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Utilities spark electricity savings for businesses

<b></img>Photo is a Corbis Illustration.</b>
Photo is a Corbis Illustration.

For most small-business owners, energy efficiency may not be a priority. They have neither the money nor the time to go hunting for, say, the newest light bulbs, so they may leave it to folks with bigger staffs and budgets, or to committed environmentalists.

But what if they didn’t have to lift a finger, or spend almost anything? And what if it could save them thousands of dollars each year?

In fact, that’s the case for many local businesses. A wide range of programs in Massachusetts, and a handful in Rhode Island, offer free energy “audits” and energy-saving advice as well as substantial financial support to pay for the improvements.

Neither New England Gas nor local oil suppliers provide those services directly, though the gas company’s Web site, www.negasco
.com, has plenty of information for customers who want to cut back on their heating bills.

The easiest option for Rhode Island small businesses, however, is to call Narragansett Electric, which not only provides the free audits, but takes care of all the work and foots 75 percent of the bill. The customer’s part can be financed, interest-free, for two years. Sister company Massachusetts Electric offers an even better deal, covering 80 percent of the cost.

To qualify for either program, companies have to use less than 100 kilowatts, on average, or up to 25,000 kilowatt-hours per month. The utilities also have extensive programs for heavier users, but customers have to cover a larger share of the cost and be more actively involved in the work.

Timothy M. Stout, vice president and director of energy efficiency for National Grid, parent of Narragansett and Massachusetts Electric, said the company has tried to be extra-helpful to small businesses because it knows the challenges they face.

“Small commercial customers frequently don’t have anyone who has the time to really invest any energy into efficiency,” Stout said. “So we provide what we call a direct installation service, where we will go out and do energy audits and arrange to have someone install the energy efficiency measures that are appropriate for that facility.

“It’s a very soup-to-nuts arrangement for a customer,” Stout added. “All they have to do is express interest” and sign a contract.

The “energy audits” and resulting improvements focus on electricity use, not gas or oil. But even for businesses whose electricity costs are lower than heating costs, especially this time of year, there can be substantial savings, and there’s some overlap too.

The company’s experts promote the use of energy-efficient lighting fixtures – which Stout said can yield “impressive” savings – as well as energy-efficient time clocks, photo cells for outdoor lighting, occupancy sensors, walk-in cooler improvements, better ventilation systems, and programmable thermostats (the latter two items, Stout said, can save a lot on heating costs).

Typically, the resulting energy savings are 10 percent to 20 percent, Stout said, so the investment pays for itself within two or three years. At Narragansett Electric’s current business rates, averaging about 12.3 cents per kilowatt-hour, that means a company using 10,000 kilowatt-hours per month could save $1,500 to $3,000 per year.

The program’s Web site offers two real-life examples: A Papa Gino’s owner in Brockton, Mass., saved almost $750 per year on the cost of lighting his 3,000-square-foot building by making $1,500 worth of improvements. And the city of Medford, Mass., saved almost $2,400 per year through lighting upgrades to its 10,000-square-foot City Hall that cost the taxpayers only $1,277.

Both Narragansett and Massachusetts Electric heavily promote their small-business services, Stout said, even making cold calls to try to get companies to sign up. More and more, owners are accepting the help. In 2002, 616 Rhode Island small businesses participated; last year, it was 662, Stout said.

For more information about Narragansett Electric’s energy-efficiency programs – for small and large businesses – go to www.narragansett.com. Massachusetts Electric is at www.masselectric.com.

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