How do you handle the "soft benefits" in your reports? Things like improved power quality, reduced maintenance, better equipment life. These have real value but they're hard to quantify with specific dollar amounts. Clients want everything in financial terms.
Quantifying soft benefits in reports
Kent, I include a separate section called "Additional Benefits" where I describe them qualitatively. Things like "reduced voltage fluctuations will extend fluorescent ballast life" but I don't try to put dollar signs on everything. Some benefits are real but not easily quantifiable.
Randy's approach is good but I've had success with conservative estimates on some items. Power factor correction reducing transformer losses - you can calculate that pretty precisely. Equipment life extension is trickier but sometimes worth attempting.
Elisa, how do you handle equipment life calculations? I know power factor issues shorten motor life but putting a specific dollar value on "your motors will last 3 years longer" seems like guesswork.
What about reduced maintenance benefits? If fixing power factor issues means less nuisance breaker trips, that's real savings in maintenance time. Hard to quantify but definitely valuable.
Hugh, I ask clients about their maintenance costs when possible. If they spend $150/hour on electrical contractors and power quality issues cause 3 unnecessary service calls per year, that's $450 annually. Small numbers but they add up.
Brett, that's a good approach - using their actual maintenance costs as a baseline. I might start including a simple questionnaire about service calls and equipment failures. Could help build the business case for power quality improvements.
Kent, just remember to keep those estimates conservative and clearly labeled as estimates. I've seen auditors get in trouble for overpromising on soft benefits. The direct utility savings are solid ground - everything else is bonus.
Cliff, I use manufacturer data when available. Schneider Electric has good documentation on how voltage variation affects motor life. If I can show they're getting 5% voltage sag during peak periods, I can reference studies showing the impact. Not perfect but better than nothing.