As a result of a successful “reverse energy auction”, many members of the Rochester Buying Power, involving 150 New Hampshire-based businesses, will be saving from $200 to $3,500 per month on their utility costs for the entire year.
The negotiated rate of $.0732 per kilowatt was reduced from the standard rate of $.0889 per kilowatt – a highly charged 17% reduction based on a pool of 25-million kilowatts. The reverse auction was open to all deregulated suppliers approved in the state.
“The reverse energy auction took 15 minutes and will greatly help these hard working New Hampshire businesses improve their bottom line for the entire year,” noted Jeff Hiatt, founder and CEO of Performance Business Solutions, LLC, based in Hampton Falls, NH.
“Many businesses are still unaware of the power, pardon my pun, of the reverse energy auction, but it can have a major impact for high energy users such as manufacturers, large office building owners and hotels,” added Hiatt.
Rochester Buying Power is opening its ranks for other New Hampshire businesses that can benefit from its pooled buying power. Another reverse energy auction is scheduled for mid to late November prior to the December meter readings. New Hampshire customers within the footprint of PS&H, National Grid New Hampshire, New Hampshire Eletrical Co-operative and Unitel are eligible to join the Rochester Buying Power.
Rochester Buying Power enables businesses to band together to negotiate lower prices from deregulated electric and gas suppliers. Once together in a “pool”, that volume is auctioned off via a 15 minute reverse auction to all deregulated suppliers approved in the state.
The reverse auction is implemented via an internet based system that tracks utility information and enables clients to manage their account more efficiently.
Hiatt, Performance Business Solutions, LLC explained, “There is no great secret to the success of the reverse energy auction concept. The utilities covet major power users and strive to keep their business. We simply formalize the process by aggregating several regional, major energy users and allow the suppliers to make their best offer.”
OTHER ENERGY AND ENVIRONMENTAL SAVINGS
In addition to managing reverse energy audits, Performance Business Solutions, LLC recently launched a complimentary audit program to help businesses take advantage of the 179D Energy Efficient Commercial Buildings Deduction.
Although most green deductions are based on the amount spent, this tax deduction is primarily focused on affected square footage. Candidates most likely to qualify for these deep savings will generally have improvements with a square footage of at least 50,000 square feet. Most obvious candidates include manufacturers and regional or national chains with multiple locations.
This legislation offers a tax deduction of up to $1.80/square foot to those investing in energy efficient improvements placed in service after January 1, 2006. The program has been extended to December 31, 2013.
A wide range of improvements, from simple lighting retrofits to full-scale construction projects, qualify for this timely tax break. Eligible improvements must reduce energy use for any of the following categories – a building’s envelope, HVAC (Heating, Ventilation, & Air Conditioning), and/or interior lighting systems.
Tax savings can be significant. For example, an owner of a 50,000 square foot building could save up to $15,000 – $30,000 for improved lighting, $30,000 for more efficient HVAC and another $30,000 for tightening up the envelope of the building. That is a total of $90,000.
“There is no fine print here. This green deduction offers enormous savings. We find that many building owners are not familiar with this opportunity or how to take advantage of the program,” noted Hiatt. He added, “Although there is stringent documentation and compliance required, we walk clients through how they can both save the planet and major tax dollars at the same time.”
The basis for this deduction is a detailed engineering analysis, as prescribed by the IRS. The process for obtaining the 179D deduction requires a detailed analysis that must be certified by a qualified third party.
Performance Business Solutions, LLC has the expertise and the required professional qualifications to certify and secure the lucrative tax and financial benefits that are offered by reverse energy audits and the 179D tax deduction. Performance Business Solutions, LLC can also assist in the design process for future projects by suggesting design alternatives that would ensure qualification for 179D and other specific green building incentives.
Performance Business Solutions, LLC is located at 87 Lafayette Rd. Suite 11, Hampton Falls, NH 03844. The company helps businesses nationwide reduce expenses in a variety of areas. Jeff Hiatt of Performance Business Solutions, LLC, works with accountants, attorneys, and other experts to determine the best way for clients to reduce costs and increase profits.
To have your business or municipality participate in a reverse energy auction or arrange for a 179D Energy Efficient Commercial Buildings Deduction, contact Jeff Hiatt, (508) 878-4846, JDH@revenuebanking.com. Or visit www.RevenueBanking.com.