Comprehensive, Multi-state Energy Strategy for Cost Avoidance and long-term risk Mitigation
Client Background
A leading manufacturer of polymer compounds and material solutions needed a strategic energy partner capable of managing its entire portfolio. Previously, the company relied on multiple brokers for different locations, which created inefficiencies and limited visibility into overall risk exposure. This fragmented approach left them vulnerable to market volatility and costly contract terms.
Challenge
When the manufacturer engaged Mantis Innovation, they faced an Ohio contract renewal at nearly double the previous rate. At the same time, they were dealing with high-cost legacy contracts in Massachusetts and exposure to unpredictable market conditions in Texas. These challenges threatened operational budgets and increased financial risk across the portfolio.
Solution
Mantis Innovation implemented a hybrid energy strategy tailored to the client’s multi-state operations. In Ohio, we deployed a managed product and negotiated with suppliers to prevent a $120,000 capacity cost increase, while extending contracts through 2028 to lock in fixed adders. In Massachusetts, we restructured a peak-market contract, eliminated $56,000 in penalties, and layered hedges through 2027 to stabilize costs. For Texas, we secured a 30-month hybrid contract beginning in June 2026, supported by initial hedging and active monitoring to maintain flexibility.
Results & Impact
The manufacturer achieved significant cost avoidance and risk mitigation through this proactive strategy. Ohio realized nearly $233,000 in avoided costs and long-term stability through 2028. Massachusetts saved over $140,000 by restructuring agreements and aligning electric and gas procurement. Texas secured flexibility with a hybrid contract starting in 2026. Collectively, these measures delivered $233,224 in total cost avoidance, eliminated $56,000 in penalties, and optimized energy procurement across three states. The result is long-term cost control, reduced exposure to market volatility, and improved portfolio-wide energy management.