DEALING WITH THE ENERGY CRISIS SEMINAR DRAWS STANDING ROOM ONLY CROWD
By Robert Grant, Midboro Management

On Wednesday, June 20, 2001 the New York Association of Realty Managers (NYARM) sponsored an educational seminar, "Dealing With The Energy Crisis" at the Buildings NY Show 2001 at the Jacob Javits Convention Center. The exposition showcased over 550 innovations, products and services and education seminars for the real estate industry and for boards of directors of cooperatives and condominiums throughout New York. The energy crisis is currently one of the most pressing issues facing residential property managers. Escalating fuel costs are wreaking havoc with operating budgets and there is no relief in sight. The seminar was formulated to provide guidance through this adverse climate. The panel consisted of energy professionals able to describe economic strategies, fuel options, energy saving technologies and alternative energy resources.

Seminar Panelists: Andy Desiderio, AJ Desiderio & Associates; Irwin Chopak, AKAM Associates at Turner Towers; Thomas Thompson, First Rochdale Cooperative Group; Robert Grant, Midboro Management; Mark Taddeo, Amerada Hess and Tom Pace, Keyspan Business Services.

The standing-room-only seminar was moderated by Irwin Chopak, AKAM Associates' general manager at Turner Towers Corp. and a retired instructor at the US Naval School of Engineering. Irwin related a personal story from the early 1960's, when, as his ship pulled into dock in Ethiopia, he was sent to negotiate the purchase of oil by the barrel. It was selling for 4½ cents per gallon and he bargained the price down to 4 cents per gallon!

DEREGULATION
Thomas Thompson, Vice President of Sustainable Energy for First Rochdale Cooperative Group reviewed the history and changes in electric generating, pricing and delivery over the past 70 years in the U.S., and the goal of having 20% of all electricity in New York State generated from solar, wind, bio mass and other renewable energy activities by 2010. He described First Rochdale's goals as promoting energy efficiency, obtaining good commodity pricing, and developing alternative energy generation on sites of various facilities.

He explained the restructuring of Con Edison into a regulated wire and delivery company that has sold off all its generation plants, and the inevitable purchasing of electricity from ESCO's (overseen by the New York Independent System Operator, or N.Y.I.S.O - a nonprofit organization created under deregulation to run the wholesale power market). He concluded by comparing the California problems with New York, and pointed out that resistance to building local new power plants is due, in part to health issues - generating electricity releases carbon emissions and causes more pollution than most other industries.

ALTERNATIVE PURCHASING OPTIONS
Mark Taddeo, Amerada Hess Corp.'s General Manager for marketing in the NYC metro region and Tom Pace, Keyspan Business Services' General Manager for Development both spoke about alternative purchasing options in gas, oil and electricity offered by their respective companies. These include locking in a rate for per therm gas and/or for transportation of gas - for 1 month, 2 months or for 1 year, and locking in a price for oil. They both spoke about their development divisions, especially in relation to the design and installation of micro cogeneration on-site systems. Co-generation means generating and using two forms of energy, namely

• a) the generation and use of electricity, and
• b) the recapturing of heat (by-product of generating electricity) to use for heating hot water or for chilling water in a central air conditioning system.

Electric generators are only 40% efficient; reclaiming the lost heat raises the system to 80% efficiency. Such co-generation systems can be designed to be completely independent (isolated) from Con Edison, or designed to be parallel or interconnected with Con Edison. In both designs, the cost of electricity is significantly less than purchasing electricity from any other provider.

These systems can also be designed to address only peak demand usage, or serve as an emergency supply (back-up) system. - and thus be eligible for various credits, which further reduces the cost of electricity.

COGENERATION
Andrew Desiderio, P.E. heads a consulting engineering group (A.J. Desiderio & Associates). He described how cogeneration systems work (comparing them to a car engine that provides power for driving the vehicle, and simultaneously provides heat or air conditioning) and defined the system as providing heat and electricity from the same plant. He explained the site specific, restrictive uses of co-generation equipment - which is not applicable in most residential buildings or other facilities unless they require power and hot water on practically a 24-hour basis (such as hospitals, nursing homes, hotels, certain industrial facilities, etc.).

LOWERING ENERGY COSTS
Robert Grant, Director of Management for Midboro Management in New York City, then addressed methods for improving efficiency and lowering energy costs in buildings. He outlined strategies for increasing boiler efficiency through modernized controls, additional cleaning and overhauls, efficiency tests and oil tank cleanings. He described the cost savings of a boiler service contract versus servicing a boiler on a time and material price basis. To achieve electric use efficiency and reduce costs, he reviewed the process of converting indoor lighting to energy efficient or fluorescent lights and ballasts and analyzing and converting exterior lighting to energy efficient lighting.

SUBMETERING
Grant described the lower rate charged if a building is "master metered" rather than having individual electric meters for each tenant, and explained the process of converting to master metering, and/or submetering. Today, the technology has made submetering unobtrusive and inexpensive. There are a number of companies that read and bill back the submetered electric charges through remote readers on a cost effective basis. Grant also explained the expensive direct current (DC) surcharge imposed by Con Edison on any property that uses such current to power their elevators. This can be corrected inexpensively by installing a rectifier (which converts alternating current to direct current), and has a pay back of about two years. It can also be corrected by a modernization of the elevator wiring and equipment to accept alternating current on its own.

ENERGY EMERGENCY PLAN
To close the seminar, Grant explained the need for developing a checklist in the event of a power blackout. He described the two-tiered emergency plan - for the building and staff, and for the tenants.

Items for an emergency plan checklist fall into two categories: building and staff checklist, and resident checklist.

RESIDENT CHECK LIST

• a. Candles, flashlights and batteries
• b. Surge protectors
• c. Battery back-up for cell phone and for computer charging
• d. Don't use water unless absolutely necessary - pumps for roof tank water will be off and building water supply will be very limited as a result.
• e. Turn off all appliances and a/c units, etc. to avoid burning out fuses or tripping circuit breakers when power is finally restored.
• f. Instructions regarding emergency building/staff procedures
• g. Remain calm

BUILDING AND STAFF CHECKLIST

• a. Bid out installation for emergency battery-pack lighting in stairway, hallways or both. If affordable, contract and install.
• b. Test all existing emergency battery-powered lighting.
• c. Extra flashlights and batteries in stock
• d. Candles for lobby and doorman (if applicable) station.
• e. Extra cell phones for all staff members and battery back-up for chargers.
• f. Pagers for all staff with extra batteries.
• g. Phone listing of every resident and emergency telephone number for residents (especially for residents with special needs: children, sick, elderly and other disabilities.)
• h. Phone listing of all staff, and back-up man list for staffing
• i. Extra security (with staff, back-up staff or guard servic.e) especially at front door/vestibule area since the intercom system will not be working and residents may need assistance going in and out of building and getting up to their floor (elevators will also be out.)
• j. Special staff training for assisting residents to and from their floor and for assisting special needs residents, and for front door communications with residents and guests (since intercom is out), and for keeping residents calm.
• k. For large buildings consider floor captains.
• m. Systems check when power is restored: timers and settings on boiler controls, lighting, pumps and elevators. Be in contact with elevator service company regarding elevator problems when power is restored.

Robert Grant is Director of Management for Midboro Management, 1926 Broadway #604, New York, NY 10023. You can contact Mr. Grant at 212-877-8500 or email at rgrant@midboro.com.

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