Mr. Kiesner

Eco-Friendly Practices

Hotels Need to Act to Secure Our Energy Future

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

America's electric companies, through EEI, have also been advocating for national energy legislation to address natural gas and electricity issues. Legislation is needed to help reinforce electric reliability, foster more effective, competitive electric power markets, promote a diverse supply of fuels for generating electricity, and expand our natural gas supplies and production. Legislation also must emphasize energy efficiency and wise use of existing resources.

Using energy more efficiently is one of the most important steps the hotel industry and the country can undertake in the short term to keep our energy supplies affordable. Although individual actions by themselves may not seem like much, the savings do add up when many complete them.

America's electric companies are strong proponents for conservation. The past decade alone saw the power industry's programs save the equivalent annual electric usage of 52 million typical American homes. The electric power industry is also encouraging the federal government to take some short-term actions to improve the end-use efficiency of natural gas. Power companies rely on natural gas to generate approximately 20 percent of the nation's electricity.

Through the government's Energy Star program, the government should promote the purchase of high-efficiency gas furnaces and boilers for those businesses and homeowners with less efficient systems. For consumers and businesses with newer equipment, tune-ups or the lowering of thermostats where possible (e.g., down to 120 F or lower on gas water heaters and below 68 F for gas furnace/boiler systems) should be encouraged.

The government can also "lead by example" by making sure that gas-fired equipment at its facilities is well-maintained, that new equipment purchased exceeds Energy Star standards, and that all thermostats and setback controls function properly.

While there are limited opportunities for reducing demand for natural gas in the short-term, there are longer-term solutions for assuring adequate natural gas supplies in this country. These include policies to identify, tap, and bring to market available known reserves and new sources-both here and abroad. It is this combination, greater energy efficiency and increased supplies, which will result in lower natural gas prices. It is important to note that the current natural gas situation did not develop overnight, nor will it be resolved overnight.

For the lodging industry, energy conservation is a well-recognized element in lowering costs. With energy typically accounting for three to five percent of a hotel's total operating expenses, getting the most value out of every energy dollar can improve profitability. A comprehensive plan can lower energy use by up to 20 percent. America's electric companies encourage you to explore new ways to use energy more wisely.

Power companies are promoting the wise use of electricity because it benefits hotels and all their customers. They are also doing so because it helps electric generating plants and transmission wires to operate more effectively. This can improve the reliability of electricity supplies, especially during peak electricity demand periods such as the summertime. Encouraging the efficient use of electricity also helps the power company to conserve natural resources and protect the environment.

Many energy-saving measures cost little or nothing. But the returns could surprise you. Here are some easy-to-implement tips that can be put in use today:

• Get housekeeping staff on board. Little things they can do in each room-resetting thermostats, closing drapes, reporting water leaks, and turning off lights-will add up to make a big difference in energy costs.
• Reduce public area air conditioning use during unoccupied hours.
• Raise office and public area cooling settings during occupied hours.

• Turn off unneeded lights in offices and public areas. The local power company is an excellent resource for free energy saving advice. Many also offer some type of incentive programs as well to conserve energy. Electric companies have developed a wide range of energy-management programs and incentives to encourage wise energy use among industrial, commercial, and residential energy users. Because these programs affect retail electric service, the companies worked in partnership with their state regulatory commissions and their consumers to gain approval. Power company programs include:

• Demand-exchange programs for large customers, accessed through the Internet, where the utility offers customers a "strike price" to voluntarily shed their load, with the customer receiving a percentage of the savings obtained by the utility for not purchasing power in the wholesale market. Customers can also bid on price and amount.

• Demand-management programs that pay large commercial and industrial customers to use less power during peak periods or shift power to non-peak periods.
• Direct load control programs for residential and small commercial customers to allow utilities to cycle off or shut down big energy-using appliances and equipment for certain periods of time. This program is especially useful in the summer months on air conditioners, water heaters, and pool pumps.
• Energy-efficiency rebates as incentives to commercial, industrial, and residential customers for purchasing or upgrading lighting, air conditioning, refrigeration, ventilation, agricultural equipment, water heating systems, and motors. For a list of energy assistance programs around the country, click here

Hotel chains with properties located throughout a region or the country can simplify their search for energy-saving help through the electric power industry's National Accounts Network. The Network focuses exclusively on the needs of businesses with multiple sites or outlets such as hotel chains.

For no charge, the National Accounts Network can help hotels take advantage of any electric company energy efficiency incentive programs or other services that may be available. The Network will help to arrange contact between a hotel's individual properties and their local electric company utility representatives. Through the Network, hotels get a single contact for each utility. Having a sole point of contact will cut down on phone calls and the time involved in dealing with many utility reps at different field offices.

The National Energy Customer Assistance Network (NECAN) directory is a convenient guide for finding the power companies that serve each state and their National Accounts representatives. More information on the Network is available here.

As recent events have demonstrated, energy is a resource that everybody has an interest in using wisely. The hospitality industry now spends over $5 billion a year on energy. In the short-term, greater energy efficiency is key to ensuring that your properties get the most value from their energy dollars. Energy efficiency will also help to keep our energy supplies remain affordable and reliable. For more information, and to expand your wise-use opportunities, contact your electric company today.

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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