Energy Market News

February 2008

[view January 2008]

www.FSGi.com

NATIONAL ENERGY MARKET NEWS…

 

1.      Sales of Compact Fluorescent Lights Jump to 20% of the Market - The sales of Energy Star-qualified CFLs nearly doubled last year, according to the estimates of the Environmental Protection Agency (EPA). In 2007, 290 million CFLs were sold, and the energy-saving bulbs now account for about 20% of the light bulb market in the United States. The sale of CFLs has been on the rise since 2006, when their market share jumped from 5% to almost 11%. Energy Star retail partners such as Wal-Mart, Lowes, Home Depot, Costco, Menards, Ace Hardware, and Sam's Club have played an important role in educating consumers about the importance of saving energy and the value of these products. DOE and EPA also worked to promote the sales of CFLs throughout 2007 with their "Change a Light, Change the World" campaign, which encourages people across the United States to sign a pledge to change at least one bulb in their house to an Energy Star-qualified CFL. The campaign has gathered over 1 million pledges so far.  01/22 EERE

 

2.      Light-Bulb Revolt: Incandescent Fans Rise Up - Banning light bulbs certainly can heat up controversy.  Ah, but the United States isn't really banning incandescent bulbs, as Australia recently did. All the major manufacturers—including General Electric, Osram Sylvania, and Philips—emphasize that, very much at their urging, Congress instead set new standards for greater efficiency in lighting. It doesn't matter what technology the light bulb makers use to get to reach the goals. The practical effect, indeed, will be to phase out most of the incandescent bulbs that we know. But in the coming years, you most likely will see manufacturers come out with next-generation, efficient incandescent bulbs. These may end up being a transitional technology that will not meet the standards in the later years of the phase-out, when light-emitting diodes become more economical, but manufacturers are confident these new standards are workable.  01/30 US News & World Report

 

3.      Wal-Mart Plans New Crop of Energy-Efficient Stores - The retailer is set to open four stores that use 25 percent less energy and reduce greenhouse gas emissions -- the first will open in Romeoville, Illinois on Jan. 23.  The new stores will incorporate what the company has learned from its first generation of high efficiency stores (HE.1) combined with new technologies, including white roofs, low-flow bathroom faucets, LED lights and an advanced daylight harvesting system, the company said.  01/17 HCN

 

4.      Wal-Mart to Carry Sustainable Cleaning Products - Wal-Mart Stores announced that it will be the first retail store to offer Green Works line of natural cleaning supplies by Clorox. The Green Works products are made from plant-based ingredients and are formulated to be biodegradable, non-allergenic and will be sold in recyclable bottles, the company said. The Clorox Green Works line will include an all-purpose cleaner, a glass and surface cleaner, a toilet bowl cleaner, a dilutable cleaner and a bathroom cleaner. Wal-Mart has already led multiple green initiatives, including surpassing its goal of selling more than 100 million CFL bulbs by the end of 2007, a goal they met by early October of last year.  01/16 HCN

 

5.      Poll: Oil to Average $81 This Year Despite Economy - Oil will climb to a record average above $81 this year, a Reuters poll showed on Friday, as analysts believe strong Chinese and Middle East demand will offset any slowdown from top energy consumer the United States. The monthly survey of 33 analysts put the consensus forecast for U.S. crude futures in 2008 at an average of $81.33 a barrel. The average price for oil last year was $72.30. 01/25 MoneyNews

6.      Lighting for Tomorrow Announces 2008 Competition - The 2008 Lighting for Tomorrow competition will recognize excellence in design of energy-efficient residential lighting fixtures, both for new products and for innovative technologies. The competition is organized by the American Lighting Association, the U.S. Department of Energy, and the Consortium for Energy Efficiency. This year, Lighting for Tomorrow will invite SSL entries in three categories: 1) fixtures meeting the new ENERGY STAR for SSL requirements, 2) other decorative fixture types such as chandeliers, sconces, and table lamps using LEDs with device efficacy of at least 50 lm/W, and 3) a new “Future LED” category inviting luminaires using the world's highest efficiency LEDs, with device efficacy of 90 lm/W. The deadline for entries is April 30, 2008, and winners will be announced at the ALA Conference in September. More information and 2008 Competition Guidelines are available on the Lighting for Tomorrow website at: http://www.lightingfortomorrow.com/2008/index.shtml.

 

7.      Energy Law Will Alter American Households - From light bulbs to clothes washers, the energy law passed by Congress and signed by President Bush in December will change many of the appliances in the average American home. The law effectively phases out the manufacture of traditional incandescent bulbs by the middle of the next decade. It does this by setting efficiency standards that traditional incandescent bulbs can't meet. Starting in 2012, for example, a bulb that gives off the light a 100-watt incandescent does today can only use 72 watts of energy. Hoping to prolong the life of incandescent bulbs, General Electric says it is working on a more efficient version that will be for sale by then. But in the long term, it will be hard to compete with compact fluorescent bulbs, which use only a third or less of the energy of existing incandescents. In 2020, the standards get even tougher and would be met only by compact fluorescent bulbs or light emitting diodes. 01/27 Pittsburgh Tribune

 

8.      New Publication Provides Energy Efficiency Guidance for K-12 Schools - A full 16 percent of schools districts’ controllable costs is spent on energy. A new publication written specifically for K-12 school buildings will aid design teams in constructing energy-smart schools using off-the-shelf technology that can cut energy use 30 percent or more annually. The Advanced Energy Design Guide for K-12 School Buildings, published by the ASHRA Engineers, instructs architects, engineers and others on building design teams how to use best design practices to create energy-saving buildings. Written in partnership with the American Institute of Architects, the Illuminating Engineering Society of North America, the U.S. Green Building Council and the U.S. Department of Energy, the book is available for free in electronic form at www.ashrae.org/freeaedg

 

9.      U.S. Lighting Market Leader? - A Dec. 24 Business Week write-up on Philips notes that: “General Electric...has spent millions to bolster its own environmental credentials in a high-profile campaign...But it hasn’t matched the billions of dollars Philips has spent on LEDs and other energy-efficient systems. This year alone, Philips has paid $4.2 billion to acquire five companies in the lighting sector...as a result, Philips has vaulted past GE as the leading supplier of lights and fixtures in the all-important U.S. market. Over the next 10 years, as much of the world makes the transition to LED lights, Philips’ lead over GE is expected to grow.”  01/16 TED

 

10.  Lowe’s Recalls Torchiere Lamps - Lowe’s, in cooperation with The U.S. Consumer Product Safety Commission announced a voluntary recall of LG Portfolio Incandescent Torchiere Lamps.  The approximately 90,000 units were sold exclusively at Lowe’s stores for $17. According to the CPSC report, a short circuit in the lamps’ wiring can pose a fire hazard to consumers. LG Sourcing has received two reports of lamp fires. No injuries have been reported.  01/11 HCN

11.  Photosensors - The National Lighting Product Information Program now offers a (free) new report on photosensors, aimed at specifiers. It updates a report originally published in 1998.  Photosensor technology has advanced significantly since that report was published. The new report presents the findings of testing conducted by NLPIP on the latest photosensor products and provides information to assist in the selection, setup, and general understanding of photosensors. It includes datasheets on each photosensor product tested and discussed by NLPIP. A growing desire to create sustainable buildings has led to the current trend in building design of increasing emphasis on daylit spaces that use lighting controls to reduce electrical energy needs.                                     http://www.lrc.rpi.edu/programs/NLPIP/PDF/VIEW/SR_Photosensors.pdf

 

12.  header.gifNAESCO Federal Market Workshop, March 10, 2008, Pepco Building, 701 Ninth Street, NW, Washington, DC 20068 - Reinvigorating the Pursuit of Energy Efficiency at Federal Buildings: A Report from the Trenches.  Who Should Attend?  Federal Energy and Facilities Managers, Federal Contracting and Procurement Officers, Federal Energy Program Managers, Federal Energy Policy Officials, ESCO Representatives, Utility Energy Efficiency Program Managers, Vendors active in the ESPC and UESC markets. https://www.naesco.org/conference/registration

 

13.  Lutron Working Display Model Shows True Energy Savings in Digital Form  - Lutron Electronics Co., Inc. has introduced an educational energy savings display that digitally shows customers how much energy they are saving as they dim the lights in a room. Featuring a working Skylark dimmer and a room photo that shows the visual effects of the control, the display provides a digital readout of light level, percentage of energy saved, and how long the bulb life will be extended — all according to the user's manipulation of the dimmer. For more information: www.lutron.com/energy.

14.  CFL Recycling Program Launched - Manufacturer and marketer of energy efficient lighting products MaxLite announced the launch of a new recycling program specifically designed for CFLs and linear fluorescent lamps. MaxLite’s initiative offers these programs to both commercial and consumer customers, and makes recycling easy; place lamps in MaxLite’s Recycle Pack, seal the box and call for pick-up. The recycling programs are available for jobs requiring only a single box to those retrofit and relamping jobs requiring full truckloads. www.maxlite.com.

 

15.  Lighting and Commercial Energy Codes The Lighting Controls Association presents the latest addition to its online education system with EE203: Lighting & Commercial Energy Codes. Take this free, accredited course anytime 24/7 after a quick registration to learn about the lighting requirements of ASHRAE 90.1 (1999, 2001 and 2004) and IECC (2003 and 2006), with an additional module dedicated to common lighting controls requirements. Illustrated process maps are used to make these code standards easily comprehensible. Education credit available based on passing an online comprehension test at the end of the course. To register: http://www.aboutlightingcontrols.org/Education_Express/welcome.php

 

16.   President Bush Requests $1.255 Billion for EERE in FY 2009 - President Bush unveiled his proposed federal budget for fiscal year (FY) 2009 on Monday, including $25 billion for DOE. The budget requests $1.255 billion for the DOE Office of Energy Efficiency and Renewable Energy (EERE), which is essentially equal to the President's budget request for FY 2008 but about 18% lower than the actual FY 2008 funding. Compared to the FY 2008 appropriations, the proposed budget boosts funding for geothermal energy by 51% to provide for field demonstrations of enhanced geothermal systems technologies. The budget also provides a 13.5% funding increase for research and development relating to biomass and biorefinery systems, a similar funding increase for efficient building technologies, and nearly level funding for the Federal Energy Management Program, vehicle technologies, industrial technologies, and wind energy. 02/06 EERE

 

17.  Basics of Energy Management - AEE's new 24/7 Online Seminars offer students the opportunity to take high-quality professional courses and earn continuing education credits (CEU), without the need to travel or even be out of the office. When you register for a 24/7 online course, you'll receive a user name and password giving you access to course material online, as well as to the seminar test. For 30 days the seminar is available to you at your convenience - you can take the exam and, upon successful completion, print your own certificate of completion. All you need to participate is access to the Internet.  http://www.aeecenter.org/training/

Modules 1-2: Introduction to Energy Management and What is Energy and National Energy Use
Module 3: Basic Arithmetic and Calculator Skills
Module 4: Basic Algebra and Analytical Skills
Module 5: Energy Units and Energy Conversions
Module 6: Understanding Electrical Systems and Electrical Rates
Module 7: Economic Analysis and Economic Decisions
Module 8: Basic Technologies, Terminology and Units for Equipment End Use Categories - Lighting, Motors, Air Conditioning, and Boilers

 

18.  Performance Contracting & Advanced Lighting online seminars from AEE Instructed by leading experts in the energy field... Valerie Oviatt registrar@aeecenter.org

Pitfalls & Profits in
Performance Contracting

Advanced Lighting
Retrofit Options

An 8-Hour Distance Learning Seminar
Earns 0.8 CEU / 8 PDH
Presented in four live 2-hour online sessions
New Program Starts
February 25

An 8-Hour Distance Learning Seminar
Earns 0.8 CEU / 8 PDH
Presented in four live 2-hour online sessions
New Program Starts
March 3

19.   Globalcon Conference 2008 - http://www.globalconevent.com/ Presented by the Association of Energy Engineers, is designed specifically to facilitate those who need to get up to speed on the latest developments in the energy field, explore promising new technologies, compare energy supply options, and learn about innovative and cost-conscious project implementation strategies.

 

20.   LIGHTCongress is Back in Session - Termed as a "movement" by last year's attendees, the annual lighting symposium, LIGHTCongress, will be held April 22 at the Hotel Pennsylvania in New York.  LIGHTCongress selects panels comprised of leading thinkers to discuss the issues facing the industry in an open forum that fosters dialogue with the audience and media. This year’s panel topics will largely celebrate the Earth Day timing with green issues and technologies, but will also focus on the effects of light on human health and the psyche. Topics will also include daylighting, design and trends and new technologies.  Updates on panels, topics, and cost will be posted at www.lightcongress.com or email Jeff Johnston jeff@greystonepartners.net

 

21.  Cree to Acquire LED Lighting Fixtures, Inc. - in a cash and stock transaction valued at approximately $77 million, plus up to an additional $26.4 million over a three-year period. The acquisition will expand Cree's market opportunity by providing direct access to the lighting market. It will enable Cree to drive retrofit solutions to convert existing lighting infrastructure to energy-efficient lighting and to accelerate the adoption of LED lighting. With this acquisition, Cree's business will encompass LED chips, components and lighting solutions. LLF will be renamed Cree LED Lighting Solutions.  02/08 Prime Newswire

 

22.  Hubbell Acquires Kurt Versen - Hubbell Incorporated announced the acquisition of the Kurt Versen Company for approximately $100 million to strengthen it's position in the key spec-grade downlighting market segment.. Located in Westwood, NJ, Kurt Versen manufactures specification-grade lighting fixtures for a full range of office, commercial, retail, government, entertainment, hospitality and institution applications. The acquisition enhances Hubbell Lighting’s package, including such brands as Kim Lighting, Architectural Area Lighting, Alera Lighting, and Sportsliter Solutions.  01/’08 Electrical Contractor

23.  GE Joins the Green Grid for Data Centers - GE Consumer & Industrial has joined The Green Grid, a global consortium of more than 80 high — tech equipment companies, including American Power Conversion, Dell, Hewlett-Packard, IBM, Intel, Microsoft and Sun Microsystems that work together to develop meaningful operating standards, metrics and technologies to improve the energy efficiency and performance of data centers and computing ecosystems. www.thegreengrid.org.

24.  Buffett: 'I'm a Huge Bull on the American Economy - The investing legend said this week that he thinks the U.S. economy can fix itself soon enough, and without a federal stimulus plan. A recession is looming, but Buffett says the United States has overcome worse and come out ahead. As for the housing crunch, Buffett says he does not see a major credit problem ahead, or at least not enough to seriously damage the U.S. economy. "I went through 1982 when short-term money cost 21 percent. This is not a tough period.”  02/9 MoneyNews.com


STATE ENERGY MARKET NEWS…

 

1.      Like Father Like Son - RelightNJ www.relightnj.com was founded in November 2007 by high school students John Caddock and Matthew Erickson (Matt is the youngest son of Bernie Erickson, FSG/OK Electric, who is well known as the Energy Maven in the distribution business). They brought their ideas together to find a way to fight global warming on a local level. They have led and inspired others to take action in the fight as well.  RelightNJ’s mission is to inspire teens to take action in the fight against global warming while teaching the values of energy conservation and helping the less fortunate in hopes of creating a better earth.  Watch John and Matt on YOUR MORNING with Gwen Owens, on Comcast CN8: http://www.youtube.com/watch?v=_kL7eCJBuqE

 

2.      A Preview of the New NJ 2008 Energy Conservation Incentives - Speaker: Mona Mosser – Chief of the Bureau of Energy Efficiency, NJ Board of Public Utilities. In response to Governor Corzine’s goal of 20% by 2020, a number of new programs will be available in 2008 and improvements to existing programs will be launched.  Ms. Mosser will talk about how the 2008 conservation incentives and other initiatives are developing in conjunction with the NJ Energy Master Plan.  Date: Wednesday, February 20, 2008, 6 PM Social Hour (Cash Bar) 7 PM Dinner and Presentation at Sheraton, Woodbridge Place HotelNJAEE Logo.  Reservations Required.  E-mail Nick Stecky (nstecky@aol.com) regarding attendance confirmation. $35 check or cash at the door.

 

3.      Expansion of Energy Efficiency Programs for NY O&R’s Customers - The New York State Public Service Commission today approved a Joint Proposal of Staff of the Department of Public Service and the New York State Energy Research and Development Authority (NYSERDA) for the expansion of existing, cost-effective energy efficiency programs administered by NYSERDA in Orange and Rockland Utilities, Inc.’s (O&R) service territory. www.dps.state.ny.us

 

4.      Power Company Customers Charged for Light Bulbs - As part of a campaign to alert Maryland residents to the state's rising energy consumption and limited transmission capabilities, Greensburg, Pa.-based Allegheny Power recently mailed two compact fluorescent light bulbs to each of its customers, for which the firm is charging 99 cents a month for a year. The charge for the bulbs has angered many of the power company's customers and sparked legislative action by Delegate Kevin Kelly, who recently found out he was being charged $11.52 for the energy-efficient bulbs. The fee was hidden as a surcharge to his monthly bill, says Kelly. Todd Meyers, power company spokesperson, said that the company chose to mail the bulbs because customers had been slow to adopt new energy-saving technology. According to Meyers, Allegheny Power made no profit on the bulbs, charging what it cost to buy and mail them.  01/15 EC&M

 

5.      Dominion Web Site Now Features Energy-Savings Calculator - Dominion customers looking for ways to increase energy efficiency in their homes and businesses have a handy new tool at their disposal - an energy calculator installed on the company's Web site, www.dom.com, to help them find out how much energy they are using and explore ways to save energy and money. 02/06 PRNewswire

6.      Dominion Virginia Power Ready to Begin Energy Conservation Pilots - DVP is ready to begin nine conservation pilots that will test customers' acceptance of new energy-saving programs now that it has received approval to proceed from the Virginia State Corporation Commission.  Dominion will continue to offer energy-saving compact fluorescent light bulbs at discounted prices in 2008 and 2009. The discount program, offered in association with home improvement retailer The Home Depot through its numerous stores in Dominion's Virginia service area, has been a success, with 568,822 bulbs being sold in the fourth quarter of 2007. Because of the success in 2007, Dominion has increased the 2008 and 2009 CFL sales goal to 2.25 million each year, for a three year total of more than 5 million bulbs, up from an initial target of 1.4 million bulbs. 01/17 PRNewswire

 

7.      Energy Efficiency Plans OK'd in Illinois, Proposed in Missouri - Illinois regulators on Wednesday approved energy efficiency plans proposed by the state's biggest electric utilities to help their customers reduce energy use and lower their bills.  The utilities were required to develop efficiency programs by 2007 legislation that ordered $1 billion in rebates and refunds in the wake of skyrocketing electric bills.  The law requires Ameren Corp.'s Illinois utilities and Commonwealth Edison, which serves much of northern Illinois, to cut electricity demand by 0.2 percent a year through 2015 through efficiency and so-called demand response programs, which help customers reduce energy use during peak times.  The efficiency programs will include discounts on energy-efficient light bulbs and help replacing older, inefficient appliances. The utilities are allowed to recover some costs through a surcharge on bills. 02/07 St. Louis Post-Dispatch

 

8.      Austin Joins Growing Network of LED Cities to Promote and Deploy Energy-Efficient Lighting Technology - Austin Energy, the Nation's 10th Largest Community-Owned Electric Utility, Expands Rebate Program to Include LED Lighting. Cree, Inc. announced that the City of Austin today joined the LED City™ program www.ledcity.org. The LED City program is an international initiative to deploy and promote energy-efficient LED lighting. Austin joins Toronto, Raleigh, NC, and Ann Arbor, MI, in evaluating and deploying state-of-the-art LED lighting technology across their municipal infrastructures. 01/30 Prime Newswire

 

9.      CA Investment - $3.7 million in funding from the California Energy Commission’s Public Interest Research Program will go to development and demonstration of energy-efficient lighting technology, according to a report on lighting.com. The program is called “Lighting California’s Future,” with $1.2 million used “to match funds from lighting and daylighting manufacturers.”  01/16 TED

 

10.  Home Builder Group Voices Goal of ‘50 Percent Energy Reduction’ - A Northern California home builders’ group has begun lobbying for a new goal of reducing energy consumption of homes 50 percent by 2020. The Home Builders Association of Northern California represents around 100 builders, including KB Home, Pulte and Centex. Member builders will be required to achieve the reduction compared with 1990 energy consumption levels within 14 years. The builders group also announced its support for the adoption of green building standards created by the Berkeley, Calif.-based nonprofit group Build It Green http://www.builditgreen.org/  So far, 15 of the 101 cities and counties in the nine-county region have made Build It Green standards mandatory, according to the East Bay Business Times. 01/17 HCN

 


11.  11 Surprising Ways that Your Building Wastes Energy By Leah B. Garris - The T5 lamps and energy-efficient HVAC systems are in place, and the building-automation system is up and running. Now you can just sit back and watch the energy bills plummet ... right? Not so fast. If you really want to get serious about saving energy, there's still more you can do.  If you take a close-up look at your facilities, you'll discover that energy is being wasted in ways you didn't realize:

02/’08 Buildings

R     Leaving Electronics & Appliances Turned On 

R     Dirty Filters

R     Dripping Faucets

R     Unnecessary Vending-Machine Cooling And Lighting 

R     Cleaning At Night 

R     Dirty Windows And Skylights 

R     Not Optimizing Equipment Start-Up Time And Sequencing

R     Thermostats Mounted In The Wrong Locations

R     Exhaust Fans That Run All The Time 

R     Covering Up Vents, Grilles, Etc.

R     Incandescent Exit Signs                                                      

 

12.  Start Saving for That Grandkid’s College Education – Average cost with room and board today:

a.       Private College / University                               $42,000

b.      State College / University – Non-Resident         $25,000

c.       State College / University – Resident                 $18,000

 


MONTHLY ENERGY MARKET FEATURE…

 

 

WILL A GREEN BUILDING MAKE YOU SEE RED?

by Neil A. Stein, Esquire - 11/’07 Contractor Power

 

Theory

"Green Building" is a design and construction philosophy that promotes the use of environmentally sustainable material to create healthier, more efficient "high performance" structures, homes and communities. Currently more pervasive in the commercial and office building marketplace, proponents hope that the homebuilding industry will follow suit. Arguably green buildings represent sound investments despite a possible market disadvantage if higher design and construction costs are passed-through in the form of higher than market rents. Time will tell whether this disadvantage may be offset by savings in operating costs and government incentives such as tax credits and streamlined permit processing.

 

Standards

LEED (Leadership in Energy and Environmental Design) is a point based rating system developed by the Green Building Council that establishes a nongovernmental national standard for measuring Green Building. Points are given for green practices that implement LEED principals (for example using less energy and water, Brownfields redevelopment, using locally harvested materials, providing for daylight). Based upon total points, a building will receive a rating of Certified, Silver, Gold or Platinum. Over 20 states and 40 municipalities have adopted LEED standards.

 

Incentives

Voluntary incentives presently offered or being considered by government, include income tax credits, real property tax abatements, and direct grants or loans for Green Buildings. New York was the first state to pass green building legislation, which has been refined and modified by Maryland and Massachusetts. Pennsylvania is now considering adoption of similar incentives.

 

Potential Costs and Savings

Proponents suggest that Green Buildings reduce energy consumption and costs (significant at a time when electric rates are increasing); create local green building jobs within the construction sector; mitigate environmentally related health risks (including indoor air quality issues); improve work and learning environments; and, affirm our society's commitment to environmental conservation. Recent studies found that construction costs were not significantly higher, perhaps less than 2% of additional project cost and that operating costs were found to decrease by as much as 6% without government incentives.

 

Pros and Cons

Green Buildings are at the forefront of two big energy related issues, global warming and the nation's dependence on precarious supplies of foreign oil. This may help developers resolve any "moral" dilemma as to whether to adopt the Green Building approach.

Economically, some green building developers benefit from an enhanced reputation. Further, as some businesses respond to market demands to be environmentally conscious, and more governments seek Green Building space, Green Buildings could actually command premium rents. These rents, combined with government incentives, and lower operating costs, may mean a "win-win" for the environmentally conscious developer.