Power Engineering | August 2019 | Stephanie Fetchen
Electricity costs are a major factor in today’s business landscape–whether you are running a hospital, operating a retail store, maintain a commercial office building or managing an industrial facility.
Commercial and Industrial (C&I) organizations in the U.S. spend an estimated $130 billion on electricity every year. In order to analyze and optimize electricity costs, it is essential for energy managers to be able to accurately and conveniently obtain electricity rates. Commonly, electric rate plans have been developed with the idea of continued consumption growth, but in fact electric consumption by end user accounts is flat or declining. As usage declines, traditional pricing models are resulting in reduced revenues for utilities, and, long term, these traditional pricing models will not be sustainable. End user consumption patterns and conservation measures are changing, and these changes are resulting in modified rate structures.