Energy Costs

Energy Costs Should Concern You and Your Business

Energy costs are rising.

Nationally, electricity rates have risen by nearly 6% across the country.  This is higher than the rate of inflation.  Some regions have seen far greater rises than others.  Hawaii has seen a 50% increase in rates since 2009 and Chicago may see a rate increase of up to 18% in 2014. These costs are going up due to the replacement costs of aging infrastructure.

How do you make utility forecasts in the face of non-uniform costs?

Energy issues are strongly tied to sustainability.

Fossil fuels dominate over 82% of our energy consumption.  The more expensive renewable energy makes up less than 10% of our fuel mix. Many feel our priorities should shift to consuming more renewable resources.  At the same time, our population is growing.  The Department of Energy (DOE) estimates that USA electricity demand will grow by nearly 30% by 2040.

How should you responsibly grow your business in the most cost-effective manner?

Energy is treated as a ‘black box’.

People feel unable to make energy decisions.  The electric grid, pipelines and roadways are treated as monoliths.  They seem larger than any individual.  Decisions seem to be made in private board rooms.  Rate increases are approved by state utility commissions that operate on a different timeline than businesses.  Energy costs seem out of your reach.

How do you gain control over your energy needs?

Create visibility around your goals.

These seemingly intractable problems have been solved in other industries.  Before cloud storage services, companies lacked datacenter expertise.  Before private branch exchange (PBX) and voice over IP (VoIP), companies had few choices over telecommunication expenses.  Today, CFOs can depend on professional services to deliver simple solutions that meet their goals. Similarly, no business has a core competency of paying utility bills and applying for utility incentives.  Set a goal, create a plan and we can help you get there.

Where are you going?  How are you going to get there?

via Energy costs should concern you and your business.

Jimmy Jia

You may also like