Tuesday, December 23, 2008

Electric Energy Independence is already underway – One house and one business at a time.

Forget the US Government and Obama’s rhetoric. Remember, every presidential candidate has campaigned on Energy Independence for the last thirty years. Forget your local utility. They’ve been doing business the same way for over 60 years.

Several Blogs ago I predicted the demise of the electric distribution industry as we know it. In Death of the Electric Industry I predicted the end of distribution utilities. In Death of the Electric Industry Part II, I explained how I think this is going to happen.

As little bits and pieces come to me that support my prediction, I tend to get a smug little grin on my face. My predictions had to do with residential customers jumping the grid tied ship like rats on a sinking vessel. But, Solar buzz recently announced a small commercial project that leads the way in proving that even industry can make use of solar energy in a mediocre solar climate like Connecticut. Tri-Town Precision Plastics plans to go solar and expects their investment to pay for itself in six years and deliver all of their electric energy needs all year long.

To plan your escape from the grid you only need two things, know-how and cash. Check out these websites to get the know-how. By acting on this information you can trim your energy appetite and get your house ready for energy independence without the expense of a solar system. Then after you’ve saved a bundle off your utility bill (said bundle being prudently stashed in a secure savings account) you are ready to use available incentives in your area to match your cash and build the system. Find my energy saving tips here.

Useful information is all about “Trust”. If you don’t trust the source of the information you are not going to follow their recommendations. Find sources of Know-How that you trust. Here are some that look pretty good to me.

The Edison Electric Institute (EEI) sponsors efficiency tips at getenergyactive.org. Organized in 1933, EEI is the association of U.S. shareholder or investor-owned electric companies. Their members serve 95 percent of the end use customers in the investor-owned part of the industry, and represent approximately 70 percent of the U.S. electric power industry. So you might be justified in being suspicious of their motives. However, all utilities, especially investor-owned utilities are falling all over themselves these days to prove to regulators that their rate increase requests are justified. One way that they do this is to show State Regulatory Commissions that they take energy conservation seriously.

The US Environmental Protection Agency (EPA) has locked horns with utilities across the nation over air quality issues. These guys are not friends of the electric utility industry. They are supposed to be friends of the environment. ENERGY AND YOU is their site for all kinds of good information on energy conservation.

The benefits of visiting the above two sites are that they aren’t trying to sell any specific products.

Commercial sites might make you leery, but I think Real Goods has a good reputation for getting systems on the ground that work. Be sure to visit their Get Started and Economics & Financing links.

The American Solar Energy Society (ASES) is a nonprofit organization dedicated to increasing the use of solar energy, energy efficiency, and other sustainable technologies in the U.S. Sure they are selling solar equipment and trying to employ solar installation contractors, but these guys can’t last if they lie. Their Solar calculator will take your Monthly kWh and calculate the size of the system you need based on your climate.

Now you are ready to match your utility savings with incentives that can help reduce your out of pocket expenses. This data base at the Database of State Incentives for Renewables and Efficiency can help you stretch your funds to meet your energy independence goals.

Maybe I’ll be reading about your off grid solar system and smiling one of these days. Don’t get mad at your utility, leave them
© 2008 Mark R. Daily

Wednesday, December 17, 2008

Steps to Cut Your Utility Bill

Why spend any more money than necessary on your utility bills? Most people continue doing it because they just can’t get motivated to do anything about energy efficiency or energy conservation. They don’t know where to start or which steps to take to save the most off their utility bills. Many people want to “go solar” or be “off the grid” without really knowing what those terms mean.

We all like the idea of energy independence. The recent election reminds me that there has not been a presidential candidate since before Jim Carter that hasn’t promised “energy independence”. Yet, our dependence on energy grows everyday and only a handful of homes provide “off-grid” energy and 21st century western world comforts at the same time.

Where do you start? Whether you plan to “go solar” or just cut your utility bill, the steps are the same.

Step one; find out what energy you use and why you use it. This is harder than it sounds but not as hard as you might think. By using a combination of your own utility bill’s energy use history, a $40.00 appliance meter and the gas or electric meter on your property, you will be able to figure it out.

The EPA’s Power Profiler can get you started with some basic information. They claim “Power Profiler will:
- Determine your power grid region based on your ZIP code and electric utility
- Compare the fuel mix and air emissions rates of the electricity in your region to the national average
- Determine the air emissions impacts of electricity use in your home or business

Power Profiler is very easy to use and takes about 5 minutes. To start, all you need is your ZIP code.”

Its true and it seems fairly accurate, although you may not be able to pick the exact power company supplying your home. Still it’s a fun exercise and it’s educational. By clicking on the My Emmisions you will see how your house contributes to the issue of global climate change. You‘ll get the most detailed answer if you can fill in your monthly kWh use from your monthly electric bill. That’s another good reason to keep track of your personal energy impact by reading your bill and writing down the monthly kWh. You can get this data from your local utility too. If you do this, ask for the monthly data for the last three years so you can average out weird weather or unusually visitor impacts – like your brother-in-law leaving the refrigerator door open the whole week he was house sitting.

While you are at this site you should click the other two options as well, “Be More Energy Efficient” and “ Buy Green Power”. These links get you to information that can save you money and help you learn how and why you use energy.

The main step in the “How and Why I use Energy” investigation is to do an “Energy Audit”. Some people don’t get this, but you have to do this. I once worked on a video production that filmed one of my energy audits for a consenting customer and the videographer wrote “Energy Odd It” on the cover. I wish a different term had been coined for this, like “List of Energy Using Crap in your House”, because “Energy Audit” sounds so….. mathematical. Sixth grade math is all you need for this.

If you can’t do sixth grade math try the U.S. Department of Energy, Energy Efficiency and Renewable Energy Consumers Guide to Home Energy Audits. For some reason they do not include appliance energy use as part of their “Home Energy Audit” so you will have to go to their separate Appliance and Home Electronics section. Do your Audit on a room by room search. This will point to rooms that you will want to focus on to get the most energy savings.

Once you have your List of Energy Using Crap in Your House (LOEUCIYH), assign an energy use unit to it like kWh or CCF for the month. This is the only way to motivate a reduction in your energy use which is the only way you are going to actually save money off your utility bill.

By adding up all of the monthly Energy Use numbers in each room from your LOEUCIYH , you will see patterns of use that you might be able to change. No you are ready to compare your Energy Audit, I mean LOEUCIYH results with your unit price per kWh or CCF to get actual dollars spend on your energy. You really should come within about 5% of your actual bill- don’t forget to subtract tax and minimum monthly charges.

Saving money off your utility and saving the planet are important actions we should all take. Hey, if it was easy, we would have already done it, right? Now you know where to start, so what are you waiting for? You could be saving money.

"Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has". - Margaret Mead

© 2008 Mark R. Daily

Tuesday, December 9, 2008

Utility Bill Paying 101

Nationwide there is a certain frustration about paying utility bills. So much so that people jokingly refer to the experience as paying “futility bills”. These jokers probably view their electric and gas bill as something someone does to them rather than something that they do to themselves, but in all cases it is true that if you do not have a meter you will not have a bill. It’s easy right? Just call those bastards up today and say, come and get this thing out of my yard- or off my house or whatever; then, no bill. Some frustrated bill payers have actually done this and gone “off the grid” with generators or alternate energy systems that include wind and solar. Being your own power company sounds cool, but if it was that easy, more people would do it.

The first thing that you need to know about utility bill paying, is that you are going to be paying one for the rest of your life – one way or another. You may be off the grid and get all your energy from wind and photovoltaic power, but unless you paid cash for that system, you are making loan payments that amount to a “utility bill”. Once you pay off the loan there may be minimal maintenance expenses, but it won’t be zero. And, if you have batteries, in seven to ten years they’ll need to be replaced – so there will always be some type of “utility bill” in time, effort or cash to keep your lights on and beer cold. Even if you get a rental deal where the landlord pays the utilities, a portion of your rent payment covers the utilities. The only way out of paying for utilities is to not have a meter and to not use any electricity or gas of any kind, period.

Why do I make a point of saying “not have a meter and not use any electricity or gas”? Aren’t they the same thing? No. Electric and gas meter costs are coming down, but they are not free. No utility is going to give you a free meter. You will be paying for your meter through a minimum monthly fee on your bill or the meter expense will be built into your energy use fee.

Your Load - In utility language, your house or business is a “load”. This means that your building needs electricity or gas and depending on a long list of variables you either need a little electricity or gas or a lot of electricity or gas. So you are either a little load or a big load or something in between – but in all cases, if you need electricity or gas, you are a load. You will sometimes hear the term “demand”. This is a synonym for “load” because you – or at least your building is “demanding” electricity or gas. This is the source of the term “demand side management” or DSM. If your utility has DSM programs, they are trying to manage the demand, usually downward, to reduce the supply that they have to come up with.

Residential electricity is billed by the kilowatt hour (kWh). The “W” in the abbreviation is capitalized in reference to James Watt. One kilowatt hour is the energy used by a 1,000 watt load in one hour. For example, if you turn on ten 100 watt bulbs for an hour, you use 1 kWh of electricity.

Propane gas is generally billed by the gallon. Natural gas is generally billed by the Therm, or 100 cubic feet (CCF).

It seems elementary, but utilities are businesses. They have to make money to cover their expenses just like any other business. If they are an investor owned utility, they must be concerned about share holder profits. If they are a municipal utility they must be concerned about the needs of the citizens in their city and if they are cooperative utilities, they must meet the expectations of their members. All utilities cover most of the expense of getting the power to you by charging a rate per unit (kWh or CCF). The more you use the more you pay.

All utilities buy wholesale energy, electricity or gas and “distribute” it to customers like you; hence the term “distribution utility”. All utilities have wholesale power expenses and distribution expenses. In most cases the wholesale expense is fifty to eighty percent of the retail rate. All utilities have fixed expenses and variable expenses. Fixed expenses are those expenses that occur whether or not there is a load or demand; like the cost of insurance, depreciation, equipment, billing and administration. There are literally billions of dollars of power poles, wires, pipelines, transformers and meters sitting there across the nation ready to spring into action when you flip the switch or turn the knob. Those expenses don’t go way just because you don’t need electricity or gas this month. Variable expenses are those expenses that change with the load or demand placed on the utility’s supply. The more you use the more your utility has to buy.

Your Bill - In addition to the unit of energy billed, there is usually a minimum monthly charge. Some utilities call this charge an availability of service fee. This fee generally tries to recover the fixed operating expenses mentioned above. If you don’t have a minimum monthly charge on your bill, those fixed charges are rolled into your unit rate. There are pros and cons beyond the scope of this week’s blog for both ways of billing. The more your bill is based on a per unit rate the more control you have over the size of your bill.

Every utility bill payer should know the price per unit (kWh or CCF) and the minimum monthly charge that they are paying. You don’t buy gas for your car without looking at the price per gallon so don’t buy electricity or heating fuel without knowing the price. The number of kWh or CCF used during your billing period will be on your bill. Really, it is there so keep looking. The price per unit is not always on your bill. We are back to that pesky sixth grade math.
You can calculate your rates by simply dividing your total bill by the total units that you used during that billing period. See Table 5.6.A. Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, by State, August 2008 and 2007(Cents per kilowatthour) on the Energy Information Administration website to find local average kWh rates.

Natural gas bills may have a confusing list of other charges that make it hard to find a per unit cost. And, while most residential bills come in units of hundred cubic feet increments (CCF or Therms), statistics a generally listed in thousand cubic feet (MCF). The Energy Information Administration statistics on the average price for natural gas make it harder to compare with your bill.

Every utility payer should also know the billing period for your bill. If you are billed one month for thirty days of use and the next month for 20 days of use, the size of your bill will be different even if you use the same kWh of electricity or the same CCF of gas every day.

The main thing to realize about your utility bill is that it is all under your control. You can elect to never use any electricity or gas or you can pick and choose the appliances and equipment that you buy which directly affects the size of your utility bill.

Deposits – Unlike the gas station, when you buy natural gas or electricity, you don’t pay until after you use it. This means that by the time you pay your first utility bill after moving, the utility has given you at least a month and a half worth of their expensive product without getting paid. And, if you drop dead after seeing your first bill they are out a lot of money. So, most utilities will either check your credit history or require a deposit.

How to complain about your bill - Before you call, look at the meter reading dates. Maybe your son or daughter invited the whole high school football or volley team to spend the weekend during this time and you just forgot about it. Maybe you had the flu and cranked the thermostat to fight the chills.

Stay calm; screaming, or profanity will not serve you well when dealing with utility employees. They have heard it all. They have already heard whatever question, complaint, excuse or threat you are about to tell them, so just chill. Make sure you have your bill in front of you so you can give them your account number. This also helps you stay focused on your complaint and way from inappropriate comments about their relatives or anatomy.

If you think your bill is too high, ask them to help you determine if this is an actual or estimated bill. There should be a code on your bill that will tell you this, but sometimes it’s hard to find.

Next, ask for help verifying the number of billing days. I once thought I had a big bill only to find that last month’s bill was for 22 days and this month’s bill was for 33 days. Sometimes holidays or personnel scheduling screws up the meter reading schedule.

Other things you can ask about include the weather. Some utilities keep track of the weather during billing periods as a service to their customers. Colder or hotter weather usually mean higher utility bills.

If you still can’t come up with a reason that your bill is higher than expected you can ask to have your meter tested, but be careful what you ask for. Meter testing is performed on a meter test board in the meter shop. This means that you are getting a new or refurbished meter if you ask for a test. Most meters are simple mechanical devices. And, like your car, they don’t speed up when they are having trouble. Most utilities have a testing and replacement schedule set by state law. Once in a while you can catch them with a meter that has been in the field too long, but if you do, chances are your bill is going to be higher, not lower after the change. All meter exchanges have to be carefully documented so don’t assume that there is any monkey business going on. Deliberate discrepancies are easy to catch and most utility employees like their jobs.

If none of your questions or requests result in a lower bill, it’s time to tour your house. Obvious problems like leaky hot water faucets, well pumps that never turn off due to line leaks, broken thermostats, stuck valves and things that were left “on” when you thought they were “off”, often trigger more energy use. My favorite discovery during an energy audit for an angry customer was the space heater, plugged into a tool shed with the door left open in January. It’s less embarrassing to take that tour by yourself.

Phantom loads have gotten a lot of press lately and can increase your electric bill by several dollars a month. Phantom loads get their name from the fact that the energy used doesn’t give you anything immediately tangible, like light or toast. These loads result from those remote control devices that are always on. You should have a handle on this problem after you get that appliance meter mentioned in last week’s blog.

Thank you for completing Utility Bill Paying 101. If there is ever anything about your utility bill that you don’t understand, let me know. I’d be glad to help, for free. No I won’t pay your bill for you. Nice try. I will do my best to take the confusion out of what it is you are paying as well as help you wade through a bill interpretation. Just email me. ( mrdaily@markricharddaily.com)

If it’s something you have to do every month for the rest of your life, you might as well get good at it. Understanding what you get from your gas and electric utility gives you one less thing to worry about and makes it less like paying for gas and electric futilities.
© Mark Daily, 2008

Wednesday, December 3, 2008

Energy Conservation- A Life Style You Can’t Afford To Ignore

You may not be a gourmet chef but, I’ll bet you have equipment for cooking and eating – you know- plates and pots and skillets and knives. You may not be a professional painter, but even if you are a renter, I imagine you have a paintbrush and some old paint.. You may not be a professional writer or author, but somewhere in your house I could probably find paper and pen or computer and printer. You may not be a specialist in sewage treatment but I’m guessing you have some toilet paper and a bathroom in your place.

So if you believe in saving energy and reducing utility bills, what kind of equipment do you have to help you create energy savings without just freezing in the dark?

You didn’t give up eating, just because you don’t care to cook. You probably paint something once in a while, even if your brush is in bad shape. And, you probably won’t give up going to the bathroom, just because of the…. well you know. So, why haven’t you done anything lately about energy conservation? If the experts are right, money spent cutting utility bills was a better investment than the stock market even before the credit crunch and stock market tumble.
Here is a thought. You don’t work on energy conservation with the same regularity as preparing meals or going to the bathroom because you don’t have the right equipment.

In fact, energy conservation takes equipment that most people don’t know about and that may not be staring you in the face every time you go to the grocery store. It might not even be sold at Wal-Mart (gasp).

The best tool to use for energy conservation is your electric or gas meter. That’s right. You don’t have to go to the store at all. You just have to find it in your yard or attached to the side of your house. You are already paying for it every month on your gas or electric bill, so use it. Go out with a note pad and jot down the reading – gas and electric. Write down the date and time you took the reading and stick that note right by the spot where you usually sit down to pay your utility bills.

When the next bill comes, look for the meter reading number on the bill. If you can’t find that number, call the toll free number on your bill and ask them where it is. The number on your bill should be larger than the number on your note unless you are into net-metering (see previous blogs if you’re not sure what net-metering is). By counting the total number of billing days shown on your bill and comparing it with the date on your note, you know the number of days between your reading and the end of the month reading from your utility. Gas utilities typically sell their product in units of one hundred Cubic Feet (CCF) or in therms. One therm=100,000 Btu, which is the heat content of about 100 cubic feet of gas. Electric Utilities sell their product in kilo-watt hours (kWh). By comparing the days to the CCF or kWh reading and a little sixth grade math, you can figure the number of CCF of gas or the number of kWh of electricity that you used per day.

You can do that every month if you want to, but try to at least do it in the middle of every season. Make it an appointment, in whatever it is that you make appointments in, so you don’t forget. Just repeat after me, “what gets measured gets managed”.
If any of this is “Greek” to you, visit next week’s Blog for Utility Billing 101. I’ll help you dissect your bill and touch on phantom loads.

Now that you know the big picture, how do you find out what’s making that meter spin? You need a fork. No silly, not like a real fork, a figurative fork. You have a fork to eat with right? Well, you can’t dine on energy savings without the right utensil. You need a meter. I’m not aware of any gas meters for individual appliances that are reasonable to buy, but there are starting to be a host of affordable appliance meters for electric appliances.

With an appliance meter, you can find out how your equipment really performs, sniff out phantom loads, and find small energy hogs that you might be able to butcher (unplug) so you can stop paying for piggies or kilowatt hours you don’t really need.

The holidays are a perfect time to spring for an appliance meter. Get one for yourself with grandma’s thoughtful check, or buy one for the greenie in your house.

If you search for “Power Monitors” or meters on-line, you will find a confusing list of products that are mostly designed for professional utility use. Unless you have specific training and state of the industry protective equipment, these monitors are not for you. There are, however, a couple of safe alternatives for home owners.

I still use my tried and true, P3Kill A Watt model P4400 . The easier to use but slightly more expensive model P4460 also looks useful. At around $30 to $50 dollars, you can almost imagine these as stocking stuffers. With these monitors, you will only be able to check appliances that plug into the wall. I used my P4400 and by standing on my head, (read Paul’s P4400 review) I discovered that buying a new dehumidifier would pay for itself in a couple of years; learned that my old television was a huge phantom load, and; found out that my computer equipment was costing pennies a month.

One of the newer monitors looks promising and lets you check appliances that might be hard to monitor individually, like your dishwasher or air conditioning equipment. The Black and Decker EM 100B Power Monitor straps to your electric meter and with a little data entry based on your own electric bill, you can see what happens when you turn on different pieces of equipment in your house. It works with a wireless transmitter that communicates between the device clamped to your meter and the hand held display that you can carry around to different rooms. When you flip the switch on your equipment and start using electricity, the monitor interprets the change in your meter to give you information that shows what that equipments’ energy use will be. At around $100 you need a serious “greenie” in the house to make this gift appropriate.

Hey, no one said it would be easy. Success as a cook isn’t easy either, but there is nothing like the satisfied feeling you get when you see your utility bill drop. By monitoring your equipment you can choose better management strategies, like turning it down or off, or getting an appliance timer to limit the on time. Good luck saving energy and cutting your utility bills. I hope you will get the right tools to enjoy it. Remember that energy conservation is a life style and like just like the process of going to the bathroom, you really can’t afford to skip it. Who would want to?
© Mark Daily, 2008