With all of the recent talk about KCP&L’s Iatan 2 power plant going over budget, now is a better time than any to discuss what happens to your operating expenses when your utility rates rise. It may seem like a now brainer, that when energy costs go up, your monthly expenses go up too. However, lets use some real world examples to show you how drastic it will affect your monthly and annual budget.
It’s no secret that KCP&L went over budget by almost 100% building the Iatan 2 power plant located near Weston, Mo. and the result of their mishaps resulted in an official request to raise rates in Missouri 14.5% and in Kansas 11.5%. Steve Everly from the KC Star said, “KCP&L is seeking rate increases of 14.5 percent in Missouri and 11.5 percent in Kansas, in part, to help pay for Iatan 2. If those increases are granted, KCP&L customers’ rates will have increased nearly 50 percent in the past four years.” Read more: http://www.kansascity.com/2010/09/08/2209483/kcpl-faulted-for-mismanagement.html#ixzz0z8nIzcp7
So now that we know that rates may end up raising by almost 50%, lets look at how this impacts our budget and then I will show a way that you can fight back to avoid most of these rate increases. One of our clients owns a parking garage, they have 341 Metal Halide lights each with a 175-watt bulb and for security reasons the lights run 24/7. So if we jump back four years we can see that they used to spend $35,474.00 per year or $2,956.00 per month running their lights. Now they will be spending, if the rate increases get approved, $70,947.00 per year or $5,912.00 per month. As you can see, utility rates have doubled in a very short time span and I can only predict that this pattern will continue on for decades to come. So what can we do to fight back?
One of the stipulations that KCP&L must prove, before receiving their rate increase, is they have to show that they are investing back into their customers. One of the biggest ways that KCP&L does this is through the numerous programs they offer to their customers. Most of you know about the Energy Optimizer program for residential customers but what about the commercial sector. One of the most productive programs that KCP&L offers to their business customers is its Energy Efficiency Rebate program. The program was designed to help their customers lower their energy bills through upgrading the efficiency of their commercial and industrial buildings. I know it’s tough to swallow but it’s true, KCP&L will pay you up to $52,000 so that you can spend less on your energy bills. So why not take advantage of a program that will save thousands on your monthly operating expenses.
Here is what our client is paying after we upgraded the efficiency of their lighting system. They still have the same number of lights, operating times haven’t changed, and now they have a 100-watt fluorescent bulb in them. Since the utility rates fluctuate between seasons, here is what our client is spending on their energy bills averaged for the year, $29,790.00 yearly or $2,483.00 monthly. It is clear that upgrading the efficiency of your facility can have a tremendous impact on your monthly operating expenses, so why not take advantage of the numerous rebates and incentives available to you and fight back. Take control of your operating budget and start becoming more “Green”, after all if you go “Green” you will definitely see your ROI in the “Green” not the red.
Tags: Green Energy, Green lighting, greenlightkc, Iatan 2, Kansas City Energy Auditor, Kansas City lighting retrofit, KCP&L, KCP&L rate increase, KCP&L rebates, lighting efficiency, lighting retrofit, Lower utility costs, oliver electric, oliver energy solutions, Return on Investment, ROI
