Typically these services are initiated as part of a site energy efficiency initiative or a "Strategic Energy Plan", SEP (see our general services page for detailed information on a SEP).

On occasion, a customer has pre-identified energy saving opportunities and requests formal support in qualifying and quatifying their potentials for further development.

In contrast a similar project which has had its heat rate underestimated by 3% 
(basically a 6,000 estimate as opposed to an actual 6,180) 
could cost a project almost $240,000 in NPV, thereby decreasing coverage ratio and increasing project risks. 

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Sample Situation #2
A 3,000 KW end use customer currently paying $0.06/kwh for electricity has just signed a supply contract with a wholesale load aggregator for an anticipated 15 mill (1.5 cent)per kwh reduction in electricity costs for a binding (take or pay) contract term of 5 years from deregulated retail access which will occur on 1/1/2002. With a 65% load factor the customer is expecting an annual savings in excess of $250,000!

After the contracts are finalized, the customer learns that pending regulation allows for the current utility to collect "exit fees" from existing customers of 12 mills (1.2 cents) per kwh for a period of 36 months after deregulation. In addition, the current utility must reduce all classes of rates by 15% upon deregulation.

The end result is that the customer will not see any effective savings for the first 3 years of the contract. In fact, the customer will actually lose over $100,000 per year during the first 3 years after deregulation and only begin to save a little over $100,000 per year in years 4 and 5. 
Net result is a NEGATIVE savings for the entire deal!