Many utilities have a dozen or more different rate structures for commercial clients, each with many different provisions and riders. This elaborate billing scheme changes continually, according to the prevailing regulatory climate, legislative mandates, and fuel costs.
One of the first things an energy auditor does is to consult the utility on behalf of the client to obtain a copy of the latest bills and the applicable rate schedule. It’s not unusual to find billing errors that will save money before the energy study even begins. However, it isn’t necessary to obtain the services of a consultant to validate the billing rate.
The first thing to do is to talk with other businesses in the area that may have the same billing structure. Inquire about their rate schedule, use characteristics, and how much they’re paying. A new rate structure might be discovered that your business can apply for (e.g., combining two separate services into one, to jump into the next rate category for larger users), to reduce utility bills on the spot.
The next step should be to visit with a representative of the electric utility. Any confusion about the bill, how it is measured and calculated, should be clarified. It’s important to learn about all of the services available, their advantages and disadvantages as well as how to qualify for lower rates. Strive to keep current on the various facets of the utility bills and how they’re affected by any energy-conserving projects. This gives immediate feedback on the success of the conservation program in real terms and provides valuable feedback to participants, encouraging further interest and involvement.
Some of the items that are important to keep current on include:
• Fuel-adjustment charge
• Demand charge
• Low-power-factor penalties
• Transformer and equipment ownership
• Peak demand amount and time of occurrence
The occurrence of peak demand can be especially important in planning to reduce the demand charge. For example, if a restaurant owner sees a peak energy use first thing in the morning every day— when the staff arrive and turn on all the equipment at once—this is a clear signal to stage the equipment on, for a flatter demand curve and an immediate reduction in the electric bill.
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Excerpt from Energy Conservation Projects.