The answers to this question are as varied as the number of businesses in Shelby County! In general, you can cut utility costs by reducing energy consumption and demand and increasing the energy efficiency of your equipment. Turn off equipment when it is not needed. Install programmable thermostats and monitoring devices to electronically control HVAC, lighting and other systems. Keep equipment in good operating condition to maximize efficiency. Replace old, inefficient equipment and systems with new devices designed to use less energy. For specific tips on how to reduce utility costs, conduct your own Business e-Valuation or contact the Commercial Resource Center .

Commercial and industrial customer electricity costs are based on two components: consumption and demand. Consumption, measured in kWh, reflects the total actual amount of electricity used at the facility during the billing period. Demand is a power measurement, given in kilowatts (kW). Billing demand is the highest usage registered during any 30-minute period of the billing cycle.

Demand represents the maximum amount of electricity used by the customer at any time, so it is an indicator of how much capacity MLGW must have to meet customer needs. You can lower your demand by monitoring electricity usage and scheduling equipment operation to reduce periods of highest usage.

Perhaps. When commercial customers apply for service, a utility rate is selected based on the amount of energy they expect to use. As the business matures and usage changes, it may be beneficial to switch to a different utility rate. However, commercial utility rates have varying criteria and restrictions, so not everyone will benefit from changing rates. If your business has changed the size of its operations since you signed a contract for utility services, you may benefit from a different rate. Likewise, if your actual demand amount is lower than your contract demand, you may achieve cost savings by having a new contract written with a lower demand. Contact the Commercial Resource Center to request an analysis of your electric and/or natural gas contract and billing history. MLGW performs this service at no charge; energy consultants typically charge a percentage of the savings.

MLGW recommends contacting the Commercial Resource Center before signing any contract or agreement with a company that wants to collect a share of potential savings. Often, MLGW can perform the same service for free–which means you keep any and all savings. Basic reviews include utility rate, contract demand, billing history and tax status.

MLGW taxes all customers with the exception of qualified religious and non-profit organizations that have been declared tax exempt by the Tennessee Department of Revenue. Eligible organizations can submit a copy of their official "Certificate of Exemption" to have the account's tax status updated. The certificate must contain the same name and address information as the MLGW account. If information differs, obtain a new tax form from the Tennessee Department of Revenue and send MLGW the corrected version.

Manufacturers pay sales tax based on the level of exemption designated by the Tennessee Department of Revenue. Sales taxes for energy and water vary from zero to 1.5 % depending on whether the energy or water comes in direct contact with the manufactured product. To initiate the process, send MLGW a copy of the official Tennessee Department of Revenue "Industrial Machinery Authorization Exemption Certificate" for each applicable location. The name and address information on the form must match the information on the MLGW account. If information differs, obtain a new form from the state before proceeding.

For information on tax exemption certificates, contact the State of Tennessee Sales Tax Department at 1-800-342-1003.

Power factor is a measurement of how effectively electrical power is utilized by a piece of equipment at a customer's facility. Measured in a ratio where 100 percent is optimal, power factors below 85 percent are billed according to MLGW's General Power Rate, Parts A and B. This billing component, which appears as a separate line item on your utility bill, applies only to customers who are billed for demand and is typically experienced by industrial and manufacturing users of motors, transformers and other wire-wound equipment. A power factor charge is assessed only after MLGW identifies power factor problems and notifies the customer. Customers with power factor problems may want to contact an electrician for assistance in improving the electric power effectiveness at their facility.

No, at least not yet. Current U.S. legislation allows individual states to determine whether to deregulate their electric market. Thus far, California, Montana, Oklahoma, Michigan, Pennsylvania, Connecticut, Massachusetts, Rhode Island, New Hampshire and Maine have deregulated while other states are in the review and legislation process. Tennessee, Georgia, North Carolina and several mid-western states remain among the areas with minimal activity. In general, states with higher electric rates seem to be advancing faster than states with lower electric rates.

Deregulation focuses on the generation side of the electric industry, not the transmission and distribution side. This puts Tennessee in a unique position since all electricity distributed in the state–including that delivered by MLGW–is generated by the Tennessee Valley Authority. Current legislation does not require TVA, as a federal utility, to open access to its market. Until legislation changes, or TVA voluntarily deregulates its market, no other company can sell electricity to end-use customers in the region.

Despite this, MLGW has been preparing for electric industry deregulation for several years with the belief that Tennessee will see electric choice early in the 21st century. By improving operations, monitoring electricity purchase options and implementing competitive strategies, MLGW has taken steps to position itself for success in a deregulated market.

There are two important factors to consider in such an offer:

• No company other than MLGW can supply electricity to you at this time. Claims to the contrary are false. In fact, signing a power marketing contract now, before deregulation, may severely limit your options in a competitive energy market and could obligate you to pay "stranded costs" to the existing supplier when deregulation actually occurs. The smartest business decision would be to wait until Tennessee's electric industry deregulates so you can evaluate all available choices.
• When such companies–often called "power marketers," "power suppliers" or "generators"–quote an electric rate, the price typically applies only to the generation of electric current. In addition, you would pay separate charges to have electric current transmitted from the generation site to your facility. This transmission and distribution process could involve several companies, depending on the location of the generator, and may require separate bills from each party. As a result, most customers in deregulated markets have not achieved the dramatic savings they expected. In Shelby County, the price MLGW charges includes electric generation, transmission and distribution costs.