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LOWERING YOUR FACILITY'S ELECTRIC RATES
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LOWERING YOUR FACILITY'S ELECTRIC RATES
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Many energy practitioners are either uninformed or misinformed regarding how electricity is actually priced. Many are also unaware of how to properly calculate potential dollar savings from energy efficiency upgrades.
Designed for commercial, industrial and institutional (C&I) power customers, this book details ways to secure lower electric rates and pricing in both regulated and deregulated retail power markets. The range of options varies from simple methods (e.g., minimizing sales tax) to more complex techniques (e.g., intervening in regulatory rate proceedings). With 40+ years’ experience in energy services, Mr. Audin provides the reader an excellent understanding of power pricing and proven ways to reduce it.

ISBN: 0-88173-781-X
6 x 9, 400 pp., Illus., Hardcover
ORDER CODE: 0729

SECTION I: BACKGROUND
Chapter 1 The Bottom Line

Chapter 2 Understanding The Basic Power System
Evolution of the Electric Utilities
Utility Geography
Utility Financial Structures Vary
New Players in the Power Game
How the Grids Expanded
The Three Main Functions Of Utilities
Retail Deregulation Impacts Some Utilities

Chapter 3 Understanding Power Pricing
Average Versus Actual Electric Rates
To Understand the Options, Learn the Lingo
Unbundling Electric
Basic Electricity and Tariff Units
How Peak Demand May Be Measured
Why Understanding Peak Demand Is Important

Chapter 4 Typical Components in a C&I Electric Bill
Fixed Charges
Major Variable Charges
Program Charges and Taxes
Many Pieces in the Pie

Chapter 5 First Steps in a Rate Analysis
Tips to Make Analysis Easier
Break Down Dense Language
Use Utility Accounting Software
Review Alternative Rates
What Tariffs May Not Show

SECTION II: OPTIONS FOR RATE AND COST REDUCTIONS

Chapter 6 (Mostly) Administrative Options
Avoid, Shift, and/or Reduce Taxes
Minimize Bill Processing Costs
Aggregate Meters/Accounts
Re-classify Loads/Accounts
Lower Service Firmness
Seek A CHP Deferral Option
Find Billing Errors Using a Professional Utility Bill Auditor
Utilize Financial Techniques

Chapter 7 Utilizing Metering and Dynamic Rate Options
How Utility Metering Is Changing
A Brief Tutorial on Interval Data
How to Get the Data
Evaluating a TOU Rate
Power Pricing Based on Utility Load Profiles
A Slightly Extreme Example
Who May Benefit from TOU?
Get It ‘Wholesale’ via RTP
Who May Benefit from RTP?

Chapter 8 Equipment/Technical/ Operational Options
Reduce or Eliminate a Reactive Power Charge
Convert Electric Loads to Natural Gas
Get Paid to Cut Load By Demand Response Programs
What DR is All About
Who Offers DR Programs/Tariffs?
Cut a Distribution Rate by Upgrading Voltage Service
Pursue Transmission Bypass
Buy Cheaper Power Generated On-site
Negotiating Cogeneration
Cash in on Options for Using Alternative Energy Sources

SECTION III: CHANGING THE RULES

Chapter 9 Negotiating with Utilities
IOUs: Often the Toughest Nuts to Crack
Munis and Co-ops May be Easier
Authorities Are a Mix
Possible Mechanisms for a Resolution
Negotiation Is Never a Simple or Easy Task
Sweat the Details of a Proposed Deal

Chapter 10 Intervening to Help Write the Rates
Introduction
Understanding Rate Proceedings
To Succeed, Don’t Go It Alone
SECTION IV: COMPETITIVE RETAIL
POWER PROCUREMENT

Chapter 11 Buying from Competing Electricity Suppliers
Introduction
Historical Background
How the Purchasing Process Works
Preparing for Retail Power Procurement

Chapter 12 Options for Competitive Supply Pricing
Price Content and Structure 
Common Types of Power Products

Chapter 13 Managing Competitive Power Procurement
Finding and Choosing Retail Power Suppliers 
RFI Content
Price Discovery Methods and Tools
RFP Content 

Chapter 14 Ways to Save Money and/or Increase Value

Chapter 15 Negotiating/Improving a Supply Contract
How to Improve a Contract
Post Bid Options
Appendices

Glossary of Tariff and Energy Procurement Terms

 

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