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Energy Management

Four reasons for St. Louis area businesses to become energy efficient.

By Mike Alesandrini

Historically, pundits have extolled the cost savings virtues of energy efficiency and conservation programs on an institutional basis: i.e. retrofit lighting fixtures and bulbs and your company will realize a 30 percent annual reduction in lighting cost with about a two-year payback (hypothetical). Though seemingly compelling, the collective business community has responded only modestly in terms of implementation of such programs.


While cost savings of that magnitude continue to head the pack of reasons to become more energy conscious, there are a number of other reasons specific to the St. Louis region that may compel business owners to reconsider such programs. Those reasons include:

• Operational challenges associated with utility deregulation
• Increasing burden of environmental regulation—direct and indirect costs
• Opportunity to increase worker productivity and job satisfaction

Utility Deregulation

Illinois has already approved a utility deregulation initiative that will become effective over the next two years, statewide. The General Assembly is still contemplating the possibility of deregulation in Missouri. The term “deregulation” refers to the “unbundling” of utility services in such a fashion that consumers will have greater choice, and responsibility, for managing utility use.

As an example, with “deregulation” of the telephone industry, consumers are faced with making choices based on use patterns (i.e. local/long distance, peak/off-peak service tendencies). Understanding of individual use patterns affects the service provider choices made. Similar choices will be necessitated if and/or when utility “deregulation” becomes a reality for area businesses.

Environmental regulation

By now, most St. Louisans are familiar with the new automobile emissions testing program (required on both sides of the Mississippi) as well as the new cleaner burning gasoline program at filling stations in Missouri. These programs were necessitated because of the Clean Air Act, a Congressional mandate to achieve EPA prescribed air quality standards. What many St. Louisans might not be familiar with is upcoming regulation that requires utility companies and some large industrial operations to further cut back on pollution related to the generation of electricity.

It is important that, as a region, we meet the pollution guidelines prescribed by the EPA in order that we not become subject to more stringent requirements. Such regulation would tend to constrain growth in the region and increase the cost of doing business here. Energy conservation and efficiency programs contribute to the region’s ability to meet those EPA regulations.


Productivity and Job Satisfaction

Management of lighting and air conditioning systems in a workplace can prove to be the simplest and most effective of energy efficiency strategies. Such manipulations can also be of great value in improving the work environment for employees by making them more comfortable and productive. At a time when quality labor is difficult to attract and retain, energy efficient-related workplace management, in addition to the inherent cost benefits, does offer an employer some degree of competitive advantage.

“There is good value in conducting a simple energy audit at your facility,” notes John Hoag, principal of Hoag Associates—Architecture and Planning. “This low-cost measure and subsequent lighting retrofit, as a practical first step, can give you a basic understanding of your energy situation, while positively affecting your energy costs and improving the quality of your work environment—possibly even improving the performance of your air conditioning system by reducing the heat output from your lights.”

Energy management is becoming increasingly difficult to ignore. The St. Louis regional business community is impacted—directly by energy costs and indirectly by operational issues related to utility deregulation, environmental regulation and maintenance of a finite labor pool. There is economic advantage to businesses, both individually and collectively, to actively engage in energy management programs. For more information, contact Mike Alesandrini, director, Environmental Affairs at the St. Louis RCGA, 314/ 444-1144 or e-mail drini@stlrcga.org.

 

 

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