ABO Developments - Winter 2015 - (Page 12)
What Price Energy?
Buying It, Saving It, Making It
ABO Executive Director Dan Margulies moderates ABO panel "What Price Energy?"
ith the city mandating conversion to #4
or #2 oil, and eventually only #2 oil, the
cost of oil fluctuating wildly, and a host
of alternative energy sources coming to
market, buying energy has never been so complicated.
One thing is certain: "Every building, whether you like it or
not, is going to have to sit down and have this conversation," said
David Singer, president of Original Energy. "You've got to look at
your property, look at your resources and make an energy plan."
To help owners and managers devise the right plan for their
property, ABO presented a seminar on energy at NYARM Expo
last fall. Moderated by ABO executive director Dan Margulies, the
seminar, "What Price Energy: Buying It, Saving It, Making It," featured four experts in the field, including Singer, Paul DeSimone
of United Metro Energy, Thomas Devlin of the ABO-FS Energy
Buying Group, and Ahmed Ibrahim, business development executive at Ecosystem Energy Services.
Devlin told operators
in the audience concerned
with getting stuck in energy
contracts at market high
rates, as many did last
year, "there are ways to buy
energy to hedge out your
exposure to riskier months."
Devlin manages FS
Energy's bulk energy buying
program for buildings in
the First Service Residential
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portfolio, which includes
70,000 apartments. FS
offers operators an opportunity to save money by
buying at discount group
rates, choosing from a range
of gas and electric products
sold by 15 suppliers.
The program is also
available to members of
ABO, the only organization
outside of FS Residential
with access to the program.
"We've been able to take ABO-FS Energy Buying Group
the data we have and work
with suppliers to create some exciting products," said Devlin.
"We've seen about 16 percent savings relative to our benchmark,
the ConEd utility rate."
About 44 percent of commercial meters use ConEd instead of
energy services providers, Devlin said, "because a lot of buildings
and decision-makers have been burned in the deregulated space
at some point or another."
The average building spends about $26,000 for electricity and
natural gas, he noted. Using the FS buying group, he said, "normalsized buildings can achieve some pretty significant savings."
Fixed or Variable
On top of whom to buy from, the building operator has
another decision to make - whether to buy at a fixed or a variable rate.
"Every building thinks about their budget differently," said
Devlin. "The fixed product works for the ones that want to have
Table of Contents for the Digital Edition of ABO Developments - Winter 2015
A Message from ABO Executive Director Dan Margulies
Affordable Housing: A Work in Progress
What Price Energy? Buying It, Saving It, Making It
Benchmarking: Year Three
Index of Advertisers
ABO Developments - Winter 2015