Tough decisions must be made. Your company, although making money, is looking for ways to boost profits. It's also expanding at the same time.
Suddenly, the light bulb clicks on in your head. Saving dough is within your power. Literally.
Companies around the country are becoming more efficient -- and not by just demanding more from employees. Utility audits, also known as energy surveys or account maintenance in some circles, are making a difference for many businesses. And, in many instances, it's a huge difference.
"In some cases, it's pretty extensive savings," said Dennis Hall, economic development manager for Nebraska Public Power District. "In others, it's more moderate. We can look at the whole process, from lighting to heating and air conditioning."
| "It's our philosophy that the more
wisely the customers can use their energy dollars, the better
chance they have of growing and
expanding."
-- Randy Perdue, senior engineer, Entergy Corp. |
Nebraska Public Power District, like many other utilities, helps companies assess how they are using power, and find ways where they can save money. Utilities can look at the types of motors used in machinery, recommend new heating and air conditioning units, suggest a schedule for operating machines and find other ways to lower power costs.
Get in on the ground floor
The ideal time for a utility audit is during a building's construction, or before you move into an existing structure. An audit can suggest design ideas for a new structure, and it's easier to modify an existing building before all the machinery is placed inside.
It's just as important for a company to consider long-term energy costs as it is to seek out low utility rates when relocating or expanding. An energy-efficient facility could save a company hundreds of thousands of dollars over a 30-year period.
Benefits of UTILITY AUDITS include:
- Save money on energy bill
- Closer relationship with power provider
- More efficient use of equipment and workers
- Getting the most energy efficient use out of
a new or existing building
- More money to spend on expansion or retention of workers
|
"Spending a little money now to improve efficiency down the road is an investment I believe every corporation should look at making," said Jay Oliver, manager of electric product lines with Florida Power. "And we really want the customer to save money. People might think that we want a business to use as much energy as possible, but that's not really true.
"We want that business to be a customer for the long haul and to provide jobs and spur the economy in the community. They can't do that if they're not in business or not able to expand because of energy costs."
How it works at one utility
At Virginia Power, industrial customers get the assistance of energy experts at both the utility and a nearby university. Virginia Power enlists the help of engineering students at Virginia Tech University, in Blacksburg, Va.
First, the customer fills out a questionnaire detailing the company's power usage. Included are questions regarding the heating and cooling units, the square footage and materials in the building, types of machinery, and other pertinent data.
At that point Virginia Power will conduct a preliminary use evaluation. The utility may make initial recommendations, such as improved lighting, insulation or new heating and cooling units.
Next is a conference call with the customer, the utility and the Virginia Tech students.
| "Spending a little money now to improve efficiency down the road is an investment I believe every corporation should look at making."
-- Jay Oliver, manager,
electric product lines, Florida Power |
"The customer has some pre-conceived ideas about where they think they might have some problems," said Craig Standlick, a staff engineer with Virginia Power. "At this time we ask other questions we might have. This is really a time where we can find
out how serious the company is about doing something."
If the company means business, an individual survey is done by utility representatives and the college students, which takes two to three days. Several teams will walk through the whole plant and examine every facet of the company's operation.
"We'll go back to a conference room, and make an outline of everything we see," said Standlick. "We'll write down everything where they might be able to save money. From that, we'll pick a half-dozen or so ideas with the most benefit and where the customer has interest."
Each of the teams will then take a couple items from the list, and come up with specific projections for all of the points. The data from each team is compiled into a single report for the business.
Virginia Power splits the cost of the survey with the customer, but the business only pays once it decides to advance beyond the conference-call stage. Other utilities offer similar pay arrangements. If companies want it, many utilities also order and oversee the installation of new equipment.
"We've found that if we don't require any monetary input, then the report is more likely to stick on the shelf," said Standlick. "Sometimes in our conference calls, we can suggest some things and the customer runs with it from there, and it doesn't cost them anything."
Utilities typically have numerous industry experts at their disposal, but companies may choose their own consultants if they like.
"It's up to the customer for where they want to get their experts," said William Cotting, of Central Hudson Gas and Electric in New York. "We can contact experts in foundry, metallurgy, basically in any area to come in."
Utilities, consumers look to cement relationships
Why do utilities help their larger industrial customers to save energy and money? The easy answer is that every utility wants its business customers to succeed. After all, if that company doesn't show a profit, then it won't be a consumer very long.
"It's our philosophy that the more wisely the customers can use their energy dollars, the better chance they have of growing and expanding," said Randy Perdue, senior engineer with Entergy Corp. in Little Rock, Ark. "And if that business is successful, that's good news for us. It's really a matter of taking a long-term approach."
The longer answer is that companies are more mobile than ever, and with the coming of deregulation in the electric industry, businesses won't have to relocate to change their power provider. If a business is happy with its current utility, it may not want to spend the time and money to examine another source.
| "We notice that companies are more
proactive in looking at energy cost savings. Any time you can do
something that helps out the customer, especially in a deregulated
industry, that will help you out."
-- James Brook, director of economic development, Alabama Electric Co-op |
"We look at it as a competitive advantage that we offer," said Oliver. "More and more, we as utilities are becoming part of the solution for businesses. The more options you can present to the customer, the happier they will be."
Can my business get help?
Any business, no matter the size, can get help from a utility in cutting power costs. At the least, utilities will send a business a standard list of energy-saving measures. Businesses should also ask if they are getting the best rate possible.
"It (rates) can be like buying a cellular phone," said Perdue. "There are different rates for customers, based on how much they use and when their peak usage occurs. We try to catch them all, but it doesn't hurt to call your utility."
However, for an all-out audit, or energy survey, a business may have to meet certain size and usage requirements. It costs a utility financial and human resources to perform a full assessment of a company.
The future
Utility audits have been around for years, but within the last 10-15 years, utilities have made an effort to reach out to business customers. As deregulation sweeps across more and more of the country, look for utilities to strengthen ties with industrial customers even further.
"We notice that companies are more proactive in looking at energy cost savings," said James Brook, director of economic development for Alabama Electric Co-op. "Any time you can do something that helps out the customer, especially in a deregulated industry, that will help you out."
Lance Yoder is a senior writer for Expansion Management
Magazine.
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