Latest news with #ShipleyEnergy
Miami Herald
23-06-2025
- Business
- Miami Herald
Summer business energy strategies to impact your bottom line
Summer business energy strategies to impact your bottom line For many businesses, managing energy costs can be a challenge, especially during the summer months. Understanding peak load contribution (PLC) and the strategies it entails can unlock significant savings on electricity bills, and more importantly, provide a competitive edge in energy (and energy cost) management. In this guide, Shipley Energy explains the key concepts of PLC and explores strategies your business can implement to mitigate these costs while ensuring you remain operationally efficient. What is peak load contribution? PLC refers to your business' share of energy use during the highest demand periods on the electricity grid-usually on the hottest days of summer. Utilities use this figure to calculate your portion of capacity charges, which are a major part of your total electricity costs. In essence, the higher your energy use during these peak periods, the larger your share of the grid's maintenance and operational costs, and the higher your bills are for the next 12 months. So why does this matter? For businesses, since capacity costs are measured in dollars per megawatt day, reducing energy consumption during these peak times can translate to lower capacity charges, which can have a substantial impact on your bottom line. How is peak load contribution determined? Utility companies measure your energy usage during peak hours-typically across five peak days during the year when the grid is most strained. These days are often driven by extreme weather or high-demand periods, and are determined by regional transmission organizations such as PJM Interconnection, which manages much of the mid-Atlantic region. If your business uses a significant amount of electricity during these peak events, it contributes more to the overall load, and your capacity charges will be higher. The key to mitigating this is managing and reducing energy usage during these critical times. Strategies for mitigating PLC and reducing energy costs Participate in demand response programs One of the easiest ways to mitigate PLC is by participating in utility-sponsored demand response programs. These programs offer financial incentives to businesses that reduce their energy usage during peak periods. By temporarily scaling back nonessential operations or shifting energy-intensive processes to nonpeak hours, you can not only reduce your PLC but also receive direct compensation for doing so. Shift energy usage to off-peak times Load shifting is another effective strategy. This involves rescheduling high-energy-consuming activities, like production or heavy machinery operation, to times when the grid is under less stress. For many businesses, this may involve adjusting work schedules or automating processes to occur overnight or early in the morning. Load shifting can significantly reduce your energy demand during peak periods, cutting down your PLC and, by extension, your capacity charges. Heavy heating or cooling of buildings can also be shifted preemptively so that usage is lowered during peak periods. Obviously, any usage that is critical to the financial well-being of your business shouldn't be shifted without a full financial analysis of the impacts and potential savings. Leverage energy storage solutions Investing in energy storage systems, such as batteries, can help your business store energy during off-peak times and use it during peak hours. This not only shields you from high peak demand rates but also offers a layer of protection against power outages. While energy storage can involve an upfront investment, the long-term savings in PLC reduction and operational uptime may make it a worthwhile consideration. Utilize on-site generation Another option for reducing your reliance on the grid during peak times is through on-site generation. This can include solar panels, wind turbines, or natural gas generators that produce energy for your facility. During peak times, your business can draw from these sources, reducing the need to pull from the grid and lowering your PLC. While this requires significant planning and initial capital, it can offer both cost savings and sustainability benefits. Implement energy efficiency measures Lastly, improving your business's overall energy efficiency can reduce your PLC indirectly. By upgrading lighting, HVAC systems, and insulation, you reduce the overall amount of energy your facility uses throughout the year. These improvements also make it easier to manage your energy use during peak times, making PLC mitigation part of a broader energy strategy. The financial impact of PLC mitigation The potential savings from PLC mitigation are significant. Lowering your PLC means lower capacity charges, which can account for 10%-30% of your total electricity bill. Moreover, while the upfront investment in energy storage, on-site generation, or efficiency upgrades may seem daunting, the long-term return on investment can make these measures highly profitable. Energy storage systems, for example, not only help with PLC mitigation but also provide resilience against power outages. Effectively managing your PLC requires more than just tracking energy usage-it demands a comprehensive approach that blends technology, strategic planning, and expert guidance. Physical solutions to reduce load LED lighting: Switch to high-efficiency LED lighting to significantly cut down on your facility's baseline energy air conditioning: Upgrade to energy-efficient HVAC systems that consume less power during both peak and non-peak speed motor drives: Install variable speed drives on equipment to adjust energy output to match operational demands, ensuring your machinery only uses what it needs when it needs controlled HVAC systems: Implement smart, remote-controlled HVAC systems that allow you to adjust temperatures during peak periods without compromising comfort or productivity. By making these physical upgrades, businesses can see immediate reductions in energy consumption, which directly lowers PLC and overall operating costs. Who benefits the most from peak load contribution mitigation? While all businesses can benefit from managing their PLC, certain industries and organizations are particularly impacted by high energy demand and capacity charges. Here's a look at the types of businesses where PLC mitigation can have the most significant impact. 1. Manufacturing facilities Manufacturing facilities are often among the largest energy consumers, with heavy machinery, production lines, and climate control systems running at full capacity. A single manufacturing plant can see its energy bills skyrocket during peak periods, making PLC management crucial. By adopting energy-efficient equipment, like variable speed motor drives and high-efficiency HVAC systems, manufacturers can reduce their peak demand. Additionally, strategic load shifting, such as moving energy-intensive processes to nonpeak hours, can dramatically lower PLC. Example: A metal fabrication plant that adjusts its production schedule to run energy-heavy processes overnight, using smart systems to monitor and control energy use during the day, could reduce its PLC by 15%, leading to significant savings on energy bills while maintaining production targets. 2. Municipal water treatment plants Water treatment facilities are essential operations that consume large amounts of energy, particularly during pumping and treatment cycles. These facilities often have limited flexibility to shift their energy use, but smart strategies like demand response programs and energy storage solutions can help. By implementing remote-controlled systems to reduce nonessential power consumption during peak events, municipalities can cut energy costs without compromising service. Example: A water treatment plant that integrates an on-site energy storage system and begins participating in a demand response program. By storing energy during off-peak times and drawing from the storage during peak demand periods, the facility could reduce its PLC and see a 10% decrease in its annual energy expenses. 3. Commercial real estate and office buildings For office buildings, especially those with large HVAC and lighting systems, energy consumption tends to peak during regular business hours. Facilities managers can utilize real-time monitoring and automated HVAC systems to reduce load during peak times. Simple actions like adjusting the thermostat and dimming lights during peak events can significantly lower energy usage and mitigate PLC costs. 4. Data centers Data centers, with their extensive use of servers and cooling systems, are constant energy consumers. PLC mitigation is critical for these operations, where uptime is nonnegotiable. Strategies such as load shifting, energy-efficient cooling, and on-site renewable generation can help reduce peak demand without affecting data center reliability. 5. Large retail operations Retailers, especially large chains or shopping malls, tend to have predictable peak hours. Energy-saving initiatives like LED lighting and smart building systems can help them cut back on energy use during peak periods without impacting customer experience. Additionally, demand response programs can provide a source of income by reducing nonessential operations during grid stress. Why peak load contribution mitigation matters For these types of organizations, effective PLC management goes beyond just lowering energy bills-it enhances operational resilience, reduces environmental impact, and ensures compliance with local and regional energy regulations. Businesses in these sectors can tailor their energy management strategies to meet their unique operational demands while controlling energy costs. This story was produced by Shipley Energy and reviewed and distributed by Stacker. © Stacker Media, LLC.
Miami Herald
11-06-2025
- General
- Miami Herald
12 ways to lower your high electric bill
12 ways to lower your high electric bill If you've noticed a sudden spike in your electricity bill, you're not alone. Many households are dealing with rising costs that can be frustrating and sometimes confusing. Ahead, Shipley Energy suggests what might be driving up your electricity bill and shares ways to lower it. The answer to why your bill is so high is likely multifaceted since many issues can contribute to a hefty electric bill. Read on to learn more about energy usage and how to save,or design a low-rate energy plan now. We're here to help you uncover issues and provide you with some tips for lowering your electric bill so you can save money and move toward a more energy-efficient future. At any time you can use these quick links to jump around the article. Let's get started. Is my electric bill too high? How much you should expect to spend on electricity depends on the type and size of your home, where you live, and other significant factors. While there is no particular dollar amount that signifies your bill is too high, a point of reference can be useful. It may help to know that in 2024, the average monthly electric bill in the U.S. was $140.56. If you would consider your household electricity use to be fairly average and your bill is much higher than this total, it could be too high. If you're worried about your electric bill being too high, chances are, you've seen the cost go up over time. There are many reasons why your bill could have increased or why it's consistently staying too high. 10 reasons your electric bill is so high What consumes the most electricity in your home? If you're trying to lower your electricity bill, addressing the biggest consumers of electricity will have the biggest impact on your bill. Heating and cooling systems, water heaters, and large appliances like washers, dryers, and refrigerators are among the biggest electricity consumers in most homes. Lighting, especially with traditional bulbs, also adds to your bill, as do entertainment systems and kitchen appliances like ovens and dishwashers. Read on to learn more about common pitfalls affecting your energy costs. 1. Devices drawing phantom energy Did you know that many of your appliances and electronics that plug in are drawing energy, even when they're turned off? This energy is often referred to as a phantom load or standby power. Most electronics and appliances today are designed to be in a standby mode rather than truly off when not in use. A typical American household has 40 devices that are continuously drawing power, whether they're on or off, adding up to nearly 10% of the family's total electricity use. 2. Using old, inefficient appliances Appliances today are designed to be more energy-efficient than older models. This means if you have old appliances in your house, they could be using excessive amounts of electricity. This includes dishwashers, ovens, refrigerators, freezers, clothes washers, dryers, water heaters, and many other appliances throughout your home. Two of the biggest culprits are refrigerators and clothes dryers. If your appliances are relatively old, it's likely that they are not as efficient as they could be. 3. Lighting your home with traditional incandescent bulbs If you're using traditional incandescent bulbs in your light fixtures, you're likely wasting energy. Energy-efficient lighting options, like light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), and even halogen incandescent, use a lot less energy. So, if you're wondering why your electricity bill is higher than your neighbor's, it could be in part because their LED bulbs are using 80% less energy than your incandescent bulbs are. 4. Leaving lights or appliances on If you're not in the habit of turning off the lights, TV, and other appliances before leaving the house, you could be wasting energy while you're away. If you have kids, it's important to make them aware that leaving lights or electronics on unnecessarily wastes energy and money. Even while you're at home, if it's during daylight hours, you may not need lights on. 5. Putting significant demand on your HVAC system For the average single-family household, heating accounts for up to 45% of annual utility costs, and cooling makes up 9%. If your HVAC system runs on electricity, then you'll see higher totals on your electric bill, especially if you place a high demand on your HVAC system. This is one of the main reasons your electric bill will fluctuate seasonally. During harsh winter or scorching summer months, you can expect to use a lot more electricity for heating or cooling than you'll use during milder times of the year. 6. Using a lot of hot water Water heating usually makes up about 18% of a home's energy use. Many common household chores and activities, like washing dishes, doing laundry, and taking showers, can use a lot of hot water. As you use up hot water, the water heater must use energy to heat more water. If your water heater uses electricity, then using a lot of hot water can lead to a high electric bill. 7. Staying indoors more How much energy you use depends on how often you're inside your home. The pandemic has caused energy customers to stay home more than ever. Many employees and students have been working remotely, and lots of events have been canceled. Those staying home, especially during the coldest and hottest parts of the year, are bound to have higher utility costs. 8. Greater use of devices Those who are working or studying at home are not just lounging around-they're using computers and other devices throughout the day. If the pandemic has sent you home, you might be relying on a desktop or laptop for upward of eight or more hours per day. Heavier use of devices is one reason your electricity bill may have shot up. 9. Using electricity during peak hours Some utility companies instate what is called a time-of-use policy, where using electricity during certain hours will cost you more than if you used the same amount of electricity at a different time of day. The hours when electricity costs more are called peak hours, and there tends to be greater demand for electricity during these times. If you find yourself using electricity during peak hours, you can expect to see a higher bill. You might be using electricity during peak hours more often, thanks to the pandemic. With COVID-19 restrictions, you were probably more likely to be home during those hours. Keep in mind peak hours vary by supplier, time of year, and other factors. For instance, winter peak hours tend to be in the morning, while summer peak hours tend to be in the afternoon or evening. 10. Increased electricity rate Electricity rates, measured in the cost per kilowatt-hour (kWh), vary from location to location and supplier to supplier. Rates can also fluctuate seasonally. In the summer, for instance, you may see a higher total on your bill even if you used the exact same amount of electricity as you did in the spring. If you're noticing consistently high rates, you may want to switch suppliers. Many people get their electricity supplied by their utility company, but in deregulated states, you have the option to compare rates and switch suppliers. 12 ways to lower your electric bill Electricity bills can sneak up on you, especially when the seasons change or when household needs shift. But with some small adjustments, you can make a real dent in those costs. Here are 12 ways to bring down your electricity bill and keep your home running efficiently: 1. Conduct an energy audit One of the best ways to get some insight into how to save money on your electric bill is through an energy audit. The auditor will learn about your home's appliances and electricity use and then make recommendations for increasing your efficiency. You can also conduct a DIY audit, but a professional one is the best option. 2. Unplug electronics and appliances Unplug electronics and appliances when you're not using them rather than just turning them off. Plugging electronics into a power strip makes it easier to cut off power to all the electronics at once and then turn them back on when you're ready. Eliminating the phantom load electronics use could save you as much as 10% on your next electric bill. 3. Upgrade old appliances Another way you can save is by switching out old energy-draining appliances for newer, more efficient models. Newer appliances typically offer superior energy efficiency that could lower your energy costs substantially over time. 4. Install dimmer switches An excellent solution for using less light is to use dimmer switches. With a dimmer switch, you can set a light fixture to only provide as much light as you need. As you lower the amount of light, you also lower the amount of electricity going to the bulb and can cut back on your overall lighting costs. 5. Switch to energy-efficient light bulbs According to the U.S. Department of Energy, you could save $75 a year just by replacing five light bulbs in your house that you use the most with ENERGY STAR bulbs. Especially if you choose CFL or LED bulbs, you can also enjoy significantly longer periods between replacing bulbs since they last much longer than traditional incandescent bulbs. 6. Adjust the thermostat When you're away from home, adjust your thermostat so your HVAC system doesn't need to work as hard. If you adjust your thermostat by 7 degrees or 8 degrees to be closer to the outdoor temperature for eight hours every day, you could save 10% on your heating and cooling costs. A programmable thermostat can help you do this. 7. Install ceiling fans If you find yourself spending a lot on cooling your home during hot weather, try installing ceiling fans. With a ceiling fan going, you can raise your thermostat setting and enjoy the same comfort level as you did with a lower setting and no fan. 8. Change your HVAC filter regularly An HVAC system has to work harder and, therefore, use more energy when the filter is clogged or dirty, so make sure you're checking your filter regularly and changing it as soon as it's dirty. Typically, you'll want to change filters at least every three months. 9. Air dry dishes and laundry Since a drying feature on a dishwasher and a clothes dryer can use a lot of energy, you can save money by avoiding them. For dishes, allow them to air dry or use a dishcloth to dry them by hand as you put them away. For laundry, use a clothesline outside or a drying rack inside to let clothes air dry. 10. Lower your water heater setting Many water heaters are set to 140 F by default. However, for most households, 120 F is sufficient to handle hot water needs, meaning you're wasting energy to maintain that high temperature. Just by lowering the setting to 120 F from 140 F, you could automatically save yourself from $36 to $61 in standby heat losses and over $400 in demand losses over the course of a year. 11. Use a low-flow shower head If you're using a lot of hot water in the shower, putting a lot of demand on your water heater, one solution is to take shorter showers. That's not the only solution, though. You can shower for the same length of time and still use a lot less water by installing a low-flow showerhead with the WaterSense label. 12. Plan for off-peak hours If you're dealing with a time-of-use policy from your utility company, you should do your best to avoid using electricity during peak hours. Plan to run your dishwasher or wash and dry clothes, for instance, during off-peak hours so you won't be charged as much. Shop for a new electricity supplier In many cases, you can decrease electricity costs by switching suppliers. A new supplier may be able to purchase electricity at a lower rate and pass on those cost benefits to you. Switching may also allow you to choose more favorable contract terms-for example, if you've seen your rates increase in a variable-rate contract, you might benefit from a fixed-rate contract. In a fixed-rate contract, your rate will stay the same for the duration of your agreement, no matter what your supplier has to pay. Of course, your supplier might not be the only reason your electricity bills are high. How and when you use electricity can have an impact, as well. It's a good idea to look at the whole picture and consider every possible factor to generate the most savings. This story was produced by Shipley Energy and reviewed and distributed by Stacker. © Stacker Media, LLC.
Yahoo
15-05-2025
- Business
- Yahoo
Risk management for fuel resellers and end users
Because the wholesale fuel markets can change rapidly with political, weather, and trading events, businesses and organizations using large amounts of fuel need to address marketplace risks around pricing and fuel supply. Shipley Energy provides the following risk mitigation strategies businesses can put into place to better tolerate risk. Fuel prices are subject to significant fluctuations due to but not limited to geopolitical events, high frequency algorithmic trading, supply chain disruptions, OPEC decisions, and natural disasters. Fuel resellers risk margin compression when prices rise rapidly, while end users may face higher operational costs. Higher fuel prices may put stress on your credit lines, cash flow, or customer demand. A backwardated market may negatively affect your inventory valuations or put strain on supply availability Fuel resellers have a natural hedge to gradual price fluctuations—they buy fuel, mark it up, and resell it. The risk lies in the holding period (when you buy versus when you sell) and the volatility (how fast the market moves). To reduce these risks, you can: Shorten your holding period through better inventory management. For example, don't hold 50,000 gallons in storage if you only sell 10,000 gallons per week. Purchase what you sell. If you provide a price cap program to your customers, where they can lock in a ceiling price and receive a lower price if the market drops, make sure you're using the right market structure to do so. For instance, do not back a price cap program sale with a standard fixed priced fuel purchase. In this case, if you hedge a fixed price and the market goes below it, you'll be stuck with higher-priced product. Layer in your purchases for a weighted average cost of goods. This strategy works especially well for heating oil and propane. Protect your basis. As we have experienced in recent years, local (rack and pipeline) price basis can be exponentially more volatile than NYMEX futures. If you only hedge NYMEX futures, you are still exposed to rack and pipeline basis volatility. Fuel end users do not have a natural hedge. They are exposed to a rising price fuel market, which may increase their operational costs. Add a variable fuel surcharge that gets passed along to your customers based on the cost of diesel. If you cannot pass on a variable fuel surcharge to your customers, consider locking in a fixed price or a CAP price for your fuel. This takes the guess work out of your fuel budget. You can now price your product/service based on a guaranteed cost of fuel. Refinery shutdowns, pipeline failures, transportation strikes, cyber-attacks, or weather events can halt the delivery of fuel. Even short periods of pipeline delays or temporary gaps in transportation can disrupt fuel availability. Fuel shortages may impact your ability to meet customer demand, damage your company's reputation, and negatively affect your profitability. Supplier Diversification: Establish relationships with multiple suppliers to ensure redundancy or work with a wholesaler that has established relationships. Partnering with suppliers that have redundancy built into their own business adds a second layer of security. Inventory Management: Maintain strategic reserves of fuel to buffer against short-term supply disruptions. If you do not have enough storage for 10 days of demand (one pipeline cycle), make sure that your supplier has storage space at your local fuel terminal. Transportation: Develop partnerships with reputable logistics companies that have redundancies built into their business models. This story was produced by Shipley Energy and reviewed and distributed by Stacker. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
15-05-2025
- Business
- Miami Herald
Risk management for fuel resellers and end users
Because the wholesale fuel markets can change rapidly with political, weather, and trading events, businesses and organizations using large amounts of fuel need to address marketplace risks around pricing and fuel supply. Shipley Energy provides the following risk mitigation strategies businesses can put into place to better tolerate risk. Market and price volatility risks Fuel prices are subject to significant fluctuations due to but not limited to geopolitical events, high frequency algorithmic trading, supply chain disruptions, OPEC decisions, and natural resellers risk margin compression when prices rise rapidly, while end users may face higher operational fuel prices may put stress on your credit lines, cash flow, or customer demand.A backwardated market may negatively affect your inventory valuations or put strain on supply availability Fuel resellers have a natural hedge to gradual price fluctuations-they buy fuel, mark it up, and resell it. The risk lies in the holding period (when you buy versus when you sell) and the volatility (how fast the market moves). To reduce these risks, you can: Shorten your holding period through better inventory management. For example, don't hold 50,000 gallons in storage if you only sell 10,000 gallons per what you sell. If you provide a price cap program to your customers, where they can lock in a ceiling price and receive a lower price if the market drops, make sure you're using the right market structure to do so. For instance, do not back a price cap program sale with a standard fixed priced fuel purchase. In this case, if you hedge a fixed price and the market goes below it, you'll be stuck with higher-priced in your purchases for a weighted average cost of goods. This strategy works especially well for heating oil and your basis. As we have experienced in recent years, local (rack and pipeline) price basis can be exponentially more volatile than NYMEX futures. If you only hedge NYMEX futures, you are still exposed to rack and pipeline basis volatility. Fuel end users do not have a natural hedge. They are exposed to a rising price fuel market, which may increase their operational costs. Add a variable fuel surcharge that gets passed along to your customers based on the cost of you cannot pass on a variable fuel surcharge to your customers, consider locking in a fixed price or a CAP price for your fuel. This takes the guess work out of your fuel budget. You can now price your product/service based on a guaranteed cost of fuel. Supply chain risks Refinery shutdowns, pipeline failures, transportation strikes, cyber-attacks, or weather events can halt the delivery of short periods of pipeline delays or temporary gaps in transportation can disrupt fuel shortages may impact your ability to meet customer demand, damage your company's reputation, and negatively affect your profitability. Supplier Diversification: Establish relationships with multiple suppliers to ensure redundancy or work with a wholesaler that has established with suppliers that have redundancy built into their own business adds a second layer of security. Inventory Management: Maintain strategic reserves of fuel to buffer against short-term supply you do not have enough storage for 10 days of demand (one pipeline cycle), make sure that your supplier has storage space at your local fuel terminal. Transportation: Develop partnerships with reputable logistics companies that have redundancies built into their business models. This story was produced by Shipley Energy and reviewed and distributed by Stacker. © Stacker Media, LLC.
