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Greenhouse Gas
Reporting and Accruals
Steve Heinz, PE, CEM
Founder & CEO
EnergyCAP, Inc.
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accruals can be hard to love!
What Is An Accrual?
An accrual is a “gap-filling
estimate” to complete an
accounting period.
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
An Accrual Fills A Gap
When Are Accruals Helpful?
Fiscal period profit and loss financial statements
More accurate close of each fiscal period
Expense performance vs. budget
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
How are accruals created?
Method 1: Simple cost/day using most recent bill
Calculate ADC from most recent bill
Multiply ADC x # days in accrual gap
This yields a reasonable accrual cost
But beware of seasonality!
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
How are accruals created?
Method 2: Same-period use/day from last year and AUC
of most recent bill
Calculate ADU from same month in prior years
Multiply ADU x AUC of most recent bill
This yields a more accurate accrual in most cases…if
historical bills are available and accurate
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
How are accruals created?
Method 3: Actual interval (15-minute) data and rate schedule
Use near real-time smart meter data
Apply actual utility company rate schedule
Potentially very accurate, but beware of
rate complications! Use current AUC for simplicity.
Not available in EnergyCAP at this time
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accruals example
Accrual using the same-period use/day from the average
of three prior years and the most recent AUC
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Billing Period Ends 10/27
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Fiscal Period Ends 11/08
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Incomplete Fiscal Period by 8 days
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Meter is weather sensitive
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accrual is processed
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accrual is created for 13 days
Accrual reversal
Remove accrual to avoid double entries
Delete/void accrual when actual bill arrives, or
Reverse with equal and opposite transaction (this
option not in EnergyCAP Online at this time)
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accrual Workflow Method 1 in EnergyCAP
Use BL33 Report
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Accrual Workflow Method 2 in EnergyCAP
Use Bill Processing - Accruals
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Are Weather Adjustments Worth It?
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Should Accruals Be Included In PowerViews?
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Should Accruals Be Included In Reports?
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Filter Accruals Out of Bill Lists
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Filter Accruals Out of Bill Lists
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
With the right tools,
accruals can be very useful!
Note: Accruals are a validated option in
EnergyCAP, not included in every license.
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Greenhouse Gas
Fundamentals
Six gases that have global warming potential:
Carbon dioxide (multiplier = 1)
Methane (multiplier = 21)
Nitrous oxide (multiplier = 310)
Chlorofluorocarbons (sulfur hexafluoride,
hydrofluorocarbons, perfluorocarbons)
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Greenhouse Gas Fundamentals
Measured in equivalent metric tons of CO2 (often shown
as CO2e)
Metric ton=1,000 kg=2,205 lbs
U.S. national average is 20 mTon/person/yr
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
EPA’s eGRID Subregions
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
EPA’s eGRID Database
Pounds of C02 equivalent per MWh
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
EPA’s GHG Equivalencies
www.epa.gov/cleanenergy/energy-and-you/how-clean.html
How is GHG Used in EnergyCAP?
Live Demo:
Meter
Building and Organizational rollups
Solar and renewable GHG credits – use special
template line item!
GHG Reports
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
Questions
Visit the Ace Place to learn more!
©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

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Catalyst 2016: Greenhouse Gas Reporting, Accruals

  • 1. Greenhouse Gas Reporting and Accruals Steve Heinz, PE, CEM Founder & CEO EnergyCAP, Inc.
  • 2. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Accruals can be hard to love!
  • 3. What Is An Accrual? An accrual is a “gap-filling estimate” to complete an accounting period. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 4. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com An Accrual Fills A Gap
  • 5. When Are Accruals Helpful? Fiscal period profit and loss financial statements More accurate close of each fiscal period Expense performance vs. budget ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 6. How are accruals created? Method 1: Simple cost/day using most recent bill Calculate ADC from most recent bill Multiply ADC x # days in accrual gap This yields a reasonable accrual cost But beware of seasonality! ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 7. How are accruals created? Method 2: Same-period use/day from last year and AUC of most recent bill Calculate ADU from same month in prior years Multiply ADU x AUC of most recent bill This yields a more accurate accrual in most cases…if historical bills are available and accurate ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 8. How are accruals created? Method 3: Actual interval (15-minute) data and rate schedule Use near real-time smart meter data Apply actual utility company rate schedule Potentially very accurate, but beware of rate complications! Use current AUC for simplicity. Not available in EnergyCAP at this time ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 9. Accruals example Accrual using the same-period use/day from the average of three prior years and the most recent AUC ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 10. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Billing Period Ends 10/27
  • 11. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Fiscal Period Ends 11/08
  • 12. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Incomplete Fiscal Period by 8 days
  • 13. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Meter is weather sensitive
  • 14. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Accrual is processed
  • 15. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Accrual is created for 13 days
  • 16. Accrual reversal Remove accrual to avoid double entries Delete/void accrual when actual bill arrives, or Reverse with equal and opposite transaction (this option not in EnergyCAP Online at this time) ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 17. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Accrual Workflow Method 1 in EnergyCAP Use BL33 Report
  • 18. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Accrual Workflow Method 2 in EnergyCAP Use Bill Processing - Accruals
  • 19. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Are Weather Adjustments Worth It?
  • 20. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Should Accruals Be Included In PowerViews?
  • 21. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Should Accruals Be Included In Reports?
  • 22. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Filter Accruals Out of Bill Lists
  • 23. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Filter Accruals Out of Bill Lists
  • 24. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com With the right tools, accruals can be very useful! Note: Accruals are a validated option in EnergyCAP, not included in every license.
  • 25. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com Greenhouse Gas Fundamentals
  • 26. Six gases that have global warming potential: Carbon dioxide (multiplier = 1) Methane (multiplier = 21) Nitrous oxide (multiplier = 310) Chlorofluorocarbons (sulfur hexafluoride, hydrofluorocarbons, perfluorocarbons) ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 27. Greenhouse Gas Fundamentals Measured in equivalent metric tons of CO2 (often shown as CO2e) Metric ton=1,000 kg=2,205 lbs U.S. national average is 20 mTon/person/yr ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 28. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com EPA’s eGRID Subregions
  • 29. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com EPA’s eGRID Database Pounds of C02 equivalent per MWh
  • 30. ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com EPA’s GHG Equivalencies www.epa.gov/cleanenergy/energy-and-you/how-clean.html
  • 31. How is GHG Used in EnergyCAP? Live Demo: Meter Building and Organizational rollups Solar and renewable GHG credits – use special template line item! GHG Reports ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com
  • 32. Questions Visit the Ace Place to learn more! ©2016 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com