An Energy Consultant begins his/her review with an analysis of no-cost and low-cost energy alternatives. Compare your current energy source to lower-cost options while giving consideration to the beneficial terms and conditions not available from regulated utilities. A good Energy Consultant knows where the energy markets have been trading and where they are likely to go in the future. Your Consultant’s understanding of market fundamentals, technical analysis, your energy data, and knowledge of contracts are essential to develop and administer the Request for Proposal (RFP). The objective: To identify options in price and terms suited to the prevailing market conditions and aligned with your company's risk tolerance.
Once you’ve identified an attractive opportunity, it’s time to assess
your energy costs and consumption. Effective oversight requires
capturing data, identifying trends, followed by budgeting and
forecasting your utilities. Don’t let your utility manage you. Instead,
gather the data and convert it into decision-quality information.
Complex and constantly changing utility tariffs determine your billing
amount. The right Energy Consultant knows how to find, understand, and
explain those tariffs. Often a commercial or industrial customer is
eligible to receive service under several rate schedules. Your
Consultant should be able to demonstrate to you which rate schedule is
your best option at the least cost. As well, it’s not uncommon for
utilities to make billing errors. A competent Energy Consultant can
identify errors through a systematic audit process.
After examining your supply contracts and get a handle on your cost
and usage, it is time to tackle your consumption. Energy conservation
can be achieved by modifying many mechanical and electrical systems. A
good Energy Consultant is comfortable working with an electrical
diagram, steam table, or psychrometric chart to identify and save on
energy use in the major systems. In a commercial or industrial facility,
that can involve analysis of lighting, compressed air, HVAC, steam,
electrical systems, and the building envelope itself. After identifying
cost-saving areas, a Consultant should be able to perform a life-cycle
analysis that considers upfront capital costs, maintenance costs, tax
implications, energy savings, and future salvage value. As part of the
financial analysis, your Consultant should point out opportunities to
obtain low-cost loans, grants, and financing alternatives.
The energy field is broad in scope, complex and constantly on the move. When engaging an Energy Consultant, you want someone who is abreast of the latest changes in new technology, regulations, tax laws and market opportunities. You want someone who knows when and where to look for additional support if needed. Just like your consultant needs to know his/her limitations, they also need to understand the client's limitations. This is particularly important when it comes to the transfer of technologies. A good Energy Consultant will take the time to understand the client's maintenance staff capabilities. Maintenance has become an easy target for cuts in a downsizing culture. Inserting the latest technology into operations, in that case, may not be a good fit for companies lacking the staff or training budget needed to maintain high-tech energy management systems.
Energy costs continue to rise, and deregulation is shifting risks away from suppliers and onto end-users. Contact Independent Energy Consultants to discuss how we can help you turn these challenges into opportunities.