Are you thinking about expanding your facility? Perhaps you’ve outgrown your current property, or maybe you want to add an entirely new product that requires its own space. If so, has your contractor included a new electricity meter in the building plans? Adding electricity meters during the construction phase is often cheaper than connecting the new space to your existing meter. But cutting corners during construction can cost you thousands in unnecessary utility charges down the road. Here’s a case study to help illustrate the point.
Simple and Cheap Versus Done Right
One of our clients, a hardwood flooring manufacturer had experienced rapid growth and needed more space. The company decided to expand one of their facilities, doubling their manufacturing production.
When it came time to install the new facility’s utility infrastructure, the simplest and cheapest option was to add a second transformer and separate electrical service and meter for the new space. When construction was complete, the facility had two meters, each with a measured demand between 600 and 1,100 kilowatts.
But the cheap solution came at an expensive cost. To recoup their construction and maintenance costs, the utility company charged a monthly facility fee, administration fee, and meter charge per meter. The manufacturing company was now paying $68,000 a year in utilities fees alone.
A Simple Solution for Utility Bill Savings
The manufacturing company contacted SM Engineering to discover why their utility bills were so high. Our experts discovered the double charges for the redundant meters and electrical services. We combined the two meters and negotiated a more favorable rate for our client.
This required some investment from the company. It had to install five power electrical poles to tie the services together for a one-time installation cost of $60,000. But with the $68,000 in annual savings from combining the services, our client recouped the cost of the installation in just 11 months. They’ll enjoy the utility savings for years to come.
Before you install another meter, do your homework. Don’t add another meter until you’ve investigated the long-term costs of doing so. SM Engineering can help you uncover utility savings and anticipate future costs. Contact the experts at SM Engineering today.
