9-25-15

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Real Estate Journal — Fall Preview — September 25 - October 15, 2015 — 7C

M id A tlantic

E nergy S olutions

By Michael Rothstein, Evolution Energy Partners Company Profile: Evolution Energy Partners

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market pricing. Property owners and man- agers have been hearing

HVAC upgrades, and com- bined heat and power instal- lations (CHP). However, en-

acquiring new properties, and so on. EEP can help make energy projects cash-flow positive in Year 1 by finding the right financing arrangement and taking advantage of avail- able government incentives and utility rebates. Energy project financing is increas- ingly available from 3rd par- ties that understand the technology and associated cost savings. Some companies provide capital for all upfront construction and ongoing maintenance costs. In return customers make payments

or many commercial real estate properties, energy spending is

based on actual energy sav- ings, either through the util- ity bills (off balance sheet) or using traditional monthly payments. With so many opportunities for energy savings, now is the time to start significantly reducing operating expenses. EEP supports every client’s long-term success with a holistic approach and intel- ligent strategies for energy procurement and efficiency. Michael Rothstein is vice president of business development at Evolution Energy Solutions . n

the s ingl e largest con- tributor to o p e r a t i n g e x p e n s e s . Fortunate- ly, new av- enues ar e opening up for real es- tate owners

“With so many opportunities for energy savings, now is the time to start significantly reducing operating expenses. EEP supports every client’s long-term success with a holistic ap- proach and intelligent strategies for energy procurement and efficiency.”

Michael Rothstein

about the importance of en- ergy efficiency for years. Most people know that energy con- sumption can be decreased through projects such as LED lighting replacements,

ergy efficiency is often not a top priority capital improve- ment. Owners/managers face tough decisions on capital allocations: adding ameni- ties, improving curb appeal,

and managers who want to reduce their energy spend- ing. Evolution Energy Part- ners (or “EEP”) is a con- sulting company focused on making it easy for clients to take advantage of these new opportunities. Energy costs are deter- mined by two components: the supply-side (i.e. price per unit of electricity or natural gas) and the demand-side (i.e. the amount of energy consumed). EEP’s founders spent over 20 years on the energy sup- pliers’ side of the industry – providing energy commodi- ties both directly to custom- ers and through countless brokers and consultants. This extensive experience gave EEP’s founders a clear picture of the shortcomings of the energy brokerage and consulting marketplace. Too many energy brokers charge unreasonably high fees for procurement services, do not disclose the fees they bundle into suppliers’ prices, and provide no support for demand-side reductions. EEP’s fees for procurement services are typically 25-75% lower than other broker/con- sultants’ fees. EEP is willing to make these fees completely transparent to clients. On the demand-side, EEP will iden- tify, evaluate, and facilitate energy efficiency and renew- able energy projects. The energy procurement process should be shaped by the goals and risk-toler- ance associated with each property. EEP’s clients that are strongly risk-averse can limit exposure by only seeking bids for fixed-price contracts. More aggressive clients might pursue supply contracts with rates tied to supplier pool costs or pub- lished energy index prices. Others can utilize a sophis- ticated hybrid strategy with a combination of fixed and

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