Business Facilities - March 2009 - (Page 7)

U.S. ENERGY OUTLOOK In February, the U.S. Energy Information Administration announced some short-term energy outlook projections. • U.S. real gross domestic product (GDP) is expected to decline by at least 2.7% in 2009, triggering decreases in domestic energy consumption for all major fuels. Economic recovery is projected to begin in 2010, with 2.2 percent year-over-year growth in GDP. Accompanying the projected economic recovery should be a mild rebound in energy consumption for all the major fuels in 2010. • The U.S. economic downturn also is contributing to a decline in natural gas consumption, particularly in the industrial sector, which has led to lower natural gas prices. The Henry Hub natural gas spot price is projected to decline from an average of $9.13 per thousand cubic feet (Mcf) in 2008 to about $5 per Mcf in 2009, but then increase in 2010 to an average of almost $6 per Mcf. • The U.S. price for regular gasoline averaged $1.69 per gallon in December 2008, the lowest monthly average since February 2004 and down nearly $2.40 per gallon from the monthly peak seen last July. Gasoline prices have been slowly increasing over the last six weeks as crude oil prices have stabilized and refinery margins have recovered from their recent nearhistoric lows. SNAPSHOTS SECONDS with Rick Sievertsen, VP of Client Solutions, Advantage IQ BF: When analyzing a company’s monthly utility costs expenditures, in which utility charges can and consumption to Advantage IQ find the most significant sav- prior periods is the best way to monitor your bills and identify errors. Identifying ings opportunities? RS: Focus on the areas where you have the problem prior to payment of the bill the greatest expense and hence the great- improves your chances of paying the corest opportunity for cost savings. If you rect amount. If you find an error after you spend the most on electricity, look closely have paid the bill, contacting the utility and at your electricity costs and consumption. If documenting the error quickly will improve you have a high natural gas requirement, your chance of refund. Many utilities have you may want to look more closely at your limits on the amount of time for which a natural gas bills. Your type of business will refund can be claimed. determine where your greatest energy effiBF: What solutions can a company ciency opportunities reside. An office employ to reduce energy expenditures and building has the greatest opportunities in become more sustainable? the areas of lighting and heating, ventilatRS: Communicate with your employees ing and air conditioning. A restaurant has about the impact energy has on the bottom greater opportunity in the cooking area. A line and enlist their support in cutting convenience store should look at the energy waste. Turn off lights when conferenergy consumed by their freezer/refriger- ence rooms, offices and restrooms are not ation equipment. in use and turn off office equipment when BF: What are common causes for over- employees go home for the day. Utilizing charges by utility providers, and how can building automation systems where available and not over-riding equipment a company recover overpayments? RS: Meter malfunctions, being placed designed to maximize energy efficiency on a utility rate that is less than optimal, are further ways to save. being billed for service for a facility that was closed or GASOLINE AND CRUDE OIL PRICES 480 sold or receiving duplicate Forecast 440 bills for the same facility or 400 period are common errors 360 320 found by Advantage IQ for Cents 280 our clients. per 240 Recovering utility billing gallon 200 160 errors requires that you 120 identify the problem 80 40 quickly and contact the util0 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 ity provider to identify the problem as soon as possiShort-Term Energy Outlook, February 2009 ble. Comparing your Retail Regular Gasoline Wholesale Gasoline Crude Oil Retail price includes State and Federal taxes BUSINESS FACILITIES 7

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Business Facilities - March 2009 Contents First Word Snapshots Corporate Moves: Tennessee Deciphering High-Tech Hubs Industry Focus: Biotech/Pharmaceuticals The Lone Star State Continues to Burn Brightly Pennsylvania is Holding Its Own Corporate Moves: Florida Metro Spotlight: Findlay, OH Advertiser Index Ask the Expert

Business Facilities - March 2009

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