Save money on electricity before deregulation.

By the year 2000, electricity use will rise from its current 40% of a business's total energy use to about half of that use, according to figures we've developed here at the Edison Electric Institute. This could be a threat to residential healthcare facility bottom lines. But you can improve the value of the money you spend on electricity even before electric utility deregulation. Here are some tips on energy saving specifically geared to residential healthcare facilities:

1. Determine your annual cost for energy. In general, electricity accounts for 3% to 5% of total operating expense of a healthcare facility, and this can usually be reduced by up to 20%.

Generally, in healthcare overall, HVAC accounts for 60%, lighting 15%, laundry 10%, food service 7% and miscellaneous uses, including medical equipment operation, 8%. To find out how much electricity your facility consumes and the times of the day, week, month and year you use it most, ask your local utility what your load profile is. Knowing this may help you manage use better and lower the purchase cost, as your actual usage could qualify you for a lower rate. In addition, special time-of-use and real-time pricing rates are available if you shift your usage patterns for large appliances.

2. Perform an energy audit - or two! Energy can be saved by the use of energy-efficient equipment, taking advantage of more efficient use habits and procedures, improving the operation of existing equipment and modifying the building's structure.

To find out how, begin with a walk-through audit, the easiest to do. It can be done by your own maintenance personnel or the local electric company and will identify energy-saving improvements that involve simply changing behaviors and perhaps some maintenance expense.

It includes collecting basic usage information from utility bills and then taking a close-up look at your HVAC, lighting, laundry, food service and miscellaneous operations. You observe:

* The daily operation of each piece of energy-using equipment

* Its proper maintenance, noting whether it is clean and in good condition, and

* How the item is being used by personnel, making a procedural analysis.

A complete walk-through checklist is available in our 20-page booklet, "Managing Energy in Your Life or Health Care Facility."

Or you can conduct an analysis audit, which uses computers to give you more detailed information about your energy data, analyzes systems and equipment operation, and enumerates specific major energy-saving improvements. Be warned that a qualified energy auditor must perform this audit, usually for a fee based on facility size, and that implementing it will involve capital expense.

The analysis audit includes a very detailed evaluation of energy-use, such as the impact of degree days on heating/cooling, facility illumination levels and surface reflective values, remaining motor life of laundry equipment, and cooking area air exhaust requirements. More important, it also includes an action list of energy-saving recommendations.

4. Seek qualified auditors. Most local utilities offer this analysis audit, and they will have historical data about your energy use. But there are independent auditors available as well, or you can choose an energy management and conservation consultant. To find a good one, it is best to see if they represent equipment from a variety of manufacturers and are qualified as Certified Energy Managers by the Association of Energy Engineers. Also ask them about the type of payment, what their services include, how detailed their analyses are, who the firm's clients are and who will handle the actual audit and analysis.

5. Consider new electric equipment and new ways to install it. Some of these include lighting controls such as dimmers and motion detectors which can reduce consumption by 20% to 70% and electronic ballasts which increase fluorescent lamp efficiency by 25% and output by 15%. In HVAC, heat pipe heat exchangers lower air conditioning energy use; heat pump water heaters reuse heat from air conditioners and ice makers; cool storage technology shifts electricity use for air conditioning to cheaper, off-peak hours; and variable compressors adjust operating speed to actual temperature changes for more efficiency. In food prep, ranges and ovens offer microprocessor controls and increased insulation; induction fryers and griddles use the cooking utensil as the heat source to save 50% of energy use; and compensating hood ventilators use outdoor air. Energy-efficient food prep and HVAC equipment can also lower food and labor costs. Electric utilities have special programs to make these products more affordable.

6. Look into an energy management control system. These offer control devices ranging from programmable thermostats to multi-function computer-based systems to programmable logic controllers. Make sure that if you do so it will be integrated with any automated system you already have for HVAC or lighting and that employees can operate it easily. Also make sure to get competitive bids from several vendors, to get a detailed list of services, hardware and support, and that the contractor is qualified as a Certified Energy Management Systems Contractor.

7. Evaluate costs and payback. The key to determining which measures to implement after audits is to evaluate how long it will take for an investment to pay for itself in energy savings or avoided costs. An analysis audit will provide reliable projections over a period of time. The "Managing Energy in Your Life or Health Care Facility" booklet includes worksheets for doing this. Be sure to check with an accountant about any tax advantages to factor in, as well as any rebates from the utility or equipment manufacturer. Some suppliers offer guaranteed performance contracts to assure that new equipment will pay for itself with improved energy use.

Utilities may offer rebate programs for implementing audit recommendations or installing energy-efficient equipment. The Edison Electric Institute's Customer Assistance Program offers a Windows-based diskette database with information on what utilities around the country offer in the way of incentives and discounts, as well as on rates and pricing, expediting service connections and end-use technology. Service connection is expected to be available on the Internet soon. Rebating, however, is giving way to private label rebate programs or to deregulation incentives.

Multi-site facilities can call the National Accounts Network at 202/5085414 to verify that each location is getting the best bargain. These can offer economies of scale to chains as well as long-term contracts. Many National Accounts Network members can arrange for summary billing and electronic data interchange, which brings billing directly to the headquarters location and allows direct bill payment in return. Also, the National Electric Customer Assistance Network (NECAN) offers chains a single point-of-contact, and the EEI Web site, www.eei.org, is a good resource for keeping up with deregulation news.

Keith Voight is manager of communications for the Edison Electric Institute (EEI). EEI represents the nation's shareholder-owned electric companies, and its members generate and distribute over 75% of the nation's electricity.