Taking Control: U.S. Businesses Step up Use of Submetering Systems -- but Prefer Non-Utility Sources of Equipment & Support, Says New National Survey.

Business Editors/High-Tech Writers

NORTH SALEM, N.Y.--(BUSINESS WIRE)--April 13, 2004

Positive Customer Experiences Point to Future Expansion of

Submetering; New Report Highlights Applications & Benefits

Submetering technology -- the deployment of advanced electrical meters and software to capture and track energy costs by process, business unit, or activity -- is spreading rapidly among America's largest businesses, according to a new exploratory survey conducted by RKS Research & Consulting.

Large, multi-site enterprises, as well as government, educational and commercial property managers, register high levels of satisfaction with their decision to submeter key facilities to monitor and manage their energy-related expenses. In fact, a third of businesses presently using submeters intend to install additional meters in the months ahead, according to this exploratory study.

But less than one in 10 of these large commercial and industrial customers expect to turn to their local electric utility to install and support submetering systems. Among those companies that have not yet employed submetering but plan to do so in the future, more than 90 percent intend to draw on non-utility sources for installation and support, according to the survey results.

These findings are part of a special, focused RKS study of 50 key accounts from a nationwide sample of large multi-site commercial and industrial organizations. The survey asked energy managers at participating firms to assess their experience with submetering, including applications, benefits, and barriers to adoption. Although designed as a national survey, this exploratory study focused on competitive markets, where submetering is most active.

More than half of the nation's largest energy users -- 54 percent -- have installed submeters at their locations, according to the survey. Close to two-thirds of these businesses submeter their entire facility, while the rest rely on submeters to measure the electrical consumption of specific equipment, processes, or locations.

And user satisfaction is high, with respondents registering a positive 8.3 on a 0 (very dissatisfied) to 10 (extremely satisfied) scale. Active users of submetering report measurable savings averaging four percent on their companies' monthly electrical bill, with several respondents citing monthly savings in the double-digit range.

Among the 46 percent of the firms in this survey that have not yet embarked on submetering, interest remains high. When they proceed, two-thirds of these firms plan to use an external supplier, such as an electrical contractor, equipment supplier, or energy management consultant for installation and support. Less than four percent indicate an intention to call on the local utility to handle the job.

"These results suggest a lost opportunity for utilities to provide a vital service to their largest customers," said David J. Reichman, RKS chairman and chief executive. "Although utilities have in-depth knowledge of their customers' energy use, as well as long experience with meters and energy management systems, their customers tell us they're relying on others to install and support submetering systems."

This latest RKS exploratory report contains an analysis of the survey findings, measures interest and current applications by customer segment, and includes verbatim responses to questions about actual experiences, lessons learned, barriers to adoption, and the benefits of submetering. This RKS mini-survey is available for direct purchase from the company's website: www.rksresearch.com or by calling RKS' Western office at 408-867-6430.

Now completing its 30th year of business, RKS Research & Consulting designs and conducts both syndicated and customized market research and public opinion polling for energy and natural resources clients, including their major associations. RKS operates from headquarters in North Salem, NY, plus field offices in New Jersey, Florida, and California. Further information is available at www.rksresearch.com.