As the PJM rate hikes approach this June, businesses throughout the region are assessing (or should be assessing) how they can best protect themselves. With electricity rates projected to increase significantly across the PJM Interconnection territory—which serves 65 million customers across 13 states and the District of Columbia—organizations are seeking strategies to mitigate these rising costs while maintaining operational efficiency.

Key Takeaways:

• Understand that preparing for the PJM rate hikes means tackling energy spend from the supply and demand sides.
• Discover Mantis Innovation’s comprehensive solutions for energy procurement and efficiency.
• Examine three client scenarios to understand how Mantis can impact on businesses’ energy spending.

Addressing both sides of the energy equation

To significantly curb increased electricity costs, businesses must holistically address both the supply side of the equation with swift, advanced procurement solutions and the demand side with strategic, right-sized energy efficiency projects that will reduce overall consumption. Synchronizing both approaches (let alone expediently) can be challenging for organizations focused on their core business operations.

The approaching rate increases require a multifaceted strategy that considers immediate cost mitigation and long-term consumption reduction. Many organizations would benefit from additional expertise to negotiate optimal energy contracts while simultaneously identifying and implementing efficiency projects that deliver meaningful ROI in this new pricing environment.

Mantis Innovation's comprehensive approach

Mantis Innovation brings expertise in navigating complex energy markets, identifying efficiency opportunities, and delivering measurable results. The company's data-driven approach focuses on solutions that provide the highest value and most significant impact for each client's unique situation.

Case Studies: Proven Results Across Diverse Organizations

Mantis Innovation has supported hundreds of commercial and industrial firms nationally, including those in the PJM region, with their integrated approach to energy management.

The following case studies illustrate how Mantis Innovation's comprehensive approach has delivered tangible benefits for organizations across different sectors and scales. Each example demonstrates a specific aspect of energy management that will be crucial for businesses preparing for the upcoming PJM rate hikes.

Here are three actual client scenarios demonstrating Mantis’s capabilities in helping unique, varied businesses optimize their energy spending:

1) City of Lima, OH – Proven, Effective Energy Procurement

Overview of the Organization:
The City of Lima, Ohio, with a population of approximately 37,000, faces the typical budgetary constraints of municipal governments while needing to maintain reliable energy services for city operations and residents.

Challenges:
The city was burdened with high energy procurement RFP development costs and limited by a small pool of respondents and contract options. This traditional approach was costing the city significant resources while failing to deliver optimal energy rates.

Mantis' Solution & the Outcome:
Mantis implemented a reverse auction for electricity and natural gas procurement, eliminating the costly RFP process. This approach enticed broader competition among suppliers, driving down year-over-year energy spend.

The results were substantial:

• $390,000 in term savings for 2018-2019 against previous contract spend
• $410,000 in term savings for 2020
• $552,000 in term savings for the 2023-2027 contract extension
• $100,000 saved per eliminated RFP event
• 34 suppliers competing across all contracts
• Approximately $1,652,000 in total savings over ten years

Lima, OH’s outcome demonstrates how strategic procurement approaches can deliver immediate savings—precisely the action organizations must take before the PJM rate hikes take effect.

2) Werner Co. – Achieving High ROI Through LED Lighting

Overview of the Organization:
Werner Co., a leading manufacturer of ladders and job site equipment, operates a 24/7 manufacturing facility in Illinois within the PJM territory.

Challenges:
The facility faced failing LED lighting systems and poor light levels, affecting worker safety, productivity, and operational efficiency. Additionally, the existing lighting infrastructure contributed to high energy consumption and costs.

Mantis' Solution & the Outcome:
Mantis designed a lighting upgrade solution that met the plant manager's operational requirements and the finance team's ROI criteria. The implementation was carefully coordinated to avoid disruptions to production.

The project delivered impressive results:

• $165,974 in total annual savings
• $98,334 in utility incentive funding secured
• 1,569,815 kWh saved annually
• 679 metric tons of CO2 equivalent reduced
• 2.3-year project payback

Werner Co.’s efficiency upgrade demonstrates how organizations can reduce their energy consumption baseline—a critical strategy as unit rates increase with the upcoming PJM changes.

3) Gerber Collision & Glass – Comprehensive Efficiency Scaled for Massive Impact

Overview of the Organization:
Gerber Collision & Glass manages nearly 1,000 auto-glass and collision repair locations across North America, many of which are in the PJM territory. The company regularly acquires new locations, many of which have aging infrastructure.

Challenges:
Gerber's portfolio included numerous facilities with aging lighting infrastructure and control issues, leading to inconsistent operational conditions and excessive energy consumption across their network.

Mantis' Solution & the Outcome:
Mantis implemented a large-scale, multi-state efficiency program, designing and building turnkey solutions for over 200 locations annually. The comprehensive approach included lighting upgrades, EV charging infrastructure, electrical improvements, and integration with building control systems.

The results demonstrate the power of portfolio-wide efficiency initiatives:

• $1,351,312 in total annual savings
• $402,742 in utility incentives secured
• 7,925,947 kWh saved annually
• 5,716 metric tons of CO2 equivalent reduced
• 3.1-year project payback
• Over 120 locations completed

Gerber’s results illustrate how organizations with multiple facilities can implement coordinated efficiency strategies to achieve significant savings—an approach that will become increasingly valuable as energy rates rise.

In Conclusion

While companies of every size and industry have good reason to be concerned about the PJM rate hikes, they can also ease their worries, knowing that there are ways to lessen the impact on their businesses while they adjust to the "new normal."

Mantis Innovation's proven, holistic, comprehensive solutions can help optimize energy spending to mitigate the immediate risks the rate hike imposes and support ongoing initiatives to keep unlocking efficiencies. By combining expert procurement strategies with turnkey efficiency solutions, Mantis enables organizations to significantly reduce the impact of increasing electricity rates by addressing procurement strategies and consumption patterns.

It’s never too late to start reining in your energy spending. Organizations proactively implementing strategic procurement and efficiency measures will be better positioned to weather the changing energy landscape.

Join Mantis Innovation on April 17th for a guided webinar examining how businesses can prepare for the upcoming PJM rate hikes. Learn specific strategies for procurement optimization and efficiency upgrades that can protect your bottom line.

Want to get started sooner? Contact Mantis today and start unlocking your efficiencies.