CAI-NJ Feb. 2019

ENERGY PROCUREMENT: What You Don’t Know Can Cost You By Stacia M. Scaduto, LEED GA, Commercial Utility Consultants, Inc. (CUC)

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I n today’s complex utility marketplace, it’s difficult for associ- ations and cooperatives to obtain the lowest energy prices. Most building managers are unprepared to navigate the intricacies of ever-changing rate schedules, electric and natu- ral gas deregulation, and a multitude of billing options. That’s where a professional energy consultant comes in. The right consulting firm will have the experience and knowledge to obtain the best pricing for each utility account — potentially saving the association and residents sizable sums each year. Billing Errors Common One of the first steps in the consultant’s process can be an analysis of the association’s utility bills. This is as important a task as setting your budget or obtaining the electric or

gas contract. Managers and boards often think the utility company wouldn’t make errors, and pay their bills accord- ingly, which is definitely not the case. Tens of thousands of dollars are recovered every year from erroneous billings that even the most experienced bookkeepers or accountant might miss. Understanding the tariffs and rate structures are the most important key to ensuring your bill is correct. Often, these errors stem from buildings’ conversions to con- dominiums. If the rate isn’t corrected at the time of transfer, bill- ing continues at the old rate, month after month. Other errors can occur when an inexperienced customer service agent sets up service without knowing the correct rate to apply. Most organizations also don’t realize that utilities offer many service riders that can help reduce rates during cer- CONT I NU E S ON PAGE 22

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