From Natural Gas Matters
Benchmarking is critical to uncovering ways to reduce your energy consumption and requires appropriate data tracking. With the right system in place, you will improve your energy management capabilities; build a case for company leaders on the value of managing energy; and increase control and transparency of energy costs. Once you improve operational efficiencies, you can take advantage of demand response and energy purchasing programs.
According to the U.S. Department of Energy, you must first do the following:
1. Inventory your assets in a comprehensive and centralized way. Locate all sources of energy consumption and measure with meters and other devices. Create a standard organizational structure to maintain inventory integrity. Replace outdated meters. Reconcile your data and fill in any gaps. Start with a partial inventory first of the largest users and do the rest in stages to capture everything. You want one inventory for all systems.
2. Streamline data access using electronic data from the utility. You need effective and timely access to compare billing data on a monthly basis or more frequent energy use intervals. Data for all commodities must be included (water, energy and so forth) and must be of high quality with minimal errors. To identify cost savings, track energy consumption, demand charges and rate schedules. There are several streamlining options:
- Consolidated billing, which is simple and easy to customize.
- Electronic data interchange, which can handle more than 100 accounts.
- DOE’s Portfolio Manager, which a growing number of utilities offer.
- Green Button/Connect My Data, which shares data in real time.
- Third party services, which are best for handling many data formats.
With streamlined data access you improve operational efficiencies by saving staff time and reducing redundancies.
3. Leverage appropriate tools and analytics. Provide dashboards and stakeholder access to data, as well as customer support and training for all users. A single, main database for your inventory is recommended because it provides the greatest flexibility and interoperability. Analytic data must have search/sort/automation functions and include data auditing.
4. Optimize and execute your organizational structure. There are several options:
- Decentralized sends the utility bills to the various departments (accounts payable).
- Centralized sends the utility bill directly to the energy manager/sustainability office and is becoming more popular.
- Partially centralized involves sending copies of utility bills to a third party but also accounts payable and other agencies. The Department of General Services obtains the energy data from the third party.
5. Engage and communicate with all stakeholders. Develop partnerships, incentivize and recognize major contributors, establish effective working groups, create transparency and tailor reports to each specific audience and drive participation through a uniform collaboration platform.
Portland Public Schools (Oregon) followed these strategies to better manage their 9 million square feet of buildings and more than 800 utility accounts. The school district also needed to comply with state mandates regarding annual energy consumption. Originally, data was manually entered, which took 12 to 14 weeks.
They contracted with a third party to manage utility bills and implement an energy management tool via a web-based platform. A new data portal and invoice processing work flow was established. Staff can schedule and share reports on the main website. Most paper bills were eliminated, late fees avoided and invoice processing times were reduced. Errors in bills are corrected before going to accounts payable.
The district reports staff time was reallocated to address usage anomalies and improve energy performance. For instance, a water leak was quickly identified and repaired, avoiding $10,000 in additional charges per month. An average of 46 staff hours per month was saved, equivalent to $24,000. The total avoided cost was $4.3 million for fiscal years 2010-2014.
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