5 Reasons to Accurately Model Your Utility Rates
5 Reasons to Accurately Model Your Utility Rates
Understanding Utility Rates
Even in today’s era of the Internet of Things (IoT), it’s astonishing that we still move commercial consumption data such as power usage through block boxes until bill time arrives. Utilities draw a rigid demarcation line at utility feeds to facilities. As a result, any ‘smart’ meter technology they utilize for collecting consumption data throughout each billing period doesn’t extend ‘behind the fence.’
Business owners have two options:
- Trust the utility meter reads and tariff calculations
- Implement a shadow meter for monitoring consumption in real-time.
So, how do you determine which is the best choice?
To maintain complete control of your data, we recommend installing a shadow meter and modeling your utility rates. But, let’s tell you why…
5 Reasons to Accurately Model Your Utility Rates
1. Forecasting monthly costs
Shadow meters are installed directly next to the utility meter within the electrical distribution system. Often, shadow meters tap directly into the utility’s current transformers (CTs). As a result, the shadow meter will have the same readings as the utility meter.
Due to shadow meters’ ability to communicate with customer systems, you can collect day-by-day consumption information. Moreover, you can forecast costs for the month ahead of billing time by performing simple calculations using this information. In short, the more information you have at your disposal, the better you can plan.
2. Better consumption strategies
Modeling your utility rates means having a complete understanding of the corresponding tariff. When applying the tariff to shadow data, consumption trends become evident, exposing unnecessary processes during high-cost periods.
Implementing new process schedules allows you to make strategic decisions to take advantage of low rate hours and save on the bottom line.
3. Cost Allocation
If cost allocation among users (tenants, for example) is a concern, having multiple meters on the electrical distribution network is wise. However, you can still allocate costs accurately using one shadow meter with percentage formulas.
Consequently, all consumption for the facility will be recorded well before the bill from the utility arrives. Furthermore, these calculations can occur in real-time, hourly, daily, etc.
4. Improve Procurement
Optimize procurement strategies with the help of shadow meter records and reports of load profiles. By comparing providers’ offerings based on your level of consumption, tariff, and process strategy, you can make informed decisions regarding cost.
5. Bill auditing
Lastly, utility power meters can be wrong. As a result, consumers can be overcharged or undercharged. Even being undercharged can have long-term adverse effects as the utility seeks to recover its costs. Catching these errors as they occur allows for immediate corrective action, which will minimize impacts on business.
APT 4 Modeling Utility Rates
Power monitoring system design, implementation, and service are our areas of expertise. Our team can install and monitor small shadow meters or full-blown distribution systems. Further, we diagnose power quality issues on your system and recommend corrections.
Obtain greater insight into your electrical distribution and costs in real-time. Be prepared for your expenses in advance rather than waiting for your utility statement. Let us help design you a power monitoring system for better detection and correction in the future.
Ken Shaffer | APT Engineering Operations Manager
