Bay City Times

October 02, 2008 - Posted in the Bay City Times

Commercial, Industrial power customers turning to energy audits after new
legislation

Posted by pgardner October 02, 2008

Big energy users- those with an annual peak demand of 2 megawatts or
more at each site or 10 megawatts total at multiple sites – can avoid the
charge if they implement their own efficiency programs.

“For large business, they have an opt-out provision . If they are doing their
own energy efficiency programs , they can opt-out,” said Jeff Holyfield , a
spokesperson for Jackson based Consumers Energy.

Holyfield said details of Consumers’ program are pending , but will likely
include financial incentives for customers to become more energy efficient.

Those that can’t hire their own in-house energy experts can turn to
companies that specialize in the work, such as Kawkawlin-based Building
Performance by Design, LLC.

Joe Ludy, co-owner of the firm, said Michigan is running behind other states
in establishing efficiency programs. He said that is partly due to lower utility
rates seen in the Midwest, compared to the east and west coasts. But as
Michigans energy coast rates rise, more businesses are calling him to
reduce the usage, he said.

“It’s cost-driven. The more costs go up, the more people get involved “,
Ludy said.

A survey of retailers released by the Michigan Retailers Association and
Federal Reserve bank of Chicago in August showed
83.3 percent of those surveyed felt recent operating costs were rising
significantly, and 72 percent blamed gasoline and utility costs for the most
increase.

Hiring Ludy to perform a commercial energy audit can cost anywhere from
one cent per square foot to 50 cents a square foot depending on the level
of testing performed.His company offers a variety of sophisticated testing,
such as thermal imaging, blower doors and air-flow meters to find problem
areas. The testing companies with federal and national guidelines, such as
the EPA’s Energy Star program, Ludy said.

The new state legislation would, for the first time, establish an approval
process for energy “optimizing” service companies, such as Performance by
Design. The public service Commission would ensure companies meet
certain standards to perform the work. The goal of energy auditing is to
reduce utility costs over a long term to pay for the testing and the cost of
improving efficiency, he said. Until now, state and federal tax credits have
been critical to spur Michigan homeowners and businesses to seek such
efficiencies, Ludy said.

Under the new legislation, however, the state is mandating the utility
companies achieve savings of 5.5 percent by 2015.
How that will happen is still a grey area, Holyfield admits. The Michigan
Public Service Commission is expected to develop new rules and
companies such as Consumers will develop programs to meet those
requirements, he said.

Holyfield said a large number of customers who start self-directed energy
efficiency programs will have to spend as much on their program as if they
were going to pay the utility’s efficiency program. They also have to
document their savings, he said.

Eric English covers business news for the Bay City Times.

Bay City Times

Building Performance
by Design
"Your energy conservation experts"

Bay City times Building Performance
by Design in Kawkawlin specializes
in commercial energy audits.
Sweeping new energy legislation is
likely to spur more commercial and
industrial businesses in mid-
Michigan to manage their utility
costs through energy “auditing”.
The legislation awaiting Gov.
Jennifer Granholm’s signature
requires big power providers to take
steps to cut customer usage
through new efficiency programs.
The Programs will be funded
through surcharges to all customer
classes, from households to large
industries.

Phone:
989-414-6699
866-783-4877
fax: 989-391-9699

Location:
2051 S. Huron Rd.
Kawkawlin, MI 48631