How to Account for Non-Routine Adjustments in Your M&V Plan

Reading time: ~15 minutes
Key takeaway: How to Account for Non-Routine Adjustments in Your M&V Plan ensures your energy savings are accurate and defendable by properly handling unusual events that affect energy use.

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How to Account for Non-Routine Adjustments in Your M&V Plan

Introduction

You’ve implemented an energy-saving project, expecting measurable reductions. The meters are running, data is being collected, but something doesn’t add up. One month, energy spikes unexpectedly. Was it the equipment, a seasonal change, or an unusual event? Without proper handling, these anomalies can skew your results.

This is where How to Account for Non-Routine Adjustments in Your M&V Plan becomes essential. Non-routine adjustments (NRAs) allow you to separate unusual, unpredictable factors from normal operational performance. By adjusting your M&V plan to account for these events, you ensure reported savings are credible, reliable, and can be confidently presented to stakeholders, investors, or regulators.

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📦 Summary Box

• Problem: Unexpected events distort measured energy savings

• Solution: Non-Routine Adjustments in the M&V plan

• Benefit: Accurate, defendable, and transparent energy savings

• Outcome: Reliable performance reporting and stakeholder confidence

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Understanding Non-Routine Adjustments

(Eighth-grade reading level)

Non-routine adjustments are changes in energy use caused by unusual events outside normal operations.

This is why How to Account for Non-Routine Adjustments in Your M&V Plan matters.

Examples include:

• Installing new equipment unrelated to the energy-saving project

• Unexpected extended operating hours

• Temporary changes in occupancy or production

• Extreme weather events

Without these adjustments, your M&V results may:

• Overstate or understate savings

• Mislead stakeholders

• Affect financing or compliance

NRAs ensure results reflect true project performance.

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Why NRAs Are Critical in M&V

M&V relies on comparing baseline and post-installation energy use.

NRAs are critical because:

• They separate normal operations from unusual events

• Maintain credibility with financiers and auditors

• Reduce disputes between project owners and contractors

In short, they protect the integrity of your energy savings report.

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Identifying Non-Routine Events

Proper identification is the first step.

Look for:

• Unplanned maintenance or shutdowns

• Renovations or expansions

• Operational anomalies

• Weather extremes

• Changes in production schedules

Documenting events early ensures adjustments are accurate.

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Methods for Adjusting Energy Use

Common approaches include:

• Exclusion: Remove the data period affected by the event

• Normalization: Adjust energy use to reflect normal conditions

• Statistical adjustment: Use regression or other models to isolate impacts

Choose methods that align with your M&V plan and stakeholder expectations.

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Using NRAs in Baseline Development

Your baseline defines normal energy use.

NRAs help:

• Ensure the baseline is realistic

• Prevent misinterpretation of savings

• Adjust historical data to reflect typical operations

This is a core part of How to Account for Non-Routine Adjustments in Your M&V Plan.

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Documentation and Transparency

Every NRA should be documented, including:

• Date and duration

• Description of the event

• Impact on energy use

• Method of adjustment

Transparent documentation ensures your M&V report is defensible.

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Collaboration Between Stakeholders

NRAs require input from:

• Energy managers

• Operations teams

• Finance and auditors

• M&V specialists

Collaboration ensures adjustments are realistic and agreed upon.

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Timing and Frequency of NRAs

Adjustments are not one-time tasks.

Consider:

• Regular monitoring for unusual events

• Immediate reporting when events occur

• Periodic review of all NRAs

This keeps your M&V plan accurate throughout the project lifecycle.

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Common Challenges with NRAs

Challenges include:

• Identifying subtle or indirect events

• Quantifying impacts accurately

• Getting stakeholder agreement

• Avoiding manipulation of data

Awareness of these helps mitigate risks.

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NRAs and Financial Reporting

NRAs play a key role in financial transparency.

They help:

• Accurately reflect energy cost savings

• Provide defensible numbers for green financing or loans

• Avoid conflicts with investors

This aligns How to Account for Non-Routine Adjustments in Your M&V Plan with financial credibility.

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Linking NRAs to Performance Metrics

Energy performance indicators should account for NRAs.

Metrics include:

• kWh saved

• Cost avoided

• Energy intensity per production unit

Adjusting metrics for unusual events ensures meaningful reporting.

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Examples of NRAs in Practice

Real-world examples include:

• Extra shifts due to seasonal demand

• Temporary installation of energy-intensive machinery

• Storms causing HVAC overuse

• Short-term testing or commissioning periods

Each event requires documented adjustment.

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NRAs and Independent Verification

Independent M&V increases confidence.

Verifiers will check:

• NRA documentation

• Adjustment methodology

• Consistency with agreed rules

Independent verification strengthens credibility.

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Integrating NRAs Into M&V Software

Modern energy monitoring tools can:

• Flag anomalies automatically

• Log events for adjustment

• Produce reports with NRAs applied

This reduces manual errors and ensures transparency.

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Training Staff on NRAs

Everyone involved in energy reporting should understand NRAs.

Training covers:

• Recognizing unusual events

• Recording and documenting occurrences

• Applying adjustments correctly

Skilled staff reduce mistakes and disputes.

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Reviewing and Updating NRAs

NRAs should be revisited:

• During periodic M&V reviews

• When new events occur

• When operational conditions change

This keeps your plan current and accurate.

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Regulatory and Compliance Considerations

Some regulators or financiers may require NRAs.

Ensure:

• Clear alignment with guidelines

• Transparency in reporting

• Documentation ready for audits

NRAs increase trust and compliance.

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Benefits of Properly Accounting for NRAs

By properly managing NRAs, you:

• Improve accuracy of reported savings

• Build trust with stakeholders

• Protect investment decisions

• Avoid disputes with contractors or financiers

This is why NRAs are an essential part of How to Account for Non-Routine Adjustments in Your M&V Plan.

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Common Pitfalls to Avoid

Avoid:

• Ignoring small but impactful events

• Using inconsistent methods

• Poor documentation

• Over-adjusting to inflate savings

Consistency and transparency are key.

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Checklist for NRAs in M&V Plans

1. Identify potential non-routine events

2. Document event details

3. Choose appropriate adjustment method

4. Apply adjustments consistently

5. Review with stakeholders

6. Update baseline and metrics

7. Verify independently

Following these steps ensures credibility.

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NRAs and Continuous Improvement

Adjustments are not just about compliance.

They provide insights to:

• Improve operational practices

• Refine future projects

• Enhance energy efficiency over time

NRAs become a tool for ongoing improvement.

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Aligning NRAs With Overall Energy Strategy

NRAs should complement:

• Energy management objectives

• M&V goals

• Sustainability and cost-saving strategies

This ensures NRAs support broader organizational priorities.

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Communication of NRAs to Stakeholders

Clarity is key.

Reports should show:

• What adjustments were made

• Why they were necessary

• Impact on savings

Transparent communication builds confidence.

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Future Trends in NRAs

Expect:

• Automated anomaly detection

• Integration with AI for adjustments

• Stronger regulatory guidance

• Increased expectations from financiers

NRAs will become standard practice in M&V plans.

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Case Study Examples (Optional)

• Seasonal production spikes adjusted for fair savings

• Temporary machinery installation documented and normalized

• Weather events accounted for using regression analysis

These examples show how NRAs protect the integrity of your M&V results.

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Final Summary and Call to Action

In summary, How to Account for Non-Routine Adjustments in Your M&V Plan is essential for accurate, credible, and defensible energy savings reporting. NRAs ensure unusual events do not distort results, maintain stakeholder confidence, and protect the integrity of your project’s performance. Proper identification, documentation, adjustment, and verification of non-routine events make your M&V plan robust and transparent.

If you want to ensure your energy savings are accurate and trusted by investors, auditors, or regulators, now is the time to strengthen your M&V plan. WhatsApp or call 013-300 6284 to learn how to integrate non-routine adjustments effectively into your energy projects.