Commercial and Industrial Case Study
Commercial Sector
The Company
Focus on Energy, Wis-
focus on energy consin's energy effi-
The power is within you. ciency and renewable
energy initiative, works
with Wisconsin residents and businesses to manage ris-
ing energy costs, promote in-state economic develop-
ment, control growing demand for electricity and natural
gas and protect the enviromnent. Customers served by
participating utilities, including all investor owned utili-
ties (IOUs) in Wisconsin, are eligible to receive Focus on
Energy services and incentives.
Focus on Energy works with eligible Wisconsin residents
and businesses to install cost effective energy efficiency
and renewable energy projects. Focus helps to implement
projects that otherwise would not be completed, or to
complete projects sooner than scheduled.
In 2007, Focus on Energy received the ENERGY
STAR® Award for Sustained Excellence in Program De-
livery for achievements in the residential and commercial
Goals and Objectives
Focus on Energy's Commercial Sector is designed to help
commercial customers understand how a strategic ap-
proach to energy management can lower operational ex-
penses, improve bottom lines, protect the enviromnent for
future generations, and foster a safe and comfortable work
environment. Net goals for the 2009 program cycle are to
save 64,000,000 kWh of electricity and 799,750 therms of
natural gas, and achieve 12,800 kW of demand reduction.
Focus on Energy's Commercial Sector promotes bench-
marking with EPA's energy performance rating system
as a key component of strategic energy management.
Smart Strategies® trainings, modeled after the ENERGY
STAR Guidelines for Energy Management, guide cus-
tomers through the step-by-step process of developing an
energy management plan. The program also offers pre-
scriptive incentives for a range of ENERGY STAR
qualifying commercial food service equipment.
United States
Environmental Protection
~~ Target Customers
Focus on Energy serves approximately 200,000 com-
mercial businesses in Wisconsin. It uses a tiered ac-
count management structure to strategically target pro-
gram resources and ensure cost-effective program de-
livery. Large customers with multiple facilities are pro-
actively targeted and receive a high level of support,
including assistance with benchmarking their energy
performance, establishing energy teams, developing
energy management action plans, and identifying en-
ergy efficiency opportunities. Smaller customers are
primarily served through prescriptive incentives, inter-
active web-based tools, and informational materials
providing guidance on implementing energy efficiency
improvement projects.
~~ Marketing and Outreach
Since 2004, Focus on Energy has employed a strategic
market segmentation approach targeting the most en-
ergy-intensive segments of the commercial market:
restaurants, grocery, healthcare, and hospitality. This
sector approach is a key component to both strategic
marketing and customer management.
By distributing customers into market sectors, program
administrators are able to specify the key criteria to as-
sign customers to one of three tiers. The sector differen-
tiation is important as it allows sector specific data to
assess potential opportunity. For example, the number of
hospital beds is a key factor for hospitals; hotels have
important identifiers such as banquet facilities and pools.
Within each sector, customers are assigned to one of
three tier levels which determine the level of service and
incentives that are offered. This approach allows staff to
identify and effectively manage smaller projects by
streamlined program delivery methods. Focus on Energy
staff can then utilize their time and expertise to proac-
tively target large energy savings opportunities.
Market segmentation is also a strategic tool for sector
specific marketing. It facilitates opportunities to lever-
age industry associations, to utilize trade allies, to con-
duct outreach at trade shows, and to target "hard to
reach" segments. Each sector has its own team dedicated
to working with the market segment, and they develop
January 2009

Commercial and Industrial Case Study
messaging and incentives specifically directed to meet
the sector's needs, opportunities, and business drivers.
~~ Process
From measuring energy performance to providing recog-
nition for customer achievements. Focus on Energy of-
fers services and incentives to support each step of the
strategic energy management process.
Measure Energy Performance
As the first step in helping the customer develop a strate-
gic approach to energy management, top tier accounts
receive a high level of technical support in benchmarking
with EPA's Portfolio Manager. For mid-level accounts,
use of Portfolio Manager demonstrates the customer's
commitment to strategic energy management. Customers
must benchmark their energy performance before the
program will conduct a walkthrough facility audit.
Identify Opportunities
Focus on Energy assists customers in identifying energy
efficiency improvement opportunities by conducting facil-
ity assessments and offering financial support for feasibil-
ity studies. Two dynamic online tools—the Energy Effi-
cient Grocery Store (www.energysavingstool.org) and the
Smart Strategies Hotel Tour (www.focusonenergy.com/
hotel)—allow customers to move through a virtual prop-
erty to identify efficiency opportunities that may be appli-
cable to their own facility, estimate cost savings based on
user inputs, and print out a report summarizing opportuni-
ties and estimated savings. These sector-specific tools
engage customers with quick estimates and energy sav-
ing opportunities by type of energy use. The tools pro-
vide a useful introduction to the space types and energy
end uses that customers will track when benclunarking
with Portfolio Manager.
Provide Financial Support
Focus on Energy incentives cover a range of energy effi-
ciency opportunities, including:
o Prescriptive incentives for straightforward energy
efficiency improvement projects typically involving
one-for-one equipment replacement,
o Custom incentives for more complex projects
improving whole building energy performance,
including new construction and major renovation,
o Retrocommissioning incentives covering up to 85%
of the cost of a systematic evaluation of building
systems, with additional incentives to offset the cost
of implementing energy efficiency measures,
o Grants for feasibility studies and buy-downs for
specific maintenance work,
o Funding for large capital projects are awarded
through a competitive bid process.
Track Energy
Focus on Energy encourages customers to re-benchmark,
using Portfolio Manager to track energy performance
over time. Customers participating in the retrocommis-
sioning pilot receive an incentive bonus for establishing
a baseline in Portfolio Manager and adopting an energy
management plan.
Recognize Customers
Focus on Energy issues press releases for customers that
demonstrate a high level of commitment to energy effi-
ciency improvement.
Since 2001, the Focus on Energy program has helped
Wisconsin businesses save more than $100 million in
annual energy costs by providing expert advice, technical
project support, and financial assistance to support en-
ergy efficiency improvements.
o For the 18-month contract period (June 2007-
December 2008), Focus on Energy's Commercial
Sector gross energy savings included over 146
million kWh, 2,329,777 therms of natural gas, and
reduced peak electric demand by over 36,003 kW.
o In 2008, the program benchmarked 208 buildings
totaling 12 million square feet of commercial space.
Additionally, the program trained participants on the
benclunarking process, which will result in the
benclunarking of at least 39 additional facilities.
Contact Information
For further information please contact:
Tom Quasius
Focus on Energy
(262) 240-0672'
t q ua s i u s a fra nk 1 i nc nc rgv. c o m
Tracy Narel
U.S. E.P.A.
narel.tracv Vy.cpa. gov
For general questions please contact:
commercialpro grams@energystar. gov
United States
Environmental Protection
January 2009