Challenges
Wanting confidence before signing a 20-year PPA
Arctic Cold had already done the work most companies don’t. The California cold storage operator had sourced a solar bid independently from a leading developer and was close to signing. Before committing to a 20-year PPA contract, they wanted one thing: confidence that the price they’d found was actually competitive.
A PPA is a long-term financial commitment. A rate that looks good against your current utility bill can still cost millions more than what the market would deliver. Without running a competitive process, there’s no way to know.
Outcome and Impact
VECKTA’s competitive marketplace delivered 23% savings and locked in a fixed rate for the life of the contract
Arctic Cold locked in a 0% escalation rate for the full contract term — and a PPA price 23% below what they already sourced. The 0% escalation rate matters as much as the upfront price. California commercial electricity rates have risen sharply in recent years. Locking a fixed rate for the life of a 20-year PPA isn’t just a saving, it’s a hedge against a cost most operators have little control over. Arctic Cold removed that exposure entirely.
- 23% lower PPA price than the independently-sourced bid
- $4.5M in additional energy cost savings over the contract term
- 30% reduction in overall utility costs
- 0% escalation rate locked for the full 20-year contract term
- Competitive process: 9 suppliers bids
%
Lower PPA price than self-sourced bid
%
Reduction in overall utility costs
Additional energy cost savings
“In the end, we landed on a partner that will save us millions in energy costs than if we went with the bid we sourced ourselves. VECKTA’s platform and team simplified the process and gave us the confidence to take action.”
VECKTA Solution
Running the Market
VECKTA ran a competitive RFP through its marketplace of vetted suppliers. Nine submitted bids ranging from $0.077 to $0.10/kWh. The full competitive set of firm proposals was in hand in weeks, not months.
Apples-to-Apples Comparison
Arctic Cold could evaluate real, apples-to-apples offers and negotiate from a position of knowledge rather than assumption. The winning bid came in 23% below the price they had independently sourced — a difference of $4.5M over the life of the contract.
Locking in Long-Term Cost Certainty
The competitive process didn’t just surface a better price. It secured a 0% escalation rate for the full 20-year term — eliminating the exposure most California operators face as utility rates continue to climb.
