esc leadership 2014 - energy solutions centerenergy solutions center inc. –2014 annual report page...

Corey MinshewESC Board ChairAGL Resources

Susan DavisESC Board Vice ChairQuestar Gas

Thomas MassaroNew Jersey Natural Gas

Sarah Van Der PaeltUnion Gas

Gary RehmAtmos Energy

Nancy LangeNorthwest Natural

ESC Leadership 2014Equipment Manufacturers Council Leadership Team

Marc Grandbois, ChairSchwank North America

Ruth Ann Davis – Williams Furnaces

Bob Heller – Generac

Yoshi Sekihisa – Aisin

ESC Support Team

David WeissExecutive Director

Leslie AuerbachMeeting Planner

Richard BiljetinaDirector, Industrial Markets

Eric BurgisDirector, Commercial & Residential Markets

Jennifer CoutoAccounting Assistant

Tina ReadManager, Commercial & Industrial Markets

Warren WillitsCommunications & On-Site Conference Coordinator

Melanie AnthonyNational Accounts Relationship Manager

Barry HallstedManager, Residential Markets

Barbara StinsonManager, Residential Markets

Executive Committee

Jim HearingLaclede Gas

Energy Solutions Center Inc. | 400 North Capitol Street NW | Washington, DC 20001 | 202-824-7150

Darrell WilsonChesapeake Utilities

The 53 energy utilities and 69 equipment manufacturers of the non-profit Energy Solutions Center (ESC) work together to bring new, energy efficient natural gas solutions to residential, commercial, and industrial energy users. ESC produces a wide array of tools, resources, and materials to educate utility staff and their customers about natural gas solutions, appliances, equipment, and systems. In addition to ESC’s expertise in the areas of gas technology, ESC identifies and highlights business, marketing, sales, and customer strategies to enhance the success of utilities that distribute natural gas.

ESC brings value and benefit to its members through the Technology& Market Assessment Forums,market-driven consortia, and general resources such as webinars, videos, and customer magazines.By leveraging the limited amountof funds, personnel, and resources that utilities and equipment manu-facturers can dedicate to customer education, marketing, and sales, ESC becomes a critical component in facilitating greater use of gas equipment and systems.

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GoalsStrengthen the Ability of Energy Utilities to Achieve Excellence in Servingall Customer Segments

Accelerate the Introduction & Deployment of New Gas Solutions that Improve Customer Productivity, Competitiveness, Efficiency, Reliability,and Comfort

Enable Energy Customers to Achieve Conservation, Efficiency, and Environmental Goals through the Use of Natural Gas

Overview


ESC

ESC MEMBER COMPANIES SERVICE TERRITORIES

ESC HEADQUARTERS

ENERGY SOLUTIONS CENTER INC. – 2014 ANNUAL REPORT

Customer Communications – Given the complexity, time, and cost of planning and executing customer communication programs of any kind, LDCs – local distribution companies -- increasingly rely on ESC to leverage their efforts in producing and distributing high quality, impactful customer pieces. ESC has a full range of professionally-produced videos that are ready for utility websites, cable TV, movietheater advertising, conferences and exhibitions, and corporate kiosks. ESC members purchase tens of thousands of copies of our three customer magazines

with our members’ logos proudly incorporated into either the print or electronic editions. Our CHP brochures and our homebuilder kits convey a compelling message

to customers about the value and benefit of natural gas solutions.

Natural Gas for Rural Communities – With the large propane price increases experienced by many and with the increasing affordability of natural gas, many farms and related agricultural operations are seeking new ways to connect with local distribution companies and take advantage of domestic supplies of natural gas. ESC’s new Agricultural Applications Workgroup is examining new opportunities surrounding natural gas engines for irrigation, natural gas dryers for crops, greenhouse CHP, NGVs, and blending of biogas and pipeline gas. This year the Workgroup hosted the US Department of Agriculture at the Kansas City TMAF to address energy efficiency grants that are available for a host of rural business applications.

Identifying Customer Projects that Moved the Needle – Each year ESC’s members recognize a handful of customers whose commitment and dedication to natural gas solutions serve as national models for the deployment of energy efficient solutions that improve customer productivity, comfort, efficiency and reliability. The following utilities, customers, and partners were publicly recognized with the 2014 ESC Partnership Award for Innovative Energy Solutions:

Strengthen the Ability of Energy Utilities to Achieve Excellence in Serving all Customer Segments

AGL ResourcesKansas Gas ServicePost PropertiesDeKalb CountyBrock Built HomesOklahoma Natural Gas

GE JenbacherWestern Energy SystemsBrookfield HomesKB HomesCapstoneHouweling’s Tomatoes

Texas Gas ServiceSouthern California Gas AircoGeneral MotorsDR HortonA.R.C. Technologies

ENERGY SOLUTIONS CENTER INC. – 2014 ANNUAL REPORT PAGE 5

Improved Training of Utility Staff – ESC officially launched its new Account Rep Training Program in 2014, and more than a dozen LDCs are partaking of the 13 unit course with online testing. It comes as no surprise that such an offering from ESC is extremely affordable and flexible. The program targets 1) current marketing and sales reps who want a refresher in the application of new gas solutions to commercial customer challenges, 2) utility staff that only recently took on responsibilities for natural gas solutions, perhaps coming from the electric side or from operations, finance, or public relations, and 3) new utility hires in any department where a basic introduction to the various applications of natural gas products is desired. The first track offered for sale in the Account Rep Program was Commercial Natural Gas I. During the second half of 2014, ESC offered for sale the Residential I track.

National Chains and Franchises – Our National Accounts Consortium continued to initiate projects with national and regional companies looking to deploy natural gas for the first time or to enhance the efficiency of their existing natural gas solutions. For example, ESC National Account member utilities worked with World of Beer to establish natural gas infrastructure to reliably fuel their locations. When World of Beer’s network of craft beer-centric taverns wanted a laidback and comfortable hangout for its guests while remaining true to an environmentally sustainable approach, it looked to natural gas. Today, the rapidly expanding business with more than 50 locations across 17 states uses natural gas for indoor space heating, water heating and patio heating. As World of Beer stimulates growth with the addition of food, natural gas kitchen equipment is now on the menu, too.

Gas Utility Growth – One of the most sought after sessions at our Technology and Market Assessment Forums is our Expansion Strategy Workgroup. Only in its second year, the workgroup focuses on the strategies successfully used by LDCs to navigate the tricky regulatory, financial, and public relations environment to ensure the opportunity to build new lines to serve the growing number of customers seeking America’s premier fuel. This year the workgroup focused on practical recommendations and problem solving regarding base rate expansion initiatives within a tariff based approach.

Social Media Content – ESC produced a variety of natural gas videos this year that focused on both the broader issues of natural gas supply and availability as well as specific applications of natural gas for residential, commercial, and industrial users. The professionally-produced videos are being placed on the ESC Facebook page, on ESC member websites, in movie theaters, cable TV, and radio advertisements, on social media outlets, and in kiosks at trade shows and conferences. ESC members not only enjoy substantial cost-savings by utilizing and branding these videos but save an enormous amount of staff time typically required for the development, production, and review of such products.

WE DELIVER is a new video that highlights how natural gas and LDCs play a critical societal role in maintaining the supply of energy and power to storm-ravaged areas where electricity is knocked out. The newly-produced WHERE DOES GAS COME FROM explains to customers in simple terms the “source-to- site” story for natural gas and the accompanying efficiency and environmental advantages.

“Relatively new to ESC, SourceGas is taking full advantage of the many resources, tools, and programs available to enhance our success with residential and commercial customers. We want our marketing

and sales team to be more capable of working with commercial customers, and ESC has provided us with the knowledge and skills necessary to bring the right gas equipment and best gas solutions to

this customer class. It’s been particularly valuable to alternate staff attendance at the TMAFs, so that the entire team can become familiar with the variety of gas solutions available for our customer

base. ESC is doing an excellent job in helping us address customer needs quickly and efficiently.”

Marshall MoodySourceGas


Maintaining the Popularity of Natural Gas in the Restaurant Industry – Forty gas industry sales and marketing representatives, trade allies, and equipment manufacturers attended the GFEN Consortium’s Customer Care Workshop at the Alagasco Center for Energy Technology in Birmingham, AL. The Workshop highlighted recent innovations in commercial natural gas appliances. The Alagasco Center houses a modern commercial test kitchen that allowed demonstrations of Pearl City’s highly efficient fryer (recipient of the 2014 Blue Flame Product of the Year Award), advancements in combi-ovens, a new char broiler, and an innovative steamer and steam griddle. In addition, events and programs at four LDC commercial test kitchens were highlighted as were new ESC initiatives with our National Accounts Consortium.

Accelerate the Deployment of New Gas Solutions that Improve Customer Productivity, Reliability, Competitiveness, and Comfort

Catalyzing New Approaches to Bringing Customers New Gas Solutions – ESC’s Technology & Market Assessment Forums challenge utility marketing and sales professionals to develop new approaches to bringing natural gas solutions to their residential, commercial, and industrial customers. While networking with marketing professionals from 40 different gas utilities, TMAF attendees gain insights to the success or disappointment of those marketing and sales efforts undertaken by other LDCs. The TMAFs refresh the knowledge, skills, and abilities of utility reps regarding natural gas appliances and equipment. The TMAF roundtables and discussion groups promote brainstorming about better approaches to overcoming obstacles, real or perceived, to using natural gas to improve customer reliability, productivity, efficiency, and comfort. Utility reps and equipment manufacturers form bonds that help to address customer issues more quickly and easily. The 2014 TMAFs attracted more than 750 people. Our thanks to host utilities AGL Resources, ONE Gas, and Southern California Gas for their generosity and support in conducting these critical conferences. In 2015 TMAFs will be held February 24-26 in Charleston, South Carolina, June 9-11 in Salt Lake City, Utah, and October 6-8 in Indianapolis, Indiana.


Alerting Utility Professionals to New Gas Solutions –Each month, ESC produces webinars designed to helputility professionals succeed in identifying new markets

and introducing new equipment choices to existing or future natural gas customers. These webinars are provided to ESC

members free of charge and cover an array of residential, commercial, and industrial topics. Hundreds of ESC members continue to participate in these monthly presentations with over

8,000 LDC man hours logged to date. ESC webinars are prepared specifically for utility staff and enable these energy

professionals to tackle a variety of customer questions and concerns.

Combined Heat and Power Opportunities – With a new market assessment completed on microCHP, ESC is helping to build the momentum to create new markets and new products to generate power for small businesses & homes from natural gas. ESC organized a group of microCHP developers who works with LDCs and their customers in bringing this new technology to the marketplace. A set of videos was produced identifying those situations where CHP makes the most sense and brings the greatest return-on-investment to our customers. The consortium also launched a series of detailed webinars that addresses those complexities of CHP such as interconnect, net metering, and financing.

Helping Homebuilders to Take Advantage of Buyer’s Preference for Natural Gas – ESC’s Builder Liaison Consortium completed an energy efficiency and HERS (Home Energy Rating System) study of 3 different homes by one of the top 10 builders in the nation. This analysis will allow builders and homeowners to recognize the type of gas solutions that will produce the best HERS score for the money. The consortium also retained another a consultant to work on behalf of ESC members to educate real estate agents about the advantages of selling homes with natural gas appliances.


Residential Carbon Calculator – With thousands of visitors to its carboncalculator each month, the Residential Consortium undertook a completeoverhaul of its web-based tool, increasing its accuracy and user-friendliness,while adding energy pricing to the calculations. Builders and homeownersuse this tool to calculate how gas solutions decrease overall carbon footprintand to estimate energy and emissions savings. Many ESC membersprovide a link to this tool from their corporate website.

Staking Out a Rightful Place for Natural Gas in High Rise Facilities – The Multifamily Consortium undertook efforts to help LDCs convey the opportunities for natural gas in apartment buildings and dormitories more effectively. A powerpoint presentation was developed for LDCs to use in educating architects and engineers about approaches for using natural gas in multifamily situations. A case study highlighting successful deployment of natural gas in multifamily facilities was developed and distributed to members. Consortium members launched discussions with equipment manufacturers about leveraging multiple technologies to create a more comprehensive gas solution for multistory buildings. Consortium members were also updated on codes and standards modifications impacting the ability to bring natural gas into new high-rises.

Industrial Process Heating – The Industrial Energy Efficiency Consortium completed work on updates and training on its comprehensive Process Heat calculator tools which provide industrial customers with guidance on next generation energy efficiency. The interface of these tools was enhanced to make it easier for utility reps to share results and tips with their customers.

NGV’s – ESC’s NGV Workgroup focused its attention this year on how landfills offer opportunities to fuel refuse disposal fleets and possibilities to utilize landfill gas along with CNG. Such discussions resulted in LDC reps investigating similar opportunities at landfills in their own service territory. The workgroup also hosted Clean City webinars to help members evaluate the economics and environmental attributes of increased CNG deployment.

Enable Energy Customers to Achieve EE Goals

“As Manager of Sales, I have seen a lot of things and know what works and what doesn’t work when it comes to training my staff. ESC’s Account Rep Training program addressed topics of critical

interest to our commercial marketing and sales reps. I’m using the curriculum to refresh the skills and abilities of our veteran marketing and sales team members, and to educate new hires about

natural gas basics. ESC’s training program is the unique blend of knowledge and skills that we were unable to find elsewhere, and at a fraction of the cost of other training programs.”

John RayWashington Gas


Membership – Membership grew slightly in 2014 with 53 utility members and 69 affiliate members. Merger and acquisition activity in the utility industry resulted in several ESC members consolidating. Membership retention remained strong. ESC has an active outreach program to recruit new members and strongly encourages potential new members to attend a TMAF as the best way to experience what ESC is all about.

Finances – The ESC budget in 2014 remained healthy with more than 85% of revenue coming from membership dues. Investment income and revenues from magazines and our training program rounded out the overall income. Our expenditures were in line with expectations. Salary and benefits was the leading category of expenditures followed by our TMAF meetings, and rent and related services. Reserves equal to approximately 1.3 years of operating budget provides a strong foundation for ESC operations.

Leadership – Each corporate utility member sits on the ESC Board of Directors. Two board meetings are held each year, during the February and October TMAFs with 60% of our board members in attendance. The Executive Committee, which also serves as the Nominating Committee and the Audit/Finance Committee, is the primary group that provides direction and guidance to the Executive Director throughout the course of the year. The membership of ESC is most grateful for the work of the Executive Committee in 2014 and extends its appreciation to the following for this year’s service: Corey Minshew, Susan Davis, Darrell Wilson, Gary Rehm, Nancy Lange, Sarah Van Der Paelt, Tom Massaro, and Jim Hearing.

Ensure Organizational Sustainability


Selected Presentations from 2014 TMAFs

LDC Marketing Strategy

Helping Customers Finance Energy ProjectsThe Great Outdoor Room as an LDC Growth Strategy

Gas Cooling as a Component of an LDC Growth StrategyNational Account Success Stories

Building a Sustainable NGV MarketAn Analysis of Inactive CustomersSuccess with NG Fueling Stations

Expansion Strategy – Making the Internal and External SaleCustomer “System Integrity” Protection as a Non-throughput

Revenue ProgramCustomer Feedback: Going Beyond the Numbers

Southern California Gas Energy Efficiency SuccessesSelling Gas Heat Pumps to CustomersEconomics of Boilers vs. Forced Hot Air

Customer Gas Solutions

Integrated HVAC Systems for MultifamilyModern Radiators

Gas Appliances – A Master Plumber’s PerspectiveResidential Combi-Boilers

The Safety of Corrugated Stainless Steel TubingStack Economizers Make SenseIrrigation Pumps and Natural Gas

Diesel Dual FuelNatural Gas Grain Dryers

Ultra Small Furnaces for Tight Homes & MultifamilyAdvancements in Rooftop Unit Products

Low NOx Distributed Flux Burners CHP for Data Center Applications

Market Drivers for Base Load Fuel Cell SystemsResidential and Commercial Water Heating TrendsOutdoor Entertaining with Natural Gas Appliances

Introduction to New Gas EnginesEnergy Savings on Boiler Systems

Reducing Viruses with Gas-fired HumidifiersGas Heating in a Vacuum Furnace

Improving Building Performance with Infrared HeatingResidential/Commercial Tankless Water Heaters


Air Compressor Workgroup Cherif Youssef, Southern California Gas

Boiler Burner Consortium Abdulla Ahmed, Southern California GasAqeel Zaidi, Enbridge Gas

Builder Liaison ConsortiumShannon Jackson, SEAGDBeth Potts, PiedmontDarrell Wilson, Chesapeake Utilities

Commercial Buildings Consortium Kent Stafford, AGL ResourcesBud Walters, Southwest Gas

Construction Heater / Thermal Remediation Workgroup

Chris Cole, DTE EnergyDiane Murray, Union Gas

CHP Consortium Rob Eck, National FuelJohn Rathbun, National Grid

Expansion Strategy Workgroup Darrell Wilson, Chesapeake Utilities

Gas Foodservice Equipment Consortium Ann Lovcik, CenterPoint EnergyLorri Davidson, Southwest Gas

Industrial Energy Efficiency Consortium Abdullah Ahmed, Southern California Gas

Multifamily Consortium Heath Kalmanson, Washington GasMichael Clevens, Chesapeake Utilities

National Accounts ConsortiumGreg Anderson, Atmos EnergySusan Davis, Questar GasMelisa Marks, Southern California Gas

NGV Workgroup Mike DeArmond, Atmos EnergyGwen Marelli, Southern California Gas

Oil Conversion Consortium Bob Gallo, New Jersey Natural GasBill Holmes, South Jersey Gas

Renewable Energy Workgroup Cherif Youssef, Southern California Gas

Residential ConsortiumDiane Murray, Union GasBridget Wallace, Atmos EnergyDarrell Wilson, Chesapeake Utilities

Energy Solutions Center Wishes to Recognize and Thank Our

Consortia and Workgroup Product Champions

Corporate Members

AGL ResourcesAlagascoAtmos EnergyAvista UtilitiesBGEBlack Hills EnergyCenterPoint EnergyCentral Hudson Gas and ElectricChesapeake Utilities CorporationCitizens Energy GroupCity of Corpus Christi (TX)City of Richmond (Va.)Columbia GasCorning GasDominion DTE EnergyEast Tennessee GroupEnbridge Gas DistributionEquitableFlorida Public Gas GroupFlorida Public Utilities Co.FortisBCGaz MetroHeritage GasLaclede Gas MDU Resources Group, Inc.Metropolitan Utilities DistrictMissouri Gas Energy

2014 Center Membership

Affiliate Members

AegisA.O. Smith CorporationAisin World CorporationAmerican Gas AssociationApogeeBradford WhiteBriggs and StrattonBroad USABurns and McDonnellCambridgeCapstone TurbineCaterpillar Energy GroupClayton BoilersCleaver BrooksDettson IndustriesEnercomEnershield IndustriesGas Technology InstituteGenerac


Municipal Gas Authority of GeorgiaNational Fuel Gas Distribution National GridNew Jersey Natural GasNIPSCONW NaturalONE GasPeoples Natural GasPECOPGWPiedmont Natural GasPuget Sound EnergyQuestar GasSCANASEMCO ENERGY Gas Co.SourceGasSouth Jersey GasSouthern California Gas CompanySouthwest GasTECO Peoples GasThe Gas Company (Hawaii Gas)UGI UtilitiesUIL Holdings CorporationUnion Gas Ltd.Vectren Washington GasXcel EnergyYankee Gas

Green Building InitiativeGreffen Systems Hurst BoilerInsultechIntelliChoiceJCG Energy ConceptsKohlerLumecMarathon Engine SystemsMarathon InternationalMichaels EngineeringMicrocogenModine ManufacturingNatural Gas Technologies Center Navien AmericaNirvana EnergyNoritzNovithermOmegaFlex

Osaka Gas Energy AmericaPearl City Mfg.QnergyRelms, Inc. RenweABILITY Energy Inc.RinnaiSchwank Ltd.ServicePowerSolar TurbinesSuperior Boiler WorksSuperior Radiant Products LtdTecogen2G CenergyThe Montague CompanyUtility ShieldViessmann ManufacturingVulcan CatalyticVNG.coWilliams Furnace Yanmar

Bryan Batson, Senior VP Southern Operations, AGL Resources; Caron Lawhorn, Senior VP Commercial, ONE Gas; and Dennis Arriola, CEO, Southern California Gas Company address ESC members at the 2014 TMAFs.

esc leadership 2014 - energy solutions centerenergy solutions center inc. –2014 annual report page...

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