Crains New York - September 17, 2012 - (Page 12)

SMALL BUSINESS Using wind to power a brand Turbines don’t pump the brews at Barcade, but buying renewable energy gives the biz buzz BY BRUCE W. FRASER hen customers learn that Williamsburg hangout Barcade relies on wind power, they sometimes look W through the skylight expecting to see a turbine.But none is to be found in the Brooklyn bar, which brings together American craft beer and classic video games. Wind power in the U.S. today is primarily generated by giant turbines, which feed the energy into regional power grids. Electricity customers can simply choose to purchase wind power as an option when ordering service. Using wind power adds to the bar’s credibility as a green business. “We brag about it,” said owner Paul Kermizian, who opened his Brooklyn arcade in 2004, followed by locations in Jersey City and Philadelphia in 2011, which also use wind power. Mr. Kermizian, who expects total revenue from the three locations at his profitable, 40-employee company to top $3.5 million in 2012, said the firm spends about 5% extra for wind power but hasn’t had to pass the costs along to customers. About 200 small businesses in New York City operate on wind power, which is supplied by New York’s main wind energy supplier, ConEdison Solutions,or CES,a subsidiary of Consolidated Edison Inc. that is based in Valhalla, N.Y. They’ve been joined by larger firms such as 1,000employee Chelsea Piers Sports and Entertainment Complex in Manhat- GREEN BEER: Barcade’s Paul Kermizian pays 5% more for wind power at his three outposts. Commercial Banking Group Commercial Real Estate Capital One Bank® helps real estate companies take their businesses to the next level. As a top-10 U.S. bank, our dedicated Commercial Real Estate specialists deliver custom solutions, from streamlined cash ﬂow to project-based ﬁnancing. For real results in real estate, count on the experts at Capital One Bank. Visit capitalonebank.com/commercial to learn more. Products and services offered by Capital One, N.A., Member FDIC. © 2012 Capital One. Capital One is a federally registered service mark. All rights reserved. tan, which in 2008 also signed up for green power through CES. Wind-power manufacturing facilities in the U.S. more than doubled from 2009, to about 470 in 2011. Meanwhile,wind’s share of U.S.electricity grew to 2.9% last year, from about 1.3% in 2009, according to the Energy Information Administration. Customers are typically looking to help the environment, according to Michael Forese, national sales director for CES. “They’re obviously paying a little bit more, knowing they’re getting a cleaner product.” With the possible expiration of a key tax credit Dec. 31, the renewable power industry’s growth could slow, analysts say, after an expected record increase in capacity in 2012.Mr.Forese PERCENTAGE of power in the said that isn’t likely state generated to raise the price by wind customers pay for wind power. “The tax credits of the provided incentive SHARE energy state’s for generators to needs that could get into the busi- be met by wind ness, so even if the Sources: American Wind Energy Association, credits expire and National Renewable are not renewed, Energy Lab that will not drive renewable power generators out of the market,” he added. Meanwhile, some owners have found ways to offset the increased costs.Swing Salon,a three-chair shop in the East Village that uses organic products and supports environmental causes, has relied completely on wind power since 2007. Co-owner Caroline Holley said that the cost of electricity is higher, but “it turned out not to be that big a difference.” “Once we put in energy-efficient lighting four years ago, our bill went down 40%,” she said. She now promotes her salon’s energy efficiency through its website,as well as on Twitter and Facebook. For many businesses, using wind power complements other “green” practices. Bark Hot Dogs, known for locally sourced ingredients, has relied completely on wind power since opening its Brooklyn Bridge Park location in 2009. It now depends on wind energy in two other locations, a seasonal one on Manhattan’s High Line and another in Park Slope, Brooklyn. “Wind power ties into what we believe,”said Brandon Gillis, owner of the 60-employee chain. 2.1% 52% To sign up for Crain’s SMALL BUSINESS newsletter, go to www.crainsnewyork.com/smallbiz. 12 | Crain’s New York Business | September 17, 2012 buck ennis http://www.capitalonebank.com/commercial http://www.capitalonebank.com/commercial http://www.crainsnewyork.com/smallbiz

Table of Contents for the Digital Edition of Crains New York - September 17, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
OPINION
GREG DAVID
SMALL BUSINESS
REPORT: REAL ESTATE
THE LIST
REAL ESTATE DEALS
FOR THE RECORD
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - September 17, 2012