The concept of an energy manager is elusive to most people. Organizations are exposed to the risks and opportunities of energy use simply by opening their doors in the morning. For starters, it is NOT simply chasing after people to get them to turn lights off. Energy represents value that can be consumed, saved, invested, and used to create new value. Like any form of wealth, energy should be sheltered from risk. If you think of energy as wealth, you think of fuels and power as forms of currency. Energy can be managed using the same planning techniques that are used to manage cash, securities, and other forms of wealth. Add to this the current array of energy-related rebates, tax incentives, and emerging demand for sustainable products and services, and true business opportunities become readily apparent.
Energy impacts are not limited to the boiler room. Everyone—from the CEO to the receptionist to the procurement director– has a hand in shaping utility bills now and for years to come. The latest utility bill received by your business or workplace reflects choices made one month ago, a year ago, and maybe even 20 years ago. Yet energy costs are only half the story. Efficient use of electricity not only cuts power plant emissions, it reduces stress on the power distribution grid. Any efforts to improve the efficiency of direct combustion of gas or oil contribute to occupant safety. By wonderful coincidence, those same initiatives provide relief for operating budgets. On one level, a climate action plan addresses the emissions that contribute to adverse climate impacts. But it can also be a business plan to identify and prioritize the actions that contribute to sustainable operations in BOTH senses of the word: environmental and fiscal.
Everyone understands the fiscal constraints imposed by a bad economy. That reality gives any organization—government or business—another way to look at energy waste. It imposes a fiscal drain just like a value-added tax. Every person working in an organization has an opportunity to reduce that waste, which adds directly to the bottom line. One dollar in avoided energy waste adds one full dollar of operating income. Sure, there’s simple things like turning off fixtures when they’re not needed. But the dollars you spend on energy go deeper than that. It reflects the impact of routine maintenance (or deferred maintenance) such as air filter replacement and tuning up the combustion on furnaces, boilers and water heaters. It reflects the selection of light fixtures that were optimized for reducing the glare on CRT computer monitors from the 1990s that have long since been replaced by LCD flat-screen monitors. It’s reflected in the collection of mini-refrigerators that are not only one-third full, they are located under a thermostat that controls air conditioning. It reflects habits and procedures set years ago by maintenance staff—choices that made perfect sense at a time when energy was cheap. But as the cost of energy rises, the trade-off among time, effort, and money changes. Show me a facility where maintenance staff do not see the utility bills, and I’ll show you a facility that does not evolve its procedures and priorities accordingly in response to rising energy prices.
This is what energy managers do: benchmark facility performance over time, prioritize opportunities to make energy improvements, and maximize the collection of rebates and incentives that support investment in new energy-saving technologies. Smart energy decisions made today can offset future energy waste, and ensure that future revenues are devoted to more productive purposes. In the end, energy management contributes to a triple bottom line of economic, environmental, and societal goals.
Christopher Russell
