Managing electricity to reduce costs

"A new method of managing electricity to reduce costs andimprove profits is discussed. Before taking steps to better manage electricity, it is essential to understand the terms peak demand and energy and their effect on an electrical bill. Knowing how electricity is presently used in the plant is the important first step. This goes beyond knowing how much electricity is used at each time of day, the individual contribution of every plant process to the total plant load must be known. At this point, each process is ranked according to importance to production in order to identify possible savings opportunities. These improvements can then be implemented by simply improving operations or in some cases, through the use of an automatic control system. IntroductionIn today's competitive environment, controlling costs is becoming increasingly important. All costs associated with operation must be controlled in an effort to improve competitive position. Electricity is a cost component that can and should be managed.Although the term management can mean different things to different people, the intent is always the same: to make the best possible use of existing resources, whether labour, equipment or electricity.The simple approach to managing electricity presented in this paper consists of four steps.I. Understand Peak Demand and Energy. It is essential to understand the terms, peak demand and energy and their effect on your electrical bill.2. Know Your Present Electrical Use. The present use of electricity in the plant must be known. This goes beyond simply knowing how much is used at each time of day, to accurately knowing how each process is contributing to the total plant electrical load, and ultimately to the electrical bill.3. Identification of Savings Opportunities. With this information, energy savings opportunities for reducing the electrical bill and improving profits can be identified.4. Implementing Improvements. Having identified areas of potential savings, improvements can then be implemented in order of their significance. This could be a matter of simply improving operations, or in some eases may mean the use of an automatic control system.These four steps can result in significant dollar savings."