Cost Avoidance reports
Limitations of IPMVP option C measurement and verification
- When implementing several projects it can be difficult to discern the results of each individual project.
- A more distant base year results in less reliable calculations caused by many changes in occupancy, equipment, etc.
- Non-standard baseline adjustments require engineering analysis, a high skill level, and a substantial time commitment.
- When peak demand charges are a major cost driver, valuation complexities exist.
- Cost Avoidance is calculated on an average unit cost basis, so it is based on use only. When peak demand charges are a major driver, or when the energy savings measure affects use and demand differently, the valuation of savings becomes complicated. It may be necessary to use special adjustments to set unit cost or use other available methods of intervention.
Steps to verify reasonableness of Cost Avoidance reports
Look for any exceptionally high or low outliers that may be an indication of incorrect data or a need for you to create a Special Adjustment to account for an equipment or operational change in a facility.
Report-08
Report-08 quickly shows which meters may have high or low cost avoidance in one or more months.
Useful filters
- Group Data By meter.
- Set the Date Range to the most recent twelve months.
- Set Value Displayed to Cost Avoidance.
- Filter for one commodity at a time.
(If you have many meters of the same commodity, the report should be further filtered down to several smaller Meter Groups; try to create Meter Groups of “peers”, meters that are similar because of magnitude or type of use.)
Report-14
Useful filters
- Group Data by meter
- Sort Report by Cost Avoidance
- Set Date Range to the most recent twelve months or even the entire month range of your energy management program
Pay particular attention to top ten (these are the main drivers of positive cost avoidance – your big success stories) and the bottom ten (these are dragging down your overall cost avoidance and may need more attention).
If any meters seem out of place in the top or bottom ten, they may suffer from the potential outlier problems noted above.
Terminology used on reports
Actual cost and use
Current billing data reconciles with utility bills. Account line items (non-meter charges) such as late fees are not included.
Baseline cost and use
Baseline billing data, usually trimmed so dates align with the current bill.
BATCC cost and use
Expected cost and use if you continued the wasteful ways of the base year. Baseline Adjusted to Current Conditions, frequently called Adjusted Baseline.
Cost Avoidance $
BATCC cost minus actual cost. What you avoided spending by changing your wasteful ways of the base year.
Cost Avoidance %
Cost Avoidance divided by BATCC cost. The percent of expected cost that you avoided spending.
Other savings
Additional savings entered into UtilityManagement for rebates, refunds, rate changes, etc.
Summary level reports
- Report-23
- CAP21