Friday, November 4, 2011

Energy Efficiency Audit. Understanding energy use


STEP 1 Energy Efficiency Audit. Understanding energy
use will help identify opportunities to improve energy
performance and gain financial benefits. The audit will
establish a baseline and provide options for improving
energy efficiency.
STEP 2 Make a Commitment. No matter the size or
type of an organization, the common element of successful
energy savings is commitment. Make a commitment
to allocate staff and funding to achieve improvement.
To establish their energy program, leading organizations
form a dedicated energy team and institute an energy
policy.
STEP 3 Set Goals. Well-stated goals guide daily decision-
making and are the basis for tracking and measuring
progress. Communicating and posting goals can
motivate staff to support energy management efforts.
STEP 4 Develop a plan. Your organization is now
poised to develop a road map to improve energy performance.
Create a detailed action plan to ensure a
systematic process to implement energy performance
measures.
STEP 5 Implement the plan. People can
make or break an energy program. Gaining
the support of key people at different levels
within the organization is an important factor
in successful implementation. In addition,
reaching your goals frequently depends on
the awareness, commitment, and capability
of the people who implement the projects.
Evaluate the progress of the action plan as
compared to your performance goals. Update
the plan, identify best practices, and set
new performance goals as necessary.
Communicate
Your Way to
Energy Savings
To help employees
understand
the cost of their
actions, such
as leaving the
lights on at night,
effective communication
might
include calculating
the cost of an
hour of lighting
at full capacity.
Equate the potential
savings to
something meaningful
to your
organization.
Raise the importance
of energy
conservation
during Energy
Awareness month
(October).
Steps to Energy Savings
Energy Intensity Performance
Energy Efficiency Audit
A customized energy audit examines the energy
footprint of your operation. The audit begins with the
collection and analysis of information that may affect
your operation's energy consumption.
Le ES2 help you identify ways to improve energy
efficiency. The audit includes an analysis of a business'
facility and equipment, including:
u Building envelope (insulation, roofing, etc.)
u Equipment operation
u HVAC system
u Industrial processes
u Lighting
u Motors
u Refrigeration
u Water heating
To encourage participation, ES2 contributes up to 5% of
the audit cost.
Electric Demand (kW)
Consumption per Month
Cost
ES2
Contribution
Co-pay
0 kW - 59 kW $600 $450 $150
60 kW - 99 kW $750 $565 $185
100 kW - 149 kW $900 $675 $225
> 150 kW Contact SPU for Estimate
A certified energy auditor will conduct an energy analysis
at your site. You will be provided a report highlighting:
u recommendations to save energy
u an analysis of existing systems
u proposed efficiency upgrades
u an energy cost evaluation
To request an Energy Efficiency Audit for
Business, complete and return a request form to
ES2 with your payment.
Restrictions apply. Limited to ES2 customers only.
FACT
Surveys indicate
that 75% of
buildings are
operating
inefficiently.
Energy is often
the greatest
expense,
accounting
for one-third
of operating
expenses.
Request an Energy
Audit for Business
Complete a request form, and
return it with your payment to:
Energy Audit for Business
Energy Savers 2 - Utilities
9420 Reseda Blvd., Unit 274
Northridge, CA 91324
Tel. 818-366-6999
The Power is in Your Hands
Using energy wisely will lower your organization's monthly
bill, and it may be easier than you think.
Any steps your business takes to improve efficiency will
translate directly into savings.
Heating, Cooling and Comfort
l Gain flexibility– by installing programmable
thermostats with weekday and weekend programs.
l Ceiling insulation– make sure you have sufficient
insulation in the ceiling floor.
l Insulate hot water pipes– especially if they are
located in unheated areas.
l HVAC filters– Clean or change filters monthly; dirty
filters can increase operating costs by 20%.
l Shading devices– Install interior or exterior shading
devices (window film, solar screens, awnings, etc.) in
south- and west-facing windows to block the sun's
heat in the summer.
l Registers and vents– Keep registers and vents
clear to keep air moving freely.
l Exterior sealing– Seal exterior cracks and holes
with weather-stripping or caulking.
l Re-circulating systems– Install fans or other
re-circulating systems to create air movement.
l Direct air flow– Install reflectors to floor vents to
direct cooler air upward.
l Air conditioner economizers– Install
air conditioner economizers (common in
packaged rooftop units); they use the
cool nighttime air to help cool the inside
of your building.
l Choose ENERGY STAR®– When buying
new heating or cooling systems choose
ENERGY STAR; they are 20%–30% more
efficient than other models.
FACTS
Heating and
cooling accounts
for up to 70%
of energy used
in commercial
buildings.
Properly caulking
and weather
stripping doors
and windows
reduces heating
and air conditioning
usage by
10–20%.
Tips & Tools
Learn more ways to increase
energy efficiency and lower
energy costs by visiting
> Commercial
> TechLine
> Tools You Can Use
> Facility Assessment Wizard
l Variable speed motors and compressors– Use
variable speed motors and compressors on heat
pumps and air conditioners to more closely match
energy use to temperature fluctuation.
l Water heaters– Consider replacing your water
heater if it's more than 10-years-old. Older water
heaters are about 50% less efficient than a new
models.
l Lower heating bills up to 50%– Consider investing
in a geothermal heating and cooling system to
lower heating bills up to 50% and lower cooling
costs up to 30%.
Lighting
l Reduce lighting costs up to 75%– Replace
conventional incandescent bulbs with compact
fluorescent light bulbs (CFLs). CFLs use only 25% of
the electricity used by incandescent lights and last
up to 10 times as long.
l Electronic ballasts– Install electronic ballasts to
increase fluorescent lamp efficiency by up to 25%
and increase light output by 10%–15%.
l Ensuring safety– Leave minimal lighting on
during non-business hours, ensuring safety.
l Reduce wattage– Replace T-12 fluorescent
tube lighting with T-8 or T-5 fixtures which
use as little as 25 watts.
l Control room lighting– Install automatic
occupancy sensor room-lighting controls
to turn lights on or off in frequently unoccupied
areas.
l Use task lighting– Decrease the use of
overhead lighting where possible by using
task lighting instead.
l Light-Emitting Diode (LED) Exit Signs–
Replace incandescent or fluorescent exit
signs with LED exit signs.
l Regularly clean– Clean light bulbs, fixtures,
lenses, lamps and reflective surfaces.
FACT
Lighting
accounts for
25-30% of
energy costs
in commercial
buildings and is
a primary source
of heat gain and
waste heat.
We're here to help.
Rebates Available*
ES2 offers energy-efficiency
rebates to help defray the cost
of energy improvements.
Available rebates include:
u Energy-Efficient Lighting
u Energy-Efficient Cooling
u Motors & VFD
u Custom Rebates
u Office Equipment
For details about commercial
rebates, call 818-366-6999 or visit
*Restrictions apply. Funds limited.
Equipment
l Control energy bandits– Turn off printers, copiers,
desk lamps, fans, and coffee machines during down
periods, especially when the office is closed. Keep
rarely used equipment turned off until needed.
l Sleep mode– Set energy-saving features on all
office equipment to put it into sleep mode when
not in use.
l Use 90% less energy– Use notebook computers
and flat screen monitors. Notebook computers use
90% less energy than desktop models, and LCD
flat-screen monitors use less energy than conventional
desktop monitors.
l Use ink-jet printers– Consider using ink-jet printers;
they use 90% less energy than laser printers.
l Equipment placement– Avoid placing heat-generating
equipment near thermostats.
l Temperature control– Set the refrigerator temperature
between 36 and 42 degrees and the freezer
between -5 and +6 degrees.
l Refrigeration equipment– Protect refrigeration
equipment from direct sunlight. Avoid placing
refrigerators and freezers close to fryers and heat
lamps.
l Monthly maintenance– Examine
refrigerator door seals for leakage; clean
the condenser/coils, and defrost when
necessary.
l Choose ENERGY STAR– When replacing
equipment, look for the ENERGY STAR
label.
l Lower water use– Install faucet aerators
in restrooms and low-flow showerheads
in any shower facilities.
FACTS
Notebook
computers use
90% less energy
than desktop
models. LCD flatscreen and or LED
monitors
use less energy
than conventional
desktop
monitors.
Be an ENERGY STAR
As you replace old, in-efficient
equipment and appliances, look
for the ENERGY STAR label.
Visit www.energystar.gov for a
list of qualifying products.
?Contact ES2 with questions.
Phone: 818-366-6999
Look for the
ENERGY STAR
label
Powerful Solutions
at NO COST from ES2 Utilities
Energy Resource & Library Tool
Explore the eLibrary
Ask an Expert
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Tools You Can Use
At a Glance
u Benchmark Data
u Efficiency Recommendations
u Facility Assessment Wizard
u Appliance Calculator
Tools You Can Use
u Facility Systems & Equipment
u Process Technologies
u Utility & Energy Management
u Facility & Manufacturing Mgt
u Business Development
Explore the eLibrary
u Ask a Question
u My Past Questions
u Specific Requests
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u View articles from previous
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included in our no cost service.
Click on a featured item for more
details or use our navigation
menu to find additional
information.
At a Glance
To enroll in TechLine visit www.energysavers2.com
For more information, call 818-366-6999 or email energysavers@energysavers.name
Enroll in TechLine Today.
This powerful internet resource library includes
knowledge databases, targeted research, Ask an
Expert on-line, plus new features each month. Visit
www.energysavers2.com today to sign up.
9420 Reseda Blvd., Unit 274
Northridge, CA 91324
818-366-6999
Fact
There are additional ways
ES2 helps you save:
u Lighting Rebates
u Air Conditioning Rebates
u Motors/VFD Rebates
u Office Equipment Rebates
u Custom Rebates
For details about
commercial rebates,
call 818-366-6999 or visit
*Restrictions apply. Funds limited

Energy efficiency implementation

Energy Efficiency Audit. Understanding energy
use will help identify opportunities to improve energy
performance and gain financial benefits. The audit will
establish a baseline and provide options for improving
energy efficiency.
STEP 2 Make a Commitment. No matter the size or
type of an organization, the common element of successful
energy savings is commitment. Make a commitment
to allocate staff and funding to achieve improvement.
To establish their energy program, leading organizations
form a dedicated energy team and institute an energy
policy.
STEP 3 Set Goals. Well-stated goals guide daily decision-
making and are the basis for tracking and measuring
progress. Communicating and posting goals can
motivate staff to support energy management efforts.
STEP 4 Develop a plan. Your organization is now
poised to develop a road map to improve energy performance.
Create a detailed action plan to ensure a
systematic process to implement energy performance
measures.
STEP 5 Implement the plan. People can
make or break an energy program. Gaining
the support of key people at different levels
within the organization is an important factor
in successful implementation. In addition,
reaching your goals frequently depends on
the awareness, commitment, and capability
of the people who implement the projects.
Evaluate the progress of the action plan as
compared to your performance goals. Update
the plan, identify best practices, and set
new performance goals as necessary.
Communicate
Your Way to
Energy Savings
To help employees
understand
the cost of their
actions, such
as leaving the
lights on at night,
effective communication
might
include calculating
the cost of an
hour of lighting
at full capacity.
Equate the potential
savings to
something meaningful
to your
organization.
Raise the importance
of energy
conservation
during Energy
Awareness month
(October).
Steps to Energy Savings
Energy Intensity Performance
Energy Efficiency Audit
A customized energy audit examines the energy
footprint of your operation. The audit begins with the
collection and analysis of information that may affect
your operation's energy consumption.

Unauthorized Charges on Your Local Phone - Utility Bill? R2

Unauthorized Charges on Your Local Phone - Utility Bill? R2

Unauthorized Charges on Your Local Phone - Utility Bill? R2

FCC fines Verizon over 'mystery' fees $25 million and $52 million in refunds – 10/28/2010



How to Find Them, Eliminate Them & Get Your Money Back!

If your business still gets its phone service through the old "AT&T and Verizon, etc" local phone company (as opposed to one of the newer competitive phone providers) then you need to double check your phone bill each and every month for charges you did not authorize. You may not know it but the local phone company allows other companies to bill you through your local phone bill. And while the local phone company allows other businesses to bill you through your local phone bill, the local phone company does not verify that the charges being billed to you by the other company are valid. When these unauthorized charges fraudulently appear on your phone bill it's called "cramming". Unfortunately you as the business owner or manager are the only one that can spot the unauthorized charges and if you don't comb over your bill every month to spot these unauthorized charges - you'll pay for them.

Customers get crammed when a dishonest company puts charges on their phone bill (landline or wireless) for services that were not wanted or authorized.

Why does the local phone company allow other companies to pass charges onto your phone bill? "Third-party billing" is supposedly a great convenience in that you only have to pay one bill instead of separate bills for obvious authorized phone related charges like yellow-page advertising in the "real yellow pages", 411 information calls and long-distance calls from your chosen long distance carrier. Over the years though, some less-than-scrupulous companies have realized that most businesses rarely scrutinize their local-phone bills. To take advantage of this, these companies have come up with elaborate schemes to place unauthorized charges on your phone bill that you'll end up paying for without even thinking. Unauthorized charges you can end up paying for include charges for unwanted (and unused) email accounts, web sites, directory information calls, directory advertising in obscure publications, voice mail accounts and other services.

In theory, before these charges can be placed on your phone bill, the company that is originating the third-party billed charges is supposed to have a verification of the order like a voice recording. In reality though, all the company needs to do to initiate the charge is submit your name and phone number to the billing entity. The verifications are only required to be produced if a complaint is filed.

To prevent these charges from appearing on you business phone bill it's helpful to understand the four parties that make unauthorized third party phone charges a costly reality. Party number one is any employee who can answer your business phones. The un-authorized charge is rarely random and it usually happens after one of your company employees gets a telemarketing call. Employees should be instructed to document and report any overly aggressive telemarketing calls they receive. Party number two is the telemarketing company that originates the unauthorized charges by trying to get your employee to accept some service for which you'll be billed through your local phone bill. Party number three is the third-party billing company that has billing agreements with your local phone company. The name of the third-party billing is the one that is prominently displayed on your phone bill. After the third-party billing company's name is the name of the company that is originating the unwanted charges. Party number four is your "former Ma Bell" local phone company that collects the unwanted charges (keeps a share for "Ma") and then passes the rest to the third-party billing company (who keeps a big share) and then passes the balance on to the company that initiated the unwanted charge.

Third-party charges on U.S. consumer and business telephone bills, most of them unauthorized by the customer, amount to US $2 billion a year, according to a new report from a U.S. Senate committee.

Unauthorized third-party charges on telephone bills, often called cramming, cost one national retail chain $550,000 over the last decade, not including the $400,000 the company spent to fight the mystery charges, said the report, resulting from a year-long investigation by the Senate Commerce, Science and Transportation Committee.

Telephone carriers have made more than $1 billion[b] in revenue from third-party charges in the past decade, said Senator John "Jay" Rockefeller, a West Virginia Democrat and committee chairman. Carriers get a fee for placing third-party charges on bills, according to the report.

The best way for consumers to protect themselves is to call their local phone company and request that it shut off third-party billing services -- many will, for free. Consumers who've been crammed and scammed should call their local phone company and insist on a refund; they should also file a complaint with their state attorney general's office and the FTC. But most important: Scan those phone bills every month for surprise charges and unwanted services. They're easy to miss.

**Following are some of the top third-party billing names and unauthorized charge originators you'll find on your phone bill. If you see these names on your phone bill you'll want to call the toll free number listed next to the charge to confirm it's a charge that's been properly authorized to be placed on your bill. Following are actual examples that we've recently found while auditing business phone bills.

We recommend customers should review any utility bills issued by deregulated utility companies. (In most instances today, consumers are paying higher charges to the deregulated gas and electric supply companies).

All Utility - Energy, gas, electric and water bills should be reviewed for proper reading and tariff.

If you suspect that you have been overcharged ask for detailed explanation and or file a complaint with your State Utility Commission.

YJ Draiman for Mayor of LA

National Utility Expense Management by Energy Savers/YJ Draiman

National Utility Expense Management by Energy Savers/YJ Draiman Cost recovery audits

WE CAN PROBABLY GET YOUR COMPANY BACK A CASH REFUND FOR UTILITY BILL ERRORS and tax on utilities!
GAS, ELECTRIC, WATER, SEWER, TELECOM, WIRELESS, CABLE/DISH, Re-rate tariffs, REFUSE, REAL ESTATE LEASES, HEALTHCARE,  FED EX UPS/DHL PACKAGE BILLS, Energy efficiency, Renewable Energy, Demand management, Lighting retrofit  & more!

NO UPFRONT COST!   FREE TELEPHONE CONSULTATION! (818) 366-6999

NO REFUND - No Savings - NO FEE!
Save now Call 818-366-6999Email:
renewableenergy2@msn.com
Web: www.renewableenergy2.com

Welcome to Energy Savers

Energy Savers offers a unique way to assist companies that manage multiple facilities track their expenses. Keeping track of costs can always be challenging, especially if you are tracking multiple facilities located across the state or country.
National Utility Expense Management by Energy Savers/YJ Draiman

Cost recovery audits

WE CAN PROBABLY GET YOUR COMPANY BACK A CASH REFUND FOR UTILITY BILL ERRORS and tax on utilities!

GAS, ELECTRIC, WATER, SEWER, TELECOM, WIRELESS, CABLE/DISH, Re-rate tariffs, REFUSE, REAL ESTATE LEASES, HEALTHCARE, FED EX UPS/DHL PACKAGE BILLS, Energy efficiency, Renewable Energy, Demand management, Lighting retrofit & more!
NO UPFRONT COST! FREE TELEPHONE CONSULTATION! (818) 366-6999
NO REFUND - No Savings - NO FEE!
Save now Call 818-366-6999

Email: renewableenergy2@msn.com
Web: www.renewableenergy2.com

Welcome to Energy Savers

Energy Savers offers a unique way to assist companies that manage multiple facilities track their expenses. Keeping track of costs can always be challenging, especially if you are tracking multiple facilities located across the state or country.
October 25, 2011 3:23 PM 
 Unknown said...
Providing utility cost reduction solutions for commercial accounts

Utility bill analysis
Tell me more!
We work on a contingency fee basis. If we are able to identify savings or refund opportunities for you, we share those savings and/or refunds with you.

"What have you got to lose?" After our detailed analysis and on-site work has been completed we will provide you with a comprehensive report of our findings. The worst that can come of our analysis is that we determine that you are already paying the least amount possible for your utilities. Wouldn't that add some peace of mind? At least you wouldn't have to worry that there may be something better for you out there.
Our staff has been studying utility rates and tariffs since 1993. We understand the utility companies and how they work.
We have an extensive database of similar types of properties so we can compare your usage to the "norm" and help determine if your usage patterns are within range.

Types of properties
Car dealers Hotels/motels Restaurants
Apartment complexes Condominium associations Mobile home parks
Bank branches Nursing homes Hospitals
Retail Warehouse Manufacturing

Basically any type of property that is responsible for paying utility expenses.
Companies how big or small?
We work on single, stand alone properties, franchises or chains, and everywhere in between.
Utilities that we analyze
Water, Sewer, Garbage, Electric, Gas, Telephone, Data, cable/dish

Utility Savers 2 - Electric, Gas, Telecom, Cable/Dish, Utility Bill Auditing, Energy, and Water/Sewer Audits

Utility Savers 2 - Electric, Gas, Telecom, Cable/Dish, Utility Bill Auditing, Energy, and Water/Sewer Audits

Utility Savers 2 Business Services is a team of management consultants and utility auditors specializing in utility cost reduction, cost containment and vendor service contract optimization, as well as utility bill and service auditing. In this economy, where every penny counts, the Utility Savers 2 team of experts is saving money for businesses across the nation, by analyzing gas, electric, telecom, trash billing, water and sewer and other monthly expenses, and providing cost saving recommendations. Utility Savers 2 is the leader in reducing costs, water and trash expenses auditing and utility billing. They also continue to monitor your bills for the life of your contract. Their team of consultants and auditors handles everything, subject to your approval! If Utility Savers 2 cannot save your business money, there is no fee! That is why they say, “You save-Utility Savers 2 works.”
 

No Up-front Costs; No Up-front Fees

Our contingency-fee services offer businesses a risk-free opportunity to save money by reducing their monthly operational costs. We find cost-saving opportunities and we negotiate for our clients to ensure they get the best rates on business services. Utility Savers 2 works to save you money two ways; recovering overcharges and reducing future operating expenses. Contact us for a free no-risk analysis of your utility bills. 818-366-6999 – YJ Draiman

Energy Savings - cars fuels costs

Energy Savings - cars fuels costs
When it comes to using energy more efficiently, houses are a lot like cars. It would be great if there were a single solution to dramatically increase auto fuel efficiency and reduce pollution, but automotive engineers know that’s not the case. Achieving better fuel efficiency involves many factors, from lighter materials and more powerful batteries to new engines and new technologies like fuel cells.
The silver bullet solution won’t work for houses either. Building scientists, the guys who study building performance like automotive engineers study cars, have identified many factors and features that determine how houses use and lose energy.
The House is a System
One of the most important concepts of building science is that the house is a huge system composed of smaller systems that interact with each other. When one system is altered, other systems are affected. For example, improvements to the “building envelope” system such as air sealing and insulation affect the performance of the ductwork, heating, cooling and ventilation systems.
Motor History
But let’s get back to Detroit. For most of our motoring history, we’ve enjoyed the benefits of cheap gasoline. Back in 1970, the price at the pump was 36 cents a gallon. The cars that came off the assembly line back then were gas-guzzling behemoths. When the first Arab Oil Embargo pushed gas prices above $3 a gal., Detroit made a brief foray into compact, fuel-efficient vehicle design. But it didn’t last. When the oil crisis abated, we went back to our old ways.
Energy on the Rise
Today there aren’t any experts out there predicting that gasoline prices are going to drop dramatically. In fact, energy in all forms is becoming more precious because of growing global demand, political instability and the need to drill deeper and work harder to extract petroleum and natural gas.
At the pump and in our homes, energy costs will continue to rise. So while the automotive industry is striving to transform transportation, we have to work on improvements that cut home energy consumption.
The good news is that we know a lot more today about products, techniques and technologies that can dramatically improve home energy performance.
The Energy Solution
Rather than make energy-saving home improvements in a random or haphazard manner, it’s smarter to trust a company like Energy Savers 2 to perform a comprehensive home energy audit.
By conducting a series of tests, inspections and calculations, energy technicians can determine exactly how your house is using and wasting energy. In addition to gaining a detailed home energy profile that includes insulation and airtightness assessments, you’ll also learn how your lights, HVAC system and water heater compare to the super-efficient ENERGY STAR® equipment that’s currently available. The outcome you’re after is a prioritized list of recommended improvements that can transform an energy-wasting house into a model of energy efficiency. You might even want to consider adding solar systems (PV and/or solar hot water) for even greater savings.
Food for Thought…
It’s not possible to turn a gas-guzzling car from the 1960s into a hybrid that delivers 40 miles per gallon. But we can definitely transform houses from any era into greener, more efficient buildings that reward their owners with significant energy savings. And that’s what we need to do. Have you scheduled your home energy audit yet?

Economics Basics: Utility


Economics Basics: Utility

We have already seen that the focus of economics is to understand the problem of scarcity: the problem of fulfilling the unlimited wants of humankind with limited and/or scarce resources. Because of scarcity, economies need to allocate their resources efficiently. Underlying the laws of demand and supply is the concept of utility, which represents the advantage or fulfillment a person receives from consuming a good or service. Utility, then, explains how individuals and economies aim to gain optimal satisfaction in dealing with scarcity.
Utility is an abstract concept rather than a concrete, observable quantity. The units to which we assign an “amount” of utility, therefore, are arbitrary, representing a relative value. Total utility is the aggregate sum of satisfaction or benefit that an individual gains from consuming a given amount of goods or services in an economy. The amount of a person's total utility corresponds to the person's level of consumption. Usually, the more the person consumes, the larger his or her total utility will be. Marginal utility is the additional satisfaction, or amount of utility, gained from each extra unit of consumption.
Although total utility usually increases as more of a good is consumed, marginal utility usually decreases with each additional increase in the consumption of a good. This decrease demonstrates the law of diminishing marginal utility. Because there is a certain threshold of satisfaction, the consumer will no longer receive the same pleasure from consumption once that threshold is crossed. In other words, total utility will increase at a slower pace as an individual increases the quantity consumed.
Take, for example, a chocolate bar. Let's say that after eating one chocolate bar your sweet tooth has been satisfied. Your marginal utility (and total utility) after eating one chocolate bar will be quite high. But if you eat more chocolate bars, the pleasure of each additional chocolate bar will be less than the pleasure you received from eating the one before - probably because you are starting to feel full or you have had too many sweets for one day.
This table shows that total utility will increase at a much slower rate as marginal utility diminishes with each additional bar. Notice how the first chocolate bar gives a total utility of 70 but the next three chocolate bars together increase total utility by only 18 additional units.
The law of diminishing marginal utility helps economists understand the law of demand and the negative sloping demand curve. The less of something you have, the more satisfaction you gain from each additional unit you consume; the marginal utility you gain from that product is therefore higher, giving you a higher willingness to pay more for it. Prices are lower at a higher quantity demanded because your additional satisfaction diminishes as you demand more.
In order to determine what a consumer's utility and total utility are, economists turn to consumer demand theory, which studies consumer behavior and satisfaction. Economists assume the consumer is rational and will thus maximize his or her total utility by purchasing a combination of different products rather than more of one particular product. Thus, instead of spending all of your money on three chocolate bars, which has a total utility of 85, you should instead purchase the one chocolate bar, which has a utility of 70, and perhaps a glass of milk, which has a utility of 50. This combination will give you a maximized total utility of 120 but at the same cost as the three chocolate bars.

The Importance of Measuring Building Energy Use

 

The Importance of Measuring Building Energy Use



Within each of these categories, the CFO can ask a few simple questions that will give an accurate picture of the environmental impact of their business. Table 1 lists common questions for each environmental category.

Developing the metrics to track processes and bring that information to the CFO level is crucial. In fact, many enterprise level resource planning software packages include a new environmental resource planning software add-on that financial executives can use to track pertinent environmental health and safety information.
Energy

By far, the environmental impact or "eco metric" most easily measured, monitored and reduced is energy. The U.S. Green Buildings Council estimates that commercial office buildings use 20 percent more energy on average than necessary.

As energy bills continue to rise and become a larger part of the business operating budget, financial executives are driven to act and reduce cost. One CFO found that energy costs had increased from 12% of annual facility expenses to 17% in one year! This resulted in a 40% year to year increase. The question then arises, how does a CFO obtain the information needed to understand the cost of energy and how to reduce it.

While total cost of energy use can be extremely valuable to C-level executives, the capability to evaluate and utilize the information may not exist. The data may be available, but is not presented in a way that enables CFOs to make improvements that can deliver an acceptable return on investment. Partnering with a professional energy firm can prove to be a major benefit to CFOs.

By partnering with an energy specialist, the CFO can get actionable information to reduce operating expenses. Energy projects will have the added benefits of improving the facilities and reducing operating expenses while positively affecting the social bottom line and the impact on the environment. Armed with more information about the company's costs and risk, C-level executives can make decisions with tangible and intangible benefits. Table 2 outlines many of the benefits of energy related facility improvements.
The Cost of Energy

The United States is facing a dilemma. Energy prices are escalating, dependency is increasing and energy sources are becoming scarcer. Although current energy prices are reasonable, Americans have seen this trend at the gas pump in the past three years. The same phenomenon is occurring with electricity, natural gas, propane, steam and all other facility energy sources.

When considering the energy balance of a building, one must consider the energy put into the building: what is lost and what is used. Typically, equipment efficiency can be improved to limit the use or consumption of energy. The facility itself can be improved and controls utilized to limit the loss of energy and conserve electricity. Reducing use of energy as well as its loss can significantly impact the cost of energy required to run a facility.

To a CFO, any reduction in operating expenses can be added to the budget to fund strategic initiatives and create growth for the company. To any other C-level executive, these budget dollars can be used to improve business performance - and that is the bottom line.

To wrap up, one story serves as a good example of the potential benefits of managing a building's energy balace. In the extremely competitive environment of luxury resorts, the Westin Macau in China must create a superior guest experience while aggressively monitoring gross operating profit (GOP). The key metric for this upscale hotel is occupancy and the facility's chief engineer closely monitors the energy use of unoccupied areas.

Even with the impact of dramatic weather fluctuations and the resort's focus on a very high level of guest comfort, the TAC Solution has delivered between the equivalent of US $200,000 and US $250,000 in energy savings annually since its installation in 1995. Monitoring, control and management of the Westin Macau's energy use and loss have added to the resort's GOP in dollar amounts the Westin's CFO can see. The measures have also increased the ease of operating the resort for the staff, which in turn has led to a decrease in the number of guest complaints and an increase in guest comfort.