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Measuring Your Energy Spend, Lowers Your Energy Costs

RETEX has conducted an extensive search to find the organization that can provide the full range of energy services for its members. Based upon that search it has selected the EnergySolve Companies.

The EnergySolve Companies consist of EnergySolve, EnergySolve Demand Response, and Nxegen, An EnergySolve Company. The EnergySolve Companies were formed by a group of investors lead by a Managing Director of Morgan Stanley. The goal was to provide the most comprehensive energy information and energy efficiency services in the industry.

You Cannot Manage What You Cannot Measure

EnergySolve captures all the information available from a customer’s utility bills in a web-based application that allows the customer to access over the Internet information about dollar spend and usage at the facility level. EnergySolve captures this information by processing and paying the utility bills and eliminates late fees, billing errors, and incorrect tariffs. The savings from these activities more than pay for the cost of the information and reporting system that EnergySolve calls the Utility Bill Analysis and Reporting system (UBAR). Through its robust reporting system the customer and its energy management partner can capture the information needed to develop a comprehensive energy management plan.

A saved unit of energy is less expensive than a generated or produced unit of Energy

EnergySolve uses the information from the utility bills to save the customer money and to provide the information needed to determine the cost-effectiveness of investing in energy efficiency technologies that reduce energy costs. These technologies reduce energy usage and quickly pay for themselves out of savings. The technologies include lighting, HVAC, refrigeration, variable frequency drives and many other energy saving devices.

Controlling energy demand during peak usage periods can produce substantial savings

EnergySolve uses information from energy bills to identify the most cost effective strategies for controlling demand. EnergySolve has its own smart meters that measure demand and its own software to control that demand. Smart meters control demand by turning unneeded equipment off, dimming lights, or modulating energy usage on such things as fan motors. Not only do these demand reduction strategies reduce capacity charges, they also reduce energy charges.

The Customer’s store managers are often too busy to manage energy demand

Web-based energy management tools enable the customer to manage its own energy demand. No matter how easy these web-based tools are to use, they still require the precious time and attention of time-constrained managers. EnergySolve has a solution to this problem.

Through its Energy Management Operating Center, EnergySolve employees can monitor thousands of facilities. Through its sophisticated proprietary software or through software of its trade allies, it can create the scenarios or scripts for responding to coincident peak events or external demand response programs. This Energy Management Operating Center is unique. It can save the customer substantial time and money without diverting existing staff from core activities of selling its products and producing satisfied customers.

Generating energy on-site may be less expensive than buying electricity from the grid

EnergySolve has experience with onsite generation using gas-fired engines or turbines and capturing the waste heat to displace natural gas usage for heating or electricity usage for cooling. EnergySolve also has experience with solar photovoltaic systems that generate electricity on-site. EnergySolve examines the cost-effectiveness of these strategies when helping customers save on energy.

A customer needs to use its capital, first, for its core business

EnergySolve understands that customers need to use their capital to invest in their core business. Therefore, cost-effective energy saving investments may be postponed and savings may be lost. EnergySolve addresses this problem by providing traditional sources of financing so that savings can flow to the bottom line quickly without waiting months or years for a capital allocation. EnergySolve also provides a unique form of financing that may be attractive to its customers. EnergySolve is willing to provide its capital (equity or debt) to make the investment in energy efficiency products and services on behalf of its customer. EnergySolve owns the equipment and provides the services through a Service Agreement. The customer pays a usage fee that is significantly less than the expected savings. The net energy savings (e.g. 30% to 50% of overall savings) drop immediately to the customer’s bottom line. EnergySolve guarantees that the savings will be equal to or greater than the usage fee. Therefore, this approach offers a no cost/no risk opportunity for the customer to save money through energy efficiency. In addition, this approach is off the balance sheet of the customer and the usage fee is an item of expense. The financial reporting requirements pertaining to leases do not apply.

A Special Opportunity for RETEX members that are currently outsourcing their utility bill payment

Because EnergySolve is a full service company, EnergySolve can provide the bill outsourcing service at zero cost. EnergySolve can produce energy savings by changing out lights, managing peak demand or initiating other cost effective savings strategies. ]. The customer no longer pays a monthly fee for utility bill outsourcing services. The service is paid for out of the usage fee in the new savings. So RETEX members that are using another bill outsourcing company can eliminate that cost completely and obtain an even better bill outsourcing and reporting service through EnergySolve.

Examples of cost-effective energy saving strategies for RETEX members

EnergySolve has installed in retail customers’ warehouses wireless dimmable fluorescent T-5 HO (High Output) highbay fixtures that replace metal halide and high pressure sodium. EnergySolve has saved between 50% and 75% of the energy use for its customers by installing the T-5 highbay fluorescent lights. The light output is greater and the light depreciation of the fluorescent fixtures is only 5% over the 20,000 rated life compared to 65% depreciation for the metal halides or high pressure sodium. EnergySolve is also replacing metal halide and high pressure sodium in retail parking garages with a T-5 fluorescent fixture that saves 50% of the energy and produces more light.

EnergySolve has also installed the wireless dimmable T-5 Westinghouse Retrolux system in retail stores to replace T-12 lamps. The savings have been greater than 50%. EnergySolve is about to replace 90 watt halogen PAR 38 lamps with a new compact fluorescent lamp (CFL) that has the same light output, broader beam spread, longer rated lamp life, and only uses 23 watts. EnergySolve is also installing a variety of LED lights to replace lights that are less energy efficient and have a considerably shorter life.

EnergySolve also is installing a new wireless management control technology sold by General Electric that will enable EnergySolve to wirelessly dim T-8 fixtures, wirelessly control HVAC components and avoid coincident peaks. This Internet based control can be used at the store level, regional level, or the corporate level and operated by the customer with or without the assistance of EnergySolve’s Energy Management operating center.

For additional information, contact Member Care or click here.

Retex News
September 2005





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