EMan-Energy Accounting - A Key Tool in Managing Energy Costs, CEC-400!00!001B

ENERGYACCOUNTING:A Key Tool inManagingEnergy Costs

HA

ND

BO

OK

P400-00-001B

Gray Davis, Governor

JANUARY 2000

CALIFORNIA ENERGY COMMISSION

STATE O

F CALIFORNIA

ENERGY COMMISSIO

N

20001975

ENERGY

ACCOUNTIN

G:

A Key Tool i

n

Managing

Energy Cos

ts

HA

ND

BO

OK

P400-00

-001B

Gray Dav

is, Gove

rnor

JANUAR

Y 2000

CALIFOR

NIA ENE

RGY CO

MMISSIO

N

STAT

E OF CALIFORNIA

ENERGY COMMI

SSIO

N

2000

1975

Efficiency A-G

4/6/00,

1:27 PM

6

CALIFORNIA ENERGY COMMISSION

Michael S. Sloss, Office ManagerNONRESIDENTIAL OFFICE

Scott W. Matthews, Deputy DirectorENERGY EFFICIENCY DIVISION

Kent W. Smith,Acting Executive Director

William J. Keese, ChairmanDavid A. Rohy, Ph.D., Vice ChairmanCommissioners:Robert A. LaurieMichal C. MooreRobert Pernell

Mary D. Nichols,Secretary for Resources

ACKNOWLEDGEMENTS

This document, Energy AccountingA Key Tool in Managing Energy Costs, wasprepared and reviewed by the following Energy Commission staff: Bill Knox (now withthe Department of General Services), Virginia Lew, Daryl Mills and Michael Sloss.

The Energy Commission staff is grateful for the thoughtful comments and suggestionsprovided by the following: John Cook, Utility Management Services; Bob Hart, UtilityCost Management; David Krinkel, SRC Systems, Inc.; John Matoba, Sacramento County(now with the City of Sacramento); Chuck Murray, Washington State University,Cooperative Extension Energy Program; Chet Sapalio, OmniComp; and T. KennethSpain, Johnson Research Center, University of Alabama in Huntsville.

The authors acknowledge Robert Schlichting, Jackie Goodwin and Elizabeth Parkhurstfor assistance in editing the document, Eurlyne Geiszler and Merry Bronson for documentproduction and layout and Tino Flores and Sue Foster for the cover design.

This document is one of a series of publications contained in the Energy CommissionsEnergy Efficiency Project Management Handbook, which is designed to help localgovernments, schools and other public entities successfully implement energy efficiencyprojects in their facilities.

For information on how to obtain a copy of other sections, contact the NonresidentialBuildings Office at (916) 654-4008. All documents can be downloaded from the EnergyCommissions Web page at:

www.energy.ca.gov/reports/efficiency_handbooks

Second Edition, January 2000

California Energy CommissionEnergy Efficiency Division

Energy Accounting:A Key Tool in Managing Energy Costs

Energy Efficiency Project Management Handbook

Energy accounting is a system to record,analyze and report energy consumption andcost on a regular basis. Just as financialaccounting is used for the effectivemanagement of an organization, energyaccounting is critical to energy management.It can be one of the most cost-effective toolsschool districts, cities, counties, colleges andother organizations can use to cut energy costs.

This guide will discuss some of the reasonsfor energy accounting, go into background

information needed to understand it, andexplain how to get started with a program. Withemphasis on computer software, this documentwill discuss some of the methods and meansof energy accounting, focusing in on energyaccounting software packages.

The appendix provides information on someof the commercially available energyaccounting software packages.

Contents

I. Seven Reasons for Energy Accounting ................................................................................. 1

II. Getting Started ...................................................................................................................... 5

III. What Causes Variations in Energy Use? ............................................................................... 9

IV. Understanding Utility Bills .................................................................................................. 11

V. Methods of Energy Accounting .......................................................................................... 13

VI. Means of Energy Accounting .............................................................................................. 15

VII. Features of Energy Accounting Software ........................................................................... 19

VIII. Tips on Selecting Software ................................................................................................. 23

IX. Summary ............................................................................................................................. 25

Appendix ADescriptions of Some Energy Accounting Software .......................................... A-1

! Evaluate energy program success andcommunicate results. Did you save whatyou thought you would from your energymanagement efforts? How did the actualdollar savings from your lighting or HVACretrofit compare to the savings predictedby your vendor or contractor? Withoutenergy accounting, its virtually impossibleto answer these questions.

Once you determine the results of energymanagement activities, its important tocommunicate this information to decisionmakers and implementers who wereresponsible for the activities. Energyaccounting reports and graphs are the toolsfor this important feedback.

! Create incentives for energymanagement. Its often difficult to getanyone in an organization to take the timeand responsibility required for carrying outenergy management activities becausethere is little incentive to take on the task.A maintenance director or site managermay not see much benefit in reducingenergy costs if all of the savings revert tothe general fund, or if lower energy billsonly result in smaller allocations for utilitycosts in next years budget.

To remedy this disconnect betweenresponsibility and benefits, manyorganizations have created incentives forenergy cost management by sharing energysavings. Energy accounting makes itpossible to set quantifiable energy costreduction goals. One city plans to rewardthe facilities team by using realized energysavings to augment the facility management

Section I - Energy Accounting

I. SEVEN REASONS FORENERGY ACCOUNTING

Before you can manage energy costs, you haveto know what they are! Energy accountingprovides feedback on how much energy yourorganization uses, and how much it costs. Italso provides a means to effectivelycommunicate energy data that facility staff,building occupants and managers can use toimprove cost management. Energy accountingwill help your organization:

! Record and attribute energyconsumption and costs. Energy costsdepend on the amount consumed and itsprice. In an organization with manyfacilities, energy accounting makes itpossible to compare energy use and costamong facilities and to monitor how energyuse changes over time. By communicatingthis information, those responsible formanaging energy costs maintenancestaff, site managers, or others can getfeedback on how they are doing.

! Troubleshoot energy problems andbilling errors. By consistently trackingenergy use, you can identify problems. Asudden unexplained increase inconsumption, for instance, means its timeto investigate the site for the cause. Billingerrors can be caught, too. (See page 2.)

! Provide a basis for prioritizing energycapital investments. Find out whichfacilities have the highest energy costs, andconsider targeting them for energy retrofitsor other energy management efforts.

SACRAMENTO COUNTY RECOVERS $100,0

00

IN ELECTRICITY MISCHARGES

Utility billing errors, uncovered while e

stablishing a computerized energy

accounting system, led to over $100

,000 in refunds for Sacramento

County.

Although most utilities have very good

records of accuracy in their billings,

sometimes errors can be found. In

most organizations, utility bills go

directly to Accounts Payable and are

routinely paid out of the appropriate

budget accounts. Typically there is

no analysis of whether the energy

cost and consumption makes sens

e compared to actual utility rate

schedules or past billings.

John Matoba, an energy specialist

with Sacramento County, reports

that the utility bill validation feature

of his energy accounting software

helped the County identify $97,503 in

electricity mischarges, and $2,947

in natural gas mischarges. The softw

are feature recalculates bills using

the appropriate utility rate structure

for each account. In this case, the

mischarges were city taxes which sho

uld not have been charged on the

Countys tax-exempt accounts. Ultim

ately, the County received refunds

totaling $100,450.

Ken Egel, an energy specialist wor

king with Alameda Unified School

District, identified $12,540 in misch

arged taxes while setting up the

Districts energy accounting software

. In addition, the software flagged

an unusually high cost per kilowatt on

a single bill resulting from a decimal

point mistake. The District was cha

rged for 314 kilowatts of demand

instead of 31.4 kilowatts, resulting in

an overpayment of $2,790 which

was later refunded.

City governments have also used ener

gy accounting to catch billing errors.

The City of Martinez caught a $20,000

mathematical error in a utility bill,

and the City of Madera found a $2,000

charge that had been billed twice.

Section I - Energy Accounting Page 2

budget for the next year. This way, thoseresponsible for cost-cutting measures reapthe benefits.

Many school districts have shared savingswith individual schools that cut coststhrough student energy patrols or otherbehavioral energy management activities.

! Budget more accurately. Energyaccounting gives a historical look at coststhat will help you budget more realisticallyfor the future.

! Position your organization to shop forlower prices for energy in a changingelectricity market. The market forelectricity is changing rapidly due toregulatory reforms and increasedcompetition between electricity suppliers.These changes parallel similar changes thatoccurred as the natural gas industry wasderegulated, which resulted in significantlylower prices for knowledgeable consumers.

In order for your organization to takeadvantage of the potential for lowerelectricity prices, you will need tounderstand how electricity is priced (seethe section, Understanding Utility Bills),and you will need to know your electricload profile. This means knowing howmuch electricity your organizationconsumes during different times of the dayand different seasons of the year.

By setting up an energy accounting systemand understanding the details of howenergy is priced, you will be better preparedto negotiate for the best electricity deals in

a changing market. If you are a large user,you may be able to negotiate directly withelectricity producers in the future. If youare a small user, you may want to pool withother consumers. An aggregator maybe able to help small users get a better dealby pooling electricity purchases.

The more knowledge you have of yourprecise electricity needs, the better chanceyou will have of paying lower prices.Energy accounting methods and softwareare likely to change significantly toaccomodate the changing electricitymarket. Now is the time to get in on theground floor and develop expertise inunderstanding your energy usage.

Section I - Energy Accounting

Section I - Energy Accounting Page 4

II. GETTING STARTED

Before you start tracking energy, you need toget organized. Once you make sure that keypeople in your organization understand thebenefits and costs of energy accounting, youshould learn what data you will need to collect,and develop a plan for communicating energydata so it can be used.

! Identify your goals and objectives, andconsider how energy accountinginformation will be used. You must beable to clearly explain why you need energyaccounting before you can sell the ideato your organization. Having clear goalsand objectives will help you decide whattools you will need. This box lists samplegoals and objectives.

It is important to be clear about how energyaccounting information is to be used. Willit be used primarily by the facilities ormaintenance department to troubleshootequipment problems? Will it help trackperformance of new energy efficientequipment installations? Will it providefeedback to site managers or administratorswho are responsible for containing energycosts? Will it be used to annually budgetfor utility costs?

At Napa Unified School District, monthlyenergy use and cost reports are sent toschool principals, resulting in peer pressureto keep costs from escalating. The PublicWorks Department of Mariposa County isusing energy accounting to track savingsfrom energy projects.

Section II - Energy Accounting

GOALS

Manage energy costs

Promote energy/environmentalawareness

Manage water and otherresource costs

OBJECTIVES

Verify savings from energyretrofits

Motivate staff to manage energycosts

Set energy cost savings goalsand monetary incentives

Prioritize sites for energyretrofits

Troubleshoot unusualconsumption increases

Find billing errors

Prepare to negotiate for priceand service as electricityundergoes deregulation

! Get commitment from decision makersor management. Once you know howenergy accounting can serve organizationalgoals, you need to get sufficientorganizational buy-in to make yourprogram a success.

Energy accounting is often part of a largerenergy management effort. If so, a citycouncil or school board resolution insupport of the program goals can helpcreate visibility and encourageparticipation. In large organizations, thedecision to allocate resources to energyaccounting may be made by senior facilitymanagement staff. Since energyaccounting and energy management islikely to involve staff across departments,its best to get buy-in at the highest andbroadest level possible.

As you involve decision makers in theprocess, make sure to discuss both yourorganizations needs and the constraints ofenergy accounting. Consider the cost ofpurchasing software, and, especially, theamount of staff time needed to set up andmaintain an energy accounting system.

It may take more than 40 hours over severalmonths to make the contacts and obtainand input the data needed to set up acomputerized energy accounting system.Once the system is set up, acquiring andentering monthly data will take competentclerical staff one to eight hours per monthor more, depending on the number ofmeters tracked. (Electronic data transfercan reduce the time but may increase thecost.) Additional professional staff timewill be needed periodically to preparereports and communicate energyaccounting results. If you plan to have aconsultant assist with energy accounting,be sure the consultant costs andresponsibilities are clear.

! Consider a system of communication.What kinds of reports and graphs will beneeded, and by whom? When and how willinformation be reported? Make sure youget the right information to the right people,at the right time. With rapid feedback,maintenance staff can respond to changesin energy consumption by looking for aproblem at the facility. Monthly orquarterly reports to site administratorscomparing present to baseline usage, oranalyzing trends in consumption, can helpto periodically direct attention to energymanagement.

! Consider what tools (including software)you will need for an energy accountingsystem. Based on your organizationsneeds and constraints, what kind of energytracking software (if any) will youpurchase? See the sections on Means ofEnergy Accounting (pages 15-18) and Tipsfor Selecting Software (pages 23-24).

! Obtain necessary data. The informationyou collect will depend on the level of detailyou wish to track and on the type of systemand/or software you will use.

Generally, this will include an inventory ofbuildings detailing square footage, utilityaccounts and meters for each building orfacility, and billing histories going back atleast 12 months preferably 36 months for each meter. Weather data andinformation on such variables as occupancyrates and schedules may also be required.

Do not underestimate the time involved inthis step! It may take several months to

Page 6Section II - Energy Accounting

get billing data from your utility. In somecases, it may be difficult to correlateaccounts with buildings, particularly ifrecords of meter locations are not available.

One of the purposes of this guide is to helpyou answer these questions. But first, we needto examine some of the causes of changingpatterns in energy consumption and costs.

Page 7Section II - Energy Accounting

Section II - Energy Accounting

III. WHAT CAUSES VARIATIONS INENERGY USE?

Before considering what methods and meansof energy accounting will best serve yourorganization, it is important to look at whatcauses building energy use to vary. These aresome of the major factors:

! Weather. Energy used for heating andcooling varies as a result of changingtemperatures. Seasonal changes causeincreased heating energy use in winter, andincreased use of electricity for coolingduring the summer.

costs, temperature is the most importantweather related factor.

! Building area changes. Changes inbuilding size will also strongly influenceenergy consumption. If square footage isadded to a facility, energy use can beexpected to increase. Most energyaccounting software can correct forchanges in building area by assuming thatenergy use will increase (or decrease)proportionately to square footage. Somesoftware programs can account for non-proportional changes by adding orsubtracting a fixed amount or percentageto the baseline consumption for eachmonth.

! Operations and schedule changes.Changes in building occupancy orschedules for building and equipmentoperation will affect energy use. If abuilding is open longer, more energy willbe used for heating, cooling, and lighting.If a school cafeteria brings in pre-cookedmeals in disposable containers instead ofdoing local cooking and dishwashing,kitchen energy use will be reduced.

In Figure 1 on page 10, the big decrease inconsumption between the two years is dueto operations and schedule changesresulting from an energy conservationprogram at the site.

! Changes in building equipment. Whennew equipment is added or existing heating,cooling, ventilation, hot water, lighting, orother energy using equipment is replaced,

Only a portion of a building's total energyis weather dependent. While energy usefor cooling or heating (chillers, boilers,heat pumps, and use of some fans) isweather dependent, for example, lighting,office equipment, and ventilation energyuse is not.

Figure 1 shows that the highest electricityconsumption occurred during July andAugust in both years graphed. This is dueto summer electric use for cooling at thisyear-round elementary school.

It is important to remember that weatherchanges can affect energy costs as muchas installing a new lighting system orstarting a conservation program. Softwarereviewed in this guide takes account of theeffect of temperature when calculatingenergy and dollar savings. Althoughclouds and humidity also affect energy

Section III - Energy Accounting Page 9

Section IV - Energy Accounting

modified, or abandoned, energyconsumption will change. Energyaccounting can document savings due toenergy efficiency retrofits, or otherchanges in equipment.

It is critical to be aware of the factors thatcause energy use to vary, before

attempting to analyze energy data, orevaluate a facilities efforts to use energymore efficiently. Even though it isimpossible to accurately account for everyvariable, awareness of the factors canprevent such mistakes as over- orunderestimating savings do to energymanagement efforts.

Monthly Electricity Usageat Amy Blanc Elementary School

Figure 1. Note high electricity use each summer (July and August) reflecting increasedair-conditioning at this year-round school. The reduction in energy use in 94/95compared to 92/93 is due primarily to operations and schedule changes instituted aspart of an energy conservation program at the school.

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Year ending 6/1995

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1234 Year ending 6/1993

Monthly energy bills provide the basic data forenergy accounting. To understand and analyzechanges in energy costs, it is important to knowexactly what you are paying for!

The two most common energy commoditiesare electricity and natural gas. Someorganizations may also track alternative heatingfuels such as propane and fuel oil, andtransportation fuels like gasoline and diesel.

Charges for electricity and natural gas can beespecially difficult to understand, while trackingother heating fuels can be difficult when onlydelivery dates, rather than consumption dates,are known. Here are billing practices for themost common fuels.

! Natural Gas. Natural gas is commonlymeasured in therms. If your organizationbuys gas directly from a utility, you willpay a per therm price, which may vary byseason and by how much is consumed.However, now that the natural gas industryhas been deregulated, many organizationsbuy gas from an independent supplier, orfrom an aggregator that acts as a gasbroker. In this case, there is a per thermcharge for the natural gas itself, and anotherper therm charge for its transportation anddistribution to the customer. Thesecharges may be billed separately, and mustbe added together to obtain the full cost.

! Electricity. Electricity costs usuallyinclude several different components.

Nearly every electric rate schedule includesa fixed service (or customer) charge that isconstant no matter how much electricity isused, and a per kilowatt-hour (kWh) ratefor the amount of electricity consumed.

Most accounts (except for very small ones)also include a demand charge, per kilowatt(KW). The demand charge is based on thehighest (or peak) electricity use eachmonth, averaged over a short time period(usually 15 minutes). Demand charges(KW) may account for a greater fractionof the total electric cost than consumptioncharges (kWh).

Although you are charged for demand onmost rate schedules, the total demandcharge may or may not show up as aseparate line item cost on your bill. Onsome bills, demand cost and kWh cost arerolled into a single line item for cost.

Many rate schedules also include time-of-use charges. These rate schedules will havedifferent prices per kWh and per KW,depending on the time electricity isconsumed. For example, prices are likelyto be higher during summer weekdayafternoons when demand is high, and lowerat night and on weekends.

Another common component of electricalcosts on large accounts is a charge forreactive power. These charges are basedon the kinds of electrical loads in yourbuilding. Facilities with many electricmotors, for example, may pay a penalty dueto the increased electric transmissioncapacity needed for large inductive loads.

IV. UNDERSTANDING UTILITYBILLS

Page 11Section IV - Energy Accounting

Usually, reactive power charges show upon your electricity bill as kvar chargesor as a penalty based on power factor.

As the electricity industry moves towardless regulation, time-of-use and othercomplex rates are likely to become morecommon. Real-time pricing may alsobecome available, at least to largeelectricity users.

With real-time pricing, what you pay perKW and per kWh will be based on whatyour utility pays for wholesale electricity.Wholesale prices vary based on supply anddemand. Customers will be notified hoursin advance what prices will be; they mayact to reduce energy use based on this real-time information.

Taking advantage of real-time pricing willrequire computerized energy and pricetracking, as well as sophisticated controlof equipment.

Making sense of your facilitys electricitycosts can be complicated. For moreinformation, talk to your utilityrepresentative. Your electricity suppliercan provide you with a copy of the rateschedule applicable to each of youraccounts. Your utility representative canverify that each of your accounts is on therate schedule that results in the lowestpossible electricity charges.

Section IV - Energy Accounting

Knowing what factors determine yourelectricity costs is especially important inmanaging them. This will likely becomemore important as the electricity industryis restructured and becomes morecompetitive.

Understanding rates is also important inplanning energy efficiency retrofits. Topredict energy cost savings with the highestaccuracy, savings must be calculated basedon the time they occur and the rates in effectduring each time period.1

! Other fuels. Fossil fuels such as propaneand fuel oil are commonly used for heatingwhen natural gas is unavailable. These fuelsare difficult to track accurately becauseconsumption is not usually metered.Monthly consumption is typically estimatedbased on fuel delivery dates and may notcorrespond to actual consumption.

1. See the Guide to Preparing Feasibility Studies for Energy Efficiency Projects, California EnergyCommission, May 1996, for information on how to calculate weighted average rates to use inpredicting cost savings from energy efficiency projects.

Page 12

Section V - Energy Accounting Page 13

V. METHODS OF ENERGYACCOUNTING

There are several ways to compare informationthat will affect how you choose to track energydata for your organization. Three methods thatvary in how they account for changes inweather are explained in the followingparagraphs. In all of the methods, a correctionmust be made for the varying numbers of daysin utility billing periods. Corrections for squarefootage are also discussed.

! Present-to-past comparison. This is thesimplest method of comparing energy use,requiring only monthly utility bill data. Inthis method, energy usage for a givenperiod a month, quarter, year, or otherperiod is compared with the same periodof the previous year or a base year.

This method, however, does not accountfor changes in weather. It works well forfacilities which use electricity for lightingand small motors, but not for heating andcooling.

To obtain reasonable comparisons betweentime periods, it is necessary to prorate bymonth the amount of energy consumed ineach billing period, since the number ofdays in billing periods may vary. Tocalculate savings, present use is subtractedfrom last years use for the same month.The difference in use is multiplied by thecurrent cost per unit of natural gas orelectricity to determine cost avoidance.

! Multiple year monthly average. Thismethod gives a more accurate reflectionof historical heating and cooling usage thanthe present-to-past comparison, especiallyif other factors such as square footage andhours of equipment operation haveremained constant.

Energy use from the same time period overa number of years is averaged to develop abaseline. For example, energy use inJanuary 1996 could be compared to anaverage of energy use for January 1993,1994, and 1995. This way, variations inweather are smoothed out to create amore realistic base.

The main drawback for this method is thatit does not account for unusualtemperatures during the current year. Ifwinter is colder or summer is hotter thannormal, savings might be underestimated.(In this method, as in the present-to-pastcomparison, an adjustment must be madeif the number of days in the billing periodvaries.)

! Temperature corrected method heating degree days/cooling degree days.Because most building energy use isaffected by weather, this method will mostaccurately reflect energy savings due tochanges in building equipment or energymanagement.

This method requires collection of weatherdata as well as utility bill information anduses a statistical model to adjust the currentyear to the baseline.

Most energy accounting software packagesuse heating and cooling degree days (HDDand CDD) to correct data beforecalculating energy savings. A correctionshould be made only if there is a statisticallysignificant correlation between HDD orCDD and energy consumption of aparticular fuel.

! Correction for changing square footage.Most energy accounting software packagescorrect for changes in building squarefootage. The software uses the assumptionthat changes in energy use are proportionalto changes in building area. This correctioncan also be done manually.

Section V - Energy Accounting Page 14

VI. MEANS OF ENERGYACCOUNTING

Energy accounting can be done manually, oncomputerized spreadsheets, or with dedicatedsoftware. There is no single right choice ofwhat method to use the best methoddepends on the characteristics of yourorganization, what you want to track, and howyou plan to communicate your energyaccounting data.

A. Manual Energy Accounting.

For a small organization such as a singleelementary school, a manual worksheet torecord monthly energy bills may be sufficient.

Table 1 is an example of a simple worksheetwith one years worth of data. The tableincludes columns for consumption amount,cost, and number of days in the billing period,as reported on most monthly utility bills. Thereis also a column for cost per day which may beincluded on the bill, or can be calculated.

With this simple system, you can compare rawdata for energy consumption and cost betweenmonths or years. The comparison may not bemeaningful if the data is not corrected toaccount for variable lengths of billing periods.If you have heating and cooling degree data,kWh per day per HDD can also be calculated.With more than a few meters, it becomes verytedious to track energy manually.

B. Energy Accounting Using ASpreadsheet.

One step up from manual energy accounting isusing a computer spreadsheet program (likeExcel or Lotus) to track energy expenses. Thespreadsheet can record the same informationas a manual system and automatically calculateenergy use per day, energy use per square foot,or energy use per square foot per HDD.Spreadsheets also provide graphingcapabilities.

A homemade spreadsheet is unlikely to checkthe accuracy of data, analyze weather/energyconsumption relationships, or provide pre-programmed graphs and reports. This meansof tracking energy is most appropriate fororganizations with a limited number of sitesand meters. However, San Diego StateUniversity and other large consumers of energyhave successfully used their own spreadsheetsto monitor energy costs and help keep themlow.

Public domain spreadsheets are also available.Sacramento Municipal Utility District, forexample, has a spreadsheet that records threeyears of monthly energy use and demand forfive accounts and estimates costs based on oneof the municipal utilities' rates. You may beable to find other spreadsheets throughnetworking with organizations similar to yourown.

C. Commercial Energy AccountingSoftware.

For large organizations with many facilities, itmakes sense to consider purchasing

Section VI - Energy Accounting

TABLE 1

Energy Accounting Worksheet

Facility: Fairfield School Year: 1995

Account: TPY 47 6209 Meter #: 2S5987

Month Usage kWh Demand KW Cost Number of Days Cost/Day

January 53,000 210 $5,013.80 30 $167

February 50,100 195 $4,739.46 29 $163

March 52,300 203 $4,947.58 31 $160

April 49,700 191 $4,701.62 29 $162

May 55,200 245 $5,221.92 31 $168

June 62,800 270 $5,940.88 32 $186

July 71,200 280 $6,735.52 30 $225

August 70,600 284 $6,678.76 30 $223

September 68,000 275 $6,432.80 31 $208

October 53,200 210 $5,032.72 30 $168

November 54,700 198 $5,174.62 29 $178

December 53,900 204 $5,098.94 34 $150

Total 694,700 $65,718.62 366 $180

commercial energy accounting software, whichcan cost from $395 to $11,000, or more.

Energy accounting software makes it easier toenter or import data, provides ready-madereports, and calculates corrections for somefactors that affect energy use.

Energy accounting software generallyincorporates weather and square footagecorrections, and will pro-rate energy

consumption and cost by calendar month.Commercially available programs also offertracking of non-energy utilities, such as water,garbage, sewer, and recycling.

Some commercial energy accounting softwarealso offers the opportunity to download energyconsumption and demand data directly fromelectric meters. This capability provides a levelof detail that will be increasingly important asutilities move toward real-time pricing.

Section VI - Energy Accounting

Section VI - Energy Accounting Page 17

D. Energy Accounting as a Service.

Some utilities and energy consultants willprovide energy accounting services to yourorganization for a fee.

On your own, it may be difficult or too time-consuming to obtain detailed time-of-usedemand information by tracking bills. This datamay only be available from the electricityprovider or by directly monitoring your ownutility meters and sub-meters. Fororganizations wishing to minimize electricitycosts through careful limiting of demand duringpeak demand periods, an energy accountingservice may be the best option.

Section VI - Energy Accounting Page 18

VII. FEATURES OF ENERGYACCOUNTING SOFTWARE

Because software varies in terms of complexity,user friendliness, application and cost,comparing different programs can bechallenging. A good start is examining thefollowing basic features found in virtually allsoftware:

! Organization/Site Records! Billing and Climate Records! Reports and Graphs! User Friendliness! Documentation and Support

Appendix A summarizes features of the mostcommon commercial energy accountingsoftware currently available.

A. Organization/Site Records.

Each software program must record basic siteinformation, including the name of the site, itsaddress, and associated accounts and meters.

A site is any physical location where energy isused and metered. It could be a group ofbuildings, a separately metered part of abuilding, a well, a sewage treatment plant, ortraffic lights. Additional information such assite contacts, telephone numbers and adescription of the site can also be helpful.

Site records should also record the squarefootage of each building, gallons of water foreach pump, or other appropriate units ofmeasure.

Some software programs may limit the numberof sites or meters that can be tracked, or thesoftware price may depend on the number ofmeters, so it is important to ensure that thesoftware you choose can accommodate growthof your organization.

Most energy accounting software uses ahierarchical organization structure forbuildings, accounts, and meters. More levels,such as departments, areas within buildings,or submeters (if used), may also be useful formore detailed tracking. The ability to groupsites into departments, for example, is useful ifeach department has its own energy budget.

Grouping helps to compare similar sites, suchas elementary schools, rather than comparinga high school with an elementary school.

B. Billing and Climate Records.

All of the reviewed commercial softwareprograms record total monthly energyconsumption and cost based on monthly utilitybills for each fuel. All allow at least someadditional detail, such as recording andbreaking out the cost of electrical demand,different charges for different times of use, andpower factor charges from electricity bills.

Be sure that the software you choose can trackthe detail you need. Many school districts, forexample, have found that tracking total usageand cost is sufficient. More detail is needed ifyou are monitoring a performance contract,since dollar savings will depend on reductionsof all billed components of your energyservices.

Section VII - Energy Accounting Page 19

All reviewed software also records monthlybilling period dates. This allows the programto prorate consumption and cost by calendarmonth. To make meaningful comparisons ofcurrent to past energy use, you need to be ableto record at least one year of historical data touse as a baseline. With some software, thebaseline may include more than one yearsworth of historical energy consumption data.Some programs may be limited in how manyyears of data can be stored. All of thecommercial software reviewed here can storeat least ten years of data, and most are limitedonly by your hard disk size.

Different software programs vary in what non-energy utilities can be tracked water, sewer,garbage, or recycling revenue, for example. Itmay be worth paying extra to purchasesoftware that can track non-energy utilities ifthat data is useful to your organization.

Commercial software also requires enteringHDD and CDD or other weather data average monthly temperature, or dailytemperatures to support adjustments for theaffect of weather on energy consumption.Some software providers offer periodicinstallments of weather data for your weatherstation(s) for an additional cost. Weather datais also available from commercial andgovernment sources, or directly from your localweather station.

Each program uses a different model forapplying weather corrections to energy savingscalculations. Explanations of the models areincluded in each programs user manual. Somesoftware allows the user to adjust parameterssuch as the temperature at which cooling or

heating use is required (balance temperature).This can result in greater accuracy in estimatingsavings, but requires sufficient technicalexpertise on the part of the user.

The ability to electronically import billing dataprovided by utilities can be a significant timesaver. Some of the software providers willcreate additional software needed to importbilling information provided in a specific formatby your utility. Some energy accountingsoftware also allows weather data to beimported electronically.

You may also choose to download energy usedata electronically, directly from your meters.One of the software providers listed in theappendix specializes in providing this service.California utilities may also offer this servicedirectly to large customers.

Linking directly to your meters is the best wayto get precise demand period (15-minute)energy use information. This amount of detailwill be useful if you are trying to shed demandduring peak periods, or if you are consideringusing real-time pricing when purchasingelectricity.

C. Output Data, Reports, andGraphs.

Basic reporting needs include:

Monthly and yearly energy usage andcost reports for each site. Often a singlereport will combine monthly and year-to-date totals.


An executive summary of theorganization as a whole. Ideally thisreport should be no longer than a few pagesand should show at a glance theperformance of major departments and theentire organization, including dollarsavings.

Reports or graphs with this information arecritical in providing administrators witheasy to understand information on yourenergy management efforts.

Monthly direct side-by-side comparisonof current energy use to base line orprevious years use for each site. Thiskind of report or graph allows you to notechanges in energy use patterns that resultfrom operational changes, equipmentfailures, retrofits or other factors.

A 2-year comparison graph provides aneasy way to track progress in reducingcosts, or to spot problems at individualsites.

Calculations of comparison parameters.These can include the percentage changein fuel use, dollar cost per square foot, totalBTUs per square foot, and actual fuel usein therms or kWh per square foot. Theseparameters make it easier to comparesimilar buildings.

Depending on how you will use your data,the most appropriate parameters may vary.Percent of change is useful because goalsare often set in these terms. Costinformation is more meaningful to mostpeople than kwh and BTUs.

Graphs. Visual presentation of datausually is more effective in getting the pointacross. Many energy accounting softwareprograms now have the capability ofattractively formatted color graphs.

Most energy accounting suppliers will provideyou with a trial copy of the software. As youreview software for possible purchase, considerthe data entry methods, and review many ofthe standard reports. Try customizing reportsor creating user-defined reports. Check to seeif they will meet your organizations needs forboth content and presentation format.

D. User Friendliness.

Most of the main energy accounting softwareprograms are Windows-based. There are avariety of procedures for entering data, creatingreports and graphs, and flagging possibleerrors.

Ideally, the basic functions should be simple,easy to use, and offer automatic feedback whensuspect data is entered. Conversely, thegreatest accuracy is obtained with programsoffering maximum flexibility in setting rates andin choosing parameters for weather, squarefootage, and other corrections. Yourrequirements will depend on what level of staffwill be inputting data, creating reports andusing other software functions. People with aspecialized background in energy orengineering will be better able to make use ofsophisticated features.

If you plan to avoid manual data entry byimporting billing data electronically, make surethe software you choose can accept, or can be


modified to accept, billing data in the formatprovided by your utility. Note that genericimport formats can only be used if your utilitywill agree to provide data in that format, or ifyou can translate data from a utility-providedformat to a generic input format.

E. Documentation and Support.

Documentation should, at a minimum, explaineach entry screen or window and menu option,and preferably show the screen image. Aglossary or explanation of specialized terms inthe text will be helpful, as will on-line help.

It is important to have access to technicalsupport by telephone and/or fax. When youtry out an energy accounting software programusing a demo version, it makes sense to tryout the telephone support as well.

The quality of support services is alsosomething to consider. Help in setting up thesystem, obtaining billing histories, and inputingdata either electronically or manually cansave you time. Most software providers willprovide these services along with training inuse of the software for an additional cost.

Finally, you can contract with most of thesoftware providers (or energy accountingconsultants) to maintain your energyaccounting system and provide you withperiodic reports.


VIII. TIPS ON SELECTINGSOFTWARE

A. Know Your Applications andNeeds.

Develop a clear idea of your specific softwareneeds and applications. Although you may betempted to skip planning and get on with theprogram, the more you know your applications,the more successful your software selectionwill be. Many organizations have found itadvantageous to essentially set up the energyaccounting system on paper before purchasingsoftware.

Be sure that your software will meet anticipatedfuture needs as well as existing needs. Somethings to consider are:

1. What level of personnel will beresponsible for establishing andmaintaining your system?

2. Who will be receiving reports andgraphs from the system?

3. What will they want to know? Willinformation on building energy use beenough, or are they interested intracking water, solid waste, and otherutility costs as well?

4. Will the system be used indeveloping departmental budgets,identifying sites for retrofit,monitoring performance contractsor other tasks?

B. Examine Software Demos andDocumentation.

Examine a demo version of the software, lookthrough the user manual and sample the reportsprior to purchase. Most suppliers will providea demo or trial version with a limited life orwith some aspects disabled. Read enough ofthe documentation and use the demo or tutorialenough to know how different functions work.Get a feel for the user-friendliness of thesoftware.

C. Talk to Users of the Software.

Experienced users can provide a wealth offrank information and could save you frommaking a costly mistake. Ask the supplier forreferences of other users with applicationssimilar to your own and get their opinion. Whatdo they like, and what would they want tochange about the software? How much timedid it take to set up the system? Would theybuy it again?

Talking to current users is especially importantbecause many of the software programsreviewed here are changing rapidly.

D. Know What Support you areBuying.

Understand the level of support you are buyingwith the software. Will you have ready accessto assistance over the telephone? Is trainingavailable, and if so, at what cost? Will youreceive free or low-cost updates of newerversions? Are services such as on-line weatherdata and utility rate schedules available? Willthe software company assist you in importing

Section VIII - Energy Accounting Page 23

available electronic billing information? Ifso, at what cost?

You may wish to consider contracting withyour software supplier or other consultants toset up and run your energy accounting systemfor you. Even if you have a consultant runyour system, however, interpretation of thedata will require specific site knowledgeavailable only within your organization.

E. Don't Compromise on ImportantFeatures.

Obtain the best software for your needs.Compromising on essential features or ease ofuse to save money is often unwise in the longterm. A much larger investment of staff timewill be required to set up and maintain thesystem than the initial cost of the software.

Section VIII - Energy Accounting Page 24

IX. SUMMARY

Energy accounting can help your organizationunderstand how energy is used and can helpmotivate people to take actions that can resultin significant utility cost savings. However,many organizations do not realize the fullbenefit of tracking energy consumption andcost.

The biggest pitfalls that keep organizationsfrom effectively using energy accounting dataare:

! Lack of staff time and commitment inmaintaining the system.

! Failure to communicate the results to theright people.

To make the most of energy accounting, it iscrucial to allocate sufficient staff time forsetting up and maintaining the system, and todevelop a system of communication withadministrators, facilities staff, and others whosedecisions affect energy use.

Energy accounting by itself will not saveenergy. But when used as a tool of energymanagement, it can help you make changes inoperations or equipment that save energydollars. Energy accounting can also help inbudgeting, allocating resources for capitalinvestment, and verifying the results of all ofyour energy management activities.

Page 25Section IX - Energy Accounting

Section IX - Energy Accounting

APPENDIX A

DESCRIPTIONS OF SOME ENERGY ACCOUNTING SOFTWARE

This section describes some of the common energy accounting software programs used to analyzecommercial building energy use. This information was derived from descriptions in the Web Sitesfor the U. S. Department of Energys Office of Building Technology, State and Community Programs,and those of specific energy accounting software companies. As software programs change, pleasecontact these Web Sites for updated features.

The U.S. Department of Energy Web Site containsreviews of over 170 energy-related software tools for buildings. A few of the reviews include thosefor energy accounting and utility billing analysis. These reviews contain information on software, theaudience, the level of expertise needed to use the software, the data inputs and outputs, computersystem requirements, program strengths and weaknesses, and cost.

The Energy Commission and the State of California make no warranty, expressed or implied, andassume no legal liability for information in this appendix. Discussions of specific software productsdo no constitute an endorsement by the Energy Commission or the State of California.

Appendix A Page A - 1

FASER (Fast Accounting System for Energy Reporting)

Omnicomp, Incorporated Telephone: 800-726-4181220 Regent Court Fax: 814 238-4673State College, Pennsylvania 16801 Web: www.omni-comp.com

FASER has been available since 1980 and is a sophisticated program with considerable flexibilityin reporting and customizing energy information. There are over 1,500 users both internationallyand within the United States. The users of FASER include colleges and universities, schooldistricts, corporations, retail, local and state government, performance contractors, military basesand health care networks.

FASER consists of a series of modules. These include Utility Bill Tracking, Cost Avoidance,Meter Readings, Accu-Weather Link, Rate Library, Accounts Payable Link and Report Writer. Thesemodules help identify utility bill errors and system problems, establish energy budgets, and determinethe impact of certain building activities on energy use.

FASER has the capability to import utility data that are provided in the Electronic Data Interchange(EDI) format. Several California utilities offer electronic billing in EDI format.

The software allows the user to modify the baseline year and weather within the Cost Avoidancemodule, which increase the accuracy of the savings calculations. There is a rate schedule library andmany packaged reports and graphs. OmniComp offers additional services such as specific utilityrates, periodic weather data, companion programs, and on-site training, which are available at anadditional cost.

The minimum computer requirements are as follows: Windows 95 or later 133 MHz Pentium Processor 32 MB RAM 31 MB hard disk space for the program. Hard disk space for the data depend on the number of

meters and accounts, number of bills, and complexity of billing detail. A general rule is 1 MB forsetup data and 5K per meter/year.

Users should have a basic knowledge of Windows and data entry. Professional training andimplementation services are available.


METRIX

SRC Systems, Incorporated Telephone: 510 848-84002855 Telegraph Avenue Fax: 510 848-0788Berkeley, CA 94705 Web: www.src-systems.com

METRIX has been available since 1996. There are over 700 users in the United States andinternationally. The main users include facility managers, performance contractors, energy managersand consultants, utility customer service representatives, and energy engineers.

The program operates in the Windows environment. The data are entered into a Windows-basedinterface. METRIX breaks energy tracking into a tuning period, a project installation period, anda performance period. The tuning period is used to establish the relationships between energyconsumption and weather or other factors. The tuning process allows corrections to be made forbuildings with seasonal changes in energy use. Energy savings are tracked during the performanceperiod, which begins at the end of a project installation period. The program projects a base line andtarget scenario for the performance period. Actual use is compared against both projections.

This program allows users to manually choose weather correction parameters, and it can correct forheating degree-days, cooling degree-days, and user-defined production variables on a single meter.Project data can be imported from Market Manager, a building energy analysis program, for settingtarget energy consumption levels. METRIX also has a variety of options for electronic data inputvia ASCII or EDI formats.

The minimum computer requirements include: Microsoft Windows (version 3.1, Windows for Workgroups, Windows 95, Windows NT) 8MB RAM minimum 12 MB hard disk space

It is helpful for users to have an energy management background. Regional and private trainingavailable.

An evaluation copy of METRIX can be downloaded from their Web Site: .


THE UTILITY MANAGER

Utility Management Services Telephone: 415-488-465236 Spring Avenue, P. O. Box 463 800-313-3201Lagunitas, CA 94938 (Illinova Energy Partners)

Web: www.eqnetwork.com/ps/um/index.asp

Illinova Energy Partners and Utility Management Services distribute the UTILITY MANAGER in California.The program was first released in 1995, and an upgraded version was released in 1997. There are more than350 users across the United States and internationally.

This software targets both the private and public sector markets such as school districts and local governments.The manufacturer has worked with several California and Northwestern utilities to develop electronic importingof billing data. UTILITY MANAGER is user friendly and provides a good basis for an on-going energymanagement program.

The program tracks line items from utility bills and can be used to track many utilities in addition to energy.The UTILITY MANAGER has a hierarchical organization and can provide reports at the site, department,organization or other user defined level. Some reports and figures track individual utilities, while otherscombine information on the sites energy, water, sewer and recycling activities. Reporting capabilities emphasizehigh quality graphics. One-page summary reports combine data and graphs at both the site and organizationallevel.

The software can be purchased as part of a package consisting of initial data collection and entry, initialreports and on-site training. Several generic electronic formats are included in the software for uploadingutility billing data. Custom import formats may also be created for an additional fee.

UTILITY MANAGER can handle up to 500 sites. For facilities with more than 500 sites, another product,EQ Network is available. EQ Network is a multi-user software that can handle more than 500 accounts andsites. Another product, EQ Rates Tool, is a database module that contains thousands of rate schedules.

The minimum computer requirements include: IBM Compatible 386, 486 or Pentium PC Microsoft Windows (version 3.1, Windows or higher) 8MB RAM minimum 12 MB hard disk space

It is helpful for software users to have an energy background, but it is not essential. Regional and privatetraining available.

An evaluation copy of UTILITY MANAGER can be downloaded at .


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