Automated Energy Demonstration

Background

Energy consumption is a hot national debate. The state of affairs in California has shined a powerful light on the problems consumers face as demand for energy has outpaced production. Because of the shortages in supply, the cost of consumption has gone through the roof. And in some dramatic cases, consumers have been forced to go without power because of rolling-blackouts.

In Congress, lawmakers are currently arguing over what to do about the nation’s energy problems. While some would prefer an agenda that promotes construction of additional power plants, others believe Americans need to learn to consume less. But while Washington debates, consumers are being forced to make tough decisions.

As a business owner, when you receive your power bill, the amount of information provided by the utility company is very basic. Typically you are shown the Kilowatt Hour Usage (KW/HR) and the rates at which those Kilowatts were charged. You pay the bill and move on. But is there an alternative to just receiving a bill and paying it? Can a consumer become more educated about their company’s energy usage and, therefore, make decisions that impact the bottom line? According to Automated Energy, Inc. (AEI), yes you can.

During a previous Task Force call, the energy issue was listed as one of the "business issues that keep you up at night."

Demonstration

Automated Energy provides key services to minimize a company’s energy costs and maximize efficiency. AEI’s sophisticated Internet metering and software technology provides precise, real-time energy usage and service performance monitoring, 24 hours a day, seven days a week. Companies can use this data to manage usage, select and negotiate rate structures, improve energy efficiency and maximize ways to save money.

Russ Koch of Automated Energy Inc., conducted an online demonstration of AEI’s energy monitoring software. During the demonstration, Russ showed Task Force members how easily a business owner could track, via the Internet, a facility or building’s hourly consumption. On a bar graph, the software not only registers peak and low energy usage, but also displays the temperature for the area. A user can compare day to day usage or overlay and compare one week’s profile with a previous week.

With the AEI technology, a business owner can immediately determine if modifications, such as running equipment at off-peak hours or changes in lighting, have an impact on consumption. A special feature of the software also shows the user how much would be saved if consumption were reduced by a certain percentage amount. For example, during the demonstration, a client’s building was used to show how a 5% reduction in consumption would translate into monthly savings of hundreds of dollars.

Armed with the knowledge of their energy consumption, a company can work with their utility company to lower their KWHR rates. The AEI data gives the consumer leverage to negotiate.

The cost of the AEI service is broken down into two parts, equipment/installation and monthly service fee. A monitoring device must be installed for each meter that a customer wishes to track. The equipment cost and installation ranges from $200 - $800, depending on the utility company. The monthly service fee for the basic load service is $30; however, a real-time streaming service can be purchased at an additional cost.

Russ Koch stated that AEI’s clients typically experience 3 - 7% savings on their annual power bills. To date, every AEI client has had at least a break-even return on investment.

While headquartered in Oklahoma City, OK, Automated Energy is capable of implementing their service in virtually any part of the country.

AEI does not currently have a customer service call center, but Russ stated clients have access to help at any time and receive training on how to use the technology.

AeA is exploring whether AEI can become an affinity partner with the association. Automated Energy currently has set up affinity programs with the school board in Oklahoma and is working on a similar relationship in Texas.

P.A.L.S. Program (Partnering and Leads Service)

One of the more common question members and member prospects raise in meetings with AeA membership development staff is: how can I network with other members?

Anna Vaagen and Mike Levin of the Southeast Council are developing an idea that will allow members to more easily network and hopefully lead to business opportunities. Called the Partnering and Leads Service Program (P.A.L.S), a member would complete a PALS form, which would contain basic company information. In addition the applicant would complete a business description and list the types of businesses with whom they would like to partner.

With the completed request form in hand, a membership development staffer would then do the "dirty work" of making the connections for the member.

Task Force members thought the PALS program idea was a good one to continue developing. However, concerns were raised about potential logistical difficulties, such as what to do with excessive applications. Constructive comments were also made about modifying the application form to include easier to define information.

During the May Task Force meeting, there was a lengthy discussion of the various types of pension plans smaller AeA members offered their employees. In addition, the small business pension provisions of President Bush’s tax were described. On June 7, 2001, President Bush signed the tax cut bill into law.