Utility Bill Fundamentals

Utility Bill Fundamentals

©2013 EnergyCAP, Inc. ▪ @energycap ▪ #energyleader ▪ www.EnergyCAP.com

Steve Heinz, PE, CEMFounder & CEO

EnergyCAP, Inc.


Presented by EnergyCAP, Inc.EnergyCAP is used by organizations that receive many utility bills for bill processing, energy reporting and analytics

30+-year industry leader; first release in 1982. (The predecessor software was FASER Energy Accounting).

Web-based and on-premise versions.

Financially secure. No debt. No VC funds.

EnergyCAP software is all we do—we don’t sell hardware, retrofits, consulting, bill payment outsourcing, procurement.

Five years running

1,500 organizations use EnergyCAP.City Government (San Francisco, Baltimore, Sacramento, Virginia

Beach, Tampa, Denver, Jacksonville, Oklahoma City, Cleveland)

County Government (Orange, Riverside, Santa Barbara CA; Loudoun, Fairfax, Chesterfield VA; Miami Dade, Charlotte FL)

Federal (USMC, Smithsonian, U.S. Dept of Energy Labs)

Commercial (Ryder, Equity Residential, Forest City, BJs Wholesale Clubs, Burlington Coat Factory, Northrop Grumman)

Education (800+ school districts, SUNY system, Univ of CA system, UCF, Univ of Kansas)



Utility Bill FundamentalsThis session assumes a working knowledge of utility bills.


6 valuable utility bill tips that can help you spot problems and save you money.


1. Estimated billsWhy are bills sometimes estimated?

Convenience of the vendor—save money via fewer reads

Faulty meter (how long before corrected?)

Lack of access to the meter (why?)

Estimates are based on historical data and often are too high

One large EnergyCAP user had 8% of all bills estimated before they cracked down on the vendor.

When an expensive account is estimated multiple months in row, investigate!

1. Estimated Bills


2. Units of MeasureGetting the UOM wrong will lead to garbage data for purposes of

analytics and reporting.

More than a single UOM may be shown on a bill.

UOM varies:

Gas: Therm, Dekatherm, MMBTU, CCF, MCF

Elec: KWH, may also show KVAH, KW, KVA, KVAR, KVARH

Water: Gal, Kgal, CCF, HCF, CF, KCF, MCF, Hgal


2. Units of Measure


3. Don’t double count usageA common bill entry error is to count the same usage

more than once.

Many bills show the same usage several times:

In the meter read section

In the cost calculation section

In the month to month summary section

In the delivery/generation section



3. Don’t double count usage

4. Load FactorAn extremely useful calculated value that can help you spot on your

electric bills:

Data problems

Meter problems

Rate change opportunities

Mechanical/electrical system control problems


Load factor is calculated:(Actual KWH Usage)/(Max theoretical usage)

Actual KWH usage is what you see on your bill

Max theoretical usage is how much KWH you could have used if you operated at peak load for the entire 720 hours in the billing period (assuming 30 days)

Example: Your bill shows 40,000 KWH & 100 KW peak demand.

Your actual usage is 40,000

Your max theoretical usage is: 100 KW x 720 hours=72,000 KWH

Your load factor is: 40,000/72,000=.555=55.5%

Stated another way, for the month as a whole, you operated at an average load of about 55% of your max load.



4. Load Factor

High Load FactorIndicates very steady load—most equipment runs 24/7.

Examples: data center, refrigerated warehouse, supermarket, enclosed parking

You may qualify for an economical High Load Factor Rate!


4. Load Factor


4. Load Factor

High Load Factor (over 85–90%)What about High Load Factor in some other type of building?

(Office, school, store, restaurant, lodging.)

High Load Factor means you have very steady 24/7 loads, which is another way of saying No Nighttime or Weekend Setbacks. Is that right for this building?


4. Load Factor

High Load Factor (over 100%):That means your actual usage exceeded your max theoretical usage!

How can that happen?

Data entry problem

Meter problem

Billing problem

Demand ratchet in effect

Check it out!


4. Load Factor

Low Load Factor (under 20%):Indicates very spiky load—large loads run for short periods of time

Examples: lighted outdoor recreation/athletics, standby pumps

Low Load Factor in an office, store, restaurant, educational facility, lodging, etc is a cause for concern:

Data problem

Meter problem

Billing problem

Oversized/excessive equipment


4. Load Factor

Medium Load Factor (40–60%):Typical for many building types that have nighttime and weekend setbacks

Examples: offices, schools, restaurants, etc

Seasonal variations are common as the electrical loads change throughout the year due to changing HVAC needs.


4. Load Factor

Load Factor Report


4. Load Factor

Load Factor Chart–Outdoor Recreation


4. Load Factor

Load Factor Chart–Data Center


4. Load Factor

Load Factor Chart–Public Library


4. Load Factor

Load Factor Chart–Office Building

5. Power FactorUnrelated to Load Factor

A characteristic of AC power

Inductive loads cause Power Factor reductions and current increases, hence low Power Factor penalties. Inductive loads are loads in which the magnetic property of electricity is utilized:

Large motors (Pumps, elevators, chillers, fans)

Transformers, light ballasts

Can be corrected with capacitors



6. Understand Your Rates!This is most important!

Understand what rates your accounts are on and what alternative rates are available to you.

You can find the rates posted on the vendor website or at the U.S. Dept of Energy’s OpenEnergy Info


6. Rate Schedule

Resources to Learn More




Energy UniversityA free service of Schneider Electric. Click on the link at www.FreeEnergyManagerTools.com. Both of these video courses, about 30 minutes each, are excellent.



BGE Learning ResourcesExplains demand and electric bills. A free service of BGE. Click on the link at www.FreeEnergyManagerTools.com.



Open Energy InfoAlmost 30,000 electric rate schedules. A free service of the U.S. Dept of Energy. Click on the link at www.FreeEnergyManagerTools.com.


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Utility Bill Fundamentals