Chattanooga Bakery Shines with Energy Efficiency

Five days a week. Sixteen-hour days. Over 1 million MoonPies produced daily.

For more than a century, Chattanooga Bakery has crafted one of America’s most iconic snacks – a marshmallow-filled graham cracker sandwich inspired by an Appalachian miner who wanted a snack “as big as the moon.”

Since launching MoonPie in 1917, this fifth-generation family-owned business continues to provide a Southern comfort food to families around the world.

Over the years, the company has developed new sizes and expanded flavors beyond the original chocolate coating. It has also invested in modernizing equipment to meet growing demand.

And through energy efficiency incentives from TVA EnergyRight, along with energy and communications company EPB, Chattanooga Bakery now produces MoonPies more sustainably.

In the first 10 months of fiscal year 2024, TVA and its partners helped the Chattanooga Bakery and about 650 other businesses conserve energy and save more than $121 million on electric bills over the life of the energy improvements.

Upwards of 42,000 homeowners have also participated in TVA EnergyRight efficiency upgrades, receiving more than $5.2 million in rebates and saving nearly $51.6 million on electric bills over the life of the upgrades.

These efforts have delivered energy savings of nearly 1,400 gigawatt-hours, enough to power about 115,000 homes for a year. This avoids more than 320,000 tons of carbon emissions, which is essentially like taking 63,000 vehicles off the road.

Companies like Chattanooga Bakery are seeing the benefits.

“For us to continue being successful and accommodate growth, we have to be more productive and more efficient. That’s certainly one of the reasons behind joining this program,” Tory Johnston, vice president of sales and marketing at Chattanooga Bakery, said.

Out-of-This-World Incentives

Last fall, TVA expanded its home and commercial energy programs as part of a $1.5 billion energy efficiency and demand response initiative. The program aims to offset 30% of TVA’s anticipated load growth over the next decade.

The rebates encourage customers to make efficiency upgrades that will lower their energy use and result in savings on their electricity bills.

These incentives span across industries and services throughout the Valley region.

In Knoxville, Tennessee, Lifetime Products leverage these incentives to produce basketball hoops, outdoor sheds, kayaks and folding tables more efficiently. Vanderbilt University Medical Center in Nashville is also benefiting from energy efficiency upgrades, as well as Polaris in North Alabama which uses these incentives to manufacture power sports and utility vehicles – while supporting their 2035 sustainability goals.

Together, TVA EnergyRight's new recipe for energy efficiency is saving customers a collective $172.6 million on electric bills over the life of the energy improvements.

“Businesses can reinvest those savings in other ways,” Carrie Fogleman, TVA’s director of energy services and demand, said. “We would love to see more businesses take advantage of these offerings, and homeowners as well, through our residential programs. We are completely invested in this and there is more to come.”

Through this expansion, companies like Chattanooga Bakery are eligible for an annual $3 million apiece in energy efficiency upgrades.

In 2018, Chattanooga Bakery began a five-year energy efficiency partnership through TVA and EPB by having an initial energy audit with a vetted contractor through TVA EnergyRight’s Preferred Partners Network.

They then discussed available funding for improvements – including lightbulbs, HVAC units and certain appliances – and determined how the upgrades could complement the bakery’s work to modernize equipment.

“Part of the rebates that we got in our power bill were synchronized with our capital projects. They went hand in hand,” Enrique Vizoso, vice president of operations at Chattanooga Bakery, said.

By replacing incandescent lightbulbs with energy efficient LED bulbs, the bakery reduced power consumption for its lighting by 75%. The bakery also installed solar panels as part of a power buy-back program, and purchased additional equipment that helped improve energy efficiency from 90% to about 94%.

"Using solar panels to help fuel the production of MoonPies is pretty out of this world," Johnston said.

Apart from seeing a 20% savings on its energy bills, the company experienced other benefits.

Climate-controlled working spaces, less stress on parts and equipment, and better ergonomics for team members are some of the reasons Chattanooga Bakery extended its participation in TVA's incentive program for another 10 years.

“We will continue to make those investments to enhance our facility,” Vizoso said.

'Forever Home’

With the seven-state region growing three times faster than the national average, TVA and partners like EPB are doing their part to sustainably meet increased demand.

Energy saved through these efficiency programs helps offset energy demand, allowing TVA and its partners to continue powering millions of homes and businesses as TVA builds new generation.

“It’s a win-win for everyone,” Angela Love, EPB’s manager of energy services, said. “Customers are being more efficient at home and in their spending – and in doing so, it allows us to share that energy with others who have a need. A kilowatt saved for one customer may be a kilowatt available to someone else."

It all adds up to big savings for companies and sustainable growth for communities.

“The cheapest and cleanest megawatt is the one you don't have to produce,” Fogleman said. “Figuring out ways to put money back in the pockets of our customers, residents and businesses is what energy efficiency and demand response is all about.”

And it comes down to partnerships.

“I’m proud of the impact our program has had on Chattanooga Bakery and businesses around the Tennessee Valley region. We have a great partnership with EPB,” Fogleman said.

Johnston and the MoonPie team see Chattanooga as their “forever home."

"We've entered the second 100 years of our brand story and will continue to invest in our brand and people," Johnston said. “Working with TVA and EPB on energy efficiencies will help keep this wonderful little MoonPie story going for the next 100 years.”

Incentives Available

Through TVA EnergyRight incentives, companies may receive up to 10 cents per annual kilowatt-hour for indoor LED lighting upgrades and 4 cents per kilowatt-hour for upgrades to exterior LED lighting. 

Other available incentives include up to $2,000 for select electric forklifts, up to $80 per ton for energy efficient heating ventilation and air conditioning, $175 per ton for new installations and $250 per ton toward purchasing qualified variable refrigerant flow and dual fuel heat pumps.