Cost Savings While Switching to Renewable Energy – MiddleGround Capital
February 28, 2024

Cost Savings While Switching to Renewable Energy

Power is a top operating expense for manufacturers. Whether it’s a fast-food business or a producer of overhead garage door components (like our portfolio company Arrow Tru-Line (ATL)), for there to be a product, there must be power! In 2023, Ohio-based businesses were facing an influx in the price of this critical resource – in some cases up to 100%. Archbold-based ATL was no exception, and it needed expert advice to mitigate these price surges.

At MiddleGround, we took note of ATL’s impending price spike and turned to Transparent Energy. Transparent Energy is an energy advisor and procurement specialist we’ve used across our portfolio since 2019 to purchase electricity, natural gas, and renewable energy. Their competitive, auction-based procurement process would turn out to be the saving grace ATL needed to dodge the price spike.

We brought the CFO of Arrow Tru-Line, Larry Jones, and the Transparent Energy team together to test the competitive electricity market by using Transparent Energy’s auction platform. First, Transparent Energy marketed ATL’s RFP to energy suppliers capable of servicing their 2.4 million kWh/year electric load, attracting 10 suppliers to bid on their business! Next, the firm ran a series of live, online auctions where the suppliers bid on different terms and products, including 12-to-60-month term lengths for traditional and renewable energy. 132 bids were placed in 32 minutes, driving down the contract prices and margins in a race to the bottom.

Transparent Energy conducted an ultra-competitive auction, helping ATL acquire a 36-month 100% green energy contract with an estimated savings of $240,000. Arrow Tru-Line saved money while increasing sustainability.

“We are so thankful to have worked with Transparent Energy not only for their part in reducing our manufacturing costs but also for showing us how maintaining a sustainable business is possible. We are excited for this new chapter of efficiency and environmental stewardship.” – Larry Jones, CFO of Arrow Tru-Line