Three Texas Institutions Secure Long-Term Renewable Energy at Below-Market Rates
Client Background
Three major Texas institutions were grappling with rising energy costs and unpredictable market conditions. Historically, they relied on short-term contracts that left them vulnerable to price swings and made it difficult to plan budgets or meet sustainability objectives. With tens of thousands of residents depending on their services, the stakes were high: they needed a solution that would provide financial stability and align with their commitment to clean energy.
Challenge
Over the past decade, electricity prices in Texas fluctuated dramatically, ranging from three to twelve cents per kilowatt-hour. This volatility created significant uncertainty for the institutions, which were eager to lock in predictable rates and transition to renewable energy. Although market prices for off-site renewable energy had dropped to competitive levels, the institutions lacked a clear strategy for securing long-term agreements that would deliver both cost savings and sustainability.
Solution
Mantis Innovation stepped in with a tailored procurement strategy designed to meet these goals. We began by engaging stakeholders to ensure alignment on objectives and risk tolerance. From there, we created a competitive environment among suppliers, driving down costs through expert negotiations. The result was a long-term retail contract—spanning 49 months—that locked in favorable pricing and mitigated market risk. Most importantly, the agreement guaranteed 100% renewable wind energy for all facilities, ensuring the institutions could meet their sustainability commitments without sacrificing financial stability.
Results & Impact
The outcome was transformative. The institutions achieved energy price certainty for five to ten years, securing a contract rate of approximately four cents per kilowatt-hour. With annual usage of roughly 286 million kilowatt-hours, this stability represents a major win against inflation and market volatility. The green premium was minimal—just two-tenths of a cent per kilowatt-hour—amounting to about $78,000 annually. Beyond the financial benefits, the environmental impact was significant: 100% renewable energy now powers facilities serving more than 58,000 residents.