Volume 3: Sep.Oct 2005
Customer Spotlight
City of Meriden, Connecticut
 
Also In This Issue
EnerNOC Voted "Most Promising Company" at Energy Venture Fair VI
EnerNOC Demand Response Customer Awarded Energy Users Excellence Award
EnerNOC Partners with Competitive Electricity Supplier Strategic Energy®
EnerNOC Expands California Presence by Providing Southern California Edison Customers with Demand Response Audits
Brett Perlman, Former Texas PUC Commissioner, Joins EnerNOC's Strategic Advisory Board
Upcoming Events

November 16, 2005
EnerNOC will be exhibiting at the Connecticut Business and Industry Association's and Connecticut Power and Energy Society's What's the Deal? VI Event in Cromwell, CT.

More about the event

EnerNOC Headquarters Moving to Boston's Financial District November 14th

 

With the continuous expansion of our team, EnerNOC has outgrown its office space in Faneuil Hall Marketplace. Effective November 14, 2005, the company's headquarters will be moved to the third floor of 75 Federal Street in Boston's Financial District. The new space offers increased elbow room, improved conference areas, and superior networking space highly suitable for EnerNOC's advanced technical and communications needs.

All physical correspondence should be addressed to:

75 Federal Street
Suite 300
Boston, MA 02110

All EnerNOC telephone and fax numbers (and email addresses) will remain the same.

   
Feature Article


What Do Customers Want?

Written by Gregg Dixon,
                   Vice President of Marketing and Sales

 

We're constantly asking the question, "How does better energy management affect the total profitability equation?" It's usually a pretty simple answer but the answer always has to come from the customer. Our job at EnerNOC is to educate the customer on better energy management options, to inform the answer that the customer provides, and then to deliver commercially-attractive solutions that meet the identified needs. It's too simple to assume that all customers want cost savings – they don't! To be certain, many customers do want cost savings but others prioritize factors like energy security and are willing to pay a premium for that security. Enhanced energy security can be delivered in many forms, from advance notices of brownouts and blackouts to high-reliability, market-linked emergency power systems.

So, where does EnerNOC start in helping the customer understand the options available for better energy management? Well, we start with a simple, eye-opening fact – less than 1% of all commercial and institutional facilities in the US have an advanced metering system that measures and records basic, interval-based energy consumption (kilowatt hours). The adage "you can't manage what you don't measure" is especially true when it comes to energy and this fact guides our business. In the March/April issue of On Demand, Phil Giudice, Managing Director, described the "eras" and progress of energy management in broad terms, citing many advanced options that represent an "end game" for many customers. Now, let's take a look at how we help a customer start the process of getting to their energy management ideal, beginning with advanced metering and using our simple cornerstoning framework, described below, to guide this process.

We'll bring this process to life with an actual customer, Pathmark Stores, a leading East Coast grocer with approximately 140 stores under management. When we first approached Pathmark we learned quickly that their hands were full trying to manage energy decisions across a highly diverse set of stores, few of which had a common footprint or consistent equipment infrastructure. After identifying Pathmark's needs and issues (e.g., basic energy data, IRR hurdle, strong desire to get to best practice energy management) EnerNOC proposed a solution that gave Pathmark powerful initial benefits:

  • An advanced, real-time metering and control system
  • A payback on this investment of less than six months based on enrolling electrical capacity in demand response
  • A free Internet-based data presentment tool that helped with energy management decisions

Once these first two components (advanced metering and demand response) of our energy management cornerstoning framework were completed, and Pathmark had gained confidence in EnerNOC's team and solution, it was ready to take the next steps, where the big benefits are! These next steps include:

  • Energy benchmarking. A powerful set of decisions can be made once Pathmark's stores are able to be compared to one another. EnerNOC "normalizes" energy consumption data with store data, including location (degree day data), square footage, structure (insulation r-values, roofing, ingress/egress dimensions), and other proprietary data that allows EnerNOC to benchmark stores against each other using an index of energy efficiency. This provides a clear picture of efficiency that gives Pathmark's energy management team a game plan for action.
  • Advanced control. The first step taken once store benchmarking data is in hand is to identify outliers and to bring basic, scheduled energy consumption back in line. For example, this includes ensuring that lights are set-back consistently across all stores according to store-specific schedules and that these schedules don't "drift" because store staff forgot to reset setback settings after an all-night stocking exercise. Because Pathmark receives real-time data (in real-time, not day after or month after) they don't have to wait to act on operational outliers – they can correct in real-time! If this situation were to occur the first day of the month, 29 days may go by where 100 kW of lights are on for 8 hours more per day than they should be. At $0.12/kWh this would translate into a $2,784 mistake.
  • Demand-side management. The big value in having real-time data is continuous improvement. We set the stage with 365 days of data, we make adjustments, we compare the results. A multitude of adjustments can be made, all of which can be categorized as demand-side management measures. This includes more efficient lighting, newer reflective roofing, natural lighting, ventilation and seal improvements, etc. Without advanced metering, benchmarking data, and advanced controls in place, the energy management team at Pathmark would have a more difficult time justifying investments.
  • Energy procurement. Knowledge is power and having deep knowledge of the operational specifics of each store and the advanced metering and control needed to manipulate the load curve across the entire portfolio provides Pathmark with unique leverage in negotiating with retail energy suppliers. Retail energy suppliers benefit as well because Pathmark can enter into an active partnership as opposed to being a passive consumer of energy.

In total, these improvements are expected to generate more than $1,000,000 per year in cost savings. But it's not just cost savings that Pathmark is after. As a result of these measures they see operational improvements to backup generation and front-end systems, environmental benefits from more efficient operation, and public recognition for corporate citizenship. That is what THIS customer wants!

More about the author

   

Customer Spotlight: City of Meriden, Connecticut

 

Due to constrained transmission and distribution capacity into and around Southwest Connecticut, demand response in that region is a critical component used by the Independent System Operator of New England to ensure reliable and adequate electrical supplies to the region. Each and every participant in ISO New England's demand response programs contributes to the overall reliability of the electrical grid by providing the system operator with additional emergency capacity.

The City of Meriden's Water Pollution Control Authority (WPCA) and Water Division both participate in the Real-Time Demand Response Program through EnerNOC and proved the value of their participation during this past summer's heat wave. During the July 27th demand response event, the City freed up nearly 800 kW of electrical load for the grid when EnerNOC remotely started the City's enrolled backup generators and transferred load within thirty minutes of notification by the ISO.

The new revenue stream that demand response has created for both the WPCA and Water Division provides much needed support to their operating budgets. Bob Mercaldi and Dave Lohman, Assistant Directors of the WPCA and Water Divisions agreed, "Working in a municipal environment means we are always looking for ways to reduce our cost while optimizing our day-to-day operations. The demand response program provides an additional source of revenue for our respective budgets and allows us to pass savings onto our system users."

   

EnerNOC Voted "Most Promising Company" at Energy Venture Fair VI

On November 3rd, EnerNOC was voted "Most Promising Company" out of 80 of the best emerging energy companies that presented at Energy Venture Fair VI, an energy industry forum bringing energy technology, product and service companies together with venture capitalists, corporate investors, and strategic investors who are looking for investment opportunities, strategic alliances and access to emerging technologies.

Attendees at the conference vote for the "Most Promising Company" after presentations from all companies are complete. EnerNOC CEO Tim Healy said, "We are honored to be recognized by both our peers and a highly respected investment community. The award is a testament to the team that EnerNOC has assembled and its proven ability to grow our business along a very exciting strategic roadmap."

   

EnerNOC Demand Response Customer Awarded Energy Users Excellence Award

EnerNOC is proud to announce that its customer, Pathmark Stores, Inc., has been awarded The Energy Planning Network's (EPN) "2004/2005 Energy Users Excellence Award for Best Cost Control Initiative." Pathmark's demand response initiative, implemented and managed by EnerNOC, formed the basis for this award.

In 2004, twenty-three Pathmark stores were equipped with EnerNOC's system which meters and controls both generator output and facility electric usage, and allows for communication between EnerNOC's Network Operations Center (NOC) and the facilities' assets through the Internet and the company's wireless network. The system not only enables Pathmark's participation in local demand response programs to create a new revenue stream, but also allows for remote identification and correction of failures, faster maintenance dispatch, custom control schedules, targeted efficiency upgrades, and more effective energy procurement.

Because of the initiative's success at the first set of stores, in 2005 Pathmark expanded the initiative across its chain and increased the benefits per store by rewiring additional loads for greater curtailment potential. Pathmark's Energy Manager, Steve Castracane, said, "EnerNOC helped us realize exceptional value by integrating demand response into our overall energy strategy and, as a result, we've gained insight into our energy use that we never had before."

Read the entire release

   

EnerNOC Partners with Competitive Electricity Supplier Strategic Energy®

EnerNOC is pleased to announce a new partnership with Strategic Energy, a leading national competitive electricity supplier serving commercial, industrial and retail customers in states including California, New York, New Jersey, Pennsylvania, and Texas. With this partnership, EnerNOC customers gain valuable access to the retail electricity market, an integral resource for maximizing cost-savings and enhanced energy management opportunities.

Strategic Energy procures and manages over $2 billion of electricity and natural gas per year to more than 7,000 customers. Strategic Energy buys wholesale power under contract for direct delivery to retail customers and supplies its customers with customized energy solutions through its Energy Management Center, operating 24 hours a day, 365 days a year. In most cases, procuring electricity through Strategic Energy is a low-cost alternative to standard purchase contracts with many electric utilities.

For more information on Strategic Energy and the services they offer, visit Strategic's website at www.sel.com or call toll free at 1.800.830.5923.

   

EnerNOC Expands California Presence by Providing Southern California Edison Customers with Demand Response Audits

In September, EnerNOC was selected as a preferred supplier of demand response audit services for Southern California Edison (SCE). Under the terms of Southern California Edison's Technical Assistance and Technology Incentives (TA&TI) Program, EnerNOC provides customers with a detailed evaluation of energy use and a customized plan for implementation of demand response. EnerNOC also evaluates for customers the cost reimbursements that are available to reduce the expense of installing technology that will help them more effectively participate in demand response programs.

Over the past two months, EnerNOC's experienced energy audit team has been very active providing assessments of demand response potential, technical audits, and engineering reports and analyses to SCE customers.

Read the entire release

   

Brett Perlman, Former Texas PUC Commissioner, Joins EnerNOC's Strategic Advisory Board

EnerNOC is proud to announce that former Texas PUC Commissioner Brett Perlman has joined EnerNOC's Strategic Advisory Board.

"Brett is a fantastic addition to our strategic advisory board," commented Tim Healy, EnerNOC CEO. "The leadership he gave to the Texas electricity market proved to be extremely productive. His contributions to EnerNOC will be beneficial as we enter into emerging demand response markets both nationally and internationally," he added.

From 1999 through 2003, Mr. Perlman served as Commissioner of the Public Utility Commission of Texas, where he led the highly successful restructuring of the state's electric utility and telecommunications industries. Today, in addition to his role on EnerNOC's Strategic Advisory Board, Mr. Perlman provides management consulting services to telecommunications and energy clients.

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