SYSTEM AND METHOD FOR A UTILITY FINANCIAL MODEL

• US 20080275802A1
• Filed: 05/03/2007
• Published: 11/06/2008
• Est. Priority Date: 05/03/2007
• Status: Active Grant

• Current Assignee: Orion Energy Systems, Inc.
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Verfuerth, Neal R., Potts, Michael J.
• Granted Patent: US 8,626,643 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/145 Payments according to the detected use or quantity
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 50/06 Energy or water supply

Abstract

A utility financial model involves the setting of a new utility rate after the introduction of a new utility technology that provides immediate capacity relief, reducing the base load capacity and the peak load capacity to electric power providers. The new utility rate is not based solely on performance of the new utility technology but rather based on fixed and variable costs to introduce the new utility technology.

Claims

1. A method for financing installation of a new utility technology after installation of the new utility technology, the method comprising:

obtaining power reduction information resulting from change from a first technology to a second technology;

receiving technology cost information including fixed and variable costs to install and maintain the second technology; and

calculating a new utility rate for use of the second technology and to repay technology costs associated with the second technology, the new utility rate comprising an accounting for received technology cost information of the second technology and power reduction information.

2. The method of claim 1, wherein the power reduction information includes time data relating to actual use of the second technology.

3. The method of claim 1, wherein the accounting related to the new utility rate includes value of aggregate displaced generation of power.

4. The method of claim 1, wherein the accounting related to the new utility rate includes value of pollution credits gained through use of the second technology.

5. The method of claim 4, further comprising communicating pollution credit information to a trading exchange for trading of pollution credits.

6. The method of claim 1, where obtaining power reduction information resulting from change from a first technology to a second technology includes receiving capacity relief data from a utility meter.

7. The method of claim 1, wherein payment of utility usage at the new utility rate is the only repayment source for installation and maintenance of the second technology.

8. A system for financing installation of a new utility technology where up front payments are avoided or reduced, the system comprising:

a metering device measuring capacity relief resulting from change from a first technology to a second technology; and

a processor with programmed instructions for determining aggregate displaced capacity from use of the second technology and a new utility rate based on costs associated with the change to the second technology and power reduction.

9. The system of claim 8, further comprising a communication component that communicates capacity relief and the new utility rate to a remote location.

10. The system of claim 8, wherein the programmed instructions calculate pollution credits based on the use of the second technology.

11. The system of claim 10, wherein the pollution credits are used to offset the new utility rate.

12. The system of claim 8, wherein the metering device provides real-time utility usage information.

13. The system of claim 8, wherein the processor includes instructions for communicating information to a remote facility, wherein the information is used in the creation of an invoice for utility usage.

14. The system of claim 8, wherein the processor includes instructions for calculating new technology cost savings data.

15. The system of claim 14, further comprising a display which presents new technology cost savings data.

16. A system for providing power at a reduced cost, the system comprising:

a utility meter coupled to new technology which measures utility usage on an absolute and real-time basis;

a processor coupled to the utility meter which receives measurements of utility usage from the utility meter and calculates a new utility rate based on utility usage and technology costs; and

a communication interface which communicates information needed to provide a utility invoice based on the new utility rate.

17. The system of claim 16, further comprising means for calculating emissions credits.

18. The system of claim 16, further comprising means for calculating a cash payment rate based on utility usage, installation costs, and an up front cash payment.

19. The system of claim 16, further comprising a display which presents real-time cost savings associated with use of the new technology.

20. The system of claim 19, wherein the communication interface communicates the real-time cost savings associated with use of the new technology to a remote location.