No big secret to reducing costs.

Energy prices are seemingly out of control, with no end in sight. This is old news. Yes, there is exploration for new energy sources and more of the sources that we now depend so heavily upon, and yes there is much hope that solar photovoltaics and wind will shoulder more of the burden of our burgeoning energy hunger. But as it stands today, in the here and now, energy costs are more than volatile.

What was once a bill that was simply paid by accounts payable has become an action item on the decision plate of CEOs and big-powered, closed-door meetings.

Interestingly enough--no, not merely interesting, but rather compelling, with very positive economic impacts--there is an entire tapestry of energy cost-control modalities that can help turn the expensive energy "sour lemon" into rather tasty lemonade.

In order to raise your energy bottom line, no levitating magic is needed. Understanding energy economics will go a long way in planning and increasing a successful energy strategy.

First of all, one of the strongest, if not the strongest complaint, regarding electric bills is the "capacity and demand" charges that are folded into the confusing tariff recipe that governs your bills. Here is a known expensive item that, ironically, if you harness it properly, can be a bit of a cash cow for you. The old adage of "a penny saved is a penny earned" is worth taking to heart.

For example, there are load control strategies that can control capacity and demand, even in complex building specs and tenant issues that save thousands of dollars a month. This energy conservation initiative may include mechanical upgrades and Building Management Systems (BMS) enhancements, whose initial costs can be substantially offset by State funding through the New York State Energy Research and Development Authority (NYSERDA).

This is the "penny (thousands of dollars) saved" part. Now for the "penny earned."

Using simple economics, you can leverage that saved capacity and demand and sell it into the market, through the NYISO, and earn big money.

The NYISO, through a capacity bidding market and process, is looking for capacity that can be taken off of the grid on demand when capacity is at its peak and the grid is stressed.

They will pay handsomely, as an insurance policy, even during times when it seems that the grid is very stable and will likely not call upon your facility to curtail the load that was bid in.

Measurement and verification hardware and software must be in place so that the State can easily confirm that you can in fact produce the results that are bid in on your behalf.

You are obligated to be able to curtail load on demand, and if and when you are called upon, you then curtail the load through a strategy developed for the facility. On-site generation can be used as well, and the associated permitting must be in place.

There are artificial intelligent systems that have the ability to give you an enterprise-wide view of your facilities. These can learn your building, how it reacts to weather and to occupancy, etc., and give you predictive information with which to make economically sound energy decisions.

Continuous monitoring is integrated, so you can have your finger on the pulse of all your facilities, on one screen of a web-based program, for example.

There are many other pros to such systems, and as energy becomes more of a focus, so too will the technology to control the load and provided for precise verification as to energy savings and support for the various energy program benefits.

The energy world is moving very quickly, virtually at the speed of light. The changes in the industry, both in technology and in the market, must be understood in order to take advantage of the opportunities and to side-step the pitfalls.

We've touched here on only the surface of the available energy tactics that can be incorporated into a more global energy strategy for your company. Deregulation, day-ahead market, cogeneration, alternative cooling, and other options can all play a role in not only controlling costs but in bringing in revenues.

Energy, as with most industries, does not offer a one-size-fits-all solution.

Each facility is unique, with its own set of mechanicals and specific circumstances.

An optimal strategy, taking into account the facility's and portfolio's energy "personality," can benefit the end-user with the peace of mind, and the economics to boot, that they are running an energy-wise and dollar-smart operation.

BY DAVID NEIBURG, PRESIDENT, ENERGY SPECTRUM