How can I reduce my business's utility expenses?
The easiest way for a business to reduce its spend on utility bills is to conduct a rate and regulatory review, paired with a cost capture plan to change the rates which the local utilities bill for service.
What role does a Utility Rate and Regulatory Review play in reducing my spend on utilities?
· Problem: Utilities make up a material portion of many businesses overhead expenses, but there are limited opportunities to reduce (without costly efficiency initiatives – generally CAPEX).
· Opportunity: Many organizations qualify for discounted utility rates that they didn’t know existed. Offering sizable reductions in their current fee schedules
· Solution: A rate and regulatory review is conducted by a qualified professional to baseline current spend / rates and compare that to optimal rate and fee structures available from the Public Utility Commission. The consultant then works with the utility provider to secure these savings.
What kinds of organizations or businesses can benefit from a utility review?
Any business that consumes large amounts of energy and qualifies for special utility rates is a good candidate for a utility audit. This includes, but isn’t limited to hospitals, medical clinics, local municipalities, and manufacturers.
What is a Public Utility Commission?
A Public Utility Commission, or PUC for short, is the governing body that sets utility regulations for a geographic area. At the federal or interstate level, the Federal Energy Regulatory Commission (FERC) sets policy for interstate (state-to-state) utility operations. Local PUCs vary in terms of size and scope due to the deregulated nature of the American electrical grid. PUCs can cover anywhere from an entire state (e.g., Public Utility Commission of Texas) to a single city (e.g., Kansas City Board of Public Utilities)
What are utility rates?
At it’s most basic level, a utility rate is the amount that a customer agrees to pay a utility for a given amount of service. For electrical service, this is generally charged by the kilowatt hour (kWh). In some areas, rates my be straight lined (no discounts for volume or usage), while in most areas there are different types of rates for special uses (e.g., first responders) or higher usage (e.g., a manufacturing site).