Posts

Energy and Portfolio Property Management

By Calvin Cornish

There are a lot of factors that go into managing an association’s energy:

  • Keeping track of when contracts expire
  • Obtaining bids from multiple suppliers
  • Timing your energy purchase correctly to see the most savings
  • Presenting the pricing during more than one board meeting (because they rarely decide on the first day)

Now multiply those factors by 5 or 6, and you have the energy management responsibilities of a portfolio property manager.

It can be exhausting!

Fortunately, there are solutions available that help make energy management easier for portfolio property managers. One solution is enrolling the properties they manage in an energy buying group.

What is an Energy Buying Group?

An energy buying group is a great solution for both portfolio managers and the property management company. In a buying group, all participating associations have the same energy rate, supplier, and contract end date. The buying group is managed and maintained by an energy advisor.

How can a Buying Group benefit me?

1) Lower Energy Rates

Including your properties in your company’s buying group could result in lower energy rates than what they could have obtained individually. As associations enroll in the group, the larger total usage increases the group’s wholesale purchasing power. The group can then leverage this for more competitive pricing from suppliers.

Additionally, if the group’s total usage exceeds a specific threshold, it could qualify for a reverse auction. The reverse auction process is transparent and naturally competitive, offering the group greater savings.

2) One Point of Contact

A buying group gives you one person to contact for any questions about your properties’ energy: the organizing energy advisor. Your energy advisor keeps track of the contracts for all the buying group participants and can get billing and customer service issues resolved quickly.

Consider Enrolling Your Portfolio

Keeping up with the energy contracts and decisions for multiple properties can be time-consuming and daunting. An Energy Buying Group can lower energy rates for all your properties and take the energy-decision pressure off you. Contact your energy advisor to learn more about buying groups and see if they make sense for your property management company.

 

About the Author

Calvin has served as a Senior Energy Advisor at Nania Energy Advisors since 2010. As the Director of Community Living and Real Strategic Energy Advisors Calvin CornishEstate Services, he specializes in preparing property management boards to make informed decisions on energy through proper industry education. His clients include apartment complexes, condominium associations, and senior living facilities. In his free time, Calvin enjoys music and coaching youth sports.

Calvin can be reached via email at ccornish@naniaenergy.com or phone at (630) 225-4554.

 

How To Make a Strong Energy Portfolio

By Mike Eckenroth

Imagine you’re the Vice President of Operations for a national property management company. You have 10 property managers reporting to you, each managing 3-5 properties.

As the company acquires buildings, energy decisions are left to the individual property managers. You receive their energy usage and spend reports annually, but you don’t have much insight into each manager’s energy strategy. And you definitely don’t have time to look over them all yourself.

How do you know if their strategies are maximizing savings and achieving the company’s energy goals?

Consolidate your energy portfolio.

Think about it – if you were the property manager described above, you’d have upwards of 50 reports coming to you every year about energy.

That’s a lot for you to handle.

Instead of managing all of that yourself, have a knowledgeable energy advisor take care of all the accounts for you.

Consolidating the management of your energy portfolio provides you with 3 major benefits:

1) Lower rates due to your portfolio size

Suppliers would like to have all of the properties within your portfolio as customers. If a supplier knows that a property is part of the portfolio, they will provide more competitive pricing than they would have given if the account was priced individually.

Working with an energy advisor also provides you with better rates compared to traditional brokers. Energy advisors can leverage relationships with their supply partners, giving you lower energy rates and expedited customer service.

2) Less stress for you and your facility managers 

The level of energy industry knowledge varies among property managers. This puts your company at risk for missed buying opportunities, lost savings, compliance issues, and strategy inconsistencies.

Having your energy portfolio handled by an energy expert takes these burdens off your shoulders. It also frees up the property managers to focus on providing the best level of service for your tenants or owners.

Your energy advisor can present you with a custom strategy that matches your organization’s energy goals.

Your options could include:

  • Buying groups
  • Geographical aggregation
  • Individual procurement

Each of these methods could potentially provide value for your organization, making energy easy so that you and your managers can be successful.

3) Access to macro-level reporting and tracking software

Keeping track of the energy data for all your properties is time consuming and can get messy very quickly.

When you consolidate your energy accounts into a portfolio, you have access to energy tracking software that isn’t available to individual locations. This software allows you to clearly view the expenses for each property and generates charts and graphs that are not only easy to understand but also provide actionable energy data.

With the insight this data provides, your energy advisor can help you identify areas for continuous improvement and prioritize possible efficiency opportunities, allowing you to achieve your energy goals.

Is consolidation right for you? 

Managing energy for multiple properties is challenging, but it doesn’t have to be difficult. The benefits that come from consolidating an energy portfolio makes it a logical option for both statewide and national companies.

Working with Nania Energy Advisors can help you develop a consolidation strategy that meets your company’s energy goals.

  • We currently manage over half a billion dollars in energy spend for our customers, and we use our size as leverage for better rates.
  • Our experienced Client Services team provides our customers with unparalleled service.
  • We have experience advising multi-state customers on their energy decisions, giving you the peace of mind that your energy strategy is in capable hands.

Call me to discover your consolidation options and discuss the first steps in optimizing your energy portfolio.

About The Author

Mike is an energy professional based out of Baltimore, Maryland with a strong engineering Strategic Energy Advisors Mike Eckenrothand purchasing background. His specialties include energy efficiency and strategic commodity procurement. Growing up in the shadow of Three Mile Island nuclear power plant, Mike has an intimate stake in a grid with safe, reliable, and cost-effective energy generation – which he leverages into an energy strategy that provides security for his clients.

You can reach Mike via email at meckenroth@naniaenergy.com or phone at 443-833-8224.