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Special Report - November 2005


Energy Costs At Record Levels Hints on How to Save

(11/01/2005)


Rising energy costs have businesses looking for good information about how to reduce energy consumption. The Pacific Northwest has been a leader in developing ways to provide incentives for businesses to make good energy choices.

Business owners in Oregon service territories of NW Natural, Portland General Electric and Pacific Power can access the Building Efficiency and Building Tune-up and Operations programs from Energy Trust of Oregon, Inc., for financial incentives to offset some of the upfront costs of energy efficiency measures and shorten the payback period. Oregon Business Energy Tax Credits are also available for many measures to improve the energy efficiency of a commercial building and lower operating costs.

Contractors may not be able to do much about higher diesel costs, especially when using heavy equipment, but every business can save energy in their building operations.

"Building operating systems have undergone a dramatic improvement in performance thanks to new technologies and controls. These advances help businesses take an active role in controlling what many have always viewed as a fixed cost," said Andy Saleh, commercial and industrial program manager, Energy Trust. "It's not unreasonable to think that a commercial building, such as an office building or retail operation, could reduce its energy consumption by 30 percent or more, which a business can see right on the bottom line." According to the Rocky Mountain Institute, reducing energy costs by 30 percent is equivalent to increasing net operating revenue by five percent.

Here are some ideas to get a handle on rising energy costs, ranging from simple no-cost ideas to more significant projects:

Step 1:

Pull the plug on wasted energy

Personal computers, monitors, printers, copiers and other electronic equipment use energy when idled, even in a sleep mode. If you're not using the equipment today, turn if off. If you've permanently retired a piece of equipment, unplug it.

Step Two:

Learning about lighting

For most businesses a lighting upgrade is the first step in their quest for greater energy efficiency. According to ENERGY STARĀ®, more than 20 percent of all energy used in the United States is for lighting -- and about half of this is wasted lighting empty rooms. High efficiency lighting products such as T8 lamps with electronic ballasts generate enough energy savings with project payback of just a few years. They may also reduce cooling costs since these newer products generate less heat. Compact fluorescent lightbulbs use 75 percent less electricity than incandescent bulbs. LED exit signs can save up to $20 per year, per sign.

Step Three:

Tune up, maintain and upgrade HVAC

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Heating, ventilating and air conditioning is the largest use of electricity for a commercial building and tend to generate the largest number of complaints from tenants and users, if it's not working correctly. Energy Trust's new Building Tune-up & Operation program provides financial incentives to building owners and managers of buildings over 100,000-sq.ft. to conduct annual tune-ups and retrocommissioning. Many times, these processes can identify a small, fixable problem instead of letting a bigger, more expensive one develop. Making sure doors and windows are closed when your system is running is a frequently overlooked first step. Simple procedures such as filter changes and cleaning of condenser and evaporator coils also save energy.

When it's time to replace equipment, invest in high efficiency equipment and economizers to save money over the life of the system. Businesses such as warehouses or open bay operations can gain big savings from radiant heat technologies in place of traditional heating systems.

Step Four: Take control

Managing equipment more effectively saves energy. Setting programmable thermostats to match building use can prevent unnecessary heating and cooling. Installation and proper use of an Energy Management System to control all lighting, hot water, climate control and equipment can save a business thousands of dollars every year on energy costs. Motion/occupancy sensors, daylighting controls, time clocks and photocells turn off lights when they're not needed.

Step Five: Save energy by saving water

Water heating can be a big part of a building's energy consumption. Since water and sewer charges are also on the rise, this is a great place to look for savings in all three areas. To start, make sure the water heater is set to the lowest legal limit for domestic hot water, 105-110 degrees Fahrenheit. Low flow devices in faucets and toilets can also yield big savings. Restaurants, typically one of the biggest commercial water users, can switch to high-performance dishwashing pre-rinse sprayers that do a better job with 1/3 the water volume.

Step Six: Turn to the sun

After taking energy efficiency measures, the ultimate way to control energy costs is to make your own. Commercial solar photovoltaic systems do more than provide electricity to your business. Your utility will purchase any excess electricity you make through a net metering agreement. Financial incentives from Energy Trust, Oregon Business Energy Tax Credits, as well as tax depreciation schedules, can offset a significant amount of the installed cost. Pepsi-Cola of Klamath Falls boasts the Northwest's largest solar PV system. "The tax benefits for installing a solar electric system are substantial and the prospect of making all the electricity we need is appealing," said owner John Bocchi. "I don't know why more businesses aren't taking advantage of this. It makes financial sense and it's the right thing to do."

Energy Trust of Oregon, Inc., is a nonprofit organization dedicated to changing how Oregonians use energy by promoting energy efficiency and clean renewable energy for Oregon customers of Pacific Power, Portland General Electric and NW Natural. Commercial and industrial programs include Building Efficiency, Production Efficiency, New Building Efficiency, Building Tune-up & Operations and Solar Electric and Water Heating. For more information, visit the Energy Trust website, www.energytrust.org, or call 1-866-ENTRUST (368-7878)

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