The Time to Shop for Your Natural Gas is Now

It’s hard to believe, but the summer is slowly winding to a close. Even though days are still long and temperatures are high, now is when you want to start thinking about your natural gas contract.

Many businesses, non-profits, and residential consumers only consider their natural gas rate in few instances. It may be when winter arrives and the heat gets turned on or simply when your current contract expires. After all, for most, natural gas comprises a relatively small percentage of monthly expenses.

There is however a number of non-residential entities that pay a considerable amount for natural gas through the winter. This includes manufacturers, hospitals, schools, and even churches. In some cases, reducing rates by a matter of cents can add up to thousands in annual savings.

We have seen the adverse effect a cold winter can have on the budget. Just think back to the beginning of 2014 when the nation was overcome by the polar vortex. This of course was unexpected for most and hit many hard in the wallet.

Now though is the perfect time to negotiate your natural gas rate. Currently, gas reserves are up more than 5 percent over last year and prices have trended down these past 12-months. As we get closer to the winter season, the prices will go up. This is a function of supply and demand. Purchasing now enables you to capitalize on lower rates. If you signed a 12-month contract at a higher rate, renewing now will save you money during the following winter.

You have several options for exploring a natural gas contact. If you are a smaller consumer, there are programs through your utility and local brokers you can work with. Be sure to understand the terms of the contract offered and the fine print. Consult an energy advisor if you are unclear about any terms in the contract.

Additionally, most local chambers of commerce will offer their membership what is known as community aggregation programs. If you are not already part of your local chamber, you may want to consider exploring the many benefits they can offer.

If you are a larger consumer, spending perhaps $10,000 monthly on energy or more, there are additional options available to you. The market has become rather sophisticated with a number of products to select from. Though you may be experienced in managing your companies’ energy portfolio, it certainly would benefit you to explore options with your energy advisor to ensure you are making the most informed decision.

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Energy Efficiency: Transaction vs. Consultative Approach

Tell me if this scenario sounds familiar. You’ve been tasked with managing the energy portfolio for a building. Your company may be a manufacturer, hospital, school or commercial real estate property. Regardless of your specific operation, the common thread is that you likely have a very small operating budget, minimal staff, and host of ongoing issues that land on your desk.

You want to be proactive; planning for future issues before they arise, but the resources you are given forces you to be reactive.

As I meet with clients in varying industries, I continually hear this same narrative. To add insult to injury, many of these managers express the challenge of juggling additional responsibilities outside their defined position. Obviously, this further strains their budget, time, and personnel.

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This struggle sets the stage for two opposed energy management methods, transaction versus consultative.

A transaction sale can be categorized by solutions that are specific to equipment failure or end of life. You would see this for example with an old boiler or HVAC unit. After decades of operation, they simply stop working. This requires the consumer to engage in a point of sale transaction.

Usually, the replacement comes with a premium cost because of the urgency. In many cases, this could easily erase whatever capital budget you had planned to use for energy efficient upgrades.

Contrary to a reactive transaction is a more proactive consultative approach. We can simplify this with two specific examples.

In the first example, your energy advisor can help you address the unique pain points your facility must deal with. A common one I often come across are issues with facility lighting. It may surprise you to learn that with older lighting technology, you will experience over time lumen degradation. This is a fancy way to say your fixtures aren’t emitting as brightly today as they did when first installed.

(A simple solution for this is to install an LED fixture. Prices for LED solutions have come down dramatically and have become more economical. The life of an LED fixtures last substantively longer than outmoded CFL solutions.)

The second example is the purest form of energy consultation. In this instance, your energy advisor would work alongside you to draft a comprehensive energy management plan. This includes identifying all existing pain points, categorizing remaining equipment life, and producing an analysis on potential retrofit costs and payback periods. This latter portion should factor available incentives and rebates as well as creative or alternative financing mechanisms.

This enables you to prepare, well into the future, for all contingencies and eventualities. You can include capital improvement projects in annual budgets, factor in the energy savings, and ultimately avoid untimely failures that can dramatically disrupt production.

For many dealing with complex energy issues, transaction selling has become the norm. Emerging resources in the market can help you better plan, prepare and manage energy portfolios. Leveraging an advisor can enable you to develop a more structured approach and avoid the roller coaster that has been your energy management strategy to date.

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Identify Energy Solutions with an Energy Advisor

The energy industry today is more dynamic and complex than ever before. The advent of new technologies, shifting energy costs, and the constant barrage of federal and state legislation, has made it extremely difficult for consumers to stay adequately informed. For these reasons, EPCO is a huge proponent of the idea that every business should have an energy advisor.

The concept of an energy advisor hasn’t fully taken hold throughout the marketplace. Perhaps it is because most businesses don’t clearly understand what an energy advisor is, or, how they would use one. Think of it in these terms. A typical business will utilize a lawyer for legal needs or a CPA for accounting. There are many professionals and firms that can provide the same consultative services for managing your energy consumption.

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For smaller enterprises, you may leverage the expertise of an energy advisor to negotiate better rates for your gas and electric utility. But if you are a larger consumer, like most clients I work with, your energy management needs could be substantial. The right advisor can help identify and craft energy solutions for a myriad of concerns. This may include lighting audits and retrofits, power factor correction studies, or improvement to process cooling / heating performance.

You want to be sure to work with the right advisor, not all are created equal. Each client that EPCO collaborates with receives a unique and customized energy evaluation. No two businesses have the same needs or operate in the same way. Your energy consultant should provide you with a distinctive energy saving solutions that will allow you to make immediate and lasting cuts to your operating budgets.

Working in concert with you, and focusing on your specific needs, a reputable advisor will design a sensible compilation of measures that provide for turnkey energy efficiency solutions. Ultimately, you will want to take a long-term planning approach, leveraging short term savings opportunities that are invested into more capital intensive projects. This diversifies energy portfolios and ensures a cost effective and sustainable path into the future.

There are many more factors to include. You will want to leverage potential financing and rebates as well as develop a structured strategic plan to help guide you. The first step though is to find and work with the right team of professionals. The world of energy procurement and management is virtually the Wild West. Make sure you are coming armed with the right support.

 

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Four Steps to Reducing Inefficiency in Your Building

Is your facility as energy efficient as it could be? How does your energy rates compare to current market conditions? Do you have equipment and systems needlessly using energy when off-cycle? These are more difficult questions to answer than most would think. Many clients I work with are wearing multiple hats each day. I am confident you are too. It’s extremely challenging for them to keep up on prevailing technologies or fluctuating rates while trying to juggle production schedules and personnel.

An essential tenant of the EPCO philosophy to energy management is having a comprehensive plan to guide you. Your energy plan should be a holistic approach to the energy consumption of your facility.  Utilizing a long-term lens, EPCO designs a plan that factors each component comprising your specific energy fingerprint. This includes how you use energy, when it’s consumed, and most importantly, where you can save without disruption to your operation. As great as this may sound, the next logical question is, how do I create this plan?

EPCO has simplified the process into an easily digestible four-step approach.

  1. Identify your pain points – Work alongside your energy advisor to understand, from your perspective, the energy-related issues you are facing. This could be as a simple as utility billing errors or ineffective lighting to more complex issues such as process cooling / heating and heat reclamation.
  2. Perform an ASHARAE Level Audit – A facility Audit is a great step towards realizing your simple payback. Whether it is an LED upgrade, automated controls, or mechanical equipment retrofit, an audit provides the facilities baseline data needed to understand your opportunities.
  3. Prioritize the Data – Following the audit, review the data to determine where the most substantial and relative savings exist. Cross reference the pain points you first identified with each proposed solution. Calculate what the capital costs are in relation to energy savings. And be sure to leverage incentive and financing opportunities.
  4. Draft and Execute Your Plan – Once you have determined the value and importance of each solution, your energy advisor can work with you to implement each identified energy savings opportunity. Start with the highest prospective paybacks so you can reinvest those savings into more energy intensive projects.

A carefully crafted energy plan will empower you with the ability to more seamlessly manage your energy portfolio. Whether you move forward immediately with each measure, or wait for a more opportune time, you will be better informed and prepared.

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What EPCO Can Do For You

As we approach summer, more and more businesses will begin to think about their energy consumption. In a just a couple of months, higher temperatures will bring increased electric consumption. Consumers will be cranking up their cooling load or increasing production. With increased consumption come increased energy costs. That is the bad news. The good news is that there are steps you can take to mitigate those rising operations expenses.

Energy Planners Company (EPCO) is a full service energy solutions firm committed to providing the best products and services available to our clients and partners. Leveraging our proprietary approach to energy management, EPCO will work alongside our clients to create a long-lasting advanced strategic plan to address all their current and future energy related needs. EPCO’s carefully designed methods and portfolio will help your business realize savings in areas you may not have known existed.

Electric & Natural Gas Utility Bill Review

For each metered account, EPCO will review all supply side charges related to the acquisition of, and costs associated with, electric and gas procurement.

ASHRAE Levels 1, 2, & 3 Assessments & Design

ASHRAE level energy audit & lighting assessments determine where, when, why and how energy is used in a facility. The main outcome of our customized energy audits is a list of recommended energy efficiency measures (EEMs), associated energy savings projections, and a calculation of whether EEM installation costs are a good financial investment for your facility.

Rebates, Incentives & Financing

EPCO specializes in creative and alternative financing mechanisms. Our team of professionals will leverage the energy efficiency projects you perform to exempt your facility from costly utility fees or apply for rebates through either your local or regional utility.

Long-term Energy Planning & Strategy

EPCO takes a holistic look at an entire building or campus to choose the appropriate approach to create cascading savings and improve asset value. EPCO will help design a clear and customized business case for a deep energy retrofit through quantifiable savings and empirical research.

Project Management & Implementation

From project identification, to design, and ultimately installation; EPCO can manage and facilitate the entire retrofit process for your facility. EPCO works with all energy intensive industries and consumers and understands the complexities of retrofitting a facility such as yours. Areas of project management expertise for EPCO include, but are not limited to, the following.

  • Lighting
  • HVAC
  • Motors, Drives, & Controls
  • Roof Top Units (RTUs)
  • Air Handling Units (AHUs)
  • Combined Heat & Power (CHP)

EPCO prides itself in its ability to cultivate unique and customized solutions for each client it works with.

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