Originally posted by sheldon
I stand corrected, I was told about service contracts at a steel plant I worked at. What exactly does your father do to improve company energy consumption?
Not much. He deals almost exclusively with the billing aspect. For example, in the state of Pennsylvania, electricity used in manufacturing is sales tax exempt. If someone at a big plant doesn't know that (or they change their amount of manufacturing) that can equal a ton of money - and a 3 year refund of taxes paid.
Rates is another big issue - there is only one rate for residential users (not including generation choice), but for business, there are usually at least half a dozen plus other options. Most companies don't know the difference and have no idea if they are on the best one for them (do you really think PECO is going to tell you if you can save money on another rate?).
Then there's deregulation - the generation part of your bill can be paid to another company. At first, you could save a LOT of money by buying the power from another company, but not anymore. But if you are a big company, you can still have people bid on the generation rate. And coosing a different supplier is the one thing that residential users can do to lower their rates (in states with deregulation).
Finally, there's billing errors - utility companies make a LOT of errors. I recently had a client (I design HVAC systems, but because of my utility experience I answer questions about utilities too) send me a gas bill that was $17,000 when we had expected their gas heat to cost $3,000 a month. If they had bothered to READ the bill, they would have seen $14,000 of "previous unpaid balance." Oops. I still don't know if it was PECO's mistake or if my client just screwed up, but either way, people just don't bother to look at the bill to find errors - even if they are simple ones.
For energy conservation, one client of my dad's has a dying manufacturing plant in Philly. Empty warehouses that have tens of kW of lights burning (or better yet, the lights are burned out and the ballasts are buring 3x as much as the lights would) [click] $1,000/ month. Or how about a thermostat on an assembly line that has one unit calling for heat, one 20 feet away calling for a/c, one 20 feet from that calling for heat...
Bottom line is my dad makes a lot of money because people don't think about their utility bills - until he convinces them to have him think about their utilities for them.