Rising Electricity Costs Highlight Need for Energy-Efficient Lighting Retrofits

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[P2] Urges Businesses to Cut Energy Usage Before Price Hikes Take Effect

The U.S. Energy Information Administration’s latest predictions for future energy costs show commercial electricity rates going up 5.1% by 2015.

In addition to immediate savings, performing an energy-efficient lighting retrofit now can help insulate business owners from future energy price increases.

After reviewing the latest forecasts from the U.S. Energy Information Administration (EIA), energy-efficient lighting manufacturer Precision-Paragon [P2] is recommending that businesses undertake lighting retrofits before expected price increases in the cost of electricity take effect.

According to the EIA’s Short-Term Energy and Summer Fuels Outlook, released on April 8, the cost of electricity is expected to increase in both 2014 and 2015. Overall, the report predicts that the U.S. commercial average cost of electricity will increase from 2013 levels by 5.1% in 2015.

“A five-percent increase might not seem significant at first glance,” said [P2] vice president and general manager Joe Martin. “But when you apply it to the scale of some of our end-users’ operations, it can mean thousands, or tens of thousands of dollars every year in added costs.”

Even at a smaller scale, increased energy costs can easily cut into margins, and prevent small- and medium-sized businesses from investing in growth.

“For more than 20 years, our company has been making products that help businesses around the country cut energy consumption and save money,” said Martin. “In addition to immediate savings, performing an energy-efficient lighting retrofit now can help insulate business owners from future energy price increases.”

As energy prices increase, so do the cost-savings associated with an energy-efficient lighting retrofit. A typical energy-efficient lighting retrofit performed using Precision-Paragon [P2] fixtures can cut energy consumption by 40% or more. As the cost of each kilowatt-hour of electricity rises, the value of each kilowatt-hour saved increases as well.

The EIA report also notes that expected energy prices vary regionally throughout the country. While a 5.1% increase in commercial energy costs is expected across the country, some regions could experience more drastic increases brought about by regional weather extremes or other factors.

Overall, the April 8 EIA report revised expected energy costs to be up from an earlier March report, predicting an additional increase of 0.7% for both 2014 and 2015.

Business owners interested in an energy-efficient lighting retrofit can use Precision-Paragon [P2]’s interactive map to find a lighting professional nearby, or call the [P2] Service Hub at (714) 386-5550.


About Precision-Paragon [P2]: For over 20 years, [P2] has made high-quality, indoor-and-outdoor light fixtures for a wide range of applications in retail, commercial and industrial spaces. [P2]’s energy-efficient lighting drastically cuts energy consumption, creating big cost savings and significant environmental benefits.

Over the last two decades, [P2] has earned a reputation for going the extra distance in customer support by producing high-quality, American-made products. [P2] products are manufactured in Hudson, Wis. and at the company’s headquarters in Yorba Linda, Calif.

Website: http://www.p-2.com

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