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Environment

California Businesses Cite Efficiency as Top Concern

In September 2001, the California Public Utilities Commission suspended a direct-access provision that allowed businesses to purchase electricity from alternative – and usually less expensive – service providers. A recent survey cites that, as a result, California businesses are now looking to efficiency as the primary way to save on energy costs. In fact, 77% of those polled say energy efficiency now is "very important" to them.

Included in the poll were energy management professionals from the manufacturing, transportation, retail, public administration, education and healthcare industries. The survey focused on businesses throughout the state with an annual electric bill of around $500,000. Market research firm Market Strategies was commissioned by Sempra Energy Solutions to conduct the survey last fall. Sempra Energy Solutions is a retail energy services company that markets to commercial and industrial customers nationwide.

"It's understandable that businesses are now struggling to cope with the reregulation of the California electricity market and suspension of direct access," said Mark Camack of Market Strategies. "The survey shows that customers are exploring their options in energy-efficiency improvements as the principal way to control their energy costs."

In response to the increased awareness of the benefits of energy efficiency, Sempra Energy Solutions launched Sempra PowerSave, a new initiative that aims to help businesses save on energy costs through identifying and implementing conservation measures. The initiative urges manufacturers to cut costs by upgrading to premium-efficiency motors. According to PowerSave literature, anticipated annual energy savings from switching to premium-efficiency motors could be up to 5%.

"Clearly, California customers know that controlling their energy consumption is critical to the bottom line," said Bob Dickerman, president of Sempra Energy Solutions. "The survey demonstrates that, with companies now facing fixed market prices and no ability to secure their own commodity deals, they need to focus on making changes that reduce consumption – changes that pay off very rapidly."

Such changes may soon be available, according to Dr. John Cowie, vice president of strip, sheet and plate at the Copper Development Association Inc. and program manager of its copper motor rotor development project. He says recent test results on the copper motor rotor reveal higher efficiency levels than any premium-efficiency motor available today. "By switching from a rotor with aluminum conductor bars to one with copper conductor bars, it is possible to create a 'super-premium' efficiency motor, surpassing even the premium-efficiency line of motors currently available," Cowie explained.