This book is dedicated to the front line manager of America's economic life blood: energy. It is designed to help owners and managers first assess their organization's energy conditions, and then determine the best outsourcing strategies for needed services. The author shares experiences drawn from over 25 years in the energy business and work in over 30 countries, and provides succinct case studies to expand on important points raised and to provide insight into their application. The final section takes into account recent events which have highlighted the unpredictable situation surrounding our energy supplies, as well as how to make the most of it.
Preface
Section 1. STRATEGIC PLANNING FOR REDICING COSTS
Introduction: Déjà vu All Over Again… and Again
The People Factor
People
Energy Policy
Master Plan
Energy Management
Thawing the "Frozen Middle"
Operations and Maintenance
Is Anybody Listening?
The E-Mail Deluge
Diluting Power
Are We Speaking the Same Language
Communications Strategies
Section II. SEEKING OUTSIDE RESOURCES
Introduction: The In-House—Out-House Dilemma
Questions to Ask a Consultant
The Investment Grade Audit
Why the Traditional Audit is No Longer Good Enough
What the IGA Offers
Questions to Pose
Information Rules
Critical Role of Information
Accounting for Energy Analysis
Computer-based Information Systems
Operations and Maintenance
Build or Buy
The Critical Role of M&V
The Case for M&V
M&V Guidance
M&V Options
Changes in the 2001 IPMVP Version
The M&V Plan
Measurement Devices
Commissioning and the M&V Fit
When M&V Just Isn’t Working
Section III. LINKING UP WITH AN ESCO
Introduction: The Growing ESCO Opportunity
Financing Options
The Owner’s Perspective
A Primer on Financing
Performance Contracting Financial Models
Creating Bankable Projects
Project Enhancement
Managing Risks
Performance Contracting: A Risk Analysis Framework
Risk Analysis Framework: Risk Categories
Managing Your Own Risks Makes Money
Keeping Risks in Perspective
Getting the "Right" ESCO
The Big Risk: Getting the Right ESCO
Weighting the Criteria
Putting It All Together
Getting Serious: Issuing the RFP
The Evaluation Process
What to Watch Out For
What ESCOs Are Looking For
By Thomas K. Dreessen
Sales Potential Risk
Sales Cycle Risk
Project Development Risk
Project Implementation
Project Performance
Contracts and Negotiations
Contract Elements
Contracts: Laying the Groundwork
Key Contract Considerations
The ESA: Section by Section
Negotiations
Section IV: BUYING POWER
Introduction: The New World of Mass Confusion and Opportunity
Sorting It Out
Knowing What you Are Buying—And How
Much It Really Costs
Fossil Fuels
Electricity
Distributed Energy Resources
Doing Something About It
What Energy Users Need to Know About Renewables
By Merwin Brown
Renewable Energy: Promise and Characteristics
The Current Market for Renewables
New Energy Products
Making the Most of Dereg
The Changing "Utility"
Growing Options
Things to Watch Out For
REFERENCES
APPENDICEIES
Appendix A, Costing Out Energy Work
Appendix B, M&V Options
Appendix C, ESCO Evaluation
INDEX
Biography
Shirley J Hansen (Consultant, Gig Harbor, Washington, USA) (Author)