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					Developing Your 2010 Energy Plan:
Eight Essential Steps You Need to Know
Meet your moderators and your panelist


    Moderators
    • Tracie Bagans, Manager,
      Corporate SMB Accounts



    •   Marilyn Arnall, Account
        Manager, FPL



    •   Sharon Smith, Energy
        Manager, Office Depot




2
Meet your panelist


    •   Mike Carter, Sr. Engineer,
        Business Energy Service,
        FPL



    Panelist

    •   Ralph Calleja, National
        Account Manager, FPL




3
                           Agenda


    •   Energy Management Is Good Business
    •   Eight Steps to a Successful Energy Plan
    •   Should You Hire an Energy Manager?
    •   Getting Started with FPL
    •   Office Depot: Best Practices and Solutions
    •   FPL’s Programs, Services and Incentives
    •   Financing for Energy Efficiency Measures
    •   Additional Resources for Energy Planning




4
Energy management is good business, whether your company
is large or small

                     Benefits of a Good Plan

• Operations and maintenance costs
     – Saves energy and money month after month
     – Reduces maintenance costs
• Environment
     – Lowers carbon emissions and helps the planet
• Competitive edge and improved image
     – Saving money makes your business more profitable
       and competitive
     – Saving energy is earth friendly, a quality many consumers
       respect in today’s marketplace


    Saving energy (and money) reduces your cost of doing business


5
Goals are attainable when everyone from the top down is
committed

                     Benefits for Employees


• Enhanced workplace
  environment
    – Improves indoor air quality
      and comfort
    – Creates a sense of
      participation when every
      employee is involved in
      saving energy




6
Following these eight steps will help you build your 2010
energy plan

          Eight Essential Steps to a Successful Plan

Step 1   Make a commitment… p. 8

Step 2   Assess performance… p. 9

Step 3   Set clear and measurable goals… p. 10

Step 4   Create an action plan… p. 10

Step 5   Implement the action plan… p. 11

Step 6   Evaluate your progress … p. 12

Step 7   Communicate results… p. 15

Step 8   Recognize achievements… p. 17

                                                 Source: EPA ENERGY STAR



7
    First make a commitment to energy management and ensure
    that you have a defined and measurable energy policy

                                      First Stages of Planning
•       Step 1 - Make a commitment
         – Form a team with employees from various departments
         – Develop an energy policy so expectations are understood

        Example of an energy policy from ABC Inc. Energy Mandate
        We recognize energy as a controllable operating expense wherein lower energy consumption results
        in decreased operating expense, environmental emissions, and maintenance costs. Energy
        management is the responsibility of all staff in our facility, guided and supported by the
        facility/energy manager. We will assess our energy performance and share energy use data with all
        employees. We will create and implement an energy plan to achieve our energy goals. Our use of
        equipment and controls for energy savings will be a show-piece in our industry.

         –   ABC Inc. has established three key energy goals:
                 Reduce kWh energy consumption per square foot by 20% in one year
                 Reduce kW peak demand per month by 10%
                 Obtain a minimum 20% IRR on efficiency investments

        Established this ______ day of ___________, 2010.

        President/CEO/Director of Ops/Facility/Energy Manager/Financial Manager
        ________________________



    8
Assess your current energy consumption and evaluate your
opportunities for improvement

                       Evaluation Phase

• Step 2 - Assess performance
    – Ask for a free FPL Business Energy Evaluation to:
         Evaluate the efficiency of air conditioning, lighting,
         mechanical and plumbing systems, and the building
         envelope
         Review the last two or three years’ energy bills
         Determine how you will measure energy usage
         Benchmark against peer companies (Energy Star Portfolio
         Manager can be used to index usage compared to similar
         facilities)




9
Set your goals and put action plans in place to measure
progress

      Performance Goals Will Drive Your Action Plan
• Step 3 - Set clear and measurable goals
     – Determine short- and long-term objectives
     – Communicate goals to motivate employees

• Step 4 - Create an action plan and update it annually
     – Develop a way to track and report energy usage
     – Prioritize energy-saving opportunities by technology,
       cost/payback or behavior modification
     – Prepare a budget that factors in FPL incentives and tax credits
     – Consider electric rate options available from FPL
     – Put a maintenance plan in place
     – Include evaluation of any new equipment installed



10
Relate your action plan to dollars saved, a tangible benefit
everyone in the company can appreciate

         Look for New Opportunities to Save Energy
• Step 5 - Implement the action plan
     – Make sure everyone is on board – from the top down
     – Who are the decision makers
          Identify the decision makers and ensure that the energy
          efficiency policy for the organization is in line with goals
     – Get employees involved through:
          Posters
          Checklists and signage
          Stickers (“turn off the light” messaging)
          Web downloads
     – Network with others in your industry to learn more about
       successful energy management programs


11
Compare before and after energy usage to see if your efforts
are making a difference

           Revaluate and Change Plans as Needed

Step 6 - Evaluate your progress
     – Study energy usage data (before and after energy efforts)
          Monthly kWh usage
          Monthly kW demand
          Usage when business is closed (weekends/evenings)
          Hourly usage (can be tracked if you have an energy
          management system or interval date metering)
     – Review technology upgrades and behavior modification
     – Use results of your evaluation to create new action plans, identify
       successes and set new goals




12
     Daily load profiles reveal peak demand savings opportunities
                              Use Advanced/interval Metering to Analyze
                                  Typical Hourly kW Demand Profile
        •700



        •600



        •500



        •400
 •kWd




        •300



        •200



        •100



          •0
               •0   •1   •2   •3   •4   •5   •6   •7   •8   •9   •10   •11 •12   •13 •14 •15   •16 •17 •18   •19 •20   •21 •22 •23
                                                                       •Hours




13
 Use advanced/interval metering to analyze the weekly and
 month kW demand profile

      Energy Use Profiles - Weekend and Monthly Usage



Look for
weekend
 usage
 valleys




 14
Share results of your energy management program to keep
momentum going


                     Compare Results to Goals
Step 7 - Communicate results
      – Create a communication
        plan
           Compare results to
           performance goals
           Clearly communicate the
           benefits of your program
           in monthly reports with
           understandable
           indicators
      – Create new action plans




 15
Share your results with others in the organization




                          Track results and report on successes
                                        8,831,189
                                         kWh/Yr


       9,000,000 kWh/Yr

       8,000,000 kWh/Yr
                                                                      4,722,130
       7,000,000 kWh/Yr                                                kWh/Yr
       6,000,000 kWh/Yr

       5,000,000 kWh/Yr

       4,000,000 kWh/Yr

       3,000,000 kWh/Yr

       2,000,000 kWh/Yr

       1,000,000 kWh/Yr

              0 kWh/Yr
                           Oct 2006 thru Sep 2007        Oct 2008 thru Sep 2009

                                            Oct 2006 thru Sep 2007

16
Don’t be silent about your achievements … seek company
recognition and reward employees who participate


                       Benefits of Recognition

Step 8 - Recognize achievements
     – Keep momentum and support for your program going by
       rewarding employees who contribute to goals
     – Publicize your efforts often within your industry, to the media
       and in advertising
     – Seek recognition from outside sources, such as LEED or
       ENERGY STAR, for positive exposure




17
Knowing the role of an energy manager and assigning the
responsibility will keep your energy plan on the right track

            Should You Hire an Energy Manager?
 • What is an energy manager?
     – Provides guidance and oversees energy usage to maximize
       efficiency
     – Oversees equipment operation
     – Develops energy goals and ensures they are met
     – Determines minimum standards for new construction,
       replacement equipment and operating parameters, such as
       temperature settings
     – Works with engineering, architects, purchasing and other
       departments within the organization to ensure that energy
       efficiency plays a part in all construction, design and
       replacement projects.

     If you choose an employee for the role, establish accountability


18
Appoint an employee who has a vested interest in energy
management

                  The Importance of Accountability

• What if you can’t afford
  one?
      – Appoint one employee to
        oversee energy management
            Needs solid knowledge of
            mechanical systems,
            lighting and HVAC and/or
            background in facilities
            management
      – Hire an energy management
        consultant on a contract basis



      If you choose an employee for the role, establish accountability

 19
As your energy partner, FPL will evaluate your energy
usage, provide recommendations, and offer rebates

              Help with Performance Assessment

• FPL’s free Business Energy Evaluation
     – Helps with Step 2: Assess Performance by giving you a baseline
       to better understand your energy usage and possible solutions
           Where your energy dollars go
           How to reduce your bills
           Comparison to similar businesses
     – Available by calling 1-800-FPL-5566 or by request to your
       customer manager if you have one
• Free Online Business Energy Evaluation
     – Available to small business customers (on FPL’s General
       Service Non-demand rate) at www.FPL.com/OBEE




20
 The results of your BEE will help you make more informed
 decisions
                   Steps of a BEE
• An on-site Business Energy Evaluation
  includes:
      – A thorough examination of your facility by an
        FPL energy expert
      – An analysis of your billing and energy usage
        history
            Examines the relationship between monthly
            billing and weather
            Determines your kilowatt-hour usage/cost
            per square foot
            Compares your usage to similar facilities
            through an energy use index and segment
            profiles
      – A discussion about your energy management
        goals


  An FPL energy expert will thoroughly examine your facility and usage


 21
FPL will recommend solutions specific to your business and
discuss your eligibility for incentives on new equipment

              What You Will Learn from the BEE

Recommendation for installing energy improvements, such
  as upgrading your A/C unit, lighting or insulation

     – Information about FPL’s incentive programs that will help you
       pay for the installation of more energy-efficient equipment
     – A list of low-cost measures you can undertake – programmable
       thermostats, occupancy sensors, etc. – that will help save
       energy
     – Recommendations to implement energy-saving practices, such
       as exploring alternative electric rates, properly scheduling
       equipment turn on times to lower demand cost, or simply
       reducing lighting levels
 FPL will leave you with energy-efficiency solutions you can implement
        immediately and others that may require some planning

22
FPL will leave behind materials for your review as well as
additional information to help with your decision-making

         Leave-Behind Materials to Help You Decide

• A detailed report, including tables and materials to help
  in your decision-making
           A letter outlining your facility information, potential savings
           and applicable FPL incentives
           Reports and tables that break down energy usage by end
           use (lighting, air conditioning, and so on), average kilowatt-
           hour use per day, temperature vs. kilowatt-hour, and more
           Technical briefs that more thoroughly explain equipment
           recommendations and benefits
           FPL brochures that outline program details and incentives


     FPL is available as a resource for your ongoing energy questions



23
Office Depot has partnered with FPL to help enhance its
energy management program


     Office Depot’s Commitment to Energy Conservation
• Office Depot
     – Commitment
          Corporate and store-to-store commitment to energy savings
          Energy policy endorsed by upper management
     – Partnership with FPL
          Assigned national account manager
          Helps customers with energy efficiency plans
          Small- to medium-business customers are also serviced
          through online and Business Care Center services
          FPL incentives to help pay for energy improvements




24
Energy awareness is engrained in the Office Depot culture;
all levels of the organization are involved


          Holistic Approach to Energy Management
• Corporate commitment
     – Upper management embraces energy savings and benefits to
       the environment
     – Multiple levels of involvement throughout the company
     – Outside energy management company monitors energy usage
       24/7
     – Continuous evaluation of energy-efficiency opportunities
• Current performance
     – Evaluate all energy systems, such as HVAC, lighting and
       building envelope for possible energy-efficiency improvements
     – Analysis of current usage to select candidates for pilot programs




25
Office Depot’s ongoing goal is to maximize energy
efficiency throughout the organization


              Energy-Efficiency Goal Steers Plan
• Setting goals
     – Ongoing goal is to achieve the maximum energy efficiency
       possible
• Making a plan
     – Evaluate all energy systems, such as HVAC, lighting and
       building envelope for possible energy-efficiency improvements
           Attend industry conferences where there are best practices
           discussions with peers
     – Employees given understanding of purpose of controls placed on
       air conditioning and lighting systems in individual stores
     – Internal comparisons are used to track energy usage
           Industry benchmarks not used because nature of store
           inventory does not place Office Depot in available ENERGY
           STAR retail categories


26
Office Depot uses a baseline comparison to evaluate results
of its energy management program

                    Before-and-After Analysis

• Implementation
     – Monthly reports are generated to examine energy usage at
       individual stores and the corporate headquarters
     – Pilot programs run based on stores that can most benefit
• Evaluation
     – Examine reports that follow the launch of new initiatives to
       assess if energy usage/savings are sustained vs. baseline year
     – Reduction in energy usage reflected in yearly Green House Gas
       report
     – Utilize company’s Citizenship Report to release GHG results and
       compare year to year




27
LEED certification is an important step for Office Depot
toward achieving its energy-efficiency goals

                Example of Measures of Success
• Building in energy efficiency
     – First corporate retailer to open LEED-certified store; store
       awarded Gold Certification
     – First corporate retailer to achieve LEED-certified prototype
     – Seeking LEED-EB certification for headquarters and existing
       stores with energy improvements




28
Office Depot implements energy improvements and takes
advantage of FPL incentives to help pay for installations


          Energy Savings and Environmental Impact
• Savings in FPL service area
     – In 2008 alone, achieved cost avoidance of >$500,000 from
       energy-efficiency upgrades
     – In 2008, reduced kWh by 13 percent, or 4.9 million kWh
     – Reduced annual carbon footprint of 3,519 metric tons of carbon
       dioxide, the equivalent of removing 645 cars from the road
• FPL incentives
     – Over $100,000 in total FPL incentives for retail stores since 2005
• FPL On Call® program credits
     – $25,000 in bill credits over the past 2 years for 12 enrolled stores




29
Office Depot is reducing one of its biggest energy costs –
lighting

                  Savings from Efficient Lighting

• Energy-Efficient Lighting
     – Sustained annual cost
       avoidance for retrofits done in
       2005
     – Retrofitted all stores to T5
       fluorescent lighting
     – Installed efficient LED exit signs
     – Started pilot project to replace
       six-lamp fixtures with four-lamp
       T5 fixtures with reflectors
     – Installing T8 fluorescent lamps
       for in-rack lighting in new stores
     – Experimenting with skylights to
       bring in natural light in new
       stores


30
New air conditioning systems and white reflective roofs at
many Office Depot locations contribute to significant
savings

       Cooling and Building Envelope Improvements
• DX Air Conditioning and Demand Control Ventilation
     – Installed high-efficiency direct-expansion air conditioning
       systems at 41 stores since 2005 (Efficiency ratings: 11.0 to 11.8
       EER)
     – Invested in demand control ventilation systems at 17 locations to
       vary ventilation based on changing occupancy levels
• Energy-efficient white reflective roofs and insulation
     – Better reflect the sun’s heat and contribute to lower HVAC costs
• Energy management systems
     – Allow for centralized management of air conditioning settings
       and lighting usage in individual stores




31
Energy management is just one aspect of Office Depot’s
larger responsibility to taking care of the environment

• Being Green
     – Committed to increasingly
       buying green, being green and
       selling green
     – Goal is to reduce overall
       environmental footprint and help
       stakeholders do the same
     – Company purchases greener
       products for our own internal
       use as well as resale
• Telling Green
     – Share our “green” story and
       commitment to environmental
       stewardship to engage our
       associates, customers and
       shareholders


32
Energy management is just one aspect of Office Depot’s
larger responsibility to taking care of the environment
 • Selling Green
     – Through assortment of products and
       solutions, Office Depot offers its customers
       greener options
     – Offer customers more than 6,000 products
       with greener attributes
     – Sell via The Green Book catalog,
       www.officedepot.com/yourgreeneroffice
       and retail stores
     – Solutions:
           Ink/Toner Cartridge Recycling
           Tech Recycling
           Tech Trade-In Program
           Green Business Review




33
Office Depot has been recognized for its achievements

• “Flex Your Power” Award
• Recognition from Southern
  CA Edison
• “Green Building of America”
  Award from Real Estate &
  Construction Review
• “Retail Store of the Year”
  from Chain Store Age
• “Outstanding Environmental
  Leadership” Award from OPI
  Magazine
• Numerous feature articles and
  inclusions in “Greener
  Workplace” themed books



34
While Office Depot has taken advantage of many of FPL’s
programs, here are examples of all the programs available
so you can start saving too

                  Energy Conservation Programs
     •   High-Efficiency Air Conditioning (DX HVAC PTAC)
     •   Energy Recovery Ventilation (ERV)
     •   Demand Control Ventilation (DCV)
     •   Business Lighting
     •   Building Envelope
     •   Alternative Water Heating
     •   Refrigeration




35
A high-efficiency A/C unit reduces cooling costs, which can
account for up to half of a Florida business’s energy costs

                    Benefits of New A/C Equipment
          BENEFITS                  INCENTIVE
 •Reduced cooling costs       Rebate on qualifying high
 •Lower maintenance costs     efficiency split/packaged
                              DX unit
 •Comfortable environment     •Replacements
 for employees and
 customers                    •Units installed during new
                              construction
                              Rebates vary by size, type
                              and efficiency of the new
                              unit
                              •Air-, water- or evaporative-
                              cooled A/C or heat pump
                              •Room units, including
                              package terminal A/C or
                              heat pump

     Example: If you operate 4,300 hours a year with a 10.3 EER unit, you
     can save $770 on annual cooling costs by upgrading to a 13 EER
     system
36
Demand Control ventilation is a more efficient and affordable
way to meet fresh air requirements and lower energy costs

              Benefits of Demand Control Ventilation

            BENEFITS                       INCENTIVE
     •Easily added to existing        Rebate on DCV systems
     HVAC systems                     based on:
     •Allows ventilation              •Building type
     adjustment based upon            •Number of sensors
     varying occupancy levels         required
          –Reduces A/C costs by       •Square footage of air
          10 percent or greater,
          annually                    conditioned space
          –Helps HVAC equipment       •Retrofit or new
          operate                     construction
          more efficiently and last
          longer
          –Maintains indoor air
          quality and comfort more
          efficiently


 Best for businesses with long operating hours, where occupancy varies
 greatly and is unpredictable, such as stores, supermarkets, theaters,
 places of worship and restaurants
37
Upgrading to a more efficient system will lower operating
costs and result in better quality lighting

             Why More Efficient Lighting Makes Sense


            BENEFITS                     INCENTIVE
     •Reduced lighting costs        Rebates of up to $2 per
     every month (typically 28      lamp on technologies such
     percent of a business’s        as T8, T5 or pulse-start
     energy consumption)            lamps and ceramic metal
     •Better quality lighting for   halides replacing halogen
     less cost                      lamps
     •Lower maintenance costs


     Example: 23,000-sq.-ft. Athletic Club replaced 131
     fluorescent fixtures with more efficient T8 fluorescent
     fixtures with electronic ballasts. Earned $294 FPL
     incentive. Annual savings of 26 percent, or $5,387.



38
A variety of financing options make investment in energy-
efficient equipment more affordable


                Financing for Energy Efficiency
• Borrowing
     – Makes sense when monthly energy savings are enough to cover
       finance charges
     – Loans available from commercial lenders
     – Funds from local government bonds may be a possibility
• Lease purchase agreement
     – Available from commercial lenders
     – Ideally structured so that energy savings are enough to cover
       finance charges
     – Lease periods range from 5 to 10 years




39
Federal tax credits are available for building improvements


                       Available Tax Credits

• Energy Policy Act of 2005 Commercial Building Tax
  Deduction (extended by Energy Improvement and
  Extension Act of 2008)
     – Up to $1.80 per square foot ($0.60 cents per sq. ft. each for
       building envelope, HVAC and interior lighting)
     – Available to owners or tenants of new or existing buildings
     – Must save at least 50 percent of HVAC costs in a building that
       meets ASHRAE Standard 90.1-2001
     – Available for systems placed in service Jan. 1, 2006, to Dec. 31,
       2013
     – Verification (software) and certification requirements




40
The Environmental Protection Agency offers several helpful
tools and an ENERGY STAR product guide


                          Additional Tools
• ENERGY STAR tools
     – Putting Energy into Profits: Small
       Business Online Guide
     – Building Upgrade Value Calculator
     – Cash Flow Opportunity Calculator
     – Financial Value Calculator
• ENERGY STAR qualified business
  products
     –   Office equipment
     –   LED lighting
     –   Enterprise servers
     –   Food service equipment


41
When you’re ready to put together an energy management
plan, contact FPL for a free Business Energy Evaluation


                             Next Steps
• First, make a commitment to energy management
• Contact your FPL customer manager if you have one
• Take a free Business Energy Evaluation
     – Call 1-800-FPL-5566
     – Or, if you are a small business, take our Online Business Energy
       Evaluation at www.FPL.com/OBEE
• www.FPL.com/Business




42
FPL will continue to provide support as you build and
implement your energy plan

                         Webinar Series

• Conduct Quarterly Webinars in support of your 2010 plan
     – Q1, 2010: Funding to Help You Implement Your Energy
       Program
          FPL rebates and incentives
          Qualification for energy improvement loans
          State and Federal tax incentives
          Sales tax exemptions
          and much more detailed information
• Webinar information will be provided through FPL’s
  e-communications sent monthly to business customers




43

				
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