Energy Accounting
What the exam expects
Energy accounting establishes a baseline, normalizes for drivers such as weather, occupancy, and production, and reports performance against that baseline. Know EUI, energy intensity per unit of output, cost avoidance versus cost savings, variance analysis, utility bill management, and accrual accounting. Normalization is essential: a 10% drop in absolute consumption may be poor performance if production fell 20%. Cost avoidance measures the difference from what would have been spent under current rates; savings usually refers to consumption reductions from a project. Keep scope changes visible.
Traps
Comparing current cost with last year without adjusting for rates, weather, or floor area is a frequent error. Another trap is claiming savings when a facility simply shut down a production line. Watch for estimated meter reads and billing-period misalignment.
Worked example
Baseline consumption is 1,000,000 kWh for 100,000 units, or 10 kWh/unit. The current year uses 900,000 kWh for 80,000 units. Expected consumption at baseline intensity is 80,000 x 10 = 800,000 kWh. Actual is 900,000 kWh, so performance is 100,000 kWh worse even though absolute consumption fell 10%.