Rising energy costs have become an unavoidable pressure point for businesses, outpacing inflation and eroding margins with little warning. The good news is companies have far more control than they think.
“Energy is often treated as a fixed cost, but with the right strategy, it can become a lever for resiliency and growth,” says Tad W. Piper, a seasoned advisor with deep experience in energy markets, finance, legal strategy, and innovation. He helps businesses regain control of rising energy costs by showing them what truly drives their bills and how strategic flexibility shifts energy from a reactive burden to a proactive tool for performance.
What Businesses Miss About Their Energy Bills
For him, energy is no longer about procurement alone. It requires strategic fluency. Many organizations continue to evaluate their energy use through a narrow lens, focusing almost exclusively on reducing kilowatt hours. “Most people assume the best way to save money is simply to use less energy, but that’s not what drives the majority of many commercial bills,” he says.
Peak usage, not total usage, often determines more than half of a company’s monthly cost. A single spike during one hour can influence an entire billing cycle. In markets like California, where demand charges have more than doubled in recent years, the stakes are even higher. “If you don’t understand how these peaks are measured or how to control them, you’re not in control of your energy costs.” He further highlights that markets across the US are seeing similar increases in peak usage, or demand changes.
His guidance urges businesses to understand the anatomy of their bills, including tariff structures, peak measurement windows, and how demand charges compound exposure. With this clarity, companies can shift from reactive payments to proactive cost management.
Timing Matters More Than Total Consumption
Piper’s analysis underscores a counterintuitive truth: reducing total consumption does not lead to the strongest savings opportunity. The far greater impact lies in when energy is used.
Take Southern California, where a company that cuts its consumption by 10% may save roughly 10%. But if that same company keeps its total energy use the same while shifting operations away from peak evening hours, its savings can soar to 40%. “It’s not just about how much energy you use,” Piper says. “The timing has a far greater impact on your total cost.”
As the SoCal example indicates, energy is deeply regional and any strategy must reflect the dynamics of the local grid. In solar-heavy California, midday power is often cheapest. On the East Coast or in the Midwest, evening hours can offer lower rates. These differences are the backbone of effective energy planning. “Every region has a different load shape,” Piper says. “Your strategy needs to reflect the realities of your specific grid or utility tariff structures.”
Flexibility as a Leadership Advantage
To bridge these regional realities to leadership action, Piper emphasizes that the real differentiator is not equipment alone but the strategic choices leaders make. “Flexibility is what gives you control in a dynamic market,” he says. “Without it, your energy costs are a pass-through. With it, they become a strategic advantage.”
It is a philosophy that can be traced back to his work with the Southwest Power Pool, a regional transmission organization that coordinates energy markets across the central United States. There, he helped launch one of the region’s largest demand response programs, advanced virtual power plant development, and advised early stage innovators using AI to manage grid-edge assets.
“Energy isn’t just a cost center. It’s a strategic lever for resilience, growth, and innovation,” says Piper. For him, this work is not just about cutting costs. It is about helping companies build resilience in an unpredictable environment, unlock new opportunities tied to the energy transition, and future-proof their operations through informed planning.
Businesses seeking to rethink how they manage energy, whether to reduce exposure, increase reliability, or gain competitive advantage, can connect with Tad W. Piper on LinkedIn or through his website.
