Catalyst 2016: Greenhouse Gas Reporting, Accruals

Greenhouse Gas Reporting and Accruals

Steve Heinz, PE, CEMFounder & CEOEnergyCAP, 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.



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


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!


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


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 ofrate complications! Use current AUC for simplicity.

Not available in EnergyCAP at this time


Accruals exampleAccrual using the same-period use/day from the average of three prior years and the most recent AUC



Billing Period Ends 10/27


Fiscal Period Ends 11/08


Incomplete Fiscal Period by 8 days


Meter is weather sensitive


Accrual is processed


Accrual is created for 13 days

Accrual reversalRemove 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)



Accrual Workflow Method 1 in EnergyCAPUse BL33 Report


Accrual Workflow Method 2 in EnergyCAPUse Bill Processing - Accruals


Are Weather Adjustments Worth It?


Should Accruals Be Included In PowerViews?


Should Accruals Be Included In Reports?


Filter Accruals Out of Bill Lists


With the right tools,accruals can be very useful!

Note: Accruals are a validated option in EnergyCAP, not included in every license.


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)


Greenhouse Gas FundamentalsMeasured 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



EPA’s eGRID Subregions


EPA’s eGRID DatabasePounds of C02 equivalent per MWh


EPA’s GHG Equivalencieswww.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


QuestionsVisit the Ace Place to learn more!


Catalyst 2016: Greenhouse Gas Reporting, Accruals

Software

Transcript of Catalyst 2016: Greenhouse Gas Reporting, Accruals