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A Manager's Approach to Energy Cost Management
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A major responsibility of management is the control and containment of operating costs. Energy costs are a major portion of the industrial budget. GM has developed a 3 phase approach to energy conservation. Phase I -Administrative Controls. Effective administrative controls can only be implemented and maintained if the workforce is dedicated to conservation of energy. Energy audits, employee monitors, maintenance, can all be effective controls if the workforce supports them and management utilizes them. Phase II - Engineering Controls. Engineering controls include changes to processes and plant facilities. Cogeneration, high pressure sodium lighting, additional insulation and facility monitoring and control systems are examples. Phase III - Financial Controls. Financial controls or what GM calls Energy Responsibility Accounting (ERA) should be an integral part of management's energy conservation plan. With ERA and its associated metering, each management structure is held responsible and accountable for the energy it consumes.
Spencer, R. J. (1985). A Manager's Approach to Energy Cost Management. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from