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Message Board

May 30, 2007

A message to ESC Members . . .

With Memorial Day observance just behind us and the projections for a long, hot summer season ahead, energy remains a concern for us all. The Energy Information Administration recently reported the national average price of regular gasoline stood at $2.869 in the week ended April 23. While this amount is below the year-ago level by 4.5 cents, over the most recent 12 week period fuel prices have surged 33%. What we see at the pumps when we pay to fill up our cars is one measure of the rising costs of energy. The same forces that impact the cost of transportation fuels are similarly affecting energy costs to operate the buildings and facilities in which we work, transact business, and provide services. The more we can do to reduce fossil fuel consumption in our daily lives, and to maximize the efficiency of essential fossil fuel consumption, the better off we are from an economic and environmental perspective.

The national and international focus on energy and energy conservation make these exciting times for the Energy Services Coalition and Energy Performance Contracting (EPC). Through EPC, building and facility owners have the opportunity to realize infrastructure improvements and the implementation of energy conservation measures using a concept where the savings generated by the facility upgrades is used to finance the upgrades. Therefore no “new” capital budgets are required. Existing budgets (for utility payments) are reduced and the resulting savings are reallocated to offset the debt service for project financing. Related operations and maintenance savings, also realized through new technology implementation, are also often used to supplement the achieved energy savings and improve the overall financial model. By promoting Energy Performance Contracting, a financial and technical facilities solutions approach, the Energy Services Coalition is making a significant contribution to the cause of energy conservation and demand reduction with correlating facility improvements for our nation’s buildings and related environmental benefits.

Energy Services Coalition individual members are a vital part of our mission, supporting our goals and objectives of education and outreach activities designed to promote a greater appreciation and understanding of the value, benefits, and need for Energy Performance Contracting. Both Public and Private Sector members come together in a Partnership that provides the most effective forum to discuss Energy Performance Contracting and to reach a better understanding of all aspects of EPC, and to share success models and best practices related to the undertaking and implementation of an EPC program.

The Board of Directors, starting with a Strategic Planning meeting held in Nashville last November, has spent considerable time focused on ways and means to strengthen our Coalition and accelerate the steps to meet our objectives. A Market Transformation Committee was established, and that committee has met both in Austin and more recently in Kansas City to develop a comprehensive program designed to accelerate the growth and widespread use of EPC nationally. At a full ESC Board meeting to be held in early June in Nashville, the Market Transformation Committee will provide the details of this program. Elements of that program relate to changes to our website, new outreach tools and resources, new lines of communication between the Board and ESC members, more support of State Chapters, expansion of State Chapters, and even more exciting changes. Once reviewed and approved by the Board more details on this exciting development will be communicated to the ESC membership. We seek your feedback and ideas on a continual basis to help us in our efforts to grow the Coalition and advance the cause of EPC. Please take a moment a send your input to: esc@energyservicescoalition.org.

The Energy Services Coalition is preparing to undertake a major initiative that will have a significant positive impact on the future growth of Energy Performance Contracting. There has never been a more exciting time to be involved in the Public/Private Partnership that membership in the ESC represents. Invite a friend or colleague to become part of the Coalition. We encourage you to be a part of it !!
We look forward to your continuing support.

On behalf of the Board of Directors,

Ray Hinson
ESC President

Energy Services Coalition is a Strategic Partner of Rebuild America, a program of the U.S. Department of Energy.