On Monday, March 26th the first annual small business energy efficiency workshop will be held at the Bozeman Public Library. Businesses across the country are making a fighting comeback after the worst downturn since the great depression. With the country on the road to recovery, energy management should be part of any business management portfolio.

In the U.S., energy use accounts for 30 percent of a typical office building’s operating costs (www.energystar.gov). Retail companies spend nearly $20 million on energy each year. These are costs that can be controlled. A ten percent decrease in energy cost has an equivalent impact on operating income as a 1.26% increase in sales for the average retail store. When considering the implications of climate change, 41 percent of greenhouse gas emissions in Bozeman are primarily from electricity and natural gas usage in commercial structures. Businesses which focus on energy efficiency can help promote a healthy business climate and create a healthier community which could yield significant returns on investment.

In a study by Innovest Strategic Value Advisors, companies actively involved in Energy Star, a government program that is considered to be widely successful in promoting improvements in national energy management, outperformed the Broad Line Retail Index by over 6000 basis points (60 percentage points). Organizations that have adopted effective energy management strategies and built successful energy programs have had different results. Consider the following:
•      Ford Motor Company has saved over $75 million through effective energy management.
•      USAA Real Estate has realized a 5% annual energy savings and increased the asset value of a California building by $1.5 million due to energy efficiency upgrades.
•      Eastman Kodak saved more than $8.6 million in operating costs in 2002 from its energy management efforts.
•      Hines estimates the difference in operational costs between its energy efficient buildings and inefficient buildings at more than $13 million.
•      Fairfax County Public Schools estimates an annual energy savings of $4.5 million from energy efficiency improvements.
In Bozeman, the many “mom and pop” stores could benefit widely by considering energy management in their day to day operations. Additional benefits to energy management include:
•      Reduced operating costs: In the retail sector, utility expense is the third largest component of operating costs for un-leased retail space and the fourth largest component of operating costs for leased retail space.
•      Increased productivity and sales: Optimally operating HVAC (heating Ventilation and Air Conditioning) systems can contribute to reduced lost work time related to illness resulting from inefficient heating or cooling. Efficiency improvements may also enhance sales.
•      Reduced regulatory exposure: With U.S. utilities facing growing pressure to reduce emissions, it is likely that commercial firms will face similar pressures over time, as are companies in Europe. Energy management leaders will be less vulnerable to these increasing regulations.
•      Reduced vulnerability to energy price fluctuations: Deregulation, Middle East turmoil, concerns about terrorism, and other factors are increasing volatility in the energy markets. Ongoing improvements in energy efficiency will minimize exposure to volatile energy markets.
•      Enhanced public image: Once stores are opened, a positive environmental image contributes to increased sales and enhanced community relations.
•      Enhanced reputation within the financial community: As a well managed company energy management, a key element of environmental performance, is also likely to be a strong indicator of superior management and stock market potential.
•      Enhanced appeal to socially responsible investors: The Social Investment Forum estimates that over $2 trillion of invested U.S. assets are invested through some type of environmental or social screen.

If you are a business owner and would like to learn more about integrating energy management into your daily operations, attend the Bozeman energy efficiency workshop on March 26th. PowerHouse Integrated Conservation Systems, a full service energy performance contracting company, has partnered with the Downtown Business Partnership, NorthWestern Energy, First Security Bank, the Yellowstone Business Partnership, and Sustainable Planet Solutions to offer a special workshop for small business owners geared towards reducing energy usage in commercial structures. Workshop speakers will discuss topics ranging from building performance tips to leveraging available rebates for building remodels. The workshop is designed to provide businesses with the information the need to start making smart energy management decisions. For more information on the workshop, please visit www.powerouse-ics.com

Hattie Baker is the Customer Relations Manager at Powerhouse ICS, and is affiliated with Sustainable Planet Solutions. She can be contacted at hattie@spsmontana.com