Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Presentation to EnergyCAP
Catalyst Training Conference
Mike Gullatt
Senior Vice President, Operations
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
2
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Cenergistic Background
3
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
4
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
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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.
5
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Energy Use & Importance of
Conservation
6
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
7
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
8
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
9
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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 .....
10
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
11
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
12
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
13
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Looking Ahead with Cenergistic
14
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
15
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
16
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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
17
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Public Relations Success
18
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
Expanding Marketing Verticals
19
Confidential and Proprietary | © 2016 Cenergistic LLC
This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic.
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.”

Catalyst 2016: Introduction to Cenergistic

  • 1.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Presentation to EnergyCAP Catalyst Training Conference Mike Gullatt Senior Vice President, Operations
  • 2.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 2
  • 3.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Cenergistic Background 3
  • 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 4 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
  • 5.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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. 5
  • 6.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Energy Use & Importance of Conservation 6
  • 7.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 7
  • 8.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 8
  • 9.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 9
  • 10.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 ..... 10
  • 11.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 11
  • 12.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 12
  • 13.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 13
  • 14.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Looking Ahead with Cenergistic 14
  • 15.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 15
  • 16.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 16
  • 17.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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 17
  • 18.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Public Relations Success 18
  • 19.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. Expanding Marketing Verticals 19
  • 20.
    Confidential and Proprietary| © 2016 Cenergistic LLC This material may not be copied, modified, distributed or disclosed except upon written approval from Cenergistic. 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.”