Monday, April 06, 2009

Energy-Related Engineering Studies

Energy Engineering Studies - Customer Benefits: Engineering studies performed at commercial and industrial facilities can yield actionable data that can in turn result in significant energy cost savings.

Sales Tax Elimination: Generally, if energy is used in the manufacture of goods, then all or a portion of that energy may be exempt from sales tax. In order to claim the exemption, local utility companies and third party energy suppliers typically require proof of the exemption in the form of a predominant use study. This is a formal study prepared by a qualified engineer, and armed with this predominant use study, Good Energy is typically able to recoup up to three years of past sales tax payments from the local utility or third party energy supplier.

Demand Reset - Demand Charge or Energy Delivery Cost Reduction:In the event a facility lowers its peak energy consumption due to a lost tenant, reduced factory output, more efficient manufacturing equipment or suspended operations, the local utility will typically continue to bill an energy delivery charge based on the previously-set peak demand for as long as 12 months unless action is taken by the facility owner to prove to the utility that the facility no longer requires as much energy "bandwidth". A demand charge can be thought of as a rental expense on an energy delivery "pipe". If a high peak demand is set, then the utility must ensure that an adequately-large pipe is available to the customer at all times, and the customer in turn must pay for the privilege of having that large pipe available. The high "rent" will continue for a period of time that varies from region to region, but in most cases, the "rental" amount can be reset if the customer can furnish proof to the utility that the demand charge should be reset. Armed with a defensible engineering study, or other documentation, Good Energy is typically able to win substantial cost savings on behalf of facility owners with lowered peak energy demand.

Engineering Services: Good Energy offers energy-related engineering studies nationally. Contact your Good Energy representative today to discuss how an engineering study might benefit your business.

Posted By Max Hoover at 3:32 PM