Cut your energy capacity costs by predicting when peak demand hours will occur and adjust usage accordingly.
Did you know that 20 percent or more of industrial and institutional customers’ energy capacity costs are determined by decisions made during just a few hours a year? Each year, utilities and power pools review customer energy usage patterns during the peak hours of system-wide demand. They use this information to determine price premiums and other charges that are ultimately applied to every hour of energy usage in the following year.
UCE works with you to predict when these peak demand hours will occur. By making targeted adjustments to energy usage during these hours, you can significantly reduce costs.
UCE can help you evaluate whether a new revenue stream is possible through Demand Response and then establish a curtailment plan to suit your operational needs. There are no costs for the on-site evaluation or for the participation in the program.
It’s a great opportunity to go green and to do your part in saving the environment!
What is Demand Response? Simply stated, it is the reduction of system demand by customer load curtailment on the grid during critical peak electricity usage periods. Normally, as the grid load peaks, wholesale electrical prices peak as well. Demand Response can lower overall wholesale energy costs, prevent brown-outs and, ultimately reduce the need for new generating plants.
How could your facility benefit from Demand Response? PJM and other Grid Operators offer a customer Demand Response program. Utility customers can participate in the program and receive a monthly capacity payment by making their load available for interruption during an identified event.
What are capacity costs?
Your total electricity charge is made up of several individual costs: some controllable, others not. On your utility bill, you will notice a utility distribution charge and a supplier charge. The distribution charge paid to your utility accounts for roughly 25 percent of your total electricity cost and cannot be changed. The remaining 75 percent, your supplier charge, includes cost components, such as the actual generation cost of the electricity, capacity, transmission, and other smaller charges.
UCE can evaluate your energy usage and operations and recommend strategies to help you achieve your energy efficiency goals.
Potential areas we investigate for upgrades, monitoring, and automated control include lighting; HVAC systems; cooling and refrigeration systems; motors, pumps, and compressors; and boiler systems.
Optimize your energy purchasing strategy with UCE’s customized process, backed by market intelligence.
Energy procurement is the cornerstone of any organization’s energy management plan. But before executing any purchasing strategy, it’s important to understand the market, identify your energy needs, and evaluate pricing options. UCE guides clients safely through these important steps.
Understanding the Market
To purchase electricity or natural gas wisely, you must first understand the fundamentals of the power an gas market.
The futures market is speculative and unpredictable. Pricing trends may continue or reverse.
Prices are subject to change at any time in response to a host of drivers such as the economy, unexpected weather extremes, hurricanes, and regulatory and political events.
The most advantageous buying opportunities open and close quickly, so it’s vital to continuously monitor the markets and strike on these market shifts to secure your energy pricing for the future.
You should evaluate your business’s energy requirement and if you can tolerate fluctuation on your bill based on price movement. Consider the following:
Do you need predictable energy costs that will guarantee you come in on-budget, or are you willing to take on market risks and rewards?
Ability to curtail or shift load: Can you change your operations to use less at different times?
Your end product: Can you pass on the higher energy costs in your product or service?
Each of these pricing strategies hedges against inherent uncertainties. Each carries a different type of risk.
You pay a fixed price for energy for a defined period of time. Works best for businesses that require price certainty and budgetary control. 100% of the supply cost risk is on the supplier.
You pay the variable hourly price for each kilowatt-hour (kWh) of electricity consumed. Works best for businesses that can adjust their operations in response to changing hourly prices. 100% of the supply cost risk is on the purchaser.
Block and Index
This strategy strikes a balance between price certainty and price variability. A percentage of supply is purchased on both a fixed and variable basis. Works best for large businesses that have the ability to predict and actively monitor and manage electricity usage.
This strategy allows you to buy a percentage of your energy over time. Works best for large companies looking to secure budget stability over the long run. This option also allows you to maintain buying flexibility for market dips.
UCE and its Partner’s proprietary technology, coupled with our deep market expertise, allows us to secure the best pricing available for our wide range of industrial, commercial, and institutional customers. As a client, you receive real-time market intelligence, gathered and interpreted by a dedicated team of experts whose primary focus is to help you execute on the best energy buying strategy for your business.
Our natural gas procurement service works similar to our electricity procurement service. We begin by reviewing copies of your current utility and supplier bills. Once usage requirements, supplier obligations and tax status are determined, we competitively shop your natural gas needs to pre-qualified, market-leading natural gas suppliers. Then, we compare price, delivery, swing/bandwidth and contract terms in an attempt to provide you with the most competitive product that best meets your operational, financial and risk tolerance requirements for natural gas supply.
Give us a call today to better understand how an outsourced approach for procuring natural gas could maximize your savings while making your life easier and allowing you to focus on other crucial aspects of operating your business!
Today, we offer the widest array of supply products that include fixed price, blended, index and pool product options through the broadest and most well-respected group of energy suppliers in the United States. During the past 12 months alone, we have awarded supply contracts to over 20 different suppliers on behalf of our clients for meters of all sizes.
Ucontrol Energy is passionate about maximizing our client’s savings by finding procurement solutions and savings for every meter type, regardless of size.
Ucontrol Energy continues to expand our world-class procurement solutions and is now active in all deregulated states.
Exceptional consultative and customer service separates us from the competition. Our approach to analyzing our clients’ load shape and in choosing the optimum supply product to meet their requirements is unmatched in the market.
Ucontrol Energy’s management team, which has over 25 years of energy supply, utility and regulatory experience, enables us to provide market leading consultative service.
We evaluate each and every client meter on an individual basis. The unique usage characteristics attributable to each customer meter, including load factor, load shape, on-peak and off-peak usage patterns, transmission and capacity tags, are considered with each evaluation. All of these factors can have a large impact on what you pay for electricity and the type of product that would best suit your operational, financial and risk tolerance requirements.
Give us a call today to better understand how an outsourced approach for procuring electricity and natural gas could maximize your savings while making your life easier, allowing you to focus on other crucial aspects of operating your business!
A facility’s load shape has a direct bearing on what a customer ultimately pays for their third-party electricity supply costs. If your metering system is not capable of collecting interval data, the local utility assigns each customer meter a specific load shape. This load shape may or may not accurately represent your true load.
Ucontrol Energy can install metering and monitoring equipment at your facility that can identify your facility’s actual load shape. The results of the study are analyzed with consideration of the historical peak and off-peak forward, day ahead, and real-time pricing associated with the particular utility electric distribution company. Typically, off-peak electricity is 30%–50% of the cost of peak electricity. By knowing your true load shape, it enables us to evaluate the best-case electricity supply product and electricity metering system for your facility.
Together, these factors result in a lower overall electricity supply cost.
Have you ever questioned the integrity of your utility metering system?
In a majority of cases, electric utility meters are reliable and accurate. However, there are a number of components inherent to a utility metering system where errors can inadvertently occur. Errors could include a defective meter, current transformers, potential transformers, and the utility assigned meter constant. The malfunction, or misapplication, of any of these components can introduce a potential for error.
Ucontrol Energy can install a microprocessor-based shadow metering system, programmed to collect data over an entire meter read cycle. The data collected is then trended, and ultimately compared to the billing determinates as recorded on the utility invoice for that same meter cycle. Any discrepancies in data can then be evaluated and ultimately resolved with the utility, if required. Savings occur in the form of utility refunds and reduced billing parameters going forward, and can be quite substantial.
Ucontrol Energy can help you with your budget forecasting projections for natural gas and electricity. We will review existing energy contracts, historical energy usage, operational changes, current tariff rates and regulations.
Ucontrol Energy Promise
Listen, secure analytical data for the entire enterprise, drive technologies that redefine the way we make decisions, operate, review to deliver within in our guaranteed process.
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