a supply contract that will provide price certainty.  
     APPI has negotiated fixed rate electricity supply contracts for thousands of industrial, commercial, and retail businesses in many states across the U.S. since 1995.  Why not put APPI’s experienced staff and market savvy to work for your business?  
     If you would like more information or a copy of this article for distribution to your members, please contact Mandi Krack at 800-520-6685 or mkrack@appienergy.com. 

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 Members Benefit from the Savings Solutions Program

Success Story:
Read the TADA Association profile below to see how one association’s members have benefited from APPI’s Savings Solutions Program.  Your members could also be reducing energy costs and saving millions of dollars. 

Reducing Costs: How TADA Members are Benefiting from the Savings Solutions Program

TADA Association Profile

The Texas Automobile Dealers Association has sponsored APPI’s electricity and audit consulting services to its members since 2001.  APPI has successfully helped almost 200 members across the state lower costs.

“APPI audited the association headquarters’ utility bills.  TADA’s telecommunications contract had an auto-renewal clause.  The contract renewed for three years and included a minimum monthly spend of $2,500.  Many services were redundant and unnecessary due to changes in TADA’s business.  APPI reduced the term of the contract to two years, reduced the monthly minimum to $700 and removed unwanted lines and services.  Total savings will be $40,000 over two years.”
      - Bill Wolters, President of Texas Automobile Dealers Association

TADA Energy Procurement Savings In 2002, more than 100 TADA members benefited from APPI’s energy procurement service, saving more than $1.2 million.*   In 2003, the savings for TADA members increased another $2.1 million.* In 2004 and 2005, APPI negotiated millions of dollars* more in savings for TADA members.   * Savings are realized over the term of the agreement.  Term lengths vary.

Many members have also taken advantage of the utility audit service that identifies errors and savings in utility bills.  Members of TADA have utilized the utility audit to reduce monthly expenses of water, telecommunications, waste removal, recycling, and freight bills.  Collectively, TADA members have saved hundreds of thousands of dollars through APPI’s utility audit.

"Forrest AutoPark worked with APPI in reference to the TADA/APPI Utility Audit Service and the dealership saved over $6,500 in one month alone. Projected savings are over $40,000 over a two-year period. Even more important, however, is the way APPI continues to monitor my entire network of suppliers to ensure billing integrity. Another great aspect of the service is how little time and effort it required on my part, and it was a completely free analysis. All I had to do was photocopy the billing information and APPI did the rest! This is a quick and easy way to save money and add to the bottom line."
- David Moore, Fixed Operations Manager of Forrest Chevrolet

Please call 800-520-6685 to learn more about the APPI Savings Solutions Program.

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 APPI Welcomes New Personnel

APPI is pleased to announce that Ms. Mandi Krack has joined the company as its new Business Development Manager.  Mandi comes to APPI from the MBA program at the Perdue School of Business of Salisbury University.  She has experience working with for profit and non-profit entities.  Mandi's primary responsibility is to work closely with association management to increase member participation in the APPI Savings Solutions Program.  You can reach Mandi at 800-520-6685 or mkrack@appienergy.com.

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 Get Connected: Increasing Member Participation in APPI’s Savings Solutions Program

Do your APPI quarterly reports show satisfactory program activity?  Do you feel that your members are knowledgeable about what the Savings Solutions program has to offer?  If either of your answers is “no,” it’s time to take the next step to increase member participation in the APPI Savings Solutions program.

The APPI Savings Solutions Program was formed with the goals of providing a valuable benefit to your members, increasing non-dues revenue, retaining current members, and recruiting new members.  The APPI program can benefit your association in many ways.

Your members can lower costs and increase their bottom line with little effort and no upfront fees.  It makes good business sense for them to take advantage of the APPI program.  If your members are not utilizing APPI’s service, we need to change how the program is marketed to your members.

Please contact Mandi Krack at 800-520-6685 to discuss how APPI can improve its marketing efforts with your association members.  

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 APPI web address change for Information Request Form

REMINDER:

APPI recently made upgrades to its web hosting program. The APPI website link is still the same at www.appienergy.com. However, the NEW IP address for the secured Information Request Form for members to send to APPI is now - https://66.216.127.102/appienergy/form.htm. Please notify your webmaster about this change.

Contact APPI with questions at 800-520-6685.
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