Writing an Energy Management Plan for an Ohio Business
The short answer
An energy management plan is a short document with an owner. It states your goals, names who is responsible, records a baseline of kWh, peak kW, capacity tag and cost, lists the projects you'll do, sets a procurement calendar keyed to Ohio's dates, and explains how results will be measured and reviewed. ENERGY STAR's seven-step Guidelines for Energy Management are a practical structure for most small and mid-size businesses. ISO 50001 — or the Department of Energy's free, self-attested 50001 Ready program — makes sense when customers or corporate policy call for a formal management system.
This page is about writing the plan. For the baseline data, start with an energy audit and Portfolio Manager benchmarking. For the price-risk policy that sits alongside it, see writing an energy risk policy; for the annual budget, see energy budgeting; and for proving savings, see savings verification.
Choosing a framework
| Framework | What it is | Cost | Best fit |
|---|---|---|---|
| ENERGY STAR Guidelines for Energy Management | Seven steps: make commitment, assess performance, set goals, create action plan, implement action plan, evaluate progress, recognize achievements | Free | Most small and mid-size businesses |
| ISO 50001 | International standard for energy management systems, built on a plan-do-check-act cycle | Implementation effort, plus fees if you seek third-party certification | Manufacturers and organizations whose customers ask for certification |
| DOE 50001 Ready | Self-paced, no-cost program for building an ISO 50001-based system; recognition is self-attested, with no external audit | Free | Organizations that want ISO 50001 structure without certification |
You don't need to pick one formally. Many businesses write a plan following the ENERGY STAR steps and borrow ISO 50001's discipline around roles, records and management review.
What goes in the plan
| Section | Contents | Typical owner |
|---|---|---|
| 1. Policy and goals | One-paragraph commitment from leadership; three to five measurable goals | Owner or CFO |
| 2. Roles | Energy lead, site contacts, who approves contracts and projects, outside advisers | Energy lead |
| 3. Baseline | 12–24 months of usage, demand, capacity tag and cost, by account | Energy lead |
| 4. Action plan | No-cost measures, capital projects, timing, budget, funding source | Facilities |
| 5. Procurement calendar | Contract dates, renewal notices, June 1 resets, summer peak season | Finance or broker |
| 6. Measurement and KPIs | What's tracked, how it's normalized, how savings are verified | Energy lead |
| 7. Review and communication | Quarterly review, annual update, how results are shared with staff | Leadership |
Keep it short enough to update. A plan that fits on a few pages and is reviewed every quarter beats a thick binder that isn't.
Building the baseline
For each account, record:
- Monthly kWh and peak kW for 12–24 months, with the rate schedule.
- Capacity tag (and transmission tag, if your utility uses one), which reset each June 1.
- Cost split between generation (supplier or default service) and delivery (utility), plus the per-kWh excise tax. Ohio doesn't charge sales tax on electricity.
- Load factor, which shows how much of your bill is driven by short peaks.
- Normalizing variables: square footage, production volume, occupancy and heating and cooling degree days.
Compare your intensity with peers. EIA's 2018 commercial buildings survey put the East North Central region's average at 11.7 kWh per square foot, with wide variation by building type — about 5 kWh/ft² for non-refrigerated warehouses and more than 40 for restaurants. ENERGY STAR Portfolio Manager gives a building-type-specific comparison.
Setting goals that fit Ohio's cost structure
Because Ohio bills combine energy, demand and capacity charges, set goals for each rather than a single kWh target. Examples of the form goals can take (choose your own numbers):
- Reduce weather-normalized kWh per square foot by a set percentage over three years.
- Cut load during PJM's summer peak hours by a set number of kW — each kW of capacity tag costs about $120 a year at 2026/27 prices.
- Keep the monthly peak below a set kW threshold outside the summer.
- Place each supply contract at least six months before it expires.
- Hold annual energy cost within a set variance of budget.
The Ohio procurement calendar
| When | What happens | Action for the plan |
|---|---|---|
| 12–18 months before a contract expires | Market window opens | Start tracking prices; decide the buying approach |
| 90–60 days before a fixed contract expires | First HB 15 renewal notice from the supplier | Your new contract should already be chosen |
| 45–15 days before expiration | Second HB 15 notice | Last chance to avoid rolling to a variable price |
| Each year, if on a variable rate | Annual supplier notice | Review whether variable pricing still fits |
| June 1 | Default (SSO) generation prices and capacity tags reset | Record new tag and new price to compare; update budget |
| June–September | PJM summer peak season | Run peak-alert procedures; this summer sets the tag for the June 1 after next |
| Ongoing, 2026–2029 | Utility rate cases and rate plans | Track: AEP Ohio's new bill format from fall 2026; Duke Energy Ohio's case (requested non-residential increase of about 3%, expected around May 2027); FirstEnergy's 2027–2029 plan; AES Ohio's three-year plan filed July 2026 |
Capacity prices are already known through May 2029 — $329.17/MW-day for 2026/27, $333.44 for 2027/28 and $325.00 for 2028/29 — so your budget can price them rather than guess. For timing strategy, see market timing; for renewal traps, see contract pitfalls.
Measuring and reviewing
| KPI | How to measure | Review |
|---|---|---|
| Weather-normalized kWh per ft² (or per unit produced) | Interval or monthly data against degree days | Monthly |
| Peak kW and load factor | Utility interval data | Monthly |
| Capacity tag | Utility or supplier, each June 1 | Annually, plus peak-day results each summer |
| All-in cost per kWh | Utility plus supplier bills | Monthly |
| Project savings vs estimate | IPMVP-style verification | After each project |
| Budget variance | Actual vs budget, split by volume and price | Quarterly |
Hold a quarterly review with the people who own the budget and the buildings. Once a year, update the baseline, retire finished projects, add new ones, and re-check the procurement calendar.
FAQ
What is an energy management plan?
It's a written plan that sets energy goals, assigns responsibility, records a baseline, lists projects, schedules procurement decisions and explains how results will be measured.
Do I need ISO 50001 certification?
Usually not. ENERGY STAR's Guidelines for Energy Management work for most businesses; DOE's no-cost 50001 Ready program offers ISO 50001 structure without third-party certification.
How often should the plan be updated?
Review progress quarterly and update the plan annually — ideally after June 1, when default prices and capacity tags reset.
What Ohio dates belong on an energy calendar?
Contract expiration and the two HB 15 renewal notices before it, June 1 default-price and capacity-tag resets, and the June–September PJM peak season.
Sources
- ENERGY STAR Guidelines for Energy Management: https://www.energystar.gov/buildings/tools-and-resources/energy-star-guidelines-energy-management
- U.S. DOE, 50001 Ready program: https://www.energy.gov/eere/iedo/50001-ready-program
- EIA, Commercial Buildings Energy Consumption Survey: https://www.eia.gov/consumption/commercial/
- PJM capacity market (RPM): https://www.pjm.com/markets-and-operations/rpm