Keywords: Utility Company; Electric, Gas, Water and Sewer Rates and Charges; Energy Audit; Utility Auditing Consultants;

Could your business be sending the utility company more than you need to each month for your electric, gas, water and sewer consumption? Could your business even be due a refund from them on overpayments made in the past? Both of these possibilities may seem strange but that is exactly what a utility audit will answer. An "audit" is not necessarily an "audit". The utility services usually provide an energy audit which is directed at ways of increasing your energy efficiency through replacement of light bulbs with more efficient bulbs, identification of energy losses, etc. This is a very good service which every consumer should take advantage of.

The question still remains, however, as to whether the lowest possible amount is being paid for your utility service. How could that bill not be correct? In fact, it could be incorrect, or even if it is correct, it could be lower sometimes. But how? Well, (all) utility companies offer different rates for consumers. These rates give better costs for different times of consumption and for different usage. The utility is not required to inform you of a possible more cost effective rate. It is your responsibility to ask about it. While less common, meter errors, meter multipliers and sales tax errors can all effect your bill.

Rarely do companies have the time, personnel or expertise to ensure error detection and analysis of the wide variety of changing factors. Bills are usually very confusing to read and understand. They commonly have taxes and other charges rolled into one amount for the cost of service. These factors influence the cost per unit of consumption and ultimately the total cost of utility usage. As a result, many companies often overpay for utilities each month and lose valuable savings opportunities. How do you determine if you are paying too much? You can learn, through study, the areas of opportunity. Or, as many companies do, you can hire the expertise.

Utility Auditing Consultants are so certain they can reduce the utility expense that they are willing to work on a contingency fee basis, i.e. no results, no fee.

What will happen in a utility audit and what will be the drain on your resources? A billing audit should take very little of your time. The review usually involves an on-site visit to review the configuration of your meter and/or meters. The auditor will also ask questions about your energy current and planned energy usage. Due to economic incentives available from some utilities he may also ask about the financial status of your company. It also requires a tariff review in which your bills (usually 2 years) are checked for errors and usage patterns. Through this analysis it can be determined if alternate rates would result in lower utility costs and whether the usage pattern shows any anomalies that should be reviewed and investigated for errors. If an error is found and you have overpaid, often a refund is possible.

Another area to be reviewed is in the category of sales and use tax. "Not for Profits" and many manufacturing firms can be fully or partially exempt from sales and use tax. A review will advise you of the possibility to save in this area.

The utility providers are generally very thorough and helpful in providing the highest level of service at the lowest price. It is not their responsibility to provide the lowest rate class to each of their customers unless requested to make such a change.

A utility review will answer the question of whether you could reduce your utility bill. Through whatever avenue you prefer, do it today.

Supplied by Dave Rosen from Northeast Utility Review, Inc. He can be reached at: D_Rosen@Juno.com