Background, methodology and value of Cenergistic, LLC

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Presentation to EnergyCAP
Catalyst Training Conference
Mike Gullatt
Senior Vice President, Operations

2. Confidential and Proprietary | © 2016 Cenergistic LLC
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Cenergistic Background
• Specializes in creating energy conservation culture
through proven organizational behavior changes
• 30 years of organizational behavior data
– More than 1,390+ organizations
– More than 22,000 commercial buildings
– 48 states
• Focusing on all utilities
(electric, gas, fuel oil, propane, water, etc.)
• The average is a 26% reduction in consumption across all
organizations
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3. Confidential and Proprietary | © 2016 Cenergistic LLC
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Cenergistic Background
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4. Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
To 1990 1995 2000 2005 2010 2014
$7,018,265
$158,657,590 $496,866,460
$1,138,404,869
$2,492,731,973
$4,057,267,356
Company History
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1982
Dr. William S. Spears elected to Wichita Falls, Texas School
Board, develops district energy conservation program, receives
Energy Innovation Award from the State of Texas and the U.S.
Department of Energy for energy conservation success through
organizational and behavioral change
1986
Energy Education, Inc. founded
1990s
Energy Education experiences controlled
growth as the energy program is further
refined
2009
1,000th client
2000s
Company growth rate increases
in core market (K12)
2006
Energy Education expands to
Megachurch market
2013
Energy Education rebrands as Cenergistic
2007
Energy Education enters
University and Hospital
markets, signing Oklahoma
State University and OSU
Medical Center
2008
Energy Education expands to Community
College and Healthcare markets with
Grand Rapids Community College and
Cooper Clinic
Cumulative Client Savings
22,000+ buildings —
managing $1 Billion+
in annual utility expense
2014
Cenergistic signs largest client to date:
Fairfax County Public Schools, VA
nation’s 11th largest school district
2015
Cenergistic accepts venture capital
firm KPCB as minority partner

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Cenergistic and ENERGY STAR
Cenergistic’s 1,390+ clients have collectively received more than 7,300
ENERGY STAR® recognitions for school districts, higher education,
church and health care.
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Energy Use & Importance of
Conservation
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7. Confidential and Proprietary | © 2016 Cenergistic LLC
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National Energy Consumption
According to U.S. Energy Information Administration and ENERGY
STAR®:
• In 2013, 97.5 quadrillion BTUs of energy were consumed in the U.S.
• Commercial buildings use 19% of that energy consumption nationally
• 30% of energy in buildings is used inefficiently or unnecessarily
• Just a 10% improvement in energy efficiency = $20 billion savings
• The reduced greenhouse gasses from this is equivalent to the
emissions from 30 million vehicles
Overview, 1949–2013
QuadrillionBTU
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Behavioral Energy Conservation: McKinsey
According to McKinsey Consulting:
• Overall, the United States of America has the potential
to reduce energy demand by 23% by
focusing on efficiency
• Schools and commercial
buildings can produce most of
their energy savings through
behavioral and low cost
energy efficiency items
• Energy is the second-largest
expense line item for schools
& higher education
Sources: http://www.mckinsey.com/client_service/electric_power_and_natural_gas/latest_thinking/unlocking_energy_efficiency_in_the_us_economy
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9. Confidential and Proprietary | © 2016 Cenergistic LLC
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Importance of Saving Energy
• Awareness of energy use = better building management & comfort
– Improved performance
– Staff retention
– Reduced insurance and risk related cost
– Fewer respiratory illnesses resulting in improved workplace,
educational quality
• Conserve natural resources — sustainability is important to
students, companies, communities
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10. Confidential and Proprietary | © 2016 Cenergistic LLC
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Importance of Saving Energy
• Energy is the 2nd largest expense line item for most organizations
– Utility prices will increase … driven by environmental regulation,
smart meters, time of use pricing, etc.; Hedge inflation
• Save Money!!
– Why send a big check to the utility every month when 20% – 30% of
that could be retained to use in your organization’s mission
– Money generated through utility budget savings could be redirected
towards the purchase of more efficient equipment .....
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Energy Cost Savings Options
By Wayne C. Turner, Ph.D., CEM · Author of Energy Management Handbook, Eighth Edition, Lilburn, GA: The Fairmont Press, Inc., 2012
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12. Confidential and Proprietary | © 2016 Cenergistic LLC
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Energy Cost Savings Options
SAVING ENERGY = SAVING MONEY
20 – 30% of your utility bill can be retained in your organization
SAVING ENERGY = ENVIRONMENTAL PROTECTION
Improved indoor air quality and temperature control results in a
more comfortable environment
SAVING ENERGY = CONSERVATION
Money generated through utility budget savings can be redirected
toward the purchase of more efficient equipment for further
savings
SAVING ENERGY = SAVING STAFF AND PROGRAMS
By Wayne C. Turner, Ph.D., CEM · Author of Energy Management Handbook, Eighth Edition, Lilburn, GA: The Fairmont Press, Inc., 2012
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13. Confidential and Proprietary | © 2016 Cenergistic LLC
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The Energy Pyramid
No person would ever consider building a pyramid with the peak first. Rather, a pyramid
is built base first and then layers are added. Likewise, no one should install a renewable
energy project without first implementing programs for energy conservation, energy
efficiency, and energy demand.
TIER 4 — RENEWABLE ENERGY
Last to be implemented. When the system
is modified to use energy efficiently, less
renewable energy is needed.
TIER 3 — ENERGY DEMAND & PROCUREMENT
Shifting energy usage when possible to
periods with less demand on distribution
TIER 2 — ENERGY EFFICIENCY
Purchasing and installing efficient
equipment and processes
TIER 1 — ENERGY CONSERVATION
First implemented. Largely based on
behavioral/operational practices.
Best return on investment.
Dr.DennisBuffington,P.E.,CEM,CBE·DepartmentofAgriculturaland
BiologicalEngineering,PennsylvaniaStateUniversity
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Looking Ahead with Cenergistic
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Client Support Process
Our Vision
Maximize client savings quickly
by engaging an organization’s people
to apply our process, engineering
and operational expertise,
to drive energy use reductions.
Goals
• Performance measured against savings projections
• Faster ramp to client program’s entitlement
• Continuous improvement drives sustained change
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Implementation Methodology
Expertise
• Program Managers
• Engineers & Analysts
• Center of Excellence
• Training Programs
Technology
• Command Center
• Building Simulation
• Smart Meter Interface
• Equipment Diagnostics
Analytics
• EnergyCAP®
• Opti-Commissioning
• Data Logging
• Remote Verification
Energy Specialist(s)
• Embedded Support Staff
• Boots on the Ground
• Face of the Program
Changed habits, behavior, operations and culture
$$$: Electricity, Gas & Water Consumption Reduced 20 – 30%
implemented through
yields
RESULT
Cenergistic — 30 years of process and innovation
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EnergyCAP®: Performance Monitoring & Reporting
• EnergyCAP, the world’s leading energy accounting software,
compares actual use to pre-program use.
• EnergyCAP measures savings accurately &
transparently
Energy accounting and valuation
Adheres to industry standard (IPMVP)
Independent third party software
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Public Relations Success
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Expanding Marketing Verticals
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Final Thought
“At the end of the day, the decision to move
forward with the Cenergistic program was
simple. For our organization, our
community…it was the right thing to do.”