10 Strategic Steps to Reducing Your Energy Costs

Abstract

If your company is looking at energy management as part of its overall strategy to reduce costs and improve profits, it is not alone. While energy prices have increased at a shocking rate, so has interest in environmental responsibility. Progressive organizations are exploring ways to conserve energy and reduce greenhouse gases. Some are even creating new positions for these issues, placing someone in charge of corporate social responsibility (CSR). The CSR's job is to help a company be more socially responsible and reduce harmful emissions. Energy management can accomplish both conservation and emission goals- plus, it lowers utility costs and strengthens your bottom line! In the past, reasonably priced energy made it difficult to justify new conservation projects. It was hard to meet the standard criteria of 2-3 years payback. However, natural gas prices have tripled in the last five years from $2 to over $6 per Dekatherm (Dth). Electric prices also have increased dramatically-by more than 100% in some parts of the country. These increased energy costs have made conservation projects more desirable. A natural gas improvement project that had a six-year payback five years ago may have less than a two-year payback today. New technologies also have helped drive down the payback of projects and opened up new areas for potential savings. The following paper looks at how the new market offers opportunities to reduce overall energy costs.