Initial company cash flow

ABC Company is currently using 728,698
kWh of electricity for lighting, at an
estimated blended kWh rate of $.07. The
estimated total lighting utility expense is
$51,009 annually. ABC Company is at risk for potential double-digit electric rate increases and increased maintenance costs. While waiting for capital funding for a lighting efficiency project, ABC Company is wasting potential energy savings as well as
cash flow.

ABC 1

Stage 1

After project implementation, ABC Company will pay the utility company for 303,862 kWh at an estimated blended rate of $.07. ABC Company will pay Orion for a 424,836 kWh reduction at a rate of $.049. ABC Company will realize $8,922 or 17% of current electricity spending for lighting in estimated annual cash flow.

ABC 2

Utility Energy Purchases
303,862 kWh x $.07 estimated blended
kWh rate = $21,270 estimated utility expense

OVPP Supply Contract
424,836 kWh x $.049 kWh rate = $20,817 utility expense

Estimated Cash Flow
$8,922

Stage 2


Upon completion of the supply agreement with OAM, ABC Company will no longer pay Orion and realize the entire amount of estimated cash flow for the remaining useful life of the energy efficiency technologies.

ABC 3

Utility Energy Purchases
303,862 kWh x $.07 estimated blended
kWh rate = $21,270 estimated utility expense

Estimated Cash Flow
$29,739