Mr. Kiesner

Eco-Friendly Practices

Breathing Easier About Energy Efficiency

By Steve Kiesner, Director of National Accounts, Edison Electric Institute

In working with national lodging chains, I know that improving energy efficiency has long been a focus of the industry. Efforts have included simple measures, such as reminding guests to turn off lights, to more complex efforts, such as installing high-tech energy management systems and innovative heating and cooling systems.

These efficiency actions have paid off in greater profitability. Energy typically accounts for three to five percent of a hotel's total operating expenses. The money saved through energy-efficiency has created more money to spend on guest amenities, on staff salary increases, or on other vital areas.

What you may not know is that your energy-efficiency actions, and those by other businesses and consumers across the country, are part of the reason why the nation's air quality has been improving. A new report by the U.S. Environmental Protection Agency shows that overall air emissions nationwide have dropped by more than 50 percent since the Clean Air Act was adopted in 1970 www.epa.gov/airtrends/econ-emissions.html

What is even more remarkable is that as our air has become healthier in the past 35 years, our population has grown by 39 percent, our energy consumption has increased by 45 percent, the Gross Domestic Product has risen by 176 percent, and the number of vehicle miles traveled has jumped by 155 percent.

This environmental progress creates an opportunity for you: Take credit for it. Promote the connection between encouraging your guests to use natural resources more wisely and the nation's improving air quality.

A national survey by EEI shows that Americans overwhelmingly believe pollution is the most important environmental issue facing the country today. And a clear majority (65 percent) of Americans feels that the current air quality in America is worse than it was 30 years ago. Half of all Americans also say they are pessimistic about future air quality. Pointing out the connection between their conservation efforts and the nation's healthier air can encourage more conservation efforts, which will further help the air and your energy bills. This is important because there is always room to do more.

The U.S. lodging industry today spends close to $4 billion on energy every year. If hotels could improve their energy performance by an average of 30 percent, the nation would be breathing even easier, and the hotel industry's annual electricity bill savings alone would be nearly $1.5 billion, according to the EPA. This would represent a savings of approximately $365 per available room night per year for every hotel room in the country.
www.energystar.gov/index.cfm?c=hospitality.bus_hospitality

If your company has considered improving its energy efficiency, there are a number of quick and easy steps to get started today:

• Get the housekeeping staff on board. Little things they can do in each room-resetting thermostats, closing drapes, and turning off lights-will add up to make a big difference in energy costs.
• Reduce public and office area air conditioning use during unoccupied hours; raise cooling settings during occupied hours.
• Turn off unneeded lights in offices and public areas.
• When replacing bulbs, use lower wattage or ones that are more efficient.
• Periodically service and adjust heating, ventilating, air conditioning, icemakers, and refrigeration equipment. Another option to pursue is contacting your electric utility for conservation advice and help. Lodging industry leaders such as Marriott International and Starwood are among those who are working with electric utilities and pursuing a variety of innovative measures to get even more control over their energy use-and their profitability.

The Georgia Power Company is one example of how electric utilities can help. Georgia Power's new electric boiler program enables hotels and other businesses that already have a natural gas boiler to install an electric boiler (while keeping the gas boiler in place). The hotel can then run whichever boiler has the lowest fuel cost for any given day or hour. Georgia Power's Real Time Pricing (RTP) rate is typically inexpensive during the winter, at night, and on the weekends. And, while it may not be practical for a hotel to install another main boiler, adding a smaller electric boiler just for the laundry operation might be a good option. This allows the hotel to size the boiler for a specific load, and gives them some operational flexibility www.southernco.com/gapower/business_home.asp

In general, the types of electric utility energy management programs that may be available to you include:

• Energy-efficiency incentives-these are offered to encourage electric utility customers to purchase or replace their energy-using equipment with more energy-efficient models. Incentives are often offered on lighting, air conditioning, refrigeration, agricultural equipment, water heating systems, and motors.
• Training courses-these supply the latest information on energy-saving technology and design applications.
• Demand-management programs-these pay customers to cut back on their power use during peak periods or to shift what power use they can to non-peak periods. Electric utilities provide these services for you at little or no cost. Many electric utilities offer advice or formal programs to help lodging companies use energy more efficiently. If you have one property, contact your electric utility to see what assistance it can offer.

If your company has properties located throughout the country, contact Edison Electric Institute's National Accounts Network [www.eei.org/na]. Through the Network, you will get a single contact for each utility that serves your company. This saves time. With one phone call, the National Accounts representative can answer your energy-related questions and help to make sure that your company is taking advantage of all the energy efficiency programs and incentives that are available. This service is free.

Like the lodging industry, the nation's electric utilities are committed to encouraging energy conservation and improving air quality. Through advanced emission controls and the use of cleaner fuels, the U.S. electric power sector has cut its sulfur dioxide emissions by 40 percent since 1980. It will have achieved similar reductions in emissions of nitrogen oxides by the end of 2004. The power sector also has cut emissions of particulate matter by more than 90 percent, and it has cut mercury emissions by about 40 percent as a side benefit of reducing the other emissions. These reductions have taken place despite the demand for electricity growing 75 percent in the past 25 years.

The need for all businesses to increase their energy efficiency and expand their efforts to protect the environment will only increase in the future. But as the lodging industry has already discovered, so too will their gains in customer satisfaction and profitability.

Steve Kiesner is Director of the Edison Electric Institute’s National Accounts Program. Based in Washington, D.C., Edison Electric Institute (EEI) is the association of United States shareholder-owned electric companies, international affiliates and industry associates worldwide. Our U.S. members serve approximately 90 percent of the ultimate customers in the shareholder-owned segment of the industry, and nearly 70 percent of all electric utility ultimate customers in the nation. They generated almost 70 percent of the electricity generated by U.S. electric utilities. Mr. Kiesner can be contacted at 202-508-5000 or skiesner@eei.org Extended Bio...

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