Tap Box Cost vs Generator
Scenario Details
Market Segment: Grocery Store Chain
Location: Chicago, IL
Product: 100 KW diesel generator
Location: Chicago, IL
Product: 100 KW diesel generator
Solutions:
- A permanent generator
- An emergency response rental
- A preplanned generator Tap Box
Situation
A Chicago based grocery store chain has several sites that are especially vulnerable to power outages due to their location and the aging electrical infrastructure. In June and July, several stores suffered multiple power outages, some as long as three days. The store stood to lose not only the cold and freezer sections of the store, but also the revenue for the other non-perishable due to the closing of the store.
They were able to summon portable power which arrived within the 4 hour "critical window", but the cost of the emergency electrical work, plus the extra time it took to tie in the generator was in excess of $4,000 not including the cost of the rental generator. One store in particular experienced three outages in 10 days, each time requiring an emergency response by their local electrical contractor.
| Permanent | Emergency Response | Tap Box | |
|---|---|---|---|
| Purchase | $50,000 | $0 | * $9,000 - $11,000 |
Annual Maintenance | $1,800 | $0 | $0 |
| Annual Fuel Cost for Weekly Exercising | $500 | $0 | $0 |
| Emergency Response Electrician Cost to Tie in Temporary Power | $0 | $3,000 - $4,500 | Rental company hook up |
| Power Up Time** | <10 seconds | 3 - 4 hours + | 10 minutes |
* Installation will fluctuate based on the proximity of the tap box to electrical panel.
** Does not include delivery time or cost of the rental generator.
Conclusion
Although the above estimates will vary by site, they illustrate the cost effectiveness and the significant time savings to restore power quickly after an outage. Most likely, the installation of the Tap Box configuration will more than pay for itself the second time it is used to restore power. The building's integrity is not compromised and remains secure. Everything is pre-planned, pre-wired and procedures are in place for just such an emergency.
Recommendation
All businesses should have a disaster recovery plan. In fact, publicly traded companies are required under the Sarbanes-Oxley Act to be able to secure their documents and records while maintaining internal control of data and processes. A power backup plan is an essential cornerstone to meet the intent of this requirement. It is important that even though a business may not have a permanent generator, it should have a contingency plan in place to resume operations despite the lack of electricity in order to save data, preserve perishable items and ensure security and communication capability.