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Sales Training for: Utility and telecommunications analysis, energy procurement.
Natural Gas • Electricity • Telecom/IT • Procurement Learning how to reduce expenses and capture refunds.
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Our Guiding Principle conserve first. then generate.™
Audit Your Building(s)
Audit Your Bills 1
2 Offer Solutions 3 Access Capital 4
5
Promote Your Efforts
1
We Audit Your Bills
We employ systematic account review, audit, and analysis of your electric, gas, water, sewer, phone, IT, and wireless bills. We also provide energy procurement.
2
We Audit Your Building(s)
We assess your building(s) to understand the current level of energy efficiency.
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We Offer Viable Solutions
Through deploying the auditing process, we’re able to make economically viable recommendations to reduce your fixed energy costs.
4
We Provide Access to Capital
Lease purchasing, bank financing, federal tax incentives, state/ utility rebates, and energy cost reductions help provide the means to integrate energy-saving solutions.
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We Promote Our Clients
Incremental change leads to transformational change. We promote and leverage our clients’ progressive sustainability efforts to enhance their brand image.
1
We Audit Your Bills
Eliminating Billing Uncertainty. Conservation starts with wiping the slate clean.
We find billing errors/savings 98% of the time.
The severity of the
errors is the unknown. In today’s marketplace, companies, organizations and government entities can’t afford to waste money in needless ways. And, the blatant reality is that billing errors are at an all-time high. Furthermore, it’s interesting, and rather odd, that the billing errors we find happen to be 90%+ of the time in favor of the provider. A comprehensive energy and telecom bill audit leads to maximum expense reduction or containment. We have successfully audited more than 10,000 utility and telecom accounts nationwide. In 2008 alone, we managed over $325m in energy spending. Because we work for you and not the utility companies or government, your bottom line results are our only focus.
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UtiliTech,INC. Utility & Telecommunication Analysis
Dennis Rowan Focused on energy efficiency and energy savings, Dennis Rowan has worked with municipalities and corporations implementing renewable energy installations, utility bill audits, energy procurement and efficient technologies. In 1988 Dennis Rowan produced a documentary on sustainability and living off the grid during his MFA work at Temple University. While a producer director for Backyard Productions he produced several business to business and end user marketing programs in the energy field. Dennis is passionate about sustainability. As Product Leader for UtiliTech energy procurement and utility bill services Dennis brings ‘shared savings’ into a dynamic suite of energy savings products with Princeton Green. Dennis is a kayaker, movie buff and avid tennis player. He is very excited to lead the Princeton Green UtiliTech team.
Who is UtiliTech? UtiliTech,
Inc. is an independent, veteran owned utility and telecom/IT expense management firm. We help financial decision makers to minimize utility and telecom/IT expenses by applying our thorough knowledge of utility rates, tariffs, regulations, billing procedures, contract negotiations, and related technologies. Since 1991, organizations in all industries have relied on our technical expertise, objective advice, and turnkey outsourcing options to curb utility and telecom/IT overspending and return those dollars to their “bottom line�. UtiliTech offers flexible engagement options from "shared savings" to pure retainer to fit the customer preferences of Fortune 500s, small and mid-sized organizations.
Why UtiliTech? Maximum Expense Reduction • • • •
Proven process with more than 10,000 account locations audited across the US since 1991. 98% success rate in "Full Audit" of companies with more than 200 employees. Consistently high levels of savings and refunds in industries like health-care, manufacturing, financial services, government and education. More effective than in-house reviews and requires minimal staff time.
In-Depth Utility and Telecom/IT Experience • • • • •
Currently managing hundreds of millions in annual utility and telecom/IT expenses. Many UtiliTech directors and analysts are previous utility employees with insider knowledge. Single source for experts in Telecom/IT, Electricity, Natural Gas and Water/ Sewer. Auditing process and automation software that ensure successful results. Technology consultants average 30 years of experience solving business problems through the effective implementation of technology.
Low Risk Engagement Options • • • •
Engagement options range from "shared savings" to pure retainer to fit the customer preferences of Fortune 500s, small, or mid-sized organizations. Defined scope fixed fee engagements provide customers with control, accountability, and results! Customer maintains control and chooses only savings opportunities that fit their business. We handle the details so customer's staff time involvement is minimal.
UtiliTech Markets The Clients Utility Bills Should Exceed $15,000/ month
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education financial services health care manufacturing government non-profit retail more than 2000 audits
Just a few of our many satisfied clients… Healthcare
Government
“The audit was completed in a timely and thorough manner, and resulted in considerable savings.” …“I have never encountered a company which placed a higher emphasis on ethical conduct.” Thomas Jefferson University Hospital
Manufacturing
Education
“…the county has saved $131,518 through April…an amount that does not go unnoticed by the county controller. Saving that much money, that’s savings for the taxpayers, that is something we’ve got to do.” New Era
Financial
Retail
"I just wanted to let you know how much we appreciated UtiliTech's help in getting us through our telecom transition and our major project to select a new VOIP/PBX vendor. UtiliTech was instrumental in not only finding the right product but a vendor with a similar service philosophy as our own. " Dennis Detwiler Senior Vice President Harleysville National Bank
Perfect fit with our existing PG technologies Audit Your Building(s)
Audit Your Bills 1
2 Offer Solutions 3 Access Capital 4
5
Promote Your Efforts
What we do Bill Auditing & Energy Procurement 1. Obtain refunds and secure savings on electricity and gas. 2.Stop Throwing Profits Down the Drain by Managing Water/Sewer Costs 3.Curtail Telecom/IT Costs 4.Effectively Manage Your Wireless Device Costs 5.Capture the Best Rates for Electricity Generation In Deregulated States
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UtiliTech,INC. Utility & Telecommunication Analysis
Bill auditing “We are performance-based in that we get paid through securing savings for you. If we don’t save, we don’t get paid. This demonstrates our confidence.” Steve Bobick President, UtiliTech
Since 1991 UtiliTech has: Performed audits for over 2,000 clients across the US o Analyzed over $300,000,000 in electric invoice costs o Analyzed over $250,000,000 in natural gas and oil costs o Analyzed over $325,000,000 in telecom invoice costs Our audits have identified over $80,000,000 in refunds and savings opportunities While there is no guarantee of savings, NO SAVINGS = NO COST Historical results o 98% success rate of all audits performed without any exclusions offered significant savings o 83% of audits result in savings and /or refunds of at least 5% (annualized) o 54% of audits result in savings and/or refunds of at least 10% (annualized) o 25% of audits result in savings and/or refunds in excess of 15% (annualized)
Energy Procurement To date, UtiliTech has managed over $500,000,000 in energy procurement for clients across the US
The Audit Process
1 2 3 4
Discussion
We take the time to understand the challenges facing your business.
Agreement
You choose the agreement that’s right for you. Options range from shared savings to retainer agreements.
Start-Up Kit
Our start-up kit gives you the information you need and the authority we need to get started.
Analysis
We’ll review your bills and utility tariffs to uncover errors and discover your usage patterns.
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Executive Presentation
6
Program Management
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Measurable Savings
Our Executive Overview provides sound recommendations and action items that will save you money. UtiliTech will assign a partner to insure that you maintain long-term cost-savings. Our process gives you measurable cost savings. You’ll reduce spending and improve your bottom line.
1
Discussion
1. Listen to there challenges 2. Offer a no risk solution 3. Share case studies 4. Minimum requirements 5. Voice your long term commitment 6. Obtain signed contracts and get audit started
Minimal Time Required for Client Staff Our Goal is to keep your staff time involvement to a minimum. You maintain control, but we do the work and handle the details. • Collect and copy invoices • Analyze bills and present opportunities • Implement and manage approved changes • Monitor invoices to ensure accuracy
98% Success Rate
Our likelihood of identifying savings opportunities is above 98% when we audit at least three major utilities (Telecom, Electric, and Natural Gas) for a company with more than 200 employees.
Commonly Asked Questions on the Bill Audit Services Agreement (BASA) What if my usage decreases and as a result my bills are lower? Your payment to UtiliTech will also decrease because the fee is based on a percentage of the actual savings experienced (fluctuates with actual usage). What if my usage increases as a normal course of business? Your payment to UtiliTech will also increase because the fee is based on a percentage of the actual savings experienced (fluctuates with actual usage). What if UtiliTech’s recommendations no longer apply, do we still pay? No. The key here is that if there are no savings, there is no fee. Why a two-year term? It is fair. Major competitors have 3-year and 5 year contracts and some with retainer fees. Our term is only one year so that if the client does not want to continue to engage UtiliTech they are free to discontinue the agreement. However the payment obligations continue for the remainder of the 24-month payment plan. We have found this to be a good length of time to establish a partnership. Many of our customers are into their third and forth renewal agreements. Under our contingency philosophy this is fair and satisfies our cost of doing business with a profit. What if you picked up an error that occurred only once? That would mean a one-time payment to UtiliTech for that issue. If you get us a refund, is it regarded as future savings as well? It depends. Many refunds involve one-time issues (see Question #5) and you pay only once. However, if an issue exists on current bills and was undetected on previous bills that would warrant a fee for the refund and a fee for stopping the error from going forward. Are your rates negotiable? The Agreement has built-in discounts to reduce payment percentages. This allows customers with larger savings to keep a larger percentage of refunds and savings going forward. One-time and Monthly Fee-based engagements are available if a customer is not willing to consider contingency. Minimum for fee-based agreements begin around $20,000.
Handling Objections in the Sales Process Question: We have staff that handles this internally. Answer: You have staff that is already doing this? That is great! You are one step ahead. UtiliTech has done this for more than 2000 customers. Maybe with a fresh outlook we can catch some things that might be falling through the cracks. It won’t cost you anything to find out. Question:
I just signed a new telecommunications agreement and I’m getting great rates.
Answer: Oh, you just signed a new agreement and for the size of your company you “should” be getting good rates. However, there is more to a telecommunications analysis than just “Getting great rates”. UtiliTech will check for errors and inefficiencies and make sure that you are getting the rates you signed for and that they are competitive. Question:
I have an outside consultant looking at my bills.
Answer: Are you under contract with the consultant? If the answer is NO you can proceed with the following. That is amazing that you should say that. One of UtiliTech’s largest customers had an outside consultant doing the same thing. Since it doesn’t cost you anything, how about if we see how well the consultant is really performing? We are paid on performance! Is your consultant paid a fee? Our experience has been that consultants are being paid a fee even if they aren’t saving you money. Not the case with UtiliTech. If the answer is YES we say that we respect that agreement and may we call you when that agreement expires? Question:
I know what you do has value, but I am just too busy with issues.
Answer: I can tell you are a busy person with many obligations. Wouldn’t it be beneficial to have extra staff that could accomplish an analysis without your help and time? (Hopefully YES) The time commitment from you would be to help us collect bill copies and then spend about 1 hour going over UtiliTech’s recommendations. UtiliTech will implement all the changes that you approve, saving you both TIME and MONEY. You will just start seeing lower bills and be able to focus your time on other tasks. Question:
I don’t mind you finding refunds but I don’t want this going into the future.
Answer: I can understand your concern, but some of the issues that we uncover might not be the fault of your vendors and would go undetected forever. Wouldn’t you want to share in the savings for 2 years rather than overpay forever?
2
Agreement
Required contracts & information.
1. letter of Agreement (LOA) 2. Bill Auditing Service Agreement (BASA) 3. Energy Procurement signed 4. Three months IT bills (copies) 5. One year of Utility Bills (copies) 6. Six weeks of back office. 7. Prepare findings
Blanket LOA for Utilities & Telecom May 13, 2010 Attention: All public utility companies (electric & gas), deregulated energy suppliers (electricity and gas), government entities, long distance companies, local telephone companies, and telephone equipment and hardware providers. UtiliTech, Inc., 3020 Penn Avenue, West Lawn, PA 19609 is hereby engaged and authorized to act as agent and consultant for us in all matters pertinent to any and all of our accounts and dealings with your company. Any information requested by UtiliTech should be mailed, e-mailed or faxed directly to their address. Your company is authorized and requested to respond to UtiliTech in all matters pertaining to our accounts and dealings with your company. We request that you provide UtiliTech with billing records, equipment records, service records, or any additional information requested by UtiliTech. UtiliTech also has the authority to initiate orders and modify the services you are providing to us. This authorization is valid through May 13, 2012. Thank you for your cooperation. Signature: Name: Title:
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Start-Up Kit
1.Contract Information 2.Copy of all signed agreements 3.Contact names and numbers at UtiliTech and PrincetonGreen.org 4.Overview of the process
4
Analysis
The Actual Audit Using expert telecom and energy proprietary software, physical line item review and discussions with vendors, UtiliTech uncovers savings and refunds.
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Executive Presentation We present the results of the audit and research to the client for their approval
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Program Management
Making the Authorized Changes Monitoring Ongoing Savings
We make the ‘client authorized changes and obtain refunds and credits
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Measurable Savings
UtiliTech obtains all refunds
& implements the changes which then produce future savings.
Bill Auditing Process Review UtiliTech
Client
The Process
Collect Data
Provide Access to Documents
Collect Copies of Invoices and Contracts • 3 Months of Telecom • 12 months of Gas & Electric • Signed Letter of Authorization (LOA)
Analysis of Invoices and Contracts • Telecom – Long Dist. / Local / Circuits / WAN / Internet / Wireless • Energy – Tariffs / Meters / Demand / Consolidation • Focus on specific areas of client
Perform Analysis
Present Findings
Meeting to Present Findings
UtiliTech Implements the Opportunities • Apply for Refunds, Tariff Changes, etc. • Correct Billing Errors , Disconnect Unused Accounts, etc. • Manage Carrier Changes, Consolidation, Contract Negotiations
Implement
Share Savings & Monitor
Presentation of Findings (POF) • All Key Client Decision Makers Involved • Summary of Savings / Refund Opportunities – Detailed Backup • Client Approves Execution of Findings
Realize $aving$!
UtiliTech Continues to Work for the Client • Validate & DocumentSavings – Invoice Client • Monitor Bills Monthly & ID New Opportunities • Update Clients on Energy & Telecom Markets
End of the Bill Audit Section
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UtiliTech,INC. Utility & Telecommunication Analysis
Procurement
Let UtiliTech help you achieve your energy goals!
A Team With Extensive Experience • More than 80 years of energy industry knowledge on staff • 40 plus years of experience in energy deregulation and procurement • Full-time energy market price monitoring and analysis • Understanding tariffs & regulatory implications • Extensive experience with energy supplier contract language and pricing options • Extensive experience with all types of business, nonprofits, government agencies and education institutions •Proven ability to deliver bottom line results!
Why Work With UtiliTech for Energy Procurement? 1) Pricing competition
a. We bring value to the table by researching and knowing each supplier, their service offerings, strengths and weaknesses. b. Our competitive negotiation process makes suppliers compete for the business based on best price and terms.
2) Knowing the utilities and commodity markets
a. We participate in energy industry organizations, events, and seminars to stay current with market developments, technologies, and trends. b. We monitor all energy commodities on an hourly basis, which include occasional minute by minute transactions.
3) Market timing
a. We gather all information involving energy fundamentals, forecasting, and any various elements which come into play periodically and seasonally. This timing process helps us to notify our clients of potential market opportunities, whenever permitted.
4) Contract review
a. We review all contract language and alert our clients of any potential problems and recommend changes as appropriate. b. We compare and translate contract language from multiple suppliers so that customers can more easily understand and compare “apples to apples”. c. We work on our client’s behalf, to implement any changes specifically requested by our clients
5) Follow up process after contract implementation
a. We work with our clients to resolve any billing errors made by the utility or supplier throughout each agreement, as one of our included consulting services. b. We track and manage all contracts and expiration dates. We are always looking for the right time to renegotiate or possibly extend a contract in order to keep costs in check long-term. Waiting to shop or renegotiate until a contract is near its end can result in the loss of significant leverage.
6) Professional Energy Consulting Firm
a. Performing energy procurement services is one of UtiliTech’s core competencies. We have been in this business for 19 years and will continue to be here for our customers. b. Working with a professional firm eliminates the dependency on one staff member. Even if our customers could hire someone with the industry experience, what happens when that person moves on?
c. UtiliTech’s staff of analysts and consultants has over 100 years of energy industry experience.
Procurement Overview 1. We are Energy advisors 2. We are licensed energy brokers. 3. We get the best prices. 4. We may offer below list price on energy. 5. We follow up and check the execution and look for future ‘buying’ opportunities.
1) We are Energy Advisors. Specialists in energy markets,Tariffs, and contracts
2) We are Licensed Energy Brokers. Specializing in getting clients the best energy buy
3) We offer below list price on electricity and natural gas With ‘Volume’purchasing power, industry knowledge and established buying protocols, UtiliTech often ‘beats’the quoted retail prices.
4) We utilize our market expertise to obtain the best prices for our clients.
5) We continue to analyze the markets for developing buying opportunities.
Opportunities and Risks in Procurement
Possible saving compared to incumbent utility rates Choose the type of electric generation – traditional fossil fuels or more environmentally responsible renewable sources such as wind, solar, hydro, etc. Determine risk tolerance for pricing and locking into electric and gas contracts accordingly Aggregate consumption at multiple facilities for better rates from national suppliers Locking into fixed pricing provides budget certainty
Risks
Proliferation of suppliers makes it difficult to identify and compare options Complexity of pricing schemes and contract terms make comparing proposals difficult Volatile pricing based on futures markets, supply, demand, geographic issues, etc. create budget uncertainty Supplier offers are driven by what is best for their bottom line, not yours!
Review of contracts & bill information.
Blanket LOA for Utilities & Telecom May 13, 2010 Attention: All public utility companies (electric & gas), deregulated energy suppliers (electricity and gas), government entities, long distance companies, local telephone companies, and telephone equipment and hardware providers. UtiliTech, Inc., 3020 Penn Avenue, West Lawn, PA 19609 is hereby engaged and authorized to act as agent and consultant for us in all matters pertinent to any and all of our accounts and dealings with your company. Any information requested by UtiliTech should be mailed, e-mailed or faxed directly to their address. Your company is authorized and requested to respond to UtiliTech in all matters pertaining to our accounts and dealings with your company. We request that you provide UtiliTech with billing records, equipment records, service records, or any additional information requested by UtiliTech. UtiliTech also has the authority to initiate orders and modify the services you are providing to us. This authorization is valid through May 13, 2012. Thank you for your cooperation. Signature: Name: Title:
Bill Copying Guidelines Local Telephone bills:
Copy most current three (3) months bills summary pages Copy pages of any long distance charges Copy pages showing additional charges; ie: new lines installed, changes to existing service.
Long Distance bills:
Copy most current three (3) months bills summary pages **Pay particular attention to minutes, gross charges and discounts for switched and dedicated, inbound and outbound service. Dedicated circuits: Private lines, Feature group A, T-1’s, PRI’s, etc. (high cap services) and other special services: Copy most current three (3) months of the entire bill and find out when the service was installed.
Wireless service:
Copy most current three (3) months of the entire bill.
Electric & Natural Gas:
Copy 12 months of invoices. This gives us the cyclical overview for the fluctuation of usage. If your state is already deregulated as far as electricity check for the possibility of 2 bills for each month. Many invoices are double-sided.
Water & Sewer:
Copy 1 year. They are usually billed quarterly, but could be monthly for a larger user. Most of the time they are on separate bills but sometime they are invoiced on one bill. Must have copies of all term plans, contracts, etc. for any agreements with any provider, local or long distances and pay special attention to any agreements for electric and gas.
Be advised, some bills are printed on both sides of the page.
CASE EXAMPLES Bill Analysis
You never know what to expect in an audit. Some of the clients who are doubtful that we will find anything new are completely amazed at what our process uncovers. We know from experience that there is value in taking a deeper look.
Cost Reduction
A Regional Department Store with Locations in PA, NJ, MD, WV, NY, CT, and NH, received a refund of $68,000 from a prior electric supplier for billing errors and received a rate schedule change for one facility that saves $24,000 annually. UtiliTech identified $80,000 in erroneous installation and termination charges for a National Financing Company on their data network. In addition, fraudulent credit card use was uncovered as well as minimum charges billed for phone lines that had been discontinued two years prior.
Two pharmaceutical clients, one in research & development and the other in specialized packaging, asked UtiliTech to help manage their utility expenses. Both companies are comprised of multiple locations and have large energy expenditures. After completing comprehensive audits, UtiliTech identified refund opportunities of $180,000 and $150,000 respectively. In addition,recurring savings that totaled approximately $260,000 per year were also obtained through rate changes and timely procurement decisions. UtiliTech was able to obtain a $48,000 regulatory based refund for a plastics manufacturer with one location and monthly savings of about $1,600. Additional recommendations for an equipment upgrade and rate change produced another $3,300 per month.
Outsourcing A New Jersey hospital facility was looking at a rate increase of over 14 percent with the start of full NJ electricity deregulation. UtiliTech negotiated favorable alternate supply rates to maximize savings versus full service default rates. Savings have averaged $9,000 per month. A Massachusetts property management firm was faced with increasing utility costs across multiple locations. UtiliTech advised them on best rate choices and handled the confusing alternate supplier shopping process. Electric procurement savings have averaged over $17,000 per month.
Technology Upgrades A steadily growing regional bank approaching 50 locations always lived with two different phone systems - one for the branches and one for the central offices and call center. The reason was simple - their central system was just too expensive to roll out across all locations. When their primary vendor demanded expensive software upgrades just to continue to provide support, they turned to us for their options. We wrote the RFP to fit their unique needs and managed the selection process to ensure costs and benefits could be weighed fairly. The implementation took about four months, and they now have a single, reliable system that should meet their needs for a decade, and much lower maintenance costs.
Thank you for being part of the princetongreen community.
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