8 Easy Steps to Take Control Over Your Energy Costs

As with managing any cost, managing your business's energy costs takes preparation and commitment.  Getting off to the right start will simplify the project and ensure that the payback, both in energy savings and a more enjoyable shopping environment, exceed your expectations.

1. Build a team that represents a cross-section of your company.  Generally, you will need representatives from management or administration, facility operations, engineering, and finance.  The variety of viewpoints will help you to prioritize energy-saving measures, and get buy-in when you assign tasks, dates, and budgets.  Top level commitment is paramount.
   
2. Look at your store's energy use and costs.  On average, energy accounts for three to five percent of the total operating expense in a grocery store.  With a proper plan, you can cut energy expenses by up to 20 percent.
   
3. Know what equipment are the big energy users in the store.  A small improvement in an area that consumes a lot of energy, like heating/cooling/ventilation, refrigeration, or lighting, will make a larger impact on the bottom line than a small improvement in an area that doesn't consume much energy.
   
4. The best way to determine exactly how to cut your energy costs is to conduct an audit of your facilities' energy use.  There are two types of energy audits-a walk through audit and a computerized analysis audit. Look at each energy end use for savings opportunities:
   
   Lighting - Lighting is one of the largest electricity users and should be the first place to look for savings.  Many facilities report savings of 20 to 50 percent. 
   
   HVAC - Finding savings of 30 percent or more are quite possible through the efficient operation and maintenance of heating/ventilating/air conditioning equipment.  Savings come from keeping the system off when not needed, changing temperature settings, or upgrading to a more efficient system.
   
   Refrigeration - In a typical store, refrigeration can account for as much as 60 percent of your electricity costs.  Savings come from operating the equipment in an efficient manner and in carefully evaluating a manufacturer's stated energy efficiency and estimate operating costs before purchasing the equipment.
   
   Building Envelope - The envelope-everything that separates the inside from the outside-has a major influence on the HVAC system.  When it operates effectively, when it limits heat losses and gains, the building will require less energy.
   
   Hot Water - Although only accounting for about five percent of the energy budget, heating water can be made less costly.   Lower temperature settings, fixing hot water leaks, using heat recovery systems are all ways to control energy here.
   
5. Installing an energy management control system can enhance the other energy-saving actions or improvements you choose to make in your store.  It may be the most cost effective measure you can take, especially to guard against needless energy waste.
   
6. Determining Payback - A popular way to evaluate any energy saving improvement is by calculating how long it will take for the investment to pay for itself in energy savings.  Simple payback is calculated by dividing the cost of the improvement by the annual energy savings.  The result is the number of years to payback the investment.  Of course, this method doesn't take into account the inflation, energy cost changes, tax effects, nor the expected life of the equipment.
   
7. Electricity competition Opportunities - As you no doubt are aware, many state and federal initiatives are underway to deregulate electricity markets.   Although having to choose from among a number of competing energy suppliers can seem daunting even for the most sophisticated energy manager, competition within the electricity industry can offer significant benefits for those who are prepared.  Besides giving you the ability to choose an energy supplier and influence the price you pay for electricity, electricity competition will also give you the option to choose from among a variety of value-added services.
   
8. Consult with your electric company or your chosen energy provider.   They are likely to be a good source for information and assistance to help you get started.  They will likely have historical data about energy use in your store.   They can also help you with answers about any available efficiency incentive programs, discount electricity rates, energy-efficient equipment, or any other energy-related question.

If your business has stores throughout a region or the country, contacting every local electric utility that serves your company can be a daunting logistical challenge.  Edison Electric Institute's National Accounts Network can help.  EEI, the national association of electric power companies, created the Network to focus exclusively on the needs of businesses with multiple sites or outlets.  Based in EEI's Washington offices, the National Accounts Network will help to arrange contact between a grocery store company's facilities and the local electric utilities.   Your stores will then deal with one contact per electric utility.

• National Energy Customer Assistance Network (NECAN) Directory
  Check out this convenient guide to power companies serving each state and their National Accounts representative.