Reduce Energy Costs and Save Money!

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July 8, 2008

Energy costs of all types continue to increase in many areas across the United States. All indications are that this trend will continue as the cost to produce and supply energy is steadily rising. There are articles and press releases seemingly every day, related to rising energy costs, which focus on the solutions available to help solve this problem. For many companies, energy costs are a large portion of their overall operating expenses. Therefore, reducing these expenses by as little as 10% could have a significant impact on the bottom line.

Many executives and upper management level employees would like to find ways to help them reduce their energy costs; however they do not have the expertise or a dedicated staff to help address the issue. Based on conversations that I have had with many of these people, their perception is that the solutions available to help them substantially reduce their energy costs and have a great impact on the bottom line are cost prohibitive. For most of the solutions that they are somewhat familiar with, such as solar power, micro turbines, wind energy, etc. , this perception is true for a vast majority of companies depending on where they are located in the United States.

Companies in the hospital, hotel, food manufacturing, pharmaceutical, and many other industries spend a lot of money to heat hot water for domestic purposes or for cleaning and sanitizing equipment. The annual cost can be in the tens of thousands to hundreds of thousands of dollars for the fuel needed to heat hot water to required temperatures. Most companies believe that this expense is a fixed one that is just part of doing business since the hot water is a necessary part of operating their business. However, in many situations there are opportunities to reduce this annual cost by as much as 50% or more without any impact on operations!

In one specific example, a hospital in Tennessee wanted to determine if there were any cost effective solutions available to help them reduce their overall energy costs. Hospitals typically operate on slim margins, so reducing operating expenses can have a big impact on the bottom line. After evaluating the boilers and electrical systems in the hospital, it was discovered that there was a great opportunity to dramatically reduce fuel costs by over 50% while also decreasing electrical costs by a little over 15%! The solution did not require replacing any existing boilers or any other equipment for that matter. The solution only required some system design changes and energy efficiency equipment to be strategically added to the existing systems.

Similar savings are possible for companies in many industries that have a substantial need for hot water. Most companies simply don’t realize that they are unintentionally wasting money and using more fuel and electricity than is necessary.

A thorough analysis of the mechanical systems in any building, by a qualified energy consultants at PWA Engineering that specialize in this work, can identify huge savings opportunities for many companies and help them improve the bottom line. Contact us at 757-366-5325.

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