Business owners and homeowners alike know that summer and winter months are hard on the electric bill. Cost-conscious entrepreneurs and business managers are always open to new ways to cutting costs via energy conservation or efficiency improvements. Behind the scenes, the much larger issue for utilities is load conservation; that is, keeping tabs on overall energy consumption in order to preserve costly T&D equipment while maintaining a high level of customer satisfaction.
One popular solution offered by utilities to help small businesses comes in the form of energy management programs for commercial accounts. The most successful programs utilize energy monitoring tools to provide both utilities and customers with valuable energy data. These are energy feedback programs designed to educate commercial and industrial customers on the many hidden sources of inefficiency.
By leveraging energy data management experts to install and manage these tools, utilities can determine the causes of peaks in energy usage and expand their management of overall energy usage during high demand seasons. Meanwhile, business customers can keep their energy costs under control. With this valuable information about energy usage available on a daily basis, both utilities and businesses can now manage their resources more effectively, and also solve problems that before went unattended.
Hidden Costs of Karaoke Night, Cotton Candy & Bingo
Sources of energy inefficiency or excess usage are often hidden in the day-to-day details of
running a business. The process of finding these hidden costs requires both insight and the
information that can identify the sources of waste. With the right tools and a bit of knowledge, utilities can make the largest difference in customer understanding, and the biggest dent in the customer’s energy operating costs. Here are a few examples.
When a nightclub in southern California saw huge spikes in energy usage and energy costs in their monthly electric bill, the management turned to its utility to investigate the cause. By analyzing the daily data collected from the recording electric meter installed at the site, the contractor collecting the energy data determined that a large spike in power usage only one day a week was causing a substantial increase in energy usage.
At the club, managers were leaving the patio door open during the nightclub’s regular Wednesday karaoke night for outdoor patrons to hear the on-stage antics inside. The open door caused the bar’s air conditioning to work double-time each night it offered karaoke. Once the cause was determined, the nightclub closed the patio doors, regained control of its energy usage, lowered its overall electricity bill and developed a better appreciation for both the energy data metering system and the utility looking out for its best interests.
While using energy data management meters to research specific energy usage is often a
cost-reducing proposition, the process doesn’t always result in cash saved. Sometimes it just shows us how expensive it is to run a particular business or program.
In the next example, a South Texas community gathered for a weekend festival at the local sports complex. The free event included, among other items typical of a carnival, cotton candy machines, and carnival rides to create a fun, family-focused atmosphere. Since most of the focus was on the organization of the event for a successful turnout, not much attention was paid to the "hidden costs" of the energy being used.
When the sports complex received its utility bill at the end of the month, the amount due was unusually large. Upon investigation, it was found from the advanced meters that had been installed at the complex earlier in the year that the festival set a new, very high demand charge for that month, a result of the coincidental energy loads from the festival’s participants. The cost of energy for the carnival was a hidden cost not considered in the overall budget, and certainly not expected by the sports complex.
In another example, Bingo Night is universally viewed as a guaranteed revenue generator for non-profit organizations. But one church in southern California found out recently that the hidden costs of making the evening special significantly impacted the church’s energy usage, reducing the net income from the event.
Event managers found that total energy usage (and the electric bill) increased after each Bingo event. Research into the daily energy usage data collected from the advanced metering by the utility and its data management partner revealed the true cause – Bingo Night, with its bright lights, extra air conditioning for the participants, and kitchen-prepared foods.
Without the availability of utility data management programs to provide organizations with insight into their energy usage, most organizations would have difficulty determining the causes of the extra charges. Those groups would have no idea that events like Bingo Night aren’t necessarily the cash cow that was envisioned. After this, the church raised its cover charge to pay for the extra costs.
Immediate Program Verification While utilities use advanced meters and energy data management tools to identify specific billing problems with business accounts, as mentioned above, these tools can also help paint the bigger picture for utilities. Larger research projects – those used to test utilities’ existing demand response programs and plan for future energy resource needs on a statewide basis – call for similar tools and resources.
Southern California Edison (SCE) began using the benefits of an energy data management system to validate one of its load control projects since 2003. Currently, SCE is completing the study, the goal of which is to validate the effectiveness of its SCE Energy$mart ThermostatSM program. The objective of the program is to remotely control small business air conditioners to reduce electric load in times of electrical emergencies, which would ultimately provide a more secure energy future for the state.
In this program, smart thermostats at approximately 3,000 small businesses are remotely controlled by the utility to raise the temperature by 4 degrees Fahrenheit. The energy data management system measures usage data on a daily basis and confirms the magnitude and timing of reductions in consumption during control periods. The desired result of reducing electricity demand during the control period, with little noticeable impact on comfort at customer facilities, is thus measured.
To begin the process, SCE partnered with a meter data management expert, Hunt Power, L.P., to install advanced recording meters in parallel with the utility billing meter to collect daily energy data on a continuous basis. The parallel meter arrangement eliminated the need for a potential service interruption during a meter replacement, and customer’s the telephone line was shared by the meter, reducing communication costs to the utility for the retrieval of timely metered data. The meter data management partner also managed the data collection, processing, analysis and reporting services, as well as display the results for SCE on the Web.
Program results for the summer of 2003 were available immediately as a result of this partnership. The data proved that the project had already doubled early projections, showing an immediate 10MW demand reduction. Prior to the first round of data collection, SCE had estimated a 4 MW reduction in demand consumption for the program. These results gained from the advance metering validated the program’s effectiveness, and paved the way for program expansion in 2004.
With Energy Information, Everybody Wins
In summary, timely knowledge about energy usage is the common denominator in understanding how to lower both utility operating costs and customer energy bills, as well as verifying programs to prevent the next energy crisis. In each of the examples mentioned above, the utilities and their customers had specific questions to answer about the impact of operations uniquely related to energy usage. But getting the answer to the question was the same – you first gained detailed knowledge about the customers’ energy usage through an energy data management system, and then implemented the corrective action to remedy the problem.
In all cases, everyone came out a winner, armed with the specific knowledge about energy usage and knowing how to avoid future "heartaches" when it comes to excessive energy costs, unexpected power bills, and potential energy shortages for all customers.
About the Authors
Mark S. Martinez is the manager of demand response program development with 20 years of demand-side management experience at Southern California Edison, one of the United States' largest investor-owned electric utilities.
Joe Polaski is Assistant Vice President, Products, for Hunt Power, L.P. and has more than 20 years of industry experience, working for energy
management service providers and utilities.
One popular solution offered by utilities to help small businesses comes in the form of energy management programs for commercial accounts. The most successful programs utilize energy monitoring tools to provide both utilities and customers with valuable energy data. These are energy feedback programs designed to educate commercial and industrial customers on the many hidden sources of inefficiency.
By leveraging energy data management experts to install and manage these tools, utilities can determine the causes of peaks in energy usage and expand their management of overall energy usage during high demand seasons. Meanwhile, business customers can keep their energy costs under control. With this valuable information about energy usage available on a daily basis, both utilities and businesses can now manage their resources more effectively, and also solve problems that before went unattended.
Hidden Costs of Karaoke Night, Cotton Candy & Bingo
Sources of energy inefficiency or excess usage are often hidden in the day-to-day details of
running a business. The process of finding these hidden costs requires both insight and the
information that can identify the sources of waste. With the right tools and a bit of knowledge, utilities can make the largest difference in customer understanding, and the biggest dent in the customer’s energy operating costs. Here are a few examples.
When a nightclub in southern California saw huge spikes in energy usage and energy costs in their monthly electric bill, the management turned to its utility to investigate the cause. By analyzing the daily data collected from the recording electric meter installed at the site, the contractor collecting the energy data determined that a large spike in power usage only one day a week was causing a substantial increase in energy usage.
At the club, managers were leaving the patio door open during the nightclub’s regular Wednesday karaoke night for outdoor patrons to hear the on-stage antics inside. The open door caused the bar’s air conditioning to work double-time each night it offered karaoke. Once the cause was determined, the nightclub closed the patio doors, regained control of its energy usage, lowered its overall electricity bill and developed a better appreciation for both the energy data metering system and the utility looking out for its best interests.
While using energy data management meters to research specific energy usage is often a
cost-reducing proposition, the process doesn’t always result in cash saved. Sometimes it just shows us how expensive it is to run a particular business or program.
In the next example, a South Texas community gathered for a weekend festival at the local sports complex. The free event included, among other items typical of a carnival, cotton candy machines, and carnival rides to create a fun, family-focused atmosphere. Since most of the focus was on the organization of the event for a successful turnout, not much attention was paid to the "hidden costs" of the energy being used.
When the sports complex received its utility bill at the end of the month, the amount due was unusually large. Upon investigation, it was found from the advanced meters that had been installed at the complex earlier in the year that the festival set a new, very high demand charge for that month, a result of the coincidental energy loads from the festival’s participants. The cost of energy for the carnival was a hidden cost not considered in the overall budget, and certainly not expected by the sports complex.
In another example, Bingo Night is universally viewed as a guaranteed revenue generator for non-profit organizations. But one church in southern California found out recently that the hidden costs of making the evening special significantly impacted the church’s energy usage, reducing the net income from the event.
Event managers found that total energy usage (and the electric bill) increased after each Bingo event. Research into the daily energy usage data collected from the advanced metering by the utility and its data management partner revealed the true cause – Bingo Night, with its bright lights, extra air conditioning for the participants, and kitchen-prepared foods.
Without the availability of utility data management programs to provide organizations with insight into their energy usage, most organizations would have difficulty determining the causes of the extra charges. Those groups would have no idea that events like Bingo Night aren’t necessarily the cash cow that was envisioned. After this, the church raised its cover charge to pay for the extra costs.
Immediate Program Verification While utilities use advanced meters and energy data management tools to identify specific billing problems with business accounts, as mentioned above, these tools can also help paint the bigger picture for utilities. Larger research projects – those used to test utilities’ existing demand response programs and plan for future energy resource needs on a statewide basis – call for similar tools and resources.
Southern California Edison (SCE) began using the benefits of an energy data management system to validate one of its load control projects since 2003. Currently, SCE is completing the study, the goal of which is to validate the effectiveness of its SCE Energy$mart ThermostatSM program. The objective of the program is to remotely control small business air conditioners to reduce electric load in times of electrical emergencies, which would ultimately provide a more secure energy future for the state.
In this program, smart thermostats at approximately 3,000 small businesses are remotely controlled by the utility to raise the temperature by 4 degrees Fahrenheit. The energy data management system measures usage data on a daily basis and confirms the magnitude and timing of reductions in consumption during control periods. The desired result of reducing electricity demand during the control period, with little noticeable impact on comfort at customer facilities, is thus measured.
To begin the process, SCE partnered with a meter data management expert, Hunt Power, L.P., to install advanced recording meters in parallel with the utility billing meter to collect daily energy data on a continuous basis. The parallel meter arrangement eliminated the need for a potential service interruption during a meter replacement, and customer’s the telephone line was shared by the meter, reducing communication costs to the utility for the retrieval of timely metered data. The meter data management partner also managed the data collection, processing, analysis and reporting services, as well as display the results for SCE on the Web.
Program results for the summer of 2003 were available immediately as a result of this partnership. The data proved that the project had already doubled early projections, showing an immediate 10MW demand reduction. Prior to the first round of data collection, SCE had estimated a 4 MW reduction in demand consumption for the program. These results gained from the advance metering validated the program’s effectiveness, and paved the way for program expansion in 2004.
With Energy Information, Everybody Wins
In summary, timely knowledge about energy usage is the common denominator in understanding how to lower both utility operating costs and customer energy bills, as well as verifying programs to prevent the next energy crisis. In each of the examples mentioned above, the utilities and their customers had specific questions to answer about the impact of operations uniquely related to energy usage. But getting the answer to the question was the same – you first gained detailed knowledge about the customers’ energy usage through an energy data management system, and then implemented the corrective action to remedy the problem.
In all cases, everyone came out a winner, armed with the specific knowledge about energy usage and knowing how to avoid future "heartaches" when it comes to excessive energy costs, unexpected power bills, and potential energy shortages for all customers.
About the Authors
Mark S. Martinez is the manager of demand response program development with 20 years of demand-side management experience at Southern California Edison, one of the United States' largest investor-owned electric utilities.
Joe Polaski is Assistant Vice President, Products, for Hunt Power, L.P. and has more than 20 years of industry experience, working for energy
management service providers and utilities.
