ABO Developments - Winter 2015 - (Page 12)

What Price Energy? Buying It, Saving It, Making It W 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. Buying at Group Rates David Singer, Original Energy 12 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 | A B O D E V E L O P ME NTS * www.abogny.com 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. Thomas Devlin, "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 http://www.abogny.com

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