UTILITIES SAVINGS REVIEW
Summary of Findings
Attachment 3
2 Overview of Analysis
ProcureAmerica (PA) to conduct a utilities Tariff Rate
Optimization Study (electricity and natural gas)
for cost reduction and recovery services for the City of San Clemente
Analyze invoices for tariff rate optimization and meter errors Review recent California Public Utilities Commission (CPUC) decisions that may affect the facilities’ cost structures Determine if invoices are being billed accurately
Analyze:
Billing calculations
Inapplicable rate schedules
Proper metering of services
Taxes and surcharges
Understand electricity and gas needs at facilities, including any future changes that may impact usage
3 Utilities Findings - Overview
PA’s utility review included:
176 San Diego Gas & Electric (SDG&E) accounts
1 Southern California Gas (SCG) natural gas account
Overall, the City has done an excellent job ensuring that utility accounts are billed accurately, and costs are minimized PA documented 36 total SDG&E electric rate changes
resulting in over $116,700 in annual savings
4 Converting Accounts to Alternative
Agricultural and Pumping (A&P) Rates
$63,050 annual savings by converting five SDG&E electricity accounts already on A&P rates to more beneficial rates
Three accounts on rate “PAT-1” have monthly demands less than 500kW, meaning they qualify for optional lower-cost rates Majority of savings come from reduced demand charges on rates TOU-PA-3 or TOU-PA
Two accounts already on TOU-PA-3 are better served on TOU-PA-2; TOU-PA-2’s reduced energy charges make up for increased demand charges
5 Converting Large Commercial Accounts to
Alternative Rates
Annual savings of $18,700 by switching four SDG&E electricity accounts serving Ole Hanson Beach Club, Foster Ranch Park, Municipal Golf Course, and City Offices to alternative rates These accounts are currently served by rate AL-TOU, but would benefit from a switch to rates TOU-A2 or AL-TOU-2
3 of the accounts have monthly demands below 20kW, qualifying for lower cost rate TOU-A2
1 account will benefit from rate AL-TOU-2, which has marginally reduced demand charges
6 Converting Accounts from Commercial to
Agricultural and Pumping (A&P) Rate Class
$12,400 annual savings by converting five SDG&E electricity accounts currently on small commercial rates to A&P rates These accounts are currently served by rate TOU-A, TOU-M or TOU-A - P , SDG&E’s default rate for accounts with less than 20kW of demand
Based on billing and usage data, these accounts serve pumps, meaning they qualify for A&P rate TOU-PA
7 Converting Small Commercial Accounts to
Lighting Rates
Annual yearly savings of $13,100 on ten SDG&E electricity accounts currently on small commercial rates to more
appropriate lighting rates
These accounts are currently served by rate TOU-A or TOU-AP, SDG&E’s default rate for accounts with less than 20kW of demand
Based on billing and usage data, PA believes these accounts serve dawn to dusk lighting, qualifying them for lighting rate OL-2 OL-2 features the elimination of demand charges and reduced usage charges
8 Converting Commercial Accounts from
TOU-A to TOU-A2
Savings of $9,450 annually on eleven SDG&E electricity
accounts currently on rate TOU-A to alternative rate TOU-A2 Compared to TOU-A, TOU-A2 offers reduced energy charges in exchange for higher fixed monthly customer charges
Some of these accounts appear to serve lighting, but TOU-A2 is slightly better than OL-2
Total Newly Identified Annual Savings $116,700
10 Go Forward Strategy
Once the City Council has given PA the approval to move ahead, we will begin the implementation process with SDG&E immediately
PA will monitor monthly bills and secure data needed to calculate the City’s actual realized savings
11 Other
Procure America would like to thank Matt Schmelzel for his leadership, assistance and support during this review
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