Leveraging Sustainability to Reduce Operating CostsThe cost of doing business in California is generally higher than many other states and smart business operators look for ways to reduce operational costs and increase efficiency in many areas.
Business Pay More for Energy in California
Specifically, the cost of energy is much higher in California than other states on a cost per kilowatt hour basis. A recent white paper from National University System Institute for Energy Policy compared energy costs from various utilities throughout the country and found that costs from California’s three largest energy providers are double those of similar regions (e.g Seattle, Raleigh-Durham, Portland, Denver), creating a huge premium on the operating costs of our businesses.
Not only does our power cost more, additionally, there is a regulatory burden for facilities that emit the GHGs associated with high energy use. Along with AB32, “The California Global Warming Solutions Act” mandatory Greenhouse Gas reporting program and associated Cap and Trade system the USEPA is now requiring mandatory carbon reporting. The energy-carbon connection makes it imperative that successful business focus on reducing energy and associated carbon emission. Successful implementation of an energy management program can amplify operating cost savings by creating carbon credits available for sale (in California’s Cap & Trade Program) to facilities that aren’t implementing controls.
In addition to the existing requirements, California legislature and Governor Brown are proponents of additional climate actions by 2030, which, if passed, will require 50% of buildings in the state to increase their energy efficiency. To meet these emerging challenges a forward-looking, sustainable energy management program should be considered. Reducing energy costs means a reduction in operating expenses and often results in a swift return on investment to create a better bottom line for industry.
Alta has supported numerous clients in implementing sustainability programs that are focused on providing data-driven, programmatic approaches to achieving performance goals. A critical early aspect of the program is to promote concurrence at the senior executive management level and develop Key Performance Indices (KPIs) related to energy, carbon, water and waste that will help drive success. Focusing on rigorous data collection and on-going quality control will ensure sustainability and energy management practices attain performance excellence. Estimating a quantified return on investment is a key component of our assessment.
A three phased approach: (1) Demand-Reduction Audit, (2) Implementation of energy reduction projects and (3) Energy Optimization will achieve reduced operating costs, create a more sustainable energy mix and allow you to compete effectively in your given market sector.
Please call us at (800) 777-0605 to discuss next steps.