UNIVERSITY OF BOHOL

PROFESSIONAL STUDIES

UTILITIES

October 27, 2021

Report submitted to:

Dr. AMMON DENIS R. TIROL, DM, CPA

as partial fulfillment of the requirements in

GS010 DEVELOPMENT OF ENTERPRISE

First Semester AY 2021-2022

KEZIAH REVE B. RODRIGUEZ

MASTER OF SCIENCE IN BUSINESS ADMINISTRATION

Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

Table of Contents

Definition of Utilities .......................................................................................................................... 3

Types of Utilities in a Business ........................................................................................................... 4
Utilities in relation to the Technical Aspect of a Feasibility Study ..................................................... 5
References........................................................................................................................................ 11
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

Definition of Utilities
Utilities is defined as a category of companies that provide basic amenities, such as
water, sewage services, electricity, dams, and natural gas (Investopedia). The types of
utilities your business requires will depend on the nature and size of your operation. For
instance, the law requires even a small bistro to provide workers and clients with warm
running water and restrooms, but you can start a dog walking business with little or no
access to utilities. Your office utilities list and budget all depend on the needs of your
business and the licensing requirements set by federal and local authorities.

Key Takeaways

• The utility sector is a category of company stocks that provide basic services
including electricity, natural gas, and water.
• Utilities earn a profit but are a public service and, as a result, have substantial
regulation.
• The utility sector tends to do well as a defensive play against macroeconomic
downturns.
• The movement towards "clean" energy, along with competition-enhancing
legislation, initiatives, and investments in renewable energy resources, has some
analysts forecasting strong growth for the utilities industry in the 2020s.

Consumer Impact on the Utilities Sector

Because many cities let consumers move from one utility operator to another, consumers
typically choose the least expensive local operator. Higher-cost producers are eventually
eliminated from the market unless they can cut their costs in time.

Long-term power purchase agreements between companies and consumers also impact
profits. When utility generation costs increase, companies must continue to honor the
contract agreements and sell utilities at the current agreed-upon rate, which decreases
their profits.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

Types of Utilities in a Business

Water Service for Business

Running water is a must for most businesses. From a health and safety perspective, it is
important to have access to water for first aid and basic hygiene. Consider where your
business can find a water source before you decide on a business location.

If you live near a metropolitan area, you can hook up to the town's or city's water services.
If you live in an isolated or rural area, you may have to dig a well and connect a water
pump to your office. If you plan to connect to an existing water service, allow enough time
to complete the necessary forms.

Types of Utilities for Sewage

Some localities group water and sewage into a single service. If this is the case, your
businesses may need to register for this service and pay a monthly fee. Again, if your
business is not part of a metropolitan area, you may have to install your own septic tank
and connect it to your drainage system. You will need drainage for restrooms and any
water usage you might incur: A car wash will have greater sewage needs than a clothing
store.

Business Trash Service

Trash pick-up is often overlooked in utilities examples. In some localities, it is compulsive

to pay and use some type of trash service. Again, if your business is not part of a
metropolitan area, or your trash needs exceed what is included in your tax bill, you may
have to contract the services of a private company that works in your area or take your
trash directly to the closest landfill. Some businesses require removal of hazardous
materials, which may require a different service and higher price point.

Business Communications Services

Nowadays most businesses group their telecommunication utilities in one convenient bill.
This includes your telephone, cable TV, voice over Internet protocol and Internet. If you
need two or more of these services, you can save money by buying them as part of a
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

package. On the other hand, if you only need one service, such as a telephone line, don't
pay for services you do not need. Local telephone service companies are required by law
to offer a simple telephone service by itself.

Electric Utilities for Businesses

Unless you are a hardcore road warrior and do all of your business from the back of your
car, you need to contract electricity. When shopping for electricity providers, it is helpful to
know how much electricity you will need. Most businesses use between 15,000 and
25,000 kWh of energy in a year, according to Bionic. Solar panels are also being shown
as an option for businesses from which they could generate electricity from.

Each city has an energy department that offers advice and tips on how to minimize the
cost of electricity and ensure your appliances are as efficient as possible.

Natural Gas for Heating Your Business

Natural gas often powers water heaters, central heating systems, and some appliances
like stoves. Natural gas isn't an essential fuel source since electric alternatives exist and
are easier to set up if gas lines aren't currently installed. However, natural gas represents
a cheaper option in many cases. If you're concerned about lowering your business's
energy bills, consider whether it would be more affordable to switch some appliances to
natural gas.

Utilities in relation to the Technical Aspect of a Feasibility Study

As part of the Technical Aspect of a Project Feasibility, utilities describe the
amount, cost, and sources of electricity, fuel, water, and/or steam required. Utilities must
be determined when creating the Technical Aspect to point out the relation to the
production schedule and capacity utilization defined. Alternative source of these utilities
and the feasibility of their use must also be described.

In relation to the Technical Aspect, it is important to test its practicability of the

concept design. This will ensure that the energy use and consumption, maintenance of all
related technical systems and ongoing operation costs are investigated and that the most
practical and cost-effective options are selected.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

I. Power

The problem of supplying the power requirements boils down to two options:
purchasing from a local company or generating within the plant. This decision will be
influenced, among others, by the power requirements of the plant, and availability and
cost of outside power. Normally, the immediate requirements will be less than the
installed capacity to allow for future expansion.

Purchased Power—Power Distribution System.* If the power is going to be

purchased, the type of the distribution system has to be determined. The function of
the distribution system is to receive the incoming power from the power company and
distribute it to the outlying motor control centers or load centers and thence to the
different motors and electrical equipment. A very important element of the power
distribution system is the power sub-station. Most power companies normally supply
this up to a certain capacity which varies from one power company to another.

The shortcoming of this arrangement is that the power company dictates the service
voltage which is also the distribution voltage within the plant. There are cases where
the most economical distribution voltage is not necessarily the same as the service
voltage of the power company. In such cases the initial savings that can be realized if
the power substation is supplied by the power company may be offset by an
expensive power distribution system. If the plant acquires its own sub-station, it is free
to choose its distribution voltage which will result in a cheaper distribution system.
Careful studies must therefore be made to determine which is more economical: (1) to
have the power sub-station supplied by the power company or (2) have it supplied by
the plant itself.

Purchased Power—Basis of Cost. In the case of electricity purchased from the

National Power Corporation or MERALCO, the cost will be computed on two bases:
the demand charge, and the energy charge. The demand charge is based on the
kilowatts (KW),. which is about 75% of the normal operating horsepower. The energy
charge is based on the kilowatt hours (KWH) per year or per month.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

II. Water

Water varies in hardness, turbidity, color, and chemical and bacteriological contents.
Manufacturing firms use water for manufacturing process, steam generation, cooling,
drinking, general cleaning, and firefighting. The type of water required by a project
depends on the specific usage. The water for boilers, for example, should be soft.
Hard water contains calcium and magnesium salts which cause the formation of
scales in boiler tubes. Because of readily available water may not be the same type f
water required by the plant, the water must be treated first. Various water treatment
methods have been devised. If the treatment cost if high, the project may have to
resort to a dual water supply system. That is the treated water will be used for certain
purposes only.

If the water supply is not continuous throughout the year, the project has to
construct storing facilities which may be in the form of ground tanks, elevated water
reservoirs, cylindrical pressure tanks, or even dams for large projects.

Sources of Water:

1. Metropolitan Water Works and Sewerage System

If consumption is not large and Metropolitan Waterworks and Sewerage
System water mains are close to the plant, a connection to the system may
prove to be most economical. This, even though (1) the System penalizes
rather than encourages larger water users, and (2) storage and pumping
will be necessary because of the* inadequacy of supply and pressure at
certain times of the day during certain months of the year
2. Deep wells

Because of the inadequacy of public water systems, deep wells have

become popular. This has resulted in an alarmingly lowering of the ground
water table within cities and suburbs. Many wells are now yielding brackish
waters. This is the effect of the intrusion of sea water into the water bearing
strata due to over-pumping.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

3. Natural bodies
Rivers are good examples of natural water bodies which may be tapped for
water. However, locating a plant along these rivers has certain
disadvantages. There is the destructiveness of flash floods so that
expensive shore protection and filling up of sites have become a must.
Furthermore, the river water is silted up.
4. Rain
The fourth possible source is rain water. This method is not easily
adaptable in Manila and environs because of the long pronounced dry
season which would require unnecessarily large roof areas and reservoirs.
There are places in the Philippines, however, like Davao City, where this
may be the most practical source for industries requiring mineral-free water
in small quantities.
5. Local waterworks system

III. Steam
The steam requirements of a project in terms of the following should be
determined:
1. Maximum pressure
2. Maximum temperature
3. Maximum steam demand in pounds per hour at specified pressure and
temperature
4. Average steam consumption in pounds per hour.

After the above data have been obtained, the types and number of boilers to
be used, as well as the plan for the steam distribution facilities can be
specified. Although bunker fuel oil is commonly used for boilers in the
Philippines, other fuels which are abundant in the locality of the project should
be studied for possible use. The water to be used by the boiler should be
properly checked specially if the pressure is high. The steam generation units
may, in some cases, be also the source of electric power.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

IV. Industrial Waste

Factories, especially those with chemical processes, produce wastes. They
may be in the form of gas, liquid, or solid. They are usually noxious to some
forms of life. Their exact chemical and physical properties, and the expected
periodic quantity should be ascertained in order that proper waste collection-
treatment-disposal methods can be designed.

Waste Disposal Methods.

1. Seepage through the ground
If the liquid waste is allowed to seep through the ground, steps
should be taken to assure that the ground is porous enough to
absorb the effluent.
2. Discharge to water bodies.
If the waste is going to be discharged to a body of water, the waste
may:
i. Impart color and turbidity on the receiving water;
ii. Add bacteria and other pollutants or poisonous substance to the
water.
iii. Deplete the dissolved oxygen in the water; and
iv. Deposit floating and settable solids.

Hence, in the discharge of waste in water bodies, the capability of

the receiving water to dilute the polluting loads to tolerable and
acceptable levels should be considered. Otherwise, plant and
animal life may be endangered. For instance, it had been noticed
that the wastes discharged by a local pulp plant using the
sulphate process into a water body had a toxic effect on the fish.
For this matter, the fishermen in the area had to complain about
the practice

3. Neutralization

Some plants use chemicals which neutralize the effect of some

wastes. The wastes of some industries, however, are. varied,
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

such that if they are kept for a day or for a few hours in waste
holding tanks, they automatically neutralize each other

4. Conversion to by-products
5. Drying or incineration
6. Discharge into a public sewer system.

Some types of wastes may be treated further and sold as by-products. For
instance, the waste liquors of pulp plants using the sulfite process may be
converted into alcohol through fermentation. The cheapest solution would be to
discharge the wastes to a public sewer system if one is available within a
reasonable distance. This will be preferable specially if little or no pre-treatment
is required. In the selection of the method, one must consider the effectiveness
and reliability on one hand, and the cost on the other. Irrespective of the
method of disposal to be followed, clearance must be obtained from the proper
authorities such as the National Pollution Control Commission and municipal
officials.
Utilities
Technical Aspect of a Project Feasibility Study
Development of an Enterprise

References
4 things businesses need from their energy provider. (2019, February). Retrieved from Utility Dive:
https://www.utilitydive.com/spons/4-things-businesses-need-from-their-energy-
provider/549133/

Chron Contributor. (2020, August 21). Newsletters. Retrieved from Chron:

https://smallbusiness.chron.com/utilities-needed-business-38374.html

Feasibility Study Guide. (n.d.). Retrieved from Department of Local Government, Sport and
Cultural Industries:
https://www.dlgsc.wa.gov.au/department/publications/publication/feasibility-study-
guide#32

Flores, R. (2013, May). Technical Feasibility. Retrieved from Slideshare:

https://www.slideshare.net/RudyFlores1/4-technical-feasibility

Grant Miller, D. M. (2019). Site Selection. Retrieved from Area Development:

https://www.areadevelopment.com/corporate-site-selection-factors/Q2-2019/utilities-
role-in-the-corporate-location-decision.shtml

Muro, V. (1975). Preparing Project Feasibility Studies for Philippine Enterprises. Alemar's.

Murphy, C. B. (2021, March). Utilities Sector. Retrieved from Investopedia:

https://www.investopedia.com/terms/u/utilities_sector.asp