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We were pleased to have been able to assist a client reduce their energy expense by providing an engineering study.

The study was aimed at providing a manufacturing client with the opportunity to avoid inflated demand (kW) charges that their utility company imposes on facilities that close down but still have electricity service active, as might be required if the customer wants to offer the real estate for sale.

Most utilities have a delivery tariff rider that says that they can bill a customer delivery charges using the greater of their actual peak demand or at a minimum percentage of their greatest peak demand, over the last 12 months. For example, Oncor, (the incumbent utility in north Texas), has a delivery tariff that allows them to use the greater of the customer's actual monthly peak demand or 80% of their highest peak demand (kW) set over the last 12 months.

So what does this mean in English? It means that when a manufacturer closes their doors at a production facility, but still needs electricity service to keep the lights and air conditioning working to show the facility to a prospective buyer of the real estate, they are exposed to paying inflated demand charges for delivery because the utility is billing them at 80% of their highest demand (kW) value, set over the last 12 months, as opposed to using their actual demand for billing. When a 2,000 peak kW manufacturer shuts down a facility but still gets billed delivery charges based on 1,600 kW (80% of 2,000 kW), as opposed to 100 kW, for light air conditioning and to keep the lighting load available at their facility, it's a costly expense.

We were able to get the utility to accept that the customer has dramatically reduced their load, at the closed facility, and we made it possible for the customer to go back to being billed at their "ACTUAL" peak demand (kW) values. This engineering study cost the customer $2,000.00, but it should help this customer save over $10,000.00 a month or roughly $60,000 over the next 6 months. Not a bad ROI.

So what's the difference between Load Factor, Load Profile and Power Factor? People in our industry will say that a meter has a low, medium or high load factor.....but do you know how to calculate a load factor? If not, it's important to learn how to do this using historical energy usage data.

Load Factor (LF)

This term refers to the the energy load on a system as compared to its maximum or peak load for a given period. Load factor is most typically calculated on a monthly or annual basis. When a customer creates his maximum demand on the system, he will probably not continue to use electricity at that same level for the whole month, but will use it at different levels throughout the month. The extent of his use for the month as compared to his maximum use for that same month is called his "load factor". Load Factor is computed by dividing his kWh usage for the month by the product of the month's "peak" or maximum demand for him times the hours for the same period (730 for a month and 8,760 for a year). Here is the formula: Load Factor = Month's kWh Usage / (Peak Demand or KW x 730)

So what is the difference between load factor and load profile? Load profile is not the same as Load Factor.

Load Profile

Load profile is a graph of the variation in the electrical over time. A load profile will vary according to customer type, (typical examples include residential, commercial and industrial), temperature and holiday seasons.

So......what is power factor? Is it the same as Load Factor? The answer is no. See the definition of power factor, below, and make note of the difference between these two forms of measurement.

Power Factor (PF)

This term is used to express the relationship between "useless current" and "useful power". It can be very confusing to explain and understand. Certain types of electrical devices have a power factor of 100%, such as an electric stove, a light bulb, toaster, etc., which means when the appliance is on, all available power is being used to heat or illuminate and none is being wasted. Some other devices, especially induction motors as commonly used today, are not being used at capacity and result in a demand on the system greater than actually being used or put to good use. The actual work being done by the motor results in a certain kilowatt (kW) demand that is measured by the ordinary meters for measuring such demand. This motor, however, when "partially" loaded, makes an additional demand on the electric system which is not measured by the ordinary meter, but such additional demand requires capacity in the electric system in just the same way as the useful demand requires capacity. When there is no useless current in evidence, the power factor is said to be in "Unity". Power Factor is normally used in calculating kilowatts by the expression wW = kVA x PF. To compute power factor, the expression would be: PF = kW/kVA or (W/(E x I)). If an electric motor requires 100 kilowatts of useful power and is operating at 50% power factor, the above formula would yield as follows: 100 kW = kVA x .50 PF. To solve for kVA, kVA =100 / .5 = 200. In other words, this motor requires 200 kilovolt-amperes (kVA) of capacity in the electric system although it only uses 100 kW of useful power. The electric system is still having to provide 200 units of capacity in transformers, lines, etc. to serve that motor. If power factor for that motor could be increased to "unity", the motor would do no more useful work, it would take no more energy to perform this work, but would make a demand of 100 kw on the electric system, and only 100 kw in capacity in the electric system would be required to serve the motor. If that same 100 kw motor is now working at 70% power factor, the kVA required would be 143, or 100 / .7. An improvement over the 200 previously required. The higher the power factor of a load, the better it is to serve.

Generally, if a customer pays an electricity bill with units of energy measured as kVA, then the customer will benefit from savings by increasing power factor. If the customer pays an electricity bill with units of energy measured as kW, then the utility company will benefit from savings by increasing power factor. Frequently, however, utility companies impose a power factor penalty charge on customers with poor PF, giving the customer an economic incentive to increase power factor, even if the customer is billed based on kW demand.

Contact Good Energy at info@goodenergy.com for more information regarding power factor correction services.

Good Energy's exhibit at the Building Owners and Managers Association annual Office Building Show was a hit again in 2007. A special thank you this year to the Good Energy team members that made it happen, and to Ideal Industries, Electric Lighting Agencies, and Lamar Lighting for tremendous support.

New York, NY- Good Energy, a national energy management consultancy providing electricity, natural gas, fuel oil and renewable energy certificate supply consulting services announces the launch of its Renewable Energy Certificates (RECs) online store, located at www.goodenergy.com/store.

Every U.S. business, college, non-profit organization, government agency and individual consumer can purchase RECs, also referred to as green tags, green credits, renewable certificates, renewable credits and Tradable Renewable Certificates (TRCs), to reduce the environmental impact of everyday activities, including automobile use, airplane travel, energy use and waste production.

The purchase of RECs supports renewable electricity generation, which can help offset conventional electricity generation in the region where the renewable generator is located. The ability to acquire RECs independent of electricity means buyers can "green up" even without accessing "green power" or without switching to another electricity provider. Like green power, RECs benefit the environment and clear the air by offsetting emissions from regular fossil-fueled power plants. They also contribute to sustainability, energy security, energy independence and domestic economies.

Max Hoover, president of Good Energy, says "U.S. businesses and institutions can purchase renewable energy certificates and earn recognition from the Environmental Protection Agency and membership in the EPA's Green Power Partnership. When considering the real environmental benefit to a renewable energy certificate purchase in conjunction with the marketing and public relations value of Green Power Partnership status, RECs are as good for business as they are for the environment."

Mr. Hoover is available for press interviews and can discuss:

The reasons why businesses and independent consumers should buy Renewable Energy Certificates

How to evaluate and offset your "carbon footprint"

How businesses can use the Green Power Partnership logo in marketing and other promotional materials and receive information and support, marketing and communications assistance, peer exchange and various forms of public recognition.

All press interviews and queries or for assistance determining exactly how much energy your home or business consumes annually please contact Max Hoover toll free at (866) 955 2677 or via email at max (@) goodenergy.com

Visit Good Energy at the BuildingsNY 2007 Show at the Jacob K .Javits Center, June 27 and 28, 2007. We'll be showcasing energy efficient lighting products and of course, "a Smarter Way to Buy Energy". Our booth number 346 is located in the Energy and Green Buildings Pavilion.

Please visit Good Energy at Booth 868, located in the Green Pavilion, at the 2007 Office Building Show, July 21-24, 2007 at the Jacob K. Javits Convention Center in New York City.


Pictured below is a portion of the floor map, showing the location of our booth.




























We look forward to seeing you in New York!

REPRODUCED WITH PERMISSION FROM THE NEWS-TIMES

Energy forum tries to make sense of high electric rates
By John Pirro
THE NEWS-TIMES

REDDING -- There was only one real topic of disagreement when 60 people came to the Mark Twain Library Sunday to ask a panel of experts why their electric bills are so high.

That was whether residents of Alaska or Hawaii are the only people in the country who pay more for their power every month than do customers in Connecticut.

There was no dispute about Connecticut's ranking as the second-most expensive state when it comes to the cost of electricity, but there are also a variety of reasons why electric bills here have skyrocketed in recent months, panel members said.

"It's a hot topic," said Democratic Town Chairwoman Karen Dolan, citing the 7.7 percent rate hike in January, coming on the heels of a 22 percent increase just a few months earlier. "Only Alaska is higher."

"It's not an enviable position," acknowledged Chris Swan, director of municipal relations for Northeast Utilities and one of four industry and state government officials who attended the forum.

"It's a complex situation and you can't just point to one thing," Swan said, adding that he believed utility customers in Hawaii, not Alaska, paid more than people in Connecticut.

Also in attendance at the forum, sponsored by the Redding Democratic Town Committee, were State Sen. Robert Duff, D-Norwalk, Attorney General Richard Blumenthal and Ed Carey, representative of the energy consulting firm Good Energy.

A key reason for the increase, speakers said, was the decision by the General Assembly to deregulate electricity in 1998, but to cap rates for several years afterward, limiting the number of energy suppliers willing to enter the state market.

But even if deregulation had never taken place, said Duff, a member of the Energy and Public Utilities Committee, Connecticut electric customers would still be paying more for their power today than people in most other states.

At the time deregulation was approved, Connecticut residents were paying the third-highest rates in the nation, he said.

Because Northeast Utilities and United Illuminating no longer generate power, just transmit it to customers, they can't be blamed for its cost, Swan said. "We are not producers, we just go out into the marketplace and line up suppliers," he said.

Blumenthal said Connecticut and the nation need an energy policy, starting with a state agency that would re-regulate electricity and permit NU and UI to resume generating power. He also noted that he has filed suit against the Federal Energy Regulatory Commission, which is planning to give away millions of dollars to power generators in the hopes that it would encourage them to invest in new generating plants.

Blumenthal said such subsidies should be made contingent on the construction of new facilities.
Carey said businesses should shop among suppliers for the cheapest source of power.

"Buying all your energy from a utility is like depending on just Social Security for your retirement," he said.

Swan also called on the audience to take steps to conserve electricity, calling conservation "the best investment."