New York, NY, Mar. 7, 2006 — Each year thousands of New York businesses are charged upwards of $100 million more on their electricity bills than they should be, while thousands of others are charged $100 million less than is appropriate. On March 31 2006, this method of billing will change, says a press release from ConsumerPowerline.
Historically, approximately 20% percent of an electricity consumer’s annual bill is determined in the one-hour of the one-day that the entire electricity system peaks in terms of overall usage — usually during the summer. In that one-hour, whatever a consumer is using determines their load exposure, and sets their Installed Capacity Tag (ICAP-TAG) for the year. For the very largest electricity consumers, those businesses that use more than 1500 kilowatts at peak, their actual usage is individually metered to determine their exact and correct assessment of their ICAP-Tag, explains the press release.
Most users who consumed less than 1500 kilowatts were lumped together and assigned a generic ICAP-Tag based on their facility type and size. This lumping together forced efficient users to pay more on their annual electric bill than was their due, while others were able to pay less than what they should have.
With this rule change instituted by Con-Ed, at the prompting of ConsumerPowerline, a New York based energy asset management firm, all electricity consumers with peak loads from 50 to 1500kw will be eligible to be billed based on their true ICAP-Tag. The $100 million opportunity sits in the hands of those customers who were paying an artificially high rate. Consumers can now either change their rate plan to save the available money or develop strategies to manage their consumption and allow them to change rate plans and save.
Con Ed is currently informing energy suppliers with respect to which individual customers will gain or lose. Among those types of customers that will benefit from this change are:
* Large commercial buildings which have global financial services firms who have more of a 24 hour usage pattern (lots of weekends, nights etc);
* Businesses with significant overnight activity, such as publishers and news organizations, etc;
* Hotels with room occupancy based building management systems;
* Residential buildings with single professionals who are out during the peak afternoon hours, residential buildings with less affluent tenants who use cooling sparingly, or not at all;
* Entertainment businesses with heavy evening activity, such as concert halls, movie theatres, etc;
* Three-shift industrial facilities.
Among those that without proper planning, pay more include:
* Large commercial buildings that are unable to shed demand during hot summer afternoons (predominately a 9-to-5 workforce);
* Daytime, single shift industrial facilities;
* Family oriented residential facilities with no energy management system;
ConsumerPowerline will implement strategies for end-users to either book additional revenue from the change or to help customers manage their spending in a strategic manner.