Your Energy Manager
Topic: Electric Bill Anatomy
October 2007
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Independent Energy Consultants, is committed to helping its clients make well-informed and cost-effective decisions regarding their energy supply and consumption. We are sending you this newsletter to help you understand how energy decisions that are made, or not made, effect your company's bottom line.

We often get calls from potential clients wanting to save on their electric bills by finding a lower-cost provider. When they discover that their state or utility company is not deregulated, or there are no alternative lower-cost suppliers, they sometimes think there is nothing that can be done to lower their bills. Usually that's not the case. Electric rates are very complex. To exploit savings opportunities you must have a sound knowledge of how your facility operates, access to quality data and a thorough understanding of how the utility company calculates your bill. This table shows some of the more common line items you may find on an electric bill.

Even if you are unable to choose a lower-cost provider many of the charges on your bill can be reduced, sometimes with little or no cost. We are licensed natural gas and electricity brokers and aggregators and are familiar with utility tariffs across the United States. If you would like a thorough analysis of your electric bills, please contact us.
As with any analysis, the more detailed information we have at our disposal, the more accurate conclusions we can draw. Electric information is typically metered in time increments of:
  • Monthly,
  • Hourly,
  • 30-minute, or
  • 15-minute
If you are using a 15 or 30-minute interval meter your utility company will provide that data upon request. If you do not have an interval meter, sub metering is an economical alternative to capture this information. Sub meters can be installed in parallel with your monthly-read meters to provide the additional detail, or can be installed on branch circuits to track loads of particular interest.

Once the data are gathered, a competent consultant can analyze your load profile and apply it to various rate schedules to determine which is most advantageous for you. We have all heard the expression, "a picture is worth a thousand words". Well that is certainly the case when examining an electrical load profile. A trained eye can quickly spot patterns that would lead him/her to recommend savings opportunities associated with issues such as:
  • Converting to or from time-of-use rates,
  • Elimination of ratchet demand penalties,
  • Elimination of power factor penalties,
  • Poor load factors that require more infrastructure than is being used, and
  • Building nighttime setback systems that are not working properly.

Contact us for your energy management needs.

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