Test your energy management IQ

By Staff -- Purchasing, 7/15/1999

- My company purchases its natural gas and electricity for 12 months or more at a time.

- My company understands and utilizes risk management products to take advantage of market movements.

- My company knows what percentage of its operating budget is spent on energy.

- My company has a strategic energy plan.

- If electric choice is available, my company is participating.

- My plant has undergone a thorough energy review within the past two years.

- My boilers and chillers are compliant with the Clean Air Act.

- My company has had a lighting study performed within the past two years.

- My company has reviewed the economics of cogeneration based on current market conditions.

- My company understands the advantages of having alternate fuel capabilities.

- My company has been taking proactive steps to prepare for electric deregulation.

- My company uses advanced metering technology and control devices to monitor usage.

- My company has considered consolidating its energy purchasing across all of its facilities.

- My company is monitoring and influencing the electric deregulation process.

- My company has investigated outsourcing some or all of its energy management to reduce its energy expense.

Score 1 point for each checked item.

14-15 Your company is very advanced from an energy perspective and well positioned for the future. There may still be a few latent opportunities for savings.

11-13 Your company is ahead of most companies, with room for improvement to ensure a competitive advantage in your industry.

6-10 Your company falls in the same range as most other companies. Scores in this range typically reflect the lack of a strategic energy plan. Lack of attention in this area could result in higher operating expenses than your competitors.

0-5 If your company falls in this range, it may be very tactical and short-term focused in its approach to energy. It is time to take a step back and identify your goals for energy management within your company. You are most likely missing out on significant savings opportunities.

SOURCE: STATOIL ENERGY © 1999