The Efficient Building --- And the Real Truth about Demand (hint: Demand is King)
Understanding exactly when and how power is being used in your building is essential to controlling your energy spend. As a consumer of electricity from the grid, you pay for both the actual energy you consume (kWh) and the amount of energy that needs to be available to serve your facility based on your peak load demand (kW). Your peak demand can influence everything from your initial rate tariff selection to your supply charge (in your capacity calculation), to your delivery charge (in your transmission and base demand charge calculations). In many markets throughout the country, demand-related charges account for 10-40% of your overall energy spend. Evaluation of Efficiency Projects should include a detailed analysis of the effect on peak demand and load factor in order to determine actual cost savings.
Companies that understand how the grid operator, utility and retail supplier evaluate and price their load in relation to peak demand have an opportunity to use that knowledge to control their electric costs through selective efficiency measures. This presentation is designed to inform and lead companies through such an exercise. Multiple case studies will be presented.
Michael Catanzaro is the President of The Utilities Group, Inc., (“TUG”) a privately held energy advisory and management firm based in Cincinnati, Ohio that today serves commercial, industrial, governmental and non-profit clients in 5 states. An industry veteran with more than 20 years of experience, Michael founded The Utilities Group in 1999, and under his leadership, the company has solidified its position as a leading provider of energy solutions built around specific business opportunities in complex and competitive markets.
Company services include bill auditing, rate analysis, risk management, electric and natural gas procurement, demand and PLC management, efficiency and sustainability efforts. Michael is a frequent speaker on the topics of Electric Deregulation in Ohio, Aggregation of Energy Purchasing and Market-Based Energy Purchasing. Prior to forming TUG, Michael worked with several energy providers in retail sales.