Taking the Uncertainty Out of Energy Costs

Hospitals use a lot of energy. They are significant users of electricity for such things as lighting, diagnostic equipment, heating, etc. They also use significant amounts of energy in the form of natural gas or fuel oil for such things as building heating, hot water heating, therapy pool heating, kitchen, laundry, etc. Energy costs are a significant part of the costs for healthcare. How can that be brought under control, both in the short term and the long term?

Rudd Asset Management is an energy consulting company. They were engaged to study the short term and long term potential of installing a Combined Heat and Power (CHP) system to do just that. CHP enables them to generate a portion of their electricity usage and use the generation waste heat to provide much of their other thermal loads at little to no cost.

The study reviewed their current energy uses, estimated the cost and financial results of a Combined Heat and Power system installation, and estimated the benefits using the customer assumptions. The study developed a Net Present Value analysis and modeled it using @RISK to develop projected outcomes, cost drivers, and project risks.

The final result was provided to the hospital to give them options for controlling their energy costs both in the short term and for the future.