Are Utility Costs Controllable? Rob Edelstein of Bottom Line Utility Solutions, Inc.
Community associations all have certain basic expenses to pay each month or year. Some of these expenses can be minimized by bidding out the service for your association. Insurance rates have gone up more than 30 percent the last few years, but by shopping around for the best rates you can save significant expense. If you have extensive landscape or clubhouse/pool facilities, you can also shop around for contractors who can do the maintenance and repair work at a lower cost.
Unfortunately, the energy and water utilities in your geographic area have a monopoly on service. Although their rates are regulated by the CPUC (California Public Utilities Commission), the rates for electric, gas, and water are expected to escalate. SCE rates will increase at least 3.7 percent per year through 2030 and peak demand rates (4:00– 9:00 p.m.) will be much higher in years to come.
SCG gas rates have
been unstable. Last winter, gas prices increased more than 50 percent over a few months. In general, as the State of California transitions from gas to electric, gas rates could be as much as five to ten times higher than current rates by 2030. Water in California is going to be in short supply as climate changes and increased demand push water and sewer rates much higher.
four times the life of older lighting. In addition, when peak demand charges occur from 4:00–9:00 p.m., the LED lighting will also reduce the higher demand charges. LED lighting will save enough energy dollars to pay for the initial investment in one to two years.
“Utility rates are not
If your association has extensive landscape, the cost of watering that landscape can be significant. There are some simple technologies that can be added to your landscape sprinkler system to reduce the overwatering of the landscape. The system that has the biggest impact on water use is weather-based irrigation controllers. They receive daily weather data every day and make “smart” watering decisions, shutting down during rain or watering less when cooler weather arrives. The technology can reduce watering by as much as 40 percent while maintaining healthy landscapes.
controllable expenses, but installing more efficient
systems can greatly reduce overall utility costs.”
For the clubhouse or offices, the water heater and HVAC units both consume significant energy. If these are gas appliances, the utility charges will increase more each year if gas prices rise faster than electricity prices. Both can be replaced by electric heat pump systems, which are almost 80% more
efficient than gas systems. In terms of dollar savings, both systems could save hundreds of dollars every month.
Electricity, gas and water cannot be bought elsewhere so we must purchase energy and water at the set rates from these utility agencies that serve our homes. For the most part, utility expenses are not controllable in terms of the rates we pay. Although the rates charged cannot be reduced, the amount of each kilowatt hour of electricity, therm of natural gas, and gallon of water that we use each month is controllable. Further, if we are smart in when we use them, we can also save some costs.
Typical utility costs for community associations include lighting, landscape watering, plumbing, pool equipment, HVAC units for clubhouses or offices, and water heaters for clubhouses or offices. Some associations may have central hot water systems that provide hot water to groups of units or combined water bills that the association pays on behalf of the owners for their in-unit water use. For all of these situations, there are technologies available that can perform much more efficiently and provide the same level of service.
Common area lighting for associations operates 12 hours per day, but if there are interior hallways or parking garages, the lights are on 24 hours per day. Replacing this lighting with LED lighting will reduce energy usage by as much as 50 percent and LED lamps have three to
22 January | February 2024
Pool equipment operates for long hours and also during peak electric demand times. The pool pumps can be replaced with variable speed models, which use almost 70 percent less energy and still circulate the water as needed.
These are only some of the great technologies available to reduce energy and water use.
However, everything costs money and
these retrofits will cost as well. The good news is that in Southern California, the agencies that provide energy or water offer significant rebates to offset investment in these technologies. SCE and SCG have a program called SoCalRen that pays up to 75 percent of the installation costs of retrofits. There are also good rebates for the water-saving devices discussed above.
Utility rates are not controllable expenses, but installing more efficient systems can greatly reduce overall utility costs. Some contractors will implement the work and wait for incentives so the customer only pays the net cost after rebates. Most contractors will also assist customers with the process of filing documents needed to secure these rebates.
—Rob Edelstein, Bottom Line Utility Solutions, Inc. can be reached at
rob@blus.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32
