Client Background
Our client, a mid-sized food manufacturer in Iowa, has partnered with SM Engineering since
2002 to maintain and update their sales tax exemptions, as required by the State of Iowa.
The SM Engineering team goes above and beyond for their customers…we are
enthusiastic about continuing our partnership for years to come.
The Challenge
During a recent exemption update, SM Engineering performed a routine utility bill review conducted as an extra, value-added service. We noticed unexpected penalty fees on the client’s natural gas bills totaling several thousand dollars over the winter months.
Even though the client had recently switched suppliers to manage gas supply costs, their fees were higher than expected. Digging deeper, we found the issue stemmed from Maximum Daily Requirement (MDR) and Maximum Daily Volume (MDV) settings that didn’t reflect actual facility usage.
Our Approach
Leveraging our long-term knowledge of the client’s facilities and usage history, SM Engineering:
- Reviewed historical natural gas bills and supplier contracts to identify discrepancies
- Evaluated MDR/MDV settings relative to actual gas consumption
- Recommended a strategic monitoring plan rather than immediate adjustments to avoid unnecessarily increasing base delivery charges.
The SM Engineering team worked tirelessly to secure the exemption form within a tight deadline…they also reviewed our account and identified that we were paying excess fees for our Maximum Daily Requirement (MDR)…preventing future penalties.
The Results
- Identified and clarified thousands of dollars in penalty fees
- Avoided unnecessary increases to base charges
- Implemented a monitoring system for MDR/MDV usage
- Strengthened a long-term partnership through proactive support
Key Takeaways & Tips for Manufacturers
- Hidden fees can quietly cost thousands, even for experienced teams
- Regularly review utility contract supplier rates
- Monitoring usage trends helps prevent penalties and optimize costs
- Long-term partnerships allow proactive identification of opportunities that might otherwise be missed
Have you ever found unexpected charges on your utility bills?
Even if a utility review isn’t required, proactive monitoring can uncover hidden savings and prevent surprises.
Contact SM Engineering to learn how a proactive utility review could help
your facility save money and optimize energy use.