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So	I	Have	an	Energy	Assessment.	
NOW	WHAT?	
Christopher	Russell	
Energy PathFINDER	
www.energypath鍖nder.com	
(443)	636-7746	
crussell@energypath鍖nder.com	
ENERGY	MANAGERS	WORKSHOP
In	preparing	for	ba-le,	I	have	
always	found	that	plans	are	
useless,	but	planning	is	
indispensable.		
--	Dwight	D.	Eisenhower	
1890	-	1969		
34th	President	of	the	United	States	
Commander,	Supreme	Headquarters,	Allied	ExpediKonary	Force	
	
2	
息2011	Energy PathFINDER
3	
About	Christopher	Russell,	C.E.M.,	C.R.M.	
n Independent	consulKng	since	2006	
Principal,	Energy	Path鍖nder	
	
n VisiKng	Fellow,	ACEEE,	2012	-		
	
n Energy	Manager,	Howard	County,	MD,	
2010-2012	
	
n Director	of	Industrial	Programs,	Alliance	to	
Save	Energy,	1999-2006	
	
n Comm.	&	Indus.	Program	Manager,	
American	Gas	AssociaKon,	1995-1999	
	
n MBA,	M.A.,	University	of	MD;		
B.A.,	McGill	University	
	
Published		
Feb	2008	
Published		
June	2010	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
息2011	Energy PathFINDER
The	Business-as-Usual	
ImplementaKon	Rates*	
4	
*	ImplementaKon	rates	are	percent	of	energy	volume	unless	(*)	percent	of	projects	
SOURCE:		C.	Russell,	North	American	Energy	Audit	Best	PracKces	
息2011	Energy PathFINDER		
0%	 20%	 40%	 60%	 80%	 100%	
PGE	(CA)	
TAMU	(TX)	
NYSERDA	(NY)	
BC	Hydro	(BC)	
Duke	Energy	(NC)	
Enbridge	Gas	(ON)	
SCMEP	(SC)	
XCEL	(MN)	
ETAC	(PA)	
NRCan
Can	We	Do	Beler	than	
Business-as-Usual?	
財Is	30-40%	implementaKon	okay?	
財How	can	we	improve	implementaKon	rates?	
財How	can	we	sustain	momentum:	
則 Aner	an	assessment	
則 Aner	the	low	hanging-fruit	is	gone	
財Energy	cost	control:		Are	we	implemenKng	
projects,	or	sustained	processes?	
5	
息2011	Energy PathFINDER
Most	Energy	Audits	End	up		
CollecKng	Dust	on	a	Shelf:		WHY?	
	
≒ Lack	of	a	clear	agenda:	
Lack	of	focus	within	scope.		To	what	end:	Savings?	
ProducKvity?	Accuracy?		No	clear	ownership	of	the	results			
≒ Failure	to	prepare	sta鍖	for	the	idea	of	an	energy	audit	
Is	this	a	witch	hunt,	or	what?		Will	the	results	embarrass	me?	
≒ A	dense,	technical	document	that	only	an	engineer	could	
understand	
≒ Lack	of	exit	discussion	with	key	managers:			
 Discuss	鍖ndings,	weed	out	opKons	with	poliKcal	issues	
 Link	the	鍖ndings	with	other	business	prioriKes:	Whats	in	it	for	YOU.		
6	
息2011	Energy PathFINDER
Post-Audit	Issues	
財Which	projects	do	we	start	with?	
財How	do	we	compete	for	capital	dollars?	
財Which	department	pays?	
財Which	department	implements?	
財Which	department	books	the	savings?	
財Veri鍖caKon?			
財IncenKves?	
7	
息2011	Energy PathFINDER
About	Energy	Decision-Making	
NOTICES HIGH ENERGY COSTS 端
EVALUATES OPPORTUNITIES 端
PROPOSES SOLUTION 端
POSES POTENTIAL VETO n.a.
PAYS TO IMPLEMENT 端
IMPLEMENTS 端
MAINTAINS 端
RECEIVES BENEFIT 端
端 端 端
端 端
端
端 端 端 n.a. 端 端
端
端 端
端 端
端 端 端
HOME-
OWNER
TYPICAL ORGANIZATION
端
端= STRONG INVOLVEMENT
= MODEST INVOLVEMENT
8	
息2011	Energy PathFINDER
Whats	a	General	Manager	to	Do?			Delegate!	
Procurement?	 Maintenance?	
E/H/S?	OperaOons?	 Engineering?	
General	Manager	
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息2011	Energy PathFINDER
The	One	Department	Syndrome	
≒ Managers	pre-suppose	what	energy	cost-control	entails	
≒ Assign	energy	cost-control	to	ONE	department	
≒ Turf	issues	are	a	fact	of	life	
≒ So:		that	ONE	department:	
 sKcks	to	its	turf		
 uses	its	exisKng	budget	
 uses	its	exisKng	talents	and	procedures	
 accomplishes	a	fracOon	of	potenOal	energy	savings	
10	
息2011	Energy PathFINDER
Christopher	Russell	|	Director,	
Market	Outreach		
Science	ApplicaKons	
InternaKonal	CorporaKon	|	
russellchr@saic.com		
11	
Energy	Cost-Control:	
DelegaOon	is	a	FuncOon	of	PercepOon	
Prices	
Big,	Capital	Asset		
Investments	
Housekeeping,	
Leak/Loss	Repair	
Procedural		
Discipline	
PROCUREMENT	
DIRECTOR	
CHIEF	OF	
ENGINEERING	
DIRECTOR	OF		
MAINTENANCE	
ENVIRO,	HEALTH	
&	SAFETY	COORD.	
Hedging,	
Fuel	Switching	
CAPEX		
Projects	
O&M		
Projects	
Policing	
Procedures
QuesKons	You	Need	to	Ask		
≒ How	do	energy	and	energy	decisions	impact	
your	business?			
≒ OpKons	for	taking	acKon?			
≒ Delegate	to	whom?			
≒ Metrics	to	demonstrate	progress?			
≒ CooperaKon	across	departmental	lines?	
≒ Prerequisite	organizaKonal	changes?				
≒ Top	management	support?	
12	
息2011	Energy PathFINDER
What	is	a	Business	Plan?	
≒ A	blueprint	for	acKon	
≒ CoordinaKng	stakeholders	for	common	goals	
≒ Framework	for:	
EducaKng	stakeholders	
De鍖ning	goals	
BudgeKng	resources	
Recognizing	hurdles	
De鍖ning	accountabiliKes	
IdenKfying	rewards		
13	
息2011	Energy PathFINDER
You	DO	NOT	Need	a	Business	Plan	If	
≒ All	the	key	decision-makers	fully	understand:		
 What	an	energy	audit	is	
 What	it	recommends,	and		
 The	implicaKons	for	business	performance	
≒ Its	automaKcally	clear	to	everyone	involved:	
 Who	will	do	the	work	
 How	the	implementaKon	will	impact	operaKons	
 The	鍖nancial	impact		
 Who	will	pay	for	it	
 Who	will	book	the	value	of	the	results	
14	
息2011	Energy PathFINDER
Business	Plan	Strategy:	
SCENARIOS	
≒ Business	as	usual:		Simply	present	a	list	of	projects,	or	
≒ Organize	recommendaKons	into	scenarios,	each	re鍖ecKng	a	di鍖erent	
energy	management	strategy.		
	
For	example:		
≒ Scenario	1:		Emphasize	advanced	technology	capital	projects.		
≒ Scenario	2:		Emphasize	less	costly	operaKons	and	maintenance	(O&M)	
iniKaKves.		
≒ Scenario	3:		PrioriKze	improvements	that	are	least	Kme-intensive	or	pose	
the	least	interference	with	facility	operaKons.	
≒ Scenario	4:		PrioriKze	measures	that	are	supported	by	available	rebates	
and	incenKves	
	
15	
Develop	scenarios	that	appeal	to	key	decision-makers	agendas	
息2011	Energy PathFINDER
Business	Plan	Strategy:	
In-House	or	Out-Source?	
≒ Who	brings	the	most	comprehensive	experKse	to	the	
task?	
	
≒ What	represents	the	most	value:	
 CHEAP	vs.	FAST	vs.	RISK		
	
≒ Whose	recommendaKons	represent	ulterior	moKves	
or	hidden	agendas?	
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16	
STAFF	
VENDORS	
CONSULTANTS	
息2011	Energy PathFINDER
CommunicaKon	Formats	
≒ Elevator	Pitch		concise	descripKon	of	outcomes	bene鍖ts	and	
the	problem	that	they	solve	
≒ Graphic	PresentaKon		PowerPoint	with	key	graphs,	images,	
stats,	core	messages	
≒ Report	document		For	corporate/external	stakeholders.		
Magazine	format		narraKve,	bold	headers,	text	boxes	for	key	
concepts,	photos	of	key	opportuniKes		
≒ Intranet		Internal	readers	only.		Performance	scorecard,	
news	updates,	links	to	key	resources	
17	
息2011	Energy PathFINDER
YouTube	
hlp://www.youtube.com/watch?v=a8lLmdaax44
Business	Plan	Document	Outline	
≒ Cover	Page		
≒ Table	of	Contents	
≒ ExecuKve	Summary		
≒ Outline	of	RecommendaKons	
≒ Issues	and	OpportuniKes	
≒ ImplementaKon	Milestones	and	Plan	
≒ Technical	&	Financial	Appendices	
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息2011	Energy PathFINDER
Cover	Page	
≒ Look	and	feel	of	the	companys	brand	
	
≒ Title	thats	meaningful	and	inspiring:	
(How	exciKng	is	Level	One	Energy	Audit?)	
	
Try	these:	
 Leveraging	$200,000	in	Annual	Energy	Savings	
 BoosKng	OperaKng	Income	by	12%	in	2010	
 Energy	OpKons	for	Reducing	Budget	Risk	
	
≒ Date,	key	authors	or	points	of	contact	
20	
息2011	Energy PathFINDER
ExecuKve	Summary	
≒ Short	and	to	the	point,	plain	english!	
≒ Lead	o鍖	with	reference	to	current	
opportuniKes	and	business	goals	
How	do	recommended	energy	soluKons	help?		
≒ Where	does	the	business	hurt?	
Explain	how	energy	choices	address	those	hurts!	
≒ Recognize	whats	already	done	well	
≒ Its	about	the	BUSINESS,	not	the	ENERGY	
21	
息2011	Energy PathFINDER
Outline	of	Each	RecommendaKon	
≒ Brief	descripKon	
≒ Net	value	created	
≒ Cost	to	implement	
≒ Cost	of	NOT	
implemenKng	
≒ Hurdles	
≒ Resources	or	changes	
needed	
≒ Outcome	anKcipated:		
Cost	savings?		
ProducKvity?	Greater	
compliance?	Rebates	
captured?	
22	
息2011	Energy PathFINDER
Issues	and	OpportuniKes	
≒ Magnitude	of	value		
 Current	waste	sustained	
 New	value	to	be	created	
≒ Hurdles	
 Money,	skills,	authority	to	act	
≒ CriKcal	success	factors	
 What	changes	need	to	be	made	or	resources	secured?	
Training	rebates	shins	of	authority	
 ConverKng	hurdles	into	rewards?	
≒ Impact	on	business:		savings	equivalent	to	what	
revenue?		What	volume	of	producKon?	
23	
息2011	Energy PathFINDER
≒ IMPLEMENTATION	is	the	result	of	DECISIONS	
≒ DECISIONS	are	a	funcKon	of	empowerment	
≒ EMPOWERMENT	is	a	funcKon	of:	
Awareness	
Capability	
Accountability	
MoKvaKon	
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RECOMMENDATIONS DECISIONS IMPLEMENTATION
息2011	Energy PathFINDER
The	Decision	Tree*	
*Susan	Scol,	Fierce	ConversaGons	
LEAF
decisions
Make	the	decision.			Act	on	it.	
Do	not	report	the	acKon	you	took.	
BRANCH
decisions
Make	the	decision.		Act	on	it.	
Regularly	report	your	acKons.	
TRUNK
decisions
Make	the	decision.	
Report	your	decision	BEFORE	you	act.	
ROOT
decisions
Confer	with	others	to	make	the	decision.	
These	decisions	pose	great	risk.		
25	
息2011	Energy PathFINDER
The	Decision	Tree	
You	WANT	to	move	as	many	decisions	to	the	leaf	level	as	possible	
LEAF
decisions
BRANCH
decisions
TRUNK
decisions
ROOT
decisions
AutomaKc;	no	resource	risk.	
Standard	operaKng	procedure.	
Lille	or	no	consequences	of	failure.	
Worthy	of	scruKny.	
May	lead	to	a	strain	on	resources.	
Worthy	of	consultaKon.	
May	push	resources	to	the	limit.	
May	con鍖ict	with	other	agendas.	
Requires	coordinated	decision-making.	
Uncharted	territory	for	procedures,	
authority,	and	resource	use.	
26	
息2011	Energy PathFINDER
The	Decision	Tree		
Applied	to	Business	Plans:	
	
≒		IdenKfy	the	decisions	needed	to	implement	iniKaKves	
	
≒		Reveal	implicaKons	of	those	decisions.		Consider	
restructuring	authoriKes	and	accountabiliKes.	
	
≒		Reference	point	for	discussion:	
≒	de鍖ne	costs	and	bene鍖ts	
≒	recognize	hurdles	and	soluKons	
	
≒		A	handy	tool	for	grooming	leadership		
27	
Allow	stakeholders	to	achieve		
soluOons	through	informed	debate	
息2011	Energy PathFINDER
Keep	pushing	the	
same	bugons	
Keep	gehng	the	
same	results.	
	
--	Alvin	F.	Shaw	
1899		1989	
(My	Grandfather)
THANK	YOU!	
	
BLOG:			hlp://energypath鍖nder.blogspot.com	
WEB:		 	www.energypath鍖nder.com	
BOOK:		The	Industrial	Energy	Harvest	
BOOK:		North	American	Energy	Audit	Program	Best	PracOces	
	
	
	
Energy PathFINDER 	
Christopher	Russell	
crussell@energypath鍖nder.com	
(443)	636-7746	
29

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