ESCO/End User Partnerships for Energy Efficiency And Clean Power In A Competitive Electric Market

Authors

  • Robert A. Kenned Vice President CES/Way
  • Walter Simpson Energy Officer, Fa cilities Management State University of New York at Buffalo

DOI:

https://doi.org/10.13052/dgaej2156-3306.1414

Abstract

Energy efficiency efforts could suffer significantly if electric de-
regulation results in less funding for efficiency incentives and if it
allows declining block and marginal rate structures which undermine
the economics of efficiency projects by reducing the dollar value of
energy savings. On the other hand, introducing competition will cre-
ate new choices for energy users as well as new opportunities for both
energy users and energy service companies (ESCOs) to work as part-
ners to achieve environmental as well as cost saving objectives.
Energy users will need to develop a number of "green" strategies
to maintain their conservation efforts in a deregulated market while
taking advantage of reduced energy prices. These strategies include
incorporating energy efficiency services in power purchases; using ef-
ficiency measures to shift, level and reduce electric loads (to help
attract cheaper power); identifying rate structures which work in the
marketplace but preserve efficiency incentives; and creating a "culture change" to shift to life-cycle costlbenefit evaluation of energy conser-
vation projects . These endeavors lend themselves to creative
partnerships with traditional energy efficiency ESCOs and with
ESCOs which have expanded their offerings to include power sales.
With choice comes responsibility, and at least some larger energy
users will want to buy electricity from less polluting sources. ESCOs
can develop a portfolio of clean power sources and provide this prod-
uct, or they can serve a consultant's role and help energy users learn
and use the market to buy clean power. ESCOs which develop these
value-added capabilities will serve the public interest while occupy-
ing an advantageous and profitable marketing niche.

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Author Biographies

Robert A. Kenned, Vice President CES/Way

Bob Kennedy, P.E., CEM, is a vice president of CES/Way in Al-
bany, NY. For the past 7 years he has been responsible for developing
CES/Way's Energy Service projects in New York and New England.
Functions include engineering audits, design, financing, construction,
startup and ongoing monitoring. With CES/Way, he has constructed
over $65 million in comprehensive energy performance projects. Over
$50 million of this was for public sector customers including federal,
state, county and local governments as well as public school districts.
Bob has a BSME degree from Union College, is a licensed profes-
sional engineer, a Certified Energy Manager, a member of ASHRAE and
is a charter member of the Association of Energy Engineers.

Walter Simpson, Energy Officer, Fa cilities Management State University of New York at Buffalo

Walter Simpson, C.E.M., C.E.L.P., is energy officer for the State
University of New York at Buffalo (UB), directing and coordinating a
campus energy conservation program which has produced over $60
million in cumulative savings. In this position since 1982, he holds mas-
ters degrees in philosophy and environmental studies from UB. Walter
served as University project manager for UB's $17 million CES/Way
demand-side management project which won 1997 "Project of the Year"
from the Association of Energy Engineers. He also was honored as 1998
"Energy Manager of the Year" by the New York Chapter of the AEE.
Walter teaches environmental studies courses at UB. He has pub-
lished numerous articles in his field, and is now working with Erie
County, NY, to develop an energy action plan to reduce energy con-
sumption in county buildings by 20 percent in the next 5 years.

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Published

1999-01-14

How to Cite

Kenned, R. A. ., & Simpson, W. . (1999). ESCO/End User Partnerships for Energy Efficiency And Clean Power In A Competitive Electric Market. Distributed Generation &Amp; Alternative Energy Journal, 14(1), 38–53. https://doi.org/10.13052/dgaej2156-3306.1414

Issue

1999: Vol 14 Iss 1

Section

Articles