Article Analysis Essay on Integrating Electric Rates with SkySpark By Stephanie Fetchen

Introduction

Integrating electric rates with the SkySpark has become very important in the recent technological developments due to the numerous benefits it offers. It should be noted that the integration seeks to help the end user as well as building owners and facility managers. In this regard, it is important to explore the subject matter in details.

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Some of the questions that ought to be explored regarding this topic concerning the customers include:

• Translating kWh and kW into dollars using CO Xcel
• How intentionally shifting usage patterns can save on energy spending?
• How changing rates impact the facilities we support
• The complexity of rate structures building is being billed under.
• Options for integrating rates into SkySpark including using a third-party rate provider
• What a rate database provides and how it is provided
• A demonstration of energy translation from kWh and kW into dollars is shown in the figure below.

Overview

Historically, reports showing energy usage or potential energy savings information are presented as kWh or kW. The American Council for an Energy-Efficient Economy titled "2019 Efficiency Programs: Promoting High-Efficiency Commercial Air Conditioners" gives a good example of such a report. The report included a table showing annual site energy savings using CEE Advanced Tier equipment vs. minimally compliant equipment. Saving shown here, but what does this amount of kWh savings mean to build owners or operators? It would be much more useful in dollars. Need amount facility is paying per kWh. Need to know utility and schedule using CO Xcel as demonstrated in the figure below.

From the figure above, it can be deduced that this slide is so much more informative to present savings in dollars rather than kWh compared to the previous slide.

Rate Changes Over Time

Integrating electric rates with the SkySpark has become very informative regarding rate changes as demonstrated in the figure below.

From the illustration shown above, it is important to observe the electric rates that change over time and how that affects our clients. Firstly, the rates change frequently, some more than others. For example, it is noted that CO Xcel have changed 5 times since January 1. On the other hand, monthly changes are demonstrated from Holy Cross Energy in CO. While integrating rates into SkySpark, the diagram gives a more accurate picture of costs each month, and how much inefficient or malfunctioning equipment may be costing. Besides, it shows the historical rates, patterns to predict future rates. In this regard, the new rate components tax Cuts and Jobs Act lowered corporate tax rates from 35% to 21%. This means that regulatory requirements for saving to flow through to utility customers.

Case Example: Upper Peninsula Power Company

From the demonstration above, Upper Peninsula Power Company in Michigan the Tax Cuts and Jobs Act credit is applied as two different components that affect the per kWh rate and vary by customer class. This is more complicated than the previous example of the credit resulting from the Act which leads to our next reason to integrate rates in SkySpark - complexity.

The complexity of rate schedules and how they are implemented is an ever-increasing challenge. We see changes in rate design from traditionally simple rate structures to more complicated designs. Structures based more on demand charges or implement demand response type programs. CA SCE CPP demand response program, extremely high surcharge imposed 2 to 6 PM 12 times a year on the highest system use days. In this regard, integrating electric rates with the SkySpark will ease the complexity that has been observed and should, therefore, be deployed by all the companies internationally.