Adopting a "holistic" energy management strategy has its own, very real rewards

Historically, containing energy costs has been relegated to the "bean counters" at many organizations. That’s no longer the case. More and more companies are realizing the importance of taking a holistic approach to energy management today, and the benefits can be significant both economically and environmentally.

"Economics create focus for business owners," says Michael Baetz, Vice President and General Manager, Direct Energy Business Services Ltd., NA. "Energy economics dictate frugal use, conservation and wise acquisition. The rising cost of energy creates focus on the carbon footprint of buildings and processes."

Energy is a major cost item for all business owners, Baetz notes. Developing and implementing an all-encompassing energy strategy ensures effective economic use of a scarce, expensive resource. "That strategy should include technology, equipment and process projects that will pay for themselves from the resulting energy savings," he says.

Proponents of holistic energy management have been promoting the strategy’s benefits for some time. What’s changed recently is the receptivity of their audience. "We're starting to see a new emphasis on energy efficiency in the commercial and industrial sector," says Rod Thornton, a Business Development Specialist in HVAC services at Direct Energy Business Services. He has seen energy efficiency evolve into a C-level issue in his dealings with customers recently.

Businesses take all kinds of approaches in migrating to holistic energy management plans, including opportunistic ones. That was the case for Cash America International Inc., the market leader in secured non-recourse lending to individuals, when it needed to upgrade aging chilled water production equipment at its Fort Worth, Texas, headquarters.

The company chose to replace its old equipment with a Smardt chiller system (see "The Big Chill(er)" sidebar), featuring a highly-efficient, oil-free compressor that is lightweight and very quiet. J. Leo Kinney, Cash America's Onsite Property Manager, says energy usage, lack of tear-down maintenance and oil-free operation were important factors in the decision. The unit is also much quieter then the 280-ton AC compressors it replaces, and it eliminates future concerns about CFCs.

The chiller upgrade was just one element of the new holistic energy management plan for Cash America's headquarters. "I was fortunate in that the owners let me do everything that needed to be done," Kinney says. That included re-lamping the entire building; installing motion sensors in all offices and lighting timers in shared-use areas; switching to auto-valves on toilets, sinks and soap dispensers; upgrading switch gear to a compact 30-amp breaker system; and greatly improving the energy efficiency of the building's envelope.

As a result, Cash America has achieved more than $114,000 in annual direct energy savings, reduced annual maintenance costs by more than $22,000 and received a one-time rebate of $40,000 from its electric utility. Its total first-year savings surpassed $176,000, Kinney reports.

Organizations in the public sector are pursuing—and achieving—similar results. The City of Toronto, for example, has developed a "Climate Change Plan," which is an aggressive approach to reduce environmental impacts throughout the city.

As part of that plan, Toronto's Social Housing Unit is committed to facilitating innovation and improved energy efficiency throughout its portfolio of 245 privately owned social housing providers, says Glenn Courtney, Manager of the city's Social Housing Program Administration. "Since the city does not own these housing projects, our role is one of encouraging, offering incentives and assisting housing providers to that end," he explains.

When the Margaret Laurence Housing Co-operative (MLHC) needed to replace its air conditioning system in the summer of 2007, managers realized the building's heating system would also require upgrading shortly. The City of Toronto got involved to help MLHC realize the significant opportunity for improved efficiencies it faced.

Only six weeks were available from the beginning of the planning process to the September 15 deadline by which heat must be available to residential units in Toronto, as required by law. Working with a local engineering firm, Direct Energy oversaw the installation of a new Smardt chiller system to replace an aging 250-ton gas-fired absorption chiller. MLHC also upgraded its energy management and control system to energy-usage monitoring capabilities.

Although Direct Energy didn't lift any equipment into place until August 30, it had the heat on by September 14, an accomplishment that won it a BOMA (Building Owners and Managers) Toronto Pinnacle Award for "Above and Beyond," a category created specifically to recognize its accomplishment.

"We will measure and quantify the improved efficiency of the system through the building automation and controls now in place," Courtney says. "MLHC has contracted with Direct Energy for comprehensive maintenance of the system, and we are confident that this will also improve the efficiency of the overall system into the future."

Experiences like those of Cash America and the Margaret Laurence Housing Co-operative in adopting holistic energy management strategies are not atypical, and there are plenty of resources available to organizations from both public and private sources. The New York State Energy Research and Development Authority (NYSERDA), for example, devotes an entire website to holistic energy management for residential, commercial and public sector organizations (www.getenergysmart.org).

Many businesses turn to companies like Direct Energy for a one-stop-shopping solution to their energy management needs. Direct Energy offers all the required components of an effective energy strategy, including energy acquisition; demand response programs to take advantage of available utility rebate programs; load shaping and management to control energy usage peaks; and energy retrofit capability to generate savings through technology and process improvement.

"Direct Energy has high-value capabilities that enable more-effective business operation for customers," says Baetz. "The result is customers who can operate more efficiently and effective stewardship of precious resources for the environment."