Energy and facility managers hate paying a bundle for their power. But they're wrong if they think the only way to shrink their utility bills is by cutting back their usage, upgrading lighting or air conditioning, or putting solar panels on their roofs. Others have instead saved more - and spent far less in the process - by deploying tricks that cut their utility rates, without ever turning a screw.
"Before going into hock paying for more efficient equipment, squeeze the most out of how you buy your power," says energy consultant Lindsay Audin, president of Energywiz, Inc. “Lowering Your Facility's Electric Rates” (by Fairmont Press), distills his money-saving magic into a cookbook for cost cutters.
"During my 40+ years' experience in energy services, I've saved my clients millions of dollars by getting them special deals, lower utility rates, and cheaper electricity," says Audin. "Many have used those savings to improve their facilities, or to balloon their bottom line."
“Lowering Your Facility's Electric Rates” is the only book that focuses on ways to cut electric bills without working in the dark, or buying equipment that takes years to pay for itself. "For decades, I've shown my clients how to improve their energy efficiency when doing so was cost-effective,” Audin said. "But I saw far too many leaving money on the table by paying the wrong rates, missing out on lucrative subsidies, or overpaying taxes on the energy they use."
Audin is a member of the Association of Energy Engineers Hall of Fame, holds professional certifications in energy management and purchasing, and has won many national and international awards. His background includes many years as an energy engineer, 8 years as energy manager for Columbia University, and over 20 years of energy consulting. He spent several of those behind the scenes at Enron, where he learned how to turn the tables on its trickery to instead help customers.
His company serves large customers including medical centers, universities, industrials, commercial real estate, governments, and other consultants. For two decades, he has taught other professionals how facilities use energy, how to cut their utility bills, and the best ways to buy electricity. His work has been featured in dozens of articles in trade and technical journals.
Written for commercial, industrial and institutional (C&I) power customers, this book details practical ways to secure lower electric rates and pricing in both regulated and deregulated power markets. To do so, it provides the reader with an excellent understanding of power pricing and proven ways to reduce it. The range of options varies from simple methods (e.g., minimizing sales tax) to more complex techniques (e.g., intervening in regulatory rate proceedings). No words are wasted discussing regulatory policies or theory.
Smart business managers look for nickels under every seat cushion. This book is filled with ways to shake savings out of utility bills and power procurement contracts. You'll have a hard time finding an investment that pays back faster than “Lowering Your Facility's Electric Rates.
Table of Contents of "Lowering Your Facility's Electric Rates
SECTION I: BACKGROUND
Chapter 1: The Bottom Line
Chapter 2: Understanding The Basic Power System
Evolution of the Electric Utilities
Utility Financial Structures Vary
New Players in the Power Game
How the Grids Expanded
The Three Main Functions Of Utilities
Retail Deregulation Impacts Some Utilities
Chapter 3: Understanding Power Pricing
Average Versus Actual Electric Rates
To Understand the Options, Learn the Lingo
Unbundling Electric Rates
Basic Electricity and Tariff Units
How Peak Demand May Be Measured
Why Understanding Peak Demand Is Important
Chapter 4: Typical Components in a C&I Electric Bill
Major Variable Charges
Program Charges and Taxes
Many Pieces in the Pie
Chapter 5: First Steps in a Rate Analysis
Tips to Make Analysis Easier
Break Down Dense Language
Use Utility Accounting Software
Review Alternative Rates
What Tariffs May Not Show
SECTION II: OPTIONS FOR RATE AND COST REDUCTIONS
Chapter 6: (Mostly) Administrative Options
Avoid, Shift, and/or Reduce Taxes
Minimize Bill Processing Costs
Lower Service Firmness
Seek A CHP Deferral Option
Find Billing Errors Using a Professional Utility Bill Auditor
Utilize Financial Techniques
Chapter 7: Utilizing Metering and Dynamic Rate Options
How Utility Metering Is Changing
A Brief Tutorial on Interval Data
How to Get the Data
Evaluating a TOU Rate
Power Pricing Based on Utility Load Profiles
A Slightly Extreme Example
Who May Benefit from TOU?
Get It 'Wholesale' via RTP
Who May Benefit from RTP?
Chapter 8: Equipment/Technical/Operational Options
Reduce or Eliminate a Reactive Power Charge
Convert Electric Loads to Natural Gas
Get Paid to Cut Load By Demand Response Programs
What DR is All About
Who Offers DR Programs/Tariffs?
Cut a Distribution Rate by Upgrading Voltage Service
Pursue Transmission Bypass
Buy Cheaper Power Generated On-site
Cash in on Options for Using Alternative Energy Sources
SECTION III: CHANGING THE RULES
Chapter 9: Negotiating with Utilities
IOUs: Often the Toughest Nuts to Crack
Munis and Co-ops May be Easier
Authorities Are a Mix
Possible Mechanisms for a Resolution
Negotiation Is Never a Simple or Easy Task
Sweat the Details of a Proposed Deal
Chapter 10: Intervening to Help Write the Rates
Understanding Rate Proceedings
To Succeed, Don't Go It Alone
SECTION IV: COMPETITIVE RETAIL POWER PROCUREMENT
Chapter 11: Buying from Competing Electricity Suppliers
How the Purchasing Process Works
Preparing for Retail Power Procurement
Chapter 12: Options for Competitive Supply Pricing
Price Content and Structure
Common Types of Power Products
Chapter 13: Managing Competitive Power Procurement
Finding and Choosing Retail Power Suppliers
Price Discovery Methods and Tools
Chapter 14: Ways to Save Money and/or Increase Value
Chapter 15: Negotiating/Improving a Supply Contract
How to Improve a Contract
Post Bid Options