The Energy ABC’s for Decision Makers
Apr 29, 2014

Energy can be a complex subject for anyone to understand, but with just a basic understanding you can become an increasingly savvy decision maker. And what better way to learn the basics than through the alphabet.

Learn Your Energy ABC's - Alternative Utility Services

A is for Audits: Have one conducted to ensure you’re not being incorrectly billed.

B is for Benchmarking: An easy way to assess the energy efficiency of your building, and maybe even avoid a fine.

C is for Capacity: A significant portion of your electricity costs, but there are several ways you can reduce it.

D is for Demand Response: Get paid for committing to reduce energy.

E is for Energy Efficiency: These projects save energy and should be considered in your alternative energy supply contract. They could bring in additional revenue, as well.

F is for Fees: They’re in every energy contract, but you need not be surprised by them.

G is for Green Energy: Whether you have it on site or through RECs, don’t forget about it when purchasing energy.

H is for Holistic: The view you should take when assessing a building’s energy, because each facet relates to another.

I is for Insurance: Know what fixed pricing options are available to protect you against extreme market volatility.

J is for June: When summer starts and peak electric loads begin being calculated – it’s time to think about dropping your peak electric load.

K is for Kilowatt hour: The unit of measurement for your electricity consumption.

L is for Load Profile: How and when you use electricity greatly impacts the competitive pricing available.

M is for Market Volatility: The natural condition of energy markets.

Learn Your Energy ABC's - Alternative Utility Services

N is for Natural Gas: You may purchase it as a commodity, but it also impacts your electricity price.

O is for Ongoing Energy Management: What each building requires to achieve optimal results.

P is for Pass-Throughs:  Don’t be scared – if managed correctly, these commodity components may actually reduce your energy costs.

Q is for Quality Competition:  When multiple reputable suppliers bid for your energy, you get the lowest price.

R is for Reverse Auction: A tool that bring suppliers together in real-time to bid down the cost of your energy.

S is for Swing: Contracted Quality Tolerance – to give you more flexibility and protection when the unexpected happens.

T is for Timing: A critical aspect for getting the best energy price.

U is for Utility Tariffs: Being on the correct one can save you thousands of dollars, even if you’re with a third party supplier.

V is for Variable:  Which is the rate you could be on if your fixed contract expires, exposing you to increased risk.

W is for Weather-Normalization: Don’t forget about this if you want to accurately analyze your energy situation.

X is for “X”: The spot you sign on your energy contract.

Y is for Your Bottom line:  Remember – energy costs account for about 30% of business operating expenses.

Z is for Zero: The amount of time you should spend in agonizing over the energy challenges of your facilities.

Learn your Energy ABC’s and you’ll save time, money and resources! Any questions – contact AUS and we’ll be happy to help.

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