WOW! Energy Consulting
Every so often, a unique challenge presents itself and there is no answer in the “box”. EnergyWatch WOW! energy consulting prides itself on coloring outside the lines to create innovative solutions to challenges that others might not even know existed. For instance:
Barge Power vs. The Public Utility
A Fortune 500 company was planning to build a new waterfront headquarters. Seeking utility incentives as part of an economic development package, little was being offered. EnergyWatch proposed building a power plant on a barge to be located at the bulkhead of the property line. This would have meant that the local utility would not have this Fortune 500 Company as a customer, and the State would have been deprived of significant tax revenue. The proposed plant was presented to the State and the local utility as a feasible alternative to purchasing power from the utility. The client agreed not to move ahead with the barge plant and received an additional $4 million in guaranteed economic development funding.
A global financial services firm was eligible for two incentive programs, each from a different government agency, but would not be allowed to receive the benefits of both programs together. EnergyWatch determined which program would render the greatest savings — an average of $3 million per year initially – and assisted the client in entering into that program. We also ensured through upfront negotiations (and consistent follow up thereafter) with the other agency that the client’s right to the alternative incentive program would be grandfathered. After the client entered into the incentive program, EnergyWatch tracked the savings. After several years, we saw that the initial level of savings had begun to deteriorate. By monitoring the market and communicating with the agencies managing the programs, EnergyWatch was able to advise the client as to the optimal timing to switch programs and to assist with the transition. The client saved an additional $1.3 million per year.
$3 MILLION DISCOVERY
While managing what seemed to be a typical energy procurement assignment, EnergyWatch’s analysts noted that the energy price quotes were higher than that for similar properties. Rather than accept higher than anticipated energy prices, EnergyWatch’s team commenced an investigation into the possible causes.
Operations at the facility were in line with expectations, and there was no equipment that was causing the discrepancy. The utility meter, appeared to be working properly, but we discovered that the meter multiplier had been incorrectly set when the meter was initialized. Through high level negotiation with the Utility, we secured a $3million refund for our client, who also benefitted from $250,000 in annual savings going forward.
PROPERTY DUE DILIGENCE
When considering the purchase of a new building, many property owners focus on energy cost reductions. EnergyWatch also focuses on utility income recovery.
Prior to our client’s purchase of a new property, EnergyWatch identified unbilled tenant electricity. This resulted in the new ownership recovering $700K in retroactive revenue and $300K in increased annual utility revenue.
During a due diligence assignment, we identified that the utility billing for the property was unusually low. Further inspection revealed that there was a large unmetered service condition at the property that the new owner would have been liable for. An adjustment was made at closing to ensure that the old ownership would be liable for any retroactive billing subsequent to the date of sale.
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