Energy Should Be Top Priority in Municipal Asset Management

With rising utility costs and growing climate commitments, local governments are turning to energy tracking as a key tool for managing budgets and boosting sustainability. Across the country, municipalities are beginning to scrutinize the energy use of their own assets, buildings, streetlights, water infrastructure, and vehicle fleets. For many, tracking energy expenses is a cornerstone of smarter financial planning and climate action.

Energy is often one of the top controllable expenses for a local government. Yet in many cities and towns, data about energy usage is still scattered across departments, paper bills, or basic spreadsheets. Without centralized tracking, it is challenging to identify high-cost facilities, billing errors, or energy waste.

At the same time, more municipalities are adopting climate action plans or sustainability goals. These commitments often include targets for reducing greenhouse gas emissions, improving energy efficiency, or transitioning to renewable power. Without accurate energy tracking, measuring progress toward those goals becomes nearly impossible.

When implemented effectively, energy tracking can deliver immediate and long-term benefits. It allows governments to benchmark performance across facilities, prioritize upgrades for the most inefficient buildings, and assess the impact of efficient projects. Patterns in the data can also help detect equipment issues early, leading to fewer breakdowns and longer equipment life spans.

Several municipalities that have adopted centralized energy tracking systems report significant cost savings over time, often by identifying underperforming assets and redirecting resources accordingly. Others have used the data to support successful state and federal grant applications or negotiate more favorable utility contracts.

Getting started doesn’t necessarily require a significant investment. Many utilities now offer online portals that provide usage data, and free or low-cost software platforms are available for municipalities looking to organize and analyze energy information. The U.S. Department of Energy also offers energy analysis data and tools for state and local energy planning. The most crucial step is centralizing data, setting a clear baseline, and committing to regular reviews.

As budgets tighten and public expectations for sustainability rise, energy tracking is proving to be a practical and cost-effective way for local governments to lead by example. Whether the goal is financial efficiency, environmental performance, or operational resilience, tracking energy use is a decisive first step toward achieving it.