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PowerMonitor Products Application Guide
Collect and Analyze Utility Bills and Rate Schedules
An important part of the energy assessment is to collect and analyze your current utility rate schedules and bills. This
typically includes electric, natural gas, water, and sewer. Other fuels consumed may include fuel oil, propane, or steam.
Understanding your bill is crucial in executing an appropriate energy management plan to maximize your energy savings
investment.
Energy rate schedules from your local utilities can include, but are not limited to, line item charges such as:
Demand Charges - A variable monthly or yearly charge for the highest amount of energy consumed over a fixed
period, typically 15 minutes. This charge can contribute significantly to overall energy costs.
Energy Charge - A variable monthly charge for the total energy that is consumed. This charge typically includes
on-peak and off-peak rates, contracted minimums, alternative charges, ratchet demand penalties, or other special
terms.
Business Case for Energy Monitoring
Energy monitoring makes energy usage data visible so that it is included in the planning and execution of a business
strategy along with other management information. Because utility bills can be a significant portion of business expense,
it is important to understand how energy is used. Implementing a monitoring plan helps your business set goals for
energy reduction that translate into cost savings.
Typical energy users evolve through a number of energy awareness phases.
Ignorance is Expensive
In the first phase, energy is not considered a significant expense or important management information. The operations
group uses energy and accounts payable pays for it. Management begins to notice the higher costs and sets goals for
energy reduction. If operation managers are not aware of the energy cost of their operations, energy savings is not
captured.
Metering the Envelope
In the second phase, energy monitoring is installed on the plant main feeds. Electricity, natural gas, water, and other feeds
are recorded. The investment is relatively low. The monitoring system generates shadow bills to verify the utility billing.
Major users of energy are identified. The relationship between operating schedules and plant demand becomes clearer. A
few energy saving opportunities are identified and cost savings generated. However, monitoring only the entire plant has
limitations addressed in the next phase.
Submetering the Processes
In this phase, submeters are installed on process lines and utility equipment such as air, compressors, and boilers. This
phase requires a higher level of investment but provides a more detailed view of energy usage. Reports run daily or weekly
provide a direct line of sight to the impact of operations decisions. Energy use is correlated with key production
indicators to identify peak producers and opportunities for improvement. Operations are benchmarked within a plant or
across an enterprise. More cost-saving opportunities are identified. Historical data is used to accurately forecast energy
use, providing the basis for negotiating more favorable rates from energy providers. The same data is used in justifying
capital projects to improve efficiency and further reduce energy usage, cost, and waste. Energy accountability grows.
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Rockwell Automation Publication 1400-AT001A-EN-P - September 2018
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