Savings Examples: Utility Bill Tariff Analysis
Electric Tariff Analysis for a Mid-Size Foundry ($2,800,000 savings per year)
An analysis of the most appropriate electric tariff for a new foundry to be located in St. Louis, MO. It is based on an existing facility in Ohio and identical electric requirements were used in the analysis.
Since the electric utilities in Missouri are still fully regulated, the customer must choose the electric tariff for their service. Two tariffs were suitable for this industrial operation; equivalent service was provided, at significantly different rate factors. A bill estimator tool provided by the electric utility was used to compare annual costs under each tariff. A savings of almost $3 million per year was found, based almost entirely on significantly different peak demand (KW) charges.
Electric Tariff Analysis for a Small Mfg Company (43% savings)
An analysis of the most appropriate electric tariff for a small manufacturing company, located in San Antonio, TX. While the electric utilities in Texas are now deregulated, the city of San Antonio provides electricity for all residents and businesses, so the customer must choose the electric tariff for their service.
Two tariffs were suitable for this manufacturing operation, with significantly different rate factors that included things such as Actual Demand, Billable Demand, Kwh usage, Seasonal Adjustments, Power Factor Penalties, Fuel Adjustments, Service Availability and other cost factors.
The complex interaction of all these variables masked a significant savings opportunity. The tariff that the customer assumed to be the most appropriate, and that they were being billed under, was actually costing them money each month. The alternative tariff would cost them 43% less for the sample bill analyzed.
Significantly lower costs would be available by reducing Actual Demand and this customer was advised to consider utilizing our electric sub-metering system to identify their “energy hogs”.
Suspected Electric Bill Refund Opportunity ($1,674,893.90)
We were asked to analyze a potential electric refund opportunity for a new client. Seven years earlier, an additional electric sub-meter had been installed in their facility and our client was convinced that they had been double billed for usage, (that was indicated on both the sub-meter, and main meter).
The incomplete information on the standard monthly electric bill made it appear that they certainly may have been due a huge refund. However, the electric utility company provided additional detail to support their charges (for an extra fee, of course). The client was unable to interpret the electric usage data and called us in.
In spite of the highly confusing nature of the billing data, we were able to verify that the billing was correct. Unfortunately, no refund was available to the client. However, because our fee for billing analysis services is based on actual savings & refunds achieved, the client owed us nothing.