Press Releases
In a fundamental Change from the Past---Thousands of New York Companies Now To Be Billed For the Electricity Actually UsedConsumerPowerline works with Con-Ed to Make Energy Markets More Transparent and Equitable for All
New York, March 7, 2006 - Each year thousands of New York businesses are charged upwards of $100 million more on their electricity bills than they should be, while thousands of others are charged $100 million less than is appropriate. On March 31 2006, thanks to a change in the way electricity bills are calculated and assessed for midsized energy consumers, this inequality in the system is about to change --- it may create some eye popping changes in individual electric bills.
Historically, approximately 20% percent of an electricity consumer's annual bill is determined in the one-hour of the one-day that the entire electricity system 'peaks' in terms of overall usage-usually during the summer. In that one-hour, whatever a consumer is using determines their load exposure, and sets their "Installed Capacity Tag" (ICAP-TAG) for the year. For the very largest electricity consumers, those businesses that use more than 1500 kilowatts at peak, their actual usage is individually metered to determine their exact and correct assessment of their ICAP-Tag.
Most users who consumed less than 1500 kilowatts were lumped together and assigned a generic ICAP-Tag based on their facility type and size. This lumping together forced efficient users to pay more on their annual electric bill than was their due, while others were able to 'free ride' and pay less than what they should have.
With this rule change instituted by Con-Ed, at the prompting of ConsumerPowerline, a New York-based strategic energy asset management firm, all electricity consumers with peak loads from 50-1500kw will now be eligible to billed based on their true ICAP-Tag. The $100 million opportunity sits in the hands of those customers who were paying an artificially high rate. Consumers can now either a) change their rate plan to save the available money or b) develop strategies to manage their consumption and allow them to change rate plans and save.
"Con Edison deserves credit for quickly implementing this change." said Mike Gordon, founder and president of ConsumerPowerline. "We embrace every sensible ninefigure market change without serious resistance."
Con Ed is currently informing energy suppliers with respect to which individual customers will gain or lose. Among those types of customers that will benefit from this change are:
• Large commercial buildings which have global financial services firms who have more of a 24 hour usage pattern (lots of weekends, nights etc)
• Businesses with significant overnight activity, such as publishers and news organizations, etc.
• Hotels with room occupancy-based building management systems
• Residential buildings with single professionals who are out during the peak afternoon hours; residential buildings with less affluent tenants who use cooling sparingly, or not at all.
• Entertainment businesses with heavy evening activity, such as concert halls, movie theatres, etc.
• Three-shift industrial facilities
Among those that without proper planning, pay more include:
• Large commercial buildings that are unable to shed demand during hot summer afternoons (predominately a 9-to-5 workforce)
• Daytime, single shift industrial facilities
• Family oriented residential facilities with no energy management system
ConsumerPowerline will implement strategies for end-users to either book additional revenue from the change or to help customers manage their spending in a strategic manner. "This is not pure altruism." Gordon conceded. "We worked closely with Con Ed to institute this change because smart markets benefit smart consumers. We make money when our clients make or save money. When we can spark a market change that creates a win-win, it is not only ethical, it is profitable."
About ConsumerPowerline
ConsumerPowerline (CPLN) (www.consumerpowerline.com) provides strategic energy asset management (SEAM) to its customers under an aligned incentive model while seeking to transfer power and financial returns to the end user. ConsumerPowerline's products and services help its customers pay the least for energy, get the most for energy they buy, and earn the most for what they can reduce. The firm is unique in how it approaches the market - using deregulated market opportunities to first create new revenue for customers. This new income, and the accompanying new information, facilitates customers achieving a lot more a lot sooner. Among the firms comprehensive strategic services are energy curtailment services, engineering, strategic commodity purchase and industrial procurement. These services include advisory plans for companies on how to manage their energy use in times of 'grid crisis,' and to sell the results of this managed use (reduced consumption at emergency moments) back to the local and regional energy markets.
The firm's clients include: CB Richard Ellis, Morgan Stanley, Macy's, Starwood Hotels, Hines Property Management, Forest City Ratner Corporation, Co-op City, Macklowe Properties, RFR Realty, New York Presbyterian Hospital, Newmark Properties, Douglas Elliman Property Management, Cooper Square Realty, Wentworth Management, and dozens of other substantial end-users of energy.