7. How does The First Energy Group determine savings?
Whenever we prepare a proposal we CALCULATE the savings that are expect to occur. Sometimes these calculations are extremely exact and easy to understand. For example, when you change a 100W light bulb to a 60W light bulb the energy savings are CALCULATED to be 40W (100-60=40). Your dollar savings are calculated more indirectly. First we determine your average cost of energy (we take your bills and divide your invoice amount by your usage). Then, we determine how many hours you are operating this light bulb. We learn this number by visual inspection and by interviewing your personnel.
Once these are all determined your savings are CALCULATED as follows:
Energy Savings = Energy Saved x Cost of Energy x Hours it is saved.
This is the basis for everything we do to determine your savings. Once we determine your cost of energy it typically can be used in calculations for all of your energy reduction calculations.
We do a similiar calculation on every component that we identified during our audit. Sometimes this information is easy and obvious to obtain. At other times it requires more research of application of industry standards.
We are constantly looking at how we can effectively replace each technology with something more efficient. We are always driving to reduce energy, reduce costs, and find more reliable alternatives.
