Table of Contents
Section I Background
Chapter 1 The Bottom Line 3
Chapter 2 Understanding The Basic Power System 5
Evolution of the Electric Utilities 5
Utility Geography 7
Utility Financial Structures Vary 8
New Players in the Power Game 9
How the Grids Expanded 10
The Three Main Functions Of Utilities 12
Retail Deregulation Impacts Some Utilities 13
Chapter 3 Understanding Power Pricing 17
Average Versus Actual Electric Rates 17
To Understand the Options, Learn the Lingo 19
Unbundling Electric Rates 20
Basic Electricity and Tariff Units 20
How Peak Demand May Be Measured 24
Why Understanding Peak Demand Is Important 26
Chapter 4 Typical Components in a C&I Electric Bill 29
Fixed Charges 29
Major Variable Charges 30
Program Charges and Taxes 32
Many Pieces in the Pie 33
Chapter 5 First Steps in a Rate Analysis 35
Tips to Make Analysis Easier 36
Break Down Dense Language 37
Use Utility Accounting Software 38
Review Alternative Rates 39
What Tariffs May Not Show 40
Section II Options for Rate and Cost Reductions
Chapter 6 (Mostly) Administrative Options 45
Avoid, Shift, and/or Reduce Taxes 45
Minimize Bill Processing Costs 47
Aggregate Meters /Accounts 48
Re-classify Loads/Accounts 50
Lower Service Firmness 52
Seek A CHP Deferral Option 53
Find Billing Errors Using a Professional Utility Bill Auditor 54
Utilize Financial Techniques 56
Chapter 7 Utilizing Metering and Dynamic Rate Options 59
How Utility Metering Is Changing 61
A Brief Tutorial on Interval Data 62
How to Get the Data 66
Evaluating a TOU Rate 68
Power Pricing Based on Utility Load Profiles 70
A Slightly Extreme Example 71
Who May Benefit from TOU? 72
Get It 'Wholesale' via RTP 73
Who May Benefit from RTP? 76
Chapter 8 Equipment/Technical/ Operational Options 77
Reduce or Eliminate a Reactive Power Charge 77
Convert Electric Loads to Natural Gas 78
Get Paid to Cut Load By Demand Response Programs 80
What DR is All About 80
Who Offers DR Programs/Tariffs? 83
Cut a Distribution Rate by Upgrading Voltage Service 83
Pursue Transmission Bypass 86
Buy Cheaper Power Generated On-site 87
Negotiating Cogeneration 88
Cash in on Options for Using Alternative Energy Sources 89
Section III Changing the Rules
Chapter 9 Negotiating with Utilities 95
IOUs: Often the Toughest Nuts to Crack 96
Munis and Co-ops May be Easier 97
Authorities Are a Mix 98
Possible Mechanisms for a Resolution 98
Negotiation Is Never a Simple or Easy Task 99
Sweat the Details of a Proposed Deal 101
Chapter 10 Intervening to Help Write the Rates 103
Introduction 103
Understanding Rate Proceedings 104
To Succeed, Don't Go It Alone 105
Section IV Competitive Retail Power Procurement
Chapter 11 Buying from Competing Electricity Suppliers 111
Introduction 111
Historical Background 112
How the Purchasing Process Works 114
Preparing for Retail Power Procurement 116
Chapter 12 Options for Competitive Supply Pricing 123
Price Content and Structure 123
Common Types of Power Products 126
Chapter 13 Managing Competitive Power Procurement 131
Finding and Choosing Retail Power Suppliers 131
RFI Content 131
Price Discovery Methods and Tools 134
RFP Content 138
Chapter 14 Ways to Save Money and/or Increase Value 141
Chapter 15 Negotiating/Improving a Supply Contract 157
How to Improve a Contract 159
Post Bid Options 162
Appendices 165
Glossary of Tariff and Energy Procurement Terms 219
Index 391
