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4545 Fuller Dr. Suite 412
Irving, TX 75038
Phone: (972) 445-9584
Toll Free: (855) 275-3483
Fax: (855) 329-3493
email5@energyby5.com

5- Northeast

865 State Route 33
Ste 3 PMB 1077
Freehold, NJ 07728
Phone: (732) 774-0005
Fax: (855) 329-3483
email5@energyby5.com

5- Mexico

CP 11000, Miguel Hidalgo
CDMX, Mexico
Phone: +5595287982
mexico@energyby5.com

Demand-Side Management

Demand Response
Programs
Power Factor
Correction
Peak Load
Management
Rate Review
& Optimization

Demand Response
Programs

Demand Response (DR) programs enable clients to help maintain the stability of the electricity grid during periods of peak demand while also being compensated if they can either run on-site generation or take steps to reduce their electrical load when called upon. While enrollment in various programs is voluntary, some require firm load-shed commitments when an event is called, and penalties may be assessed for failure to perform. DR events are typically called during the hottest days in summer and the coldest days in winter, depending on the regional grid infrastructure and weather patterns.

5 helps clients by working with their facilities and operations teams to evaluate the best DR programs to maximize financial benefits while accounting for operational constraints and company goals. This comprehensive approach includes an examination of any behind-the-meter assets, such as backup generation and building management systems. Additionally, 5 works with the client’s current electricity supplier to confirm that the product structure of their supply agreement is designed to maximize these curtailment strategies.

Once a strategy is established, 5 helps clients evaluate potential Curtailment Service Providers (CSPs). There are many CSPs in the market with varying capabilities and market experience. CSPs are responsible for executing the dispatch of DR events and initiating periodic tests to ensure program participants can respond when called. Upon successful participation in a DR program, revenues are paid to the CSP who then pays the client a pre-negotiated share of the overall revenue.

Distributed generation assets that participate in DR programs also reduce the need for peaking service generation facilities, which in turn improves overall grid resiliency. A well-executed DR plan truly benefits all stakeholders involved. 5 is proud to advise DR participation for clients in every program available throughout the US.

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“It’s hard to choose an advisor in a field where everyone claims to be an expert and you’re not. 5 is the best team I have worked with in a crowded industry. Their customer service is impeccable.”
- Michael Klein II, Director, Klein Tools

Power Factor
Correction

Power factor is the ratio of working power to apparent power. The power used by electrical equipment is called working power, while the power that is drawn to a location and not directly used is called reactive power. Large amounts of reactive power require the use of capacitors in order to keep the current in phase.  A good power factor exists when a client’s real power and apparent power are closely aligned. Unfortunately, many clients are unaware that they have poor power factor and that they are paying power factor penalties each month to the local utility when their power factor falls below a predetermined amount.

5 works with clients to discover and address power factor penalties as part of the firm’s initial discovery process. The analytical modeling tools used by 5 can detect and calculate power factor penalties on a per meter basis. Once penalties are determined, 5 works with the client to review potential causes which may include the need to install a capacitor bank, to update an existing set of capacitors, or perhaps even something as simple as replacing a blown fuse or fixing a motor issue. The client will either use their own internal resources or 5 can assist in requesting an engineering study, which includes the costs and simple rate of return analysis of the implementation of power factor correction hardware.

By working with 5, clients gain valuable insight into their entire energy spend, including the uncovering of power factor penalties. Without a comprehensive advisor, clients are typically left in the dark and never shown the multitude of ways to reduce and control their tariffed utility charges.

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“5 has been key in helping us reduce operating costs through both electricity procurement and by helping us identify and eliminate power factor penalties. 5 is Premier’s trusted partner when it comes to energy.”
- Ron Bufford, President, Premier Refrigerated

Peak Load
Management

There are two main components of a client’s total electricity cost. The first is a consumption-based component, billed on a kWh basis and known as the supply cost. The second is a demand-based component, billed by the utility for the cost of the transmission and distribution of electricity. While most strategies focus on the supply component, between 30% to 60% of energy costs are related to the demand-based charges. Clients should actively reduce those costs through peak load management (also called Peak Load Contribution or PLC management).

Coincident peak demand is the total amount of energy (demand) a client is consuming at the time of the associated grid’s maximum peak demand. While the details differ from one ISO to the next, the concept remains the same that a large portion of a client’s utility charges for a calendar year is set by their coincident peak demand from the prior year. With proper planning and communication, a client’s coincident peak demand can be reduced or completely avoided, leading to lower overall energy costs in the following year.

Working with 5 to create a peak load reduction strategy is completely voluntary and there are no penalties for clients that are unable to reduce their electric load when notified of a potential peak load day. However, many clients choose to gather their operations teams annually with 5’s engineering team to review the prior year’s performance while also planning a strategy for the year ahead. The financial impact of a proactive peak load management plan can be substantial and the excitement that many operators express when they are called upon to impact the bottom line is palpable.

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“One of the great things with 5 is that they actually came in and spoke to our staff and showed them the data and painted a picture that was easy for them to understand and improved upon our operations.”
- Jeff Price, Assistant Utility Director, City of Mansfield
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RATE REVIEW
& OPTIMIZATION

Most clients assume that their utility and retail rates are correct on their invoices, and they lack the resources and the knowledge to spot errors or discrepancies. Between complex energy tariffs, supply agreements with countless combinations of cost components and conditions, and the multiple opportunities for human error in rate decision and billing data inputs, an alarming number of clients receive incorrect bills and overcharges every day. Furthermore, there are times when clients have the option to request certain rate alternatives or designations that drive additional cost savings, but clients do not even know where or how to begin to evaluate and implement these adjustments.

By leveraging the team’s experience in pricing, contracting, rate creation, tariff writing, billing, and engineering, 5 identifies rate-related issues and opportunities and works with clients to address them. Not only does 5 provide clear insights into the rate review findings, but the team also works with the client’s utility and supplier to ensure satisfactory completion of the next steps, whether correcting an issue or capitalizing on an opportunity.

Here are a few examples of the actual errors 5 has uncovered during rate reviews for clients:
• Plastics manufacturer paying double line losses.
• Water district on transmission level voltage paying higher distribution 
   level charges.
• City paying for Christmas lights throughout the year after taking down 
   the lights in January.
• Commercial real estate owner paying demand ratchet charges from the 
   previous owner.
• Healthcare provider paying the previous contract rate months after the 
   renewal rate starts.
• Senior living home being double-billed for months before engaging 5.
• Cogeneration plant overpaying due to incorrect tariff.

With 5 serving as the advocate for a client, utilities and suppliers are held accountable to absolute resolution and clients can rest assured knowing that their best interests are top of mind.

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“At Accredo, we pride ourselves on being innovative and finding solutions for our clients that others cannot. We partnered with 5 because they share the same passion to go the extra mile to create value for their clients. The money they found due to the bill error is something we never would have caught on our own and a great bonus to their service.”
- Rex Varn, Executive Vice President, Accredo Packaging Inc.

TARIFF ANALYSIS

Clients usually view their utility rates as a static part of their energy expense that cannot be changed because they are governed by local tariffs and approved by each state’s Public Utility Commission. Unfortunately, the limited focus that clients put on utility tariffs overlooks opportunities for unnoticed rate and tariff errors, and negative cost impacts that can last for years. Some issues are caused by human error, including an inaccurate setup for a client’s initial rate class determination. Other issues arise from changes to a client’s load over time without notification to the utility. Larger clients with complicated load profiles should give extra attention to their utility tariffs to ensure accuracy and to consider alternatives when possible.

There are a surprising number of clients that benefit from a tariff analysis completed by a seasoned group of analysts. By leveraging the diverse backgrounds of 5’s team, including experience in pricing, contracting, rate creation, tariff writing, billing, and engineering, clients gain visibility into tariff-related issues and opportunities. After a tariff review is presented to the client, 5 also works with that client’s utility to ensure satisfactory completion of any next steps, whether correcting an issue or capitalizing on an opportunity.