Renewable Natural Gas · Case Study

Recovering $3.96 Million and Cutting Ongoing Energy Costs for a Multi-State RNG Producer

How a full utility bill audit and a managed energy buying program recovered $3,959,202 in one-time refunds across 10 states, cut ongoing bills by $187,455 a month, and gave a fast-growing renewable natural gas producer a repeatable way to buy energy across at least 12 states.

$3,959,202One-Time Refunds Recovered
$187,455/moRecurring Savings From Audit Findings
$167,000/moAvg. Supply Savings, One NJ Electric Account
10States With Refunds

Auditing the Past and Managing the Buying Ahead, at the Same Time

The client is a fast-growing renewable natural gas (RNG) producer with production facilities and fueling operations across at least 12 states. Every site brings its own utilities, tariffs, tax rules and supplier contracts.

Discovery Energy took on two jobs at once: a full audit of past utility bills, and hands-on management of how the company buys gas and power going forward.

The audit recovered $3,959,202 in one-time refunds across 10 states and cut ongoing bills by $187,455 a month. On the buying side, a competitive request for proposals (RFP) for one large New Jersey electric account saves an average of $167,000 a month, and correcting the transport gas setup at 13 sites is expected to save more than $50,000 a month. Together, ongoing savings total more than $404,000 a month, about $4.8 million a year once all changes are in place.

“Ten states produced refunds, and the client did not have to change how it runs a single site to get them.”

This case shows what happens when a portfolio grows faster than anyone can check its bills and contracts, and what it takes to put both the past charges and the future buying on a firm footing.

A Growing Portfolio With No Time to Check Every Bill

As the company added sites, the number of utilities, rate schedules, tax rules and supplier contracts it had to manage grew with them.

No one had the time or the tools to check every bill or contract. Overcharges, missed tax exemptions and the wrong rate classes went unnoticed.

Energy was also bought site by site, with no standard way to compare offers or judge risk.

Why Multi-State Growth Creates Billing Blind Spots

Each utility sets its own rate classes and tariff rules, and each state and locality applies its own tax treatment. An account that is set up correctly in one state says nothing about an account in the next. When new sites come online faster than anyone can review them, setup errors and missed exemptions can carry forward month after month, because nothing on the bill itself signals that something is wrong.

An Audit and a Procurement Program, Run Together

Discovery Energy worked on both sides of the energy bill: what the utilities had charged, and how the company buys its supply.

  1. Audited every site’s bills, rate classes and tax treatment

    Reviewed utility bills, rate classes and tax treatment for every site to find overcharges and claim refunds.

  2. Fixed accounts that were set up wrong

    Where an account was set up incorrectly, corrected it so the savings continue every month rather than stopping at a refund.

  3. Reviewed how each site buys gas and power, then ran formal RFPs

    Checked each site’s purchasing arrangements and ran formal requests for proposals to get competitive supply pricing.

  4. Gave management standard reports

    Provided standard reporting so energy decisions are made on data rather than habit.

Why Audit and Procurement Belong in the Same Review

An audit tests whether the utility billed an account correctly. Procurement decides what the energy itself costs. Reviewing only one leaves part of the bill unexamined: a correctly billed account can still be paying too much for supply, and a well-priced supply contract does not fix a wrong rate class or a missed exemption.

$3,959,202 Recovered, Plus More Than $404,000 a Month in Ongoing Savings

One-Time Refunds$3,959,202

Recovered across 10 states from charges that should never have been billed.

Ongoing Savings$404,000+/mo

About $4.8 million a year once all changes are in place, from audit fixes, corrected transport gas setup and a competitive electric supply RFP.

Audit results

The audit recovered $3,959,202 in one-time refunds from accounts in Arizona, Florida, Georgia, Michigan, Missouri, New Jersey, North Carolina, South Carolina, Texas and Wisconsin. Fixes in New Jersey, North Carolina and Florida also lowered costs going forward, cutting ongoing bills by $187,455 a month.

Procurement results

Better buying adds more than $217,000 a month on top of the audit savings. Thirteen sites in Arizona, California, Michigan, Minnesota and North Carolina were not set up correctly for transport gas; fixing this is expected to save more than $50,000 a month. For one large New Jersey electric account, a competitive RFP lowered the supply rate, saving an average of $167,000 a month.

Results by source
SourceStatesResult
Audit refunds10 states (listed above)$3,959,202 (one-time)
Audit fixes that lowered bills going forwardNJ, NC, FL$187,455 per month (recurring)
Transport gas setup corrected at 13 sitesAZ, CA, MI, MN, NC$50,000+ per month (expected)
Competitive supply RFP, one large electric accountNJ$167,000 per month (average)
Total Ongoing Savings$404,000+ per month (about $4.8M per year)

The $3,959,202 is a one-time recovery of past overbilling and is not included in the ongoing savings total. The $187,455 per month reflects recurring savings from audit fixes. The transport gas figure is the savings expected from correcting the setup at 13 sites. The New Jersey figure is the average monthly savings from the lower supply rate. The annual figure is the monthly total multiplied by 12 and rounded, and it includes the expected transport gas savings. Refund amounts by state were not part of this case study’s source data.

A Repeatable Way to Buy Energy, Not a One-Time Win

Beyond the refunds and rate corrections, the client now has a standard process its leaders can use for every major energy decision.

  • Formal RFP process. Every major purchase now goes to competing suppliers, with pricing shown side by side.
  • Standard reporting. Regular reports compare utility costs with supplier costs, site by site.
  • Hedging analysis and strategy. Management sees how much energy to lock in at a fixed price, how much to leave floating, and why.
  • Decision support. Further reports help leaders follow a clear process and make decisions based on data.

Growth Adds Accounts Faster Than Anyone Can Check Them

This engagement shows how a growing company can be overbilled in many places at once without anyone doing anything wrong: each new site simply adds another set of rules to get right.

The refunds here came from 10 different states. The lasting bill reductions came from three. The transport gas corrections touched five, and the largest single procurement result came from one account. No single review of one state, one utility or one contract would have found all of it.

The other lesson is that recovering past overcharges and controlling future costs are separate jobs. Refunds end once they are paid. Correct account setup, competitive supply pricing and a standard buying process keep working every month after.

Questions Worth Asking About a Multi-State Portfolio

  • Has every site’s rate class and tax treatment been checked since the site came online?
  • Are sites that qualify for transport gas actually set up for it?
  • Do major supply purchases go to competing suppliers, with pricing compared side by side?
  • Does management see utility and supplier costs compared site by site, on a regular schedule?

What This Engagement Demonstrates

  • Refunds and recurring savings are different results. This engagement produced $3,959,202 in one-time refunds, separate from $187,455 a month in recurring savings from audit fixes.
  • A setup error keeps costing until someone fixes it. Thirteen sites not set up correctly for transport gas are expected to save more than $50,000 a month once corrected.
  • Supply pricing deserves the same scrutiny as utility charges. One competitive RFP for a single New Jersey electric account saves an average of $167,000 a month.
  • A process outlasts a project. Formal RFPs, standard reporting and hedging analysis give leaders a way to keep making sound energy decisions after the audit is done.

This case study reflects findings and outcomes reported by Discovery Energy in connection with its utility bill audit and energy procurement work for a multi-state renewable natural gas producer. The $3,959,202 reflects one-time historical billing corrections. The ongoing savings total combines recurring savings from audit fixes, expected savings from correcting the transport gas setup at 13 sites, and average monthly savings from a competitive electric supply RFP; the annual figure assumes those monthly savings continue. Company and facility identifying information has been anonymized.

Frequently asked questions

What is transport gas, and why does a site's setup matter?

Transport gas, often called transportation service, is an arrangement in which a business buys natural gas from a supplier of its choice and the local utility delivers it. Eligibility rules and setup requirements vary by utility and state, so a site that is not set up correctly can stay on a more expensive service without anyone noticing. In this case, 13 sites in five states were not set up correctly for transport gas, and fixing this is expected to save more than $50,000 a month.

Can a utility bill include taxes that should not apply?

Yes. Tax treatment of utility service varies by state and locality, and exemptions that an organization qualifies for are often not applied unless someone claims them. In this case, missed tax exemptions were among the issues that went unnoticed as the portfolio grew, and the audit reviewed tax treatment alongside rate classes and charges for every site.

What is the difference between a one-time refund and recurring savings?

A one-time refund returns money that was overbilled in the past. Recurring savings come from fixing how an account is set up or priced, so costs stay lower every month going forward. In this case, the audit recovered $3,959,202 in one-time refunds and, separately, cut ongoing bills by $187,455 a month.

Why run a formal request for proposals (RFP) for energy supply?

A formal RFP sends the same requirements to competing suppliers so their pricing can be compared side by side. Without one, energy is often bought site by site with no standard way to compare offers or judge risk. In this case, a competitive RFP for one large New Jersey electric account lowered the supply rate and saves an average of $167,000 a month.

How much did Discovery Energy recover for the RNG producer?

Discovery Energy recovered $3,959,202 in one-time refunds across 10 states. Separately, ongoing savings total more than $404,000 a month, about $4.8 million a year once all changes are in place.

Which states produced refunds?

Refunds came from accounts in 10 states: Arizona, Florida, Georgia, Michigan, Missouri, New Jersey, North Carolina, South Carolina, Texas and Wisconsin.

Where do the ongoing savings come from?

Three sources: $187,455 a month from audit fixes that lowered bills going forward in New Jersey, North Carolina and Florida; more than $50,000 a month expected from correcting the transport gas setup at 13 sites in Arizona, California, Michigan, Minnesota and North Carolina; and an average of $167,000 a month from a competitive supply RFP for one large New Jersey electric account.

Did the client have to change how it runs its sites?

No. The refunds came from charges that should never have been billed, so the client did not have to change how it runs its sites.

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