With Connecticut facing a growing state budget deficit, many residents and business owners are uneasy about what’s to come in terms of taxes, spending and the overall economic strength of the state. Addressing these concerns, Governor Daniel Malloy noted in his State of the State address on January 4, 2017, how the government should try to ease this uncertainty.
Operations aren’t always as glamorous as sales, but they are inextricably linked. Without operational efficiency, companies limit their sales potential, like a car with inadequate tires trying to drive based on the horsepower of its engine alone.
On vs. Off Peak Consumption/Demand and Associated Charges
Many customers know that they are billed separately for on-peak and off-peak energy consumption, but many do not know the impact these periods have on their monthly energy costs. Depending on the host utility and distribution rate assigned, certain demand and consumption charges apply to on-peak consumption but do not apply to off-peak consumption.
When reducing operating costs, many methods come with unintended consequences, such as layoffs or budget reductions. While any cost reduction improves short-term profitability, companies need to consider risks that are difficult to quantify, such as the impact of employee morale and customer experience, which directly affect long-term profitability and revenue growth.
Behind the scenes of your electricity typically lies a complex web of public and private energy companies that produce and distribute power that ultimately arrives at your business through power lines. While it may seem like just your utility company is responsible for delivering your power, these utility companies are connected to large regional power grids, which are the power lines and related equipment that move power from one point to another.
Estimated Meter Reads
Utilities indicate on their bill whether a meter reading is actual or estimated. Readings can be estimated if the interval meter installed had difficulty transmitting the usage to the host utility, or if the meter was not read on a scheduled basis.
Power Factor Rating (if billed on kVA/kVAR)
When looking at your utility bill, if you notice that all your demand charges are based on kW, then skip this post does not apply to you. However, if you notice that your demand charges are based on kVA or kVAR, then keep on reading! Power Factor is the difference between kW and kVA.
For many companies, sustainability used to be a buzzword and low priority on the corporate totem pole. Put simply, those days are over. In a recent Forbes poll, 36% of Fortune 500 CEOs cited sustainability as a top five company priority, with 13% ranking it as their company’s number 1 priority.
Distribution Rate Class Assignment
Distribution rates are typically updated on a quarterly to annual basis and are subject to approval from the appropriate regulatory authority. Depending on the host utility and their breakout of distribution rates, customers can be assigned to one or more rates based on their historical energy usage characteristics. These rates usually incorporate various fixed, consumption, and demand charges which allow the utility to recoup costs associated with delivering power to consumers and secure a regulated profit margin.
A great leadership challenge is upon us. Stalwart organizations, upstart innovators and concerned citizens alike can take the lead in grappling with, advancing and fulfilling the new sustainability orientation now emerging across the globe. Taking short term steps now could advance broad goals for humanity.