Get Energy Smart! NOW!

Ouch! Laura’s monthly electric bill just arrived. The kilowatt per hour rate and local taxes went up …again… but her take home pay didn’t. She needs a strategy to cut back on her household’s energy consumption. She gets her family together to discuss the increasing cost of all utilities to map out a conservation plan that includes investment in CFLs, in a programmable thermostat, and a commitment to changed behavior. Next month she’ll see the payoff…lower bills.

Laura doesn’t live far from a condo where residents never see a utility bill. The condo is master-metered. The only folks who see the bills are the property manager and the condo board (f they look at them). So, while Laura will see the results of her family’s energy conservation efforts the individual residents at the condo will never know if their consumption patterns raise or lower what they pay for utilities. So why would they take an interest in energy conservation?

I live in that master metered condo. The building is more than 40 years old and is representative of many thousands of buildings across the country. They all share the same problem. Wasteful use of gas, electric and water occurs when the cost of utilities is included in rent or condo fees.

I’m trying to convince my condo neighbors to conserve…because it’s good for the environment and because we could save money. It’s a hard slog but I’m not giving up. And, since there are thousands and thousands of others in the same situation I’m sharing my experiences via this blog, hoping to provide some helpful information and also inviting others to share information about their efforts.

Let’s work together to solve the problem of master metering and energy waste.

Leaky Windows

My first foray with our condo board and my new neighbors occurred just after my husband and I purchased our unit. Foolishly, we didn’t hire an inspector before closing on the deal. During our first visit after the purchase we discovered the windows were sealed shut because of air leakage. Although windows are the responsibility of the unit owner, we couldn’t get the windows repaired and we couldn’t get them replaced since the condo requires a standard window. The manufacturer would not undertake production of our windows unless he had an order for a minimum of 50 . The condo office had a list for 20.

I met with the management company’s engineer. He told me the single most effective thing my building could do to reduce energy waste would be to replace the original windows with energy efficient models.

[Editor’s note:  This comment by the “management company’s engineer” is an indication of a problem.  Window replacement is very rarely “the most effective thing” related to reducing energy waste and not the “most [cost] effective thing” to do.  For example, using the same building, CFLs replacing incandescents are a much faster payback item. Now, to be clear, window replacement has many non-directly fiscal payback items — such as increased comfort — that need to be part of the decision-making process.]

I became chair of the window committee. I located a contractor, got a price and then contacted all unit owners explaining the value of window replacement…less noise, drafts and dust and energy conservation. After a couple of weeks I had orders for 120 windows.

The current situation:

1. It’s been six years since the first orders. There have been four subsequent orders but a small percentage of windows still need to be replaced. Our building has 230 units. 42% have absentee owners who don’t experience the drafts, noise and dust and don’t want to spend the money to replace the windows. The windows, by the way, are huge and expensive (in 2010 the price was $1600 per window
2. While energy experts concur leaky windows are energy inefficient it is almost impossible to prove our replacement efforts have saved energy and lowered our monthly bill because a) there are great variations in annual weather patterns and therefore annual comparisons are almost impossible b) rates and taxes have increased so even if there are usage savings the monthly cost has gone up.

The Energy Conservation Committee

My goal is to make energy conservation a priority issue of the Board and my neighbors (owners, renters and their landlords).

The Board approved my request to form an Energy Conservation Committee. I put a sign up on the bulletin board and notices were placed in mailboxes. I recruited a committee with five members (including me).

The Energy Audit

The State of Maryland offers energy audit matching grants to businesses and multi-family residences that meet specified minimum usage standards. Our building qualified and in 2009 the Board approved an expenditure of $2,000 with the state kicking in services valued at $2000.

Several months after the contract was signed the auditor came to the building and realized his expertise was with commercial buildings, not residential. He asked for and received a greater state contribution and called in a private firm more experienced in residential work. A team of auditors studied the building’s annual utility bills, examined major systems, all lighting and air circulation. It took about six months to get the report and its recommendations.

There were 14 recommendations. Some could not be implemented because the recommended improvement is within the individual units and, like the windows, must be contracted for by the unit owner low flow ;shower heads, new convectors for heat and a/c, programmable thermostats for example). One recommendation was for a resident education program. The energy committee felt it could undertake this activity on its own as the projected cost was $21,000. Since there is considerable turnover in the 42% rental units the education efforts would certainly have to be on-going. But the Board did OK $28,000 for several recommended actions. The estimated annual savings is about $19,000.

The local electric company, PEPCO, is currently required to provide energy conservation incentives and, in most instances, our building’s audit recommendations qualify for incentives so, 50% of the cost of implementation should be paid for by the utility company. This means most improvements would have a payback period of less than one year.

In addition, our County’s EPA announced (in late March, 2011) an energy conservation grant program of $75 million with less than two months to complete an application. The grants will pay for approved projects of up to $75,000 (project could be the bundle of audit recommendations for our building). Conceivably, almost 100% of our cost could be covered.

Other Priorities Get in the Way

During the time between signing the contract for the audit and receiving the report the building experienced a series of crises. Vertical risers started failing. Floods occurred in several tiers (the building is 16 stories), causing considerable damage and potential loss of insurance. The cost of replacing the risers will be more than $1 million spread over several years. In addition, elevators need major repairs and, to top it off, the property manager is seriously ill. With all this on their minds, how can I catch the Board’s attention and take advantage of PEPCO’s and the County’s conservation incentives?

March 23, 2011

It is now a year after the audit report was presented to the Board at its monthly meeting. The management company at last presented bids to undertake the budgeted audit related projects and the Board gave the go-ahead. Furthermore, and most encouraging, the Board approved applying to the County and PEPCO for an additional audit recommended project… Upgrading the Common Area Lighting and putting sensors in the laundry and exercise rooms, If both grants are accepted an additional $5,000 a year would be saved bringing the average annual savings per unit to a projected $104 a month. Board, management and the few residents who attended the meeting seemed more tuned into the potential financial benefits of energy conservation.

Related:  See Energy and the tragedy of the commons: master metering.