Five local organizations partnered to present “Strategies for Energy Management Success,” an energy symposium, on Wed., Sept. 23rd at the Holiday Inn, York. With electric rate caps soon to expire, businesses need to establish a plan to manage added costs.
The York County Economic Development Corporation, MANTEC, Inc., Hanover Area Chamber of Commerce, York County Chamber of Commerce, and Manufacturers’ Association of South Central Pennsylvania, collaborated to provide essential information on energy efficiency assessments, demand management and strategic procurement, alternative energy options and access to grant funds. In addition, numerous vendors were available to answer questions on everything from energy conservation to engineering services.
Steven Schumacher, Regional Vice President, Met-Ed, a FirstEnergy Company, opened the symposium with information on Act 129 of 2008 (HB 2200), which identifies the carbon emissions benefits associated with the reduction of electricity consumption and peak load.
“It is essential that you plan, get educated and engaged on this issue,” Schumacher said. “You need to learn what is best for your business and what the industry is doing.” He added, “If you do so, you’ll be successful during this transition.”
Caps expired in Western Pennsylvania in 2007, increasing electrical costs up to 40 percent for larger industries; 15 – 18 percent for smaller businesses. Many Pennsylvanians will be in for electricity bill sticker shock after December 31, 2010, when electricity generation rate caps are set to expire for the rest of the state.
The passing of the 1996 Electricity Generation Customer Choice and Competition Act gave Pennsylvanians the opportunity to choose their preferred electricity generation company. (1) The law allowed consumers to shop for their electricity supplier just like one shops for an Internet service provider or a cell phone provider. Consumers who chose not to exercise their right to shop for an electricity supplier continued to receive service via their default electricity distribution company.
Patrick Meese, MANTEC, Inc., provided an executive overview to the group that stressed the importance of conducting an energy audit, customizing a strategy, usage programming, aggregating purchasing, grant opportunities, renewable energy and collaboration. “Energy prices are volatile and markets are competitive,” he warned. “The time to plan is now.”
According to Mike Payne, JD, LLM, Executive Vice President and Corporate Counsel of Affiliated Power Purchasers International, LLC (APPI), Pennsylvania is one of the first states to allow supplier competition. Electricity deregulation is a separation of supply and distribution. Payne explained, “Twenty-five percent of your electricity bill is for transmission and delivery (T&D), such as from Met-Ed and PPL. That will not change. They [T&D] are responsible for reliability.” Consumers should investigate what accounts for the remaining part of the bill, supplier charges. “Choice allows consumers to seek alternative suppliers,” Payne stressed. “Now is a good time to get started toward making supply decisions for 2011 – 2012.”
In assessing your risk, Payne highly recommended implementing an energy procurement process. “You need to get out your electric bills and assess your risk tolerance and business needs. They are going to be different for each business sector,” he explained. The procurement process should include tracking the energy market for opportunity, identifying and evaluating reliable suppliers, obtaining usage and account information from your electric utility in an electronic format, develop Request for Proposals (RFP) and evaluate suppliers’ credit history. In addition, businesses are encouraged to submit an electronic RFP, evaluate and analyze supplier offers, and analyze/negotiate the supplier contract.
The importance of a procurement strategy was also emphasized by Lori Porreca, President, A1 Energy. “There are funding streams to help offset the costs of the procurement process,” Porreca stated. “Beware though. The application window tends to open quickly and close quickly.” Those looking for details and opportunities should visit www.depweb.state.pa.us.
Manufacturers may realize opportunities in this tough economy through a new consortium, Pennergy Source, John West, President of New Tech Wind informed the Symposium’s attendees. Manufacturers in South Central PA have joined together to find business in various renewable supply chains including Wind, Solar, Nuclear and Geothermal. Interested parties should contact the Manufacturers’ Association of South Central PA.
In addition to the aforementioned presenters, the following also provided essential information on energy deregulation: Attorney Alexandra C. Chiaruttini, Stock & Leader, LLP; Larry Grunden, PennTap; Rich Madeira, Enginuity Energy, LLC; Peter Gourlay, Maryland-Asia Environmental Partnership and Warren Weaver, PennTap.
For more information on “Strategies for Energy Management Success” symposium, please contact Ellie Lamison, York County Economic Development Corporation at 717.846.8879 elamison@ycedc.org.
1 Pennsylvania Public Utility Commission (2007). Fact Sheet. “Electric Restructuring: The Transition from Rate Caps to Market-Based Pricing.”
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