Case Study - Utility Bill Audit
Changing Rate Schedules
Introduction
Utility bill audit or preliminary energy use analysis is the first step for an energy audit whereby the total historical energy use and energy cost of the building are compiled and compared against properties of similar type and size. In this process we make sure that the client is on the appropriate utility rate plan based on their energy use.
Client Profile
Facility type: Manufacturing/Industrial
Location: California
Utility Provider: PG&E
Annual energy cost: ~$200,000
Observation
The client facility consisted of two connected buildings with separate electricity meters. During our analysis we discovered that the two meters were on different rate schedules; meter #1 was on B-1 rate schedule, while Meter #2 was on B-10 rate schedule (Table 1).
| Time of Use | B-1 Energy [$/kWh] | B-1 Demand [$/kW-month] | B-10 Energy [$/kWh] | B-10 Demand [$/kW-month] |
|---|---|---|---|---|
| Peak | 0.41383 | 0.00 | 0.33238 | 18.65 |
| Off-eak | 0.34380 | 0.00 | 0.23812 | 18.65 |
One notable difference between the two rate schedules is that B-1 does not charge for demand, but instead has a higher energy rate.
Identify Cost Saving Opportunity
Our calculations based on client’s energy usage and monthly demand showed that switching from the B-1 rate schedule to the B-10 rate schedule for Meter #1 would result in an annual cost saving of 3.3% of facility’s total annual utility bill. Considering the zero implementation cost for this measure, it would have immediate payback.
In our energy audits, a utility bill audit or preliminary energy use analysis is one of the very first steps for identifying cost-saving opportunities. We also provide utility bill audits as a separate service.
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