Additional Ways to Save Money on Utilities

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Additional Ways to Save Money on Utilities
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Additional Ways to Save Money on Utilities

• Conservation is a Necessity

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Additional Ways to Save Money on Utilities

• Conservation is a Necessity
• Started with Increased Cost for Electricity
• Followed by Increased Cost for Natural Gas
• Cost for Natural Gas continues to Fluctuate

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Additional Ways to Save Money on Utilities

• Conservation is a Necessity
• NorthWestern Energy
• Natural Gas Monthly Default Supply Rates  
• 2008/9 Price/Dkt
• June 11.61
• July 10.63
• Sep 8.80
• Nov 7.53
• Jan 6.83
•  
•  

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Additional Ways to Save Money on Utilities

• Business Approach to Utilities

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Additional Ways to Save Money on
UtilitiesUtilities to be Discussed

• Electricity Demand Charges
• Water Meter Charges
• Garbage
• Sewer

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Additional Ways to Save Money on Utilities
Demand Charges

• The primary costs for electricity are for supply
  and demand.
• Supply costs are based upon on how
• much electricity is consumed
  (conservation programs are focused on the amount
  of supply used)

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Additional Ways to Save Money on Utilities
Demand Charges

• Demand charges are costs for electricity based
  upon how fast electricity is consumed.

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Additional Ways to Save Money on Utilities
Demand Charges

• Why are demand charges important?
• Constitute approximately 30 of total electricity
  cost
• For NWE 8.72 per kilowatt (kw)

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Additional Ways to Save Money on Utilities
Demand Charges

• Why are demand charges important?
• Example for one school
• Average Monthly Electricity Demand
• Summer 72
• School Year 135
• Total Annual Demand 1,500
• 1,500 x 8.72 13,500
  

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Additional Ways to Save Money on Utilities
Demand Charges

SUPPLY
SUPPLY IS HOW MUCH ELECTRICTY IS PROVIDED
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Additional Ways to Save Money on Utilities
Demand Charges

DEMAND
DEMAND IS HOW FAST ELECTRICITY IS PROVIDED
SUPPLY
SUPPLY IS HOW MUCH ELECTRICTY IS PROVIDED
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Additional Ways to Save Money on Utilities
Demand Charges

• What is a demand charge?
• Based on the average kilowatts (kw) supplied
  during the 15 minute period of maximum use during
  the month.
• For NorthWestern Energy, demand is measured every
  15 minutes for the billing period or
  approximately 2,900 times a month.

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Additional Ways to Save Money on Utilities
Demand Charges

• What causes the demand for electricity to go up?
• Building load (heating fans, pumps, etc)
• Building occupancy (lights, computers, copiers,
  etc)
• Other (coffee pots, dishwashers)

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Additional Ways to Save Money on Utilities
Demand Charges

• Example of electricity demand
• Time Kw
• 530 17
• 545 18
• 600 24 Jump of 6
• 615 28
• 630 27
• 645 29
• 700 30
• 715 37 Jump of 7
• Power company can provide a meter to record
  electricity demand

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Additional Ways to Save Money on Utilities
Demand Charges

• How do we reduce demand charges?
• Identify large electricity consumers in the
  building
• Pumps
• Large appliances
• Base load lights, computers, small appliances
• Separate large electricity consumers by time and
  reduce your base load
• A monthly reduction of 10 kw of demand charges
  1,046 annual savings

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Additional Ways to Save Money on Utilities

• Water Meters

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Additional Ways to Save Money on UtilitiesWater
Meters

• How are water meter costs determined?
• Size of the meter determines the cost
• Cost is recurring monthly regardless of supply
• Rates may be set by the Public Service Commission

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Water Meters

• Rates for Mountain Water
• Meter Size (inches) Monthly Recurring Cost
• 5/8 15.39
• 3/4 21.50
• 1 33.72
• 1 ½ 64.25
• 2 100.90
• 3 186.40
• 4 308.55

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Additional Ways to Save Money on UtilitiesWater
Meters

• What are the benefits for changing meters?
• Immediate Savings Example
• Going from 2 to 1.5 inch water meter
• saves 440 a year
• What are the steps to changing water
  meters?
• Assess meter need
• Coordinate with water utility

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Additional Ways to Save Money on Utilities

• Garbage Service

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Additional Ways to Save Money on
UtilitiesGarbage Service Containers

• Costs
• Service to empty the containers. Dependent on
  number of containers and frequency of service.
• Capital cost for containers and maintenance
  (small)

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Additional Ways to Save Money on
UtilitiesGarbage Service Containers

• Service cost Maximize container fills between
  services
• Evaluate the costs varying of
  containers and service to reach cheapest
  solution
• Seasonal demands -- summer

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Additional Ways to Save Money on
UtilitiesGarbage Service Containers

• Lease cost for containers vs. Purchase of
  containers
• Lease cost per year 180
• Purchase cost is 725
• Return on investment is 4 years
• Negatives dumpster management business

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Additional Ways to Save Money on
UtilitiesGarbage Service Containers

• For large facilities (garbage service gt 2,000 a
  month) evaluate the cost of purchasing a trash
  compactor
• Storage unit - 15,000 used
• Compactor - 10,000
• Negatives trash drop-off at one location. May
  require more labor

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Additional Ways to Save Money on Utilities

• Sewer Service

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Additional Ways to Save Money on UtilitiesSewer
Service

• Find out how sewer fees are assessed
• May be a function of water metered
• May be a function of estimates
• May be based on erroneous information

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Additional Ways to Save Money on UtilitiesSewer
Service

• Find out how sewer fees are assessed
• Determine if the fee structure reflects your use
  
• Irrigation/ Sprinkling
• Fire suppression

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Working with Utility Companies
Additional Ways to Save Money on Utilities
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Additional Ways to Save Money on
UtilitiesWorking with Utility Companies

• Establish a Positive Relationship
• Meet with them
• Dont make them feel bad
• They want to help ask them

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Additional Ways to Save Money on
UtilitiesWorking with Utility Companies

• Treat them as you would a Preferred Vendor
• Pay your bills promptly (after youve reviewed
  them)
• Surface problems in a low key approach
• Do a check-in periodically
• Keeps communication open
• Learn information sooner

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Business Approach to Utilities

• Get familiar with utility bills

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Business Approach to Utilities

• Get familiar with utility bills
• Set-up a review process
• Compare Usage
• Review Rates
• Look for Personal Use

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Additional Ways to Save Money on
UtilitiesBusiness Approach to Utilities

• Track the usage

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Business Approach

• Track the usage
• For utilities which costs are significant and can
  fluctuate
• Electricity Supply Demand
• Natural Gas Supply
• Use the results for budgeting and budget execution

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Additional Ways to Save Money on
UtilitiesBusiness Approach to Utilities

• Get familiar with utilities and utility bills
• Understand the costs
• Inventory utility accounts
• Understand the utility market
• Meet with the Utility Provider

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Additional Ways to Save Money on Utilities

• Understanding utilities how they operate and
  their pricing along with effective working
  relationships with the utility companies will
  lead to ways to save money on utilities.