1. ENERGY EFFICIENCY:
Risks and Opportunities for
Your Business and Your Career
Christopher Russell,
Principal
Energy PathFINDER .com
(443) 636-7746

2. Or…
If energy efficiency were a rock,
would you prefer to roll it
UPHILL
or
DOWNHILL?
2©2013 Energy PathFINDER.com

3. About Christopher Russell, C.E.M., C.R.M.
 Independent consulting since 2006
Principal, Energy Pathfinder
 Visiting Fellow, American Council for an
Energy Efficient Economy, 2012+
 Energy Manager, Howard County, MD, 2010-
2012
 Director of Industrial Programs, Alliance to
Save Energy, 1999-2006
 Comm. & Indus. Program Manager, American
Gas Association, 1995-1999
 MBA, M.A., University of MD;
B.A., McGill University
3©2013 Energy PathFINDER.com
About Christopher Russell

4. TODAY’S PURPOSE:
Reveal the
RATIONALE
STRATEGY
ORGANIZATION
COMMUNICATION
& PHILOSOPHY
…of industrial energy management
as it applies to career and business development
4©2013 Energy PathFINDER.com

5. ENERGY IS ALWAYS IN MOTION.
Energy that doesn’t create wealth destroys it.
WEALTH
DESTROYED
HEAT, FRICTION, &
CHEMICAL REACTIONS
DESTROY PLANT & EQUIPMENT,
CREATE LIABILITIES
WEALTH
CREATED
TRANSFORMATION
OF INPUTS INTO
FINAL PRODUCTSHEAT,
PRESSURE,
& MOTIVE
POWER
FUGITIVE ENERGY
COMMITTED ENERGY
FUEL &
ELECTRICITY
Technical Rationale for Energy Management
5©2011 Energy PathFINDER.com

6. EXPENSES,
INTEREST,
OR
INFLATION
CAPITAL IS ALWAYS IN MOTION
ECONOMY
(opportunity)
PLACE
OF LOW
RETURNS
PLACE
OF HIGH
RETURNS
CAPITAL IS NEVER AT REST
6©2013 Energy PathFINDER.com

7. THE INDUSTRIAL FACILITY
IS A MICRO ECONOMY
FACILITY
(opportunity)
WEALTH
INPUTS
WEALTH
CREATED
EXPENSES,
INTEREST,
OR
INFLATION
Who will get superior returns from your facility assets?
YOUR BUSINESS or the UTILITY COMPANY?
7©2013 Energy PathFINDER.com

8. (c)2009 Energy Pathfinder Mangement
Consulting, LLC
www.energypathfinder.com
8
MONEYMONEY
FUEL &
ELECTRICITY
HEAT, PRESSURE
& MOTIVE POWER
PRODUCTS
TO SELL
BUSINESS RATIONALE FOR ENERGY MANAGEMENT
WE TRACK MONEY.
WHY NOT ENERGY?
8©2011 Energy PathFINDER.com

9. STRATEGY
UP HILL:
Proclaim “reduced
utility bills” as your
purpose.
DOWN HILL:
Proclaim a vision for supporting core
business goals through strategic
energy management.
9©2013 Energy PathFINDER.com

10. STRATEGY
UP HILL:
Approach energy
management as a
project.
DOWN HILL:
Approach energy
solutions as an
investment.
10©2013 Energy PathFINDER.com

11. STRATEGY
UP HILL:
Use an ENERGY AUDIT
to determine a list of
projects.
DOWN HILL:
Develop BUSINESS PLAN that
provides a roadmap to business
results.
11©2013 Energy PathFINDER.com

12. STRATEGY
UP HILL:
Evaluate proposed
efforts for their
cost to do.
DOWN HILL:
Evaluate proposals…
• for impact on overall invested capital performance
• in comparison to the cost of doing nothing
12©2013 Energy PathFINDER.com

13. PURSUING ECONOMIC OPPORTUNITY
1. Benchmark current capital performance
2. Perceive opportunities for superior performance
3. Estimate investment risk/return
4. Reinvest capital
5. Continuous improvement. See Step 1.
For the ECONOMY…
For the FACILITY…
DYNAMICS ARE THE SAME
13©2013 Energy PathFINDER.com

14. ORGANIZATION UP HILL:
Delegate all energy
matters to a single
department (silo).
DOWN HILL:
Organize leadership
and skills in cross-
departmental teams.
14©2013 Energy PathFINDER.com

15. ORGANIZATION
UP HILL:
Allocate budget, skills, and
time commensurate with
energy’s proportion to
total expenses.
DOWN HILL:
Fund efficiency efforts
proportionately to the
magnitude and speed of
cash flow that it creates.
15©2013 Energy PathFINDER.com

16. COMMUNICATIONS
UP HILL:
Assume everyone
already knows what
you’re talking about.
DOWN HILL:
Manage expectations
through education.
16©2013 Energy PathFINDER.com

17. ENERGY COST CONTROL
What Your Business Leaders Should Know
• PRICE MANAGEMENT & PROCUREMENT
• BEHAVIOR
– Education & awareness
– Make good choices with current assets
• O&M PROCEDURAL
– Optimize current assets
– Leak & loss repair, PM routines
• CAPITAL EXPENDITURE
– Replace & upgrade
– Invest in new technology
©2013 Energy PathFINDER.com 17

18. 1-2
YEARS
2-5
YEARS
5+
YEARS
PRICE/PROCUREMENT
AWARENESS & BEHAVIOR
O&M/PROCEDURAL
CAPITAL INVESTMENT
SAVINGS POTENTIAL OVER TIME*
*Author’s Summary of Industry Knowledge
18©2013 Energy PathFINDER.com

19. COMMUNICATIONS
UP HILL:
Address mechanical
performance. Explain
everything in techno-
speak. Describe results
as energy saved.
DOWN HILL:
Address capital
performance. Articulate
outcomes and rewards as
they accrue to the agendas
of other departments.
19©2013 Energy PathFINDER.com

20. Ask not how much energy
management shall take from
current resources.
20©2013 Energy PathFINDER.com
Ask how much (and at what rate) energy
management shall create new wealth.

21. COMMUNICATIONS
UP HILL:
Execute without
informing, persuading
or collaborating.
DOWN HILL:
Declare amnesty for
past practices; seek,
encourage, and
reward compliance.
21©2013 Energy PathFINDER.com

22. COMMUNICATIONS
UP HILL:
Perceive energy
management as a
distraction from
standard operating
procedures
DOWN HILL:
Fold energy
performance criteria
into existing business
metrics and
accountabilities
22©2013 Energy PathFINDER.com

23. COMMUNICATIONS
UP HILL:
Use simple payback.
Results describe HOW
LONG it takes for a
budget to replenish
itself.
DOWN HILL:
Use rates of return.
Describe the RATE
and MAGNITUDE of
capital:
(1) Created via your
agenda , or
(2) Destroyed through
inaction
23©2013 Energy PathFINDER.com

24. You should not have to defend
superior rates and magnitudes of
investment returns.
24©2013 Energy PathFINDER.com
Detractors need to defend the rate and
magnitude of capital destruction caused
by DOING NOTHING.
DEFENDING ENERGY
MANAGEMENT?

25. PHILOSOPHY UP HILL:
Confuse energy
efficiency with
environmentalism.
DOWN HILL:
Perceive energy
improvements as
business
opportunities.
25©2013 Energy PathFINDER.com

26. PHILOSOPHY
UP HILL:
Perceive energy
management as a cost
center. Facility assets
are a cost to be
minimized..
Success = no unusual
expenses; don’t get
noticed.
DOWN HILL:
Energy management
= profit center.
Success = creating
cash, improving
return on invested
capital, get noticed
for supporting other
departmental
agendas
26©2013 Energy PathFINDER.com

27. “Yeah, but…”
UP HILL:
Keep pushing the
same buttons… and
keep getting the same
results.
DOWN HILL:
Apply some of the ideas from
this presentation.
27©2013 Energy PathFINDER.com

28. YOUR FACILITY…
CAN BE AN ATM MACHINE.
28©2013 Energy PathFINDER.com

29. CONCLUSIONS
• Demystify
• Don’t save… CREATE!
• Monetize
• Collaborate
• Document and celebrate
29©2013 Energy PathFINDER.com

30. YOU-TUBE: search “Energy Pathfinder Investment Calculator”
Energy PathFINDER .com
Christopher Russell
@ENERGYpathfndr
Feb 2008 June 2010
THANK
YOU!