AKF - Bulletins - The Energy Manager

The Energy Manager

In the mid-1980's, office rental costs were peaking, and the cost of energy as a percent of rent was decreasing. An energy cost of $2.50 to $3.00 per square foot on a $60.00 per square foot rentable area represented only 5% of the total cost. However, as rental costs decreased, the cost of energy on a percentage basis increased.

In general, the cost of energy is comparable from building to building (of similar occupancy) so that the cost of energy on a percentage basis at $12.00 per square foot rentable is significantly higher than at $40.00 a square foot.

This "increasing cost" of energy as a percentage of a building's overall operating cost, combined with the increasing complexity of utility rate structures and the deregulation of utility companies, is bringing "energy conservation" back into the forefront of economic considerations in existing and new buildings.

The use of new technology alone cannot produce sufficient long-term results without an organized and continuing management effort.

This bulletin suggests that "energy" like any other controllable resource be under the direct responsibility of an Energy Manager. The Energy Manager's position could be a full or part time position depending on the size of the facility and the amount of energy consumed.

The key to a successful energy management program is to gain the support of management. The Energy Manager should be empowered with the tools to develop and successfully carry out the program.

The Energy Manager should take the following steps to establish an Energy Management Program:

Develop a database of past energy usage to measure future savings.
Prepare an "Energy Audit" to identify the overall energy use profile and become familiar with operating and maintenance procedures.
Identify energy conservation opportunities taking into account: system interaction, utility rate structure, equipment life expectancy, maintenance, impact on building operation and relative payback.
Prioritize resources to determine which energy conservation measures should be undertaken. Identify the initial cost, total savings, rate of return, and the benefits and liabilities of each energy conservation opportunity and then prioritize them.
Maintain energy conservation measures through continuous monitoring to insure they retain their cost effectiveness.
Document energy savings and cost avoidance to management to receive continued support of the program.
Monitor changes in the utility rate structure to ensure that energy savings are properly reflected in energy costs seen by management.

The designation of an Energy Manager and the implementation of an Energy Management Program can offer substantial energy cost savings, but only if there's "SOMEONE WATCHING THE STORE": the Energy Manager.