Optimizing Rate Structures to Save $80,000 Annually

A greenhouse operation in southern Ontario had been steadily expanding since its launch in 2020, increasing both production capacity and natural gas consumption. Greenhouses are a major contributor to the regional economy, but they’re also energy intensive and rely heavily on natural gas for heating and electricity for lighting. Most operations don’t have the time or in-house expertise to manage energy strategy on a daily basis, which is why many turn to independent, trusted advisors who aren’t tied to selling commodities or equipment.

As energy demands grew, the operation remained on a utility rate plan designed for smaller-volume users. While appropriate in the early stages, this rate structure became increasingly misaligned with the facility’s actual usage. Without intervention, the company risked continuing to overpay for gas delivery and services that no longer reflected its scale.

360 Energy, which manages natural gas procurement for the facility, conducted a detailed review of historical and projected consumption. Based on the data, 360 Energy identified that the operation had crossed the threshold where switching to a large-user rate structure (Rate 110) would be more cost-effective.

After collaborating with the utility and confirming eligibility, 360 Energy supported the client in selecting a new rate plan for the upcoming gas year.

• ‍Annual Savings: Over $80,000 in avoided fees‍
• Improved Rate Structure: Upgraded from Rate 6 to Rate 110‍
• Ongoing Flexibility: Greater customization and control over volume commitments and account planning
  

With this adjustment, the greenhouse now benefits from a rate structure that better matches its operational scale, improving cost predictability and supporting future growth.

‍