Brrr!!! It’s the time of the year when people enjoy hot chocolate around the fireplace on weekends and during the work days, employees try to avoid the cold weather that can take place in the Northeast, Upper Midwest and other parts of the country. Pallet and sawmill operations are no stranger to cold weather challenges.
Winter weather has led me to think about energy efficiency and the way that companies spend lots of money each year on paying to energize and heat/cool their facilities. About a year ago, I met Ralph Russell, an energy consultant and electrical engineer with eDiscoveri LLC. Russell has challenged how I think about energy and led me to consider more about how this issue affects readers.
If you do not effectively manage and monitor your energy usage, you could be doing the equivalent of leaving your home windows open in the summer while running your air conditioner at full blast.
Russell not only writes for the Enterprise, he also is the key presenter at a webinar on ways to cut your plant energy costs for Pallet Profile and Recycle Record subscribers. This is a free webinar for subscribers scheduled for February 17, 2015. If you would like to find out more information, see the ad on page 83.
Recently, Russell sat down with me and discussed some of the keys to getting a hold on your energy costs. These insights are invaluable as companies look for ways to lean their operations and reduce operational costs. These tips are just the beginning of the type of information Russell will offer through his webinar. We provide a limited number of webinars each year as a way to add value to subscribers to our market reports.
The following are some of the major suggestions that Russell provided if you want to start evaluating your energy usage and working to develop a better plan.
Russell commented, “Conducting an energy audit or analysis involves three major components. The first step is to create or obtain a profile of your energy usage.”
Many utilities are willing to offer this service for free or at least for nominal fee. As for a three year analysis so that you can effectively evaluate outliers on a long-term basis. The second step is to conduct an energy audit. This process allows you to set benchmarks or standards to identify outliers or any usage that goes against common practices.
Russell cautioned, “In a commercial business, energy usage tends to fluctuate depending on the season. But if you have enough data over a three year period or so you can easily identify seasonal patterns.”
The final phase involves monitoring of your budget and energy conservation goals. Russell said, “You want to continue to look at cost and monitor for errors and identify places of success.”
When you begin looking at your energy bill, the first thing you will notice is the total cost. This will involve a few major components: Demand (Kilowatt rate), actual energy usage, taxes, facility charges and miscellaneous expenses or credits.
While utilities generally have good records, they can make mistakes. And it is up to you to catch these items. For example, the utility may have offered you a credit if you reduce energy consumption in peak periods. The utility may not always add the credit right in your bill. Or you may not fully understand when the credit kicks in and when it doesn’t.
Looks for any major fluctuations where prices or usage spikes. Did the energy billing cycle change more than a day or so? This might indicate the utility couldn’t read your meter and estimated the charges for the latest bill. This could mean you have a meter problem or need to provide better access for the utility to monitor the meter.
Utilities may charge for some items, such as outdoor street lights that the utility installed. But what happens if the light is no longer needed and is not used any more but the utility keeps this light on the bill. You might be charged $4 per month for a light that doesn’t even work. Although this seems small, that is almost $50 per year for nothing. A lot of little holes can be harder to identify and fix than one big problem.
Some facilities have sub-metering on various parts of the plant. This can help you identify any real drains on your power consumption.
Smart companies need to have energy conservation plans that are encouraged by management and enacted by employees. This can involve conducting an annual analysis of energy leaks, establishing a policy of turning off lights and powering down equipment that is not in use. Taking advantage of lower rates and energy credits could involve running your operation at off-peak hours as much as possible. You can use air curtains made out of plastic to reduce heat energy that escapes out of dock doors.
Sometimes companies have fees associated with a late payment or clerical error. Russell encouraged, “It is always good to ask forgiveness. In many cases even if it the customer’s fault, the utility might forgive a late fee if it occurs on occasion.”
If you want to get your energy costs in line, create a budget and identify any irregularities. Russell stands ready to help pallet or lumber companies that want to see how he can help them cut their energy bills, take advantage of tax credits or institute an energy conversation plan. More information can be found at http://ediscoveri.com/
To sign up for the webinar call 804-550-0323 or email “Energy Webinar” to me at chailleb@gmail.com
Remember what my dad always used say to me, “Will somebody close that open door? Were you born in a barn?” Don’t let energy drains go untouched in your plants.
