Energy Management Strategy

Energy Management Strategy

Energy Management Strategy

Blue Ocean’s Energy Management Strategy examines all aspects of organizational exposure to energy-related risk to identify both asset and operational energy efficiency opportunities for our clients. Start managing energy costs and find significant cost savings.

Energy Management Strategy – The 360° Approach

Our comprehensive energy management strategy examines all aspects of organizational exposure to energy-related risk and identifies cost saving opportunities.

In Blue Ocean’s experience, the lowest cost energy efficiency opportunities are likely to be found in the operational aspects of a facility. In other words, operational efficiency should always be optimized before asset replacement/upgrades.

The basic premise of the Energy Management Strategy is that energy costs are variable operational costs that can and should be proactively managed. Blue Ocean defines the continuous Energy Management Strategy as follows:

  • Measure the facility’s current energy consumption profile
  • Identify opportunities to decrease energy consumption
  • Develop an Energy Management Strategy with facility management
  • Implement the Energy Management Strategy and act on identified opportunities
  • Educate Stakeholders including facility managers, occupants and decision-makers
  • Recognize achievements and the need for future actions

Call us today to learn more about our energy management strategy services at 512-600-7060 or email us at info@blueoceanenergy.net.

 

The Continuous Cycle of Energy Management Strategy

The illustration in Figure 1 shows that an Energy Management Strategy is a continuous cycle. Very specifically, we define the 360° approach as an assessment of all energy-related risks to a facility/organization. Once the energy-related issues have been identified, the process by which the risk of these issues is mitigated equals the Energy Management Strategy.

An effective Energy Management Strategy can only be implemented with organizational management’s endorsement. If the focus on energy diminishes over time, the organization will likely revert back to previous patterns of energy management with a corresponding energy cost increase.

Although all of Blue Ocean’s services are intended to reduce our clients’ energy costs, our Comprehensive Energy Audit is specifically designed with this 360° approach in mind.  Blue Ocean has designed Comprehensive Energy Audit to be as non-intrusive as possible.

Measure the Facility’s Current Energy Profile

This stage includes a thorough analysis of multiple years of natural gas invoices, electricity invoices and any other sources of energy. This stage also includes site inspections and the installation of Blue Ocean’s real-time monitoring equipment.

Scope of Work:

  • Facility inspection
  • Historical energy consumption and cost analysis
  • Electricity “Demand” (kW) analysis
  • Electricity “Power Factor” (PF) analysis
  • Greenhouse gas (GHG) emission calculation
  • Climate normalization of energy consumption
  • Energy cost development and forecasting
  • Tenant sub-meter invoicing audit
  • EPA (ENERGY STAR) Energy Rating analysis
  • Real-time monitoring of major electrical loads for 3-9 months
  • Load shifting analysis (reduce peak demand)
  • HVAC performance analysis
  • Operational efficiency analysis
  • Weekly load analysis
  • Assist with the implementation of any cost savings strategies identified
  • Monthly cost monitoring to determine actual savings
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Identify Opportunities to Decrease Energy Consumption

After a period of real-time monitoring, Blue Ocean will compile the energy profile and consumption patterns for the facility.  A clear, concise report presents the findings and conclusions to facility management in an easy-to-understand graphical format.

Scope of Work:

  • Prioritized list of energy cost reduction opportunities
  • Operational opportunities for energy reduction
  • Economic analysis of savings potential
  • Simple payback periods calculated for any potential equipment replacement/upgrades

Develop the Energy Management Strategy

This is a separate item in our cycle because the Energy Management Strategy cannot be developed without feedback from facility management and site staff. 

Scope of Work:

  • Facility management feedback
  • Energy Management Strategy development
  • Development of Key Performance Indicators (KPIs)

Implement the Energy Management Strategy

During this stage and after consultation with facility management, operational and any potential equipment replacement/upgrades are implemented. Unlike our competitors, Blue Ocean stays involved with the process to ensure that predicted/anticipated energy savings actually occur.

Scope of Work:

  • Work with site staff to improve energy efficiency
  • Monitor Key Performance Indicators (KPIs)
  • Monthly portfolio performance analysis of facilities
  • Assist with the implementation of any cost savings strategies identified
  • Monthly cost monitoring (normalized) to determine actual savings

Educate and Recognize

The “Educate” and “Recognize” components are important to engage internal stakeholders. Some clients prefer to widely involve their tenants.  Some clients prefer the energy saving measures to be invisible to their tenants.  Blue Ocean customizes our support based on the unique relationships our client has with stakeholders.   

Educate stakeholders including facility managers, occupants and decision-makers
Recognize achievements and the need for future actions

General observations for success of the “Educate” and “Recognize” components include:

  • Communicate need for Energy Management Strategy to internal stakeholders
  • Internal stakeholder feedback loop while generating Energy Management Strategy
  • Establish/train local energy director and team leaders
  • Establish objectives of Energy Management Strategy
  • Share measurement and performance of KPIs with internal stakeholders
  • Establish corrective actions process if KPIs objectives are not met
  • Recognize/celebrate when/if objectives and goals are met

Energy Monitoring

Energy Monitoring

Energy Monitoring

Blue Ocean offers Real-Time Energy Monitoring (RTM) of electrical loads. Usually this service is part of our Comprehensive Energy Audit where we determine what is actually going on in a building. We maintain a dialogue with site staff to determine if and when functions or necessary. Many times, Blue Ocean finds operation changes that can positively impact the bottom line by reducing energy consumption.

During the Real-Time Energy Monitoring process, Blue Ocean collects data about a building and uses that data to optimize the building’s energy usage which shows how the building is actually performing at any point in time. We analyze energy usage data and make customized suggestions and recommendations focusing on the low-hanging fruit first.

This is where we begin to develop and Energy Management Strategy:

  • Identify opportunities to decrease energy consumption
  • Develop an Energy Management Strategy with facility management
  • Implement the Energy Management Strategy and act on identified opportunities
Education

Education

As an expert energy efficiency steward, Blue Ocean Energy provides various types of training and education. Here are some of our projects:

**BOMA BEEP (BOMA Energy Efficiency Program) series: Working with BOMA Austin, Blue Ocean has helped organize this energy efficiency program for building owners and managers and has participated as a speaker. BEEP reflects the latest industry trends, new technologies, and best practices to help the commercial real estate industry reduce energy consumption and improve the energy performance of real estate assets

**Real Estate Property Management and Site Staff Training – Blue Ocean offers personal and tailored programs designed specifically for a commercial building’s team. Training can help clarify energy rate plans, sub-metering, and how Blue Ocean’s monthly utility analysis program can help the team achieve operational and actionable recommendations.

**Austin Energy ALL STARS Program – Blue Ocean currently supports Austin Energy’s Educational Outreach program to 6th grade students in the Austin Energy service territory. Since 2018, Blue Ocean has provided in-class presentations helping children understand what energy efficiency and energy conservation truly mean. Introductions to the Austin Energy All Stars kit and products also help them understand what can be done to save energy at home.

 

 

Energy Procurement

Energy Procurement

Energy Procurement

In deregulated areas, customers can choose from multiple retail electricity providers. Alternatives that appear to be “low-cost” can be difficult to analyze without an energy management consultant who is clearly representing your best interests. Blue Ocean offers energy procurement services aligned 100% with your goals. Call us to help you make energy procurement decisions that match your energy use profile, and support your long-term energy risk tolerance.

Why should you use energy procurement services?

In deregulated markets, owners of commercial facilities have the choice of utility service providers and energy procurement services can help reduce long-term risk.

Besides the choice in electricity providers, important decisions regarding price structure and tenure of the contract have to be made. These choices can often be complex and difficult to align with a particular company’s risk profile.

Many electricity contracts today are completed via a broker who is paid a commission by the retail electric provider. This broker commission-based system may potentially create a dichotomy between what is good for the client and what is good for the broker. A broker’s commission will typically increase for longer-term fixed-price contracts. The utility provider’s broker commission is added to the utility price charged to the client.

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energy procurement

Our Energy Procurement Service

When a client retains Blue Ocean for energy procurement services, our compensation is 100% paid by the client and no other compensation of any kind is made by the utility provider. This compensation structure allows Blue Ocean to find the optimal combination of price and tenure of utility contracts for our clients.

Blue Ocean’s first step in our Energy Procurement service is always to identify our clients’ risk profile. Is it valuable for our client to have price certainty in the future? Or live with a floating price contract? The objective of establishing the risk profile is for our client to understand that there is a cost associated with a long-term fixed-price contract. A floating price contract carries greater price volatility but will typically offer a discounted price compared to long-term contracts.

Blue Ocean’s extensive experience in risk management allows us to simplify complex utility concepts, ensuring that our clients have a better understanding of utility contract options. Once a contract has been executed between our client and the utility provider, Blue Ocean will, for the tenure of the contract, monitor the utility invoices to ensure that our client is being invoiced correctly and in accordance with the contract.

Blue Ocean offers our energy procurement services to multiple clients, including:

Commercial Office Buildings, Medical facilities, Retail Shopping Centers, Restaurants, Hotels, Schools etc.

Hotel, Dallas, TX

As part of Blue Ocean’s Energy Procurement service, we found that this hotel was on a four-year, fixed-price contract that was some 2 cents/kWh above the current market price, approximately 20% above current prices Nobody at the hotel could explain how they ended up on a four-year, fixed-price contract. Blue Ocean was able to renegotiate the last two years of the contract and the retail electric provider converted the contract to a three-year floating price contract, saving our client $17,000 in the first year alone.

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Large Commercial Office Building, Houston, TX

Our client had signed a fixed-price contract with a Houston-based retail electric provider. As the client thought that his fixed-price contract also included the fixed-price of demand charges, he started all of the HVAC units in the building simultaneously. Blue Ocean was able to renegotiate to convert the contract to a floating-price contract and we assisted the client in changing the HVAC start-up schedule, resulting in a 25% reduction in demand charges.

Commercial Building, Houston, TX

Blue Ocean was hired by a high-profile commercial building in Houston to resolve issues with its retail electric provider over a dispute regarding power factor charges. Our client was engaged in stalled negotiations with the Transmission Distribution Service Provider (TDSP). Blue Ocean represented our client in negotiations with the TDSP to resolve the issue, resulting in a substantial refund for our client.

Want to see how we can help you?

Utility Invoice Audit

Utility Invoice Audit

Utility Invoice Audit and Monitoring

Electricity providers continue to add complexity to their billing structure to add surcharges for Peak Demand, Power Factor, Ratchet Rule and other services. Be smart about energy and make sure that your business doesn’t pay for services you do not use or receive. Call us today about a utility audit!

Utility invoices are becoming more complex as electricity providers continue to add charges for items such as Peak Demand, Power Factor, Ratchet Rule, etc.

Our utility invoice audit could save you money! In addition, the utility rate structure and various local, city, and state charges can be confusing to many utility customers.

Frequently there are mistakes on utility invoices. On average, one out of four Blue Ocean clients are found to have utility invoice issues upon review.

Blue Ocean analyzes our clients’ past and current utility invoices and checks for inaccuracies in billing during audits. We also offer a monthly auditing service where we analyze the bill right when it is issued and track benchmarking scores.

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utility invoice audit

Our Utility Invoice Audit Service

Blue Ocean offers utility invoice auditing as a basic service with our Compliance Audit all the way up to our Comprehensive Energy Audit. We also offer a monthly audit service where Blue Ocean generates a summary report indicating any issues with the utility bill and how benchmarking scores are progressing.

Blue Ocean’s utility invoice audit monthly service includes the following:

  1. Utility rate verification
  2. Historical energy consumption analysis
  3. Electricity “Demand” (kW) analysis
  4. Power Factor analysis
  5. Load Factor
  6. Benchmarking scores trend analysis

Blue Ocean offers this Utility Invoice Audit service to multiple clients to help monitor invoice errors and line items, consumption and cost, new rates, energy ratings etc.

 

Common Utility Invoice Errors:

  1. Error in invoice calculation
  2. Incorrect rates utilized
  3. Invoice sent for closed account
  4. Old meters still incurring charges
  5. Demand reset not functioning
  6. Duplicate line item charges
  7. Incorrect meter reading
  8. Account credits not adjusted
  9. Invoice billing period overlaps with previous bill
  10. In deregulated markets, supplier contract overlap
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Office Building, Austin, TX

Upon review of this clients’ invoices, we found that the measured quantity of Peak Demand (kW) had been the same for six consecutive months. Blue Ocean contacted the utility and it was confirmed that the peak demand reset function had not taken place. The client received a sizable refund.

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Shopping Center, Dallas, TX

Upon this client’s utility invoice review, Blue Ocean discovered that three old and discontinued meters were still being charged customer service charges. Blue Ocean was able to obtain a refund for 12 months of customer service charges for the three meters.

Office Building, Austin, TX

This client’s facility had recently had a change of ownership. The new owners (Blue Ocean’s client) were inexplicably put on the wrong utility structure by the local utility, resulting in our client being overcharged. Blue Ocean got the rate issue corrected and the client received a full refund for the overbilling.