Manage Energy Use For a High-Performing Bottom Line

January 31st, 2012 → 7:32 pm @ // No Comments

Attention all Los Angeles County Air Conditioning Companies…

Metalworking is a complex, energy-intensive process. The National Energy Education Development Project reports the cost of energy in steel and aluminum manufacturing is approximately 25 percent of production cost. With the summer months upon us and market prices expected to increase, according to the Average Hour Whole Market Prices expected to increase, according to the Average Hour Whole Market Prices Report, managing energy costs and ensuring they match budget and production cycles can increase profits for metalworking companies.

Experienced energy retailers offer products that can help mitigate market price fluctuations. For example, customers may be able to obtain a fixed-price electricity plan for their energy commodity supply that cannot fluctuate regardless of the market. Implementing strategic energy management can ahve an impressive impact on a facility’s energy consumption.

Regardless of which action your company chooses to implement, the key is to take control of your energy usage. Metal working facilities can manage their energy usage better by understanding it, learning about energy contract options and forecasting market cycles.

Undestand energy usage

Identifying the best time to ramp up or slown down production can facilitate cost savings. In order to do this, facility operations need to be aware of when and how their facility consumes energy. Facilities need to record their energy demand times. One way to determine consumption is through an audit, which will analyze your energy usage profile and develop a strategy to improve operation performanece. The energy usage profile also will provide a framework for the facility to help management recognize the energy solutions that encompass the total scope of energy procurement and deman-side needs.

Learn about energy contract options

Thermal Air Conditioning, Inc. will like you to understand the options available for energy procurement in deregulated markets involves ensuring your company’s energy purchasing plan matches your usage and budget. Most competitive retailers can provide customized energy plans that offer sophisticated products and strategies to create an efficient and predictable energy plan.

Cost-effective energy rates are not only available through traditional energy plans. Competitive price plans now are available when purchasing renewable energy tools. In Illinois, Direct Energy Business enabled Stanley Machining & Tool Corp., a precision machine shop serving an international customer base, to offset 60 percent of its energy usage for two years through the purchase of Renewable Energy Credits while still operating under a cost-effective energy plan.

In regulated markets, renewable energy plans are offered through local utilities that offer RECs and carbon offset programs. A leadership in Energy and Environmental Design (LEED) certification also is available, which involves implementing prectical and measurable maintenance solutions.

In addition, choosing a fixed-price energy product may assist in providing control over production costs. Fixed-price contracts provided by competitive retailers offer secure fixed-rate pricing for your energy supply costs that will not fluctuate for the term of your agreement.

Forcast market cycles

Market cycles can influence energy prices based on factors such as the time of year, demand, availability, temperature, econmy and natural disasters. Being aware of these factors and able to recognize or  forecast their typical results is important because it helps mitigate risk and helps anticipate if market prices are set to incrrease or decrease.

With summer in full swing, now may be the appropriate time for your faility to take advantage of fixed energy contracts with competitive retailers. Summer power prices are approximately 35 percent to 45 percent higher compared to the rest of the year, according to the Average Hour Whole Market Prices Report. Hotter temperatures lead to an increase in residential demand, which consequentially results in more expensive enrgy prices. Take advantage of colder days this summer when demand is less and energy prices are lower by locking in your energy price for the rest of the summer. This solution may help eliminate the risk of prices fluctuating during high-demand months and helps provide morecontrol over production costs.

Thermal Air Conditioning knows that the knowledge of energy procurement and the products and  plans available is the first step to succesful energy management. By adopting an energy plan that supports their facility’s need strstegically, customers have the potential to achieve a high-performing bottom line.

As always, Thermal Air Conditioning, Inc thanks you for reading.

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