By Smart Energy Decisions
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The podcast currently has 20 episodes available.
In this season of Beyond the Meter, we’re taking a closer look at the meaningful impact business energy project have on the world around us. Host John Failla is joined by Jay Harris, Director of Data Center Services and Facilities for Clemson University, and Wayne Johnson, Key Segment Manager for Education at Duke Energy Sustainable Solutions. They discuss their organizations’ collaboration on energy infrastructure projects and provide insights into why these projects are critical to the university’s overall success.
You will want to hear this episode if you are interested in...
The Journey to Success
In 2007, due to a breaker labeling error, Clemson University had both of its 20-year-old UPS (uninterruptible power supply) o out. That incident led the university to prioritize upgrades. The university would have needed several years to do the research required to fully understand the design and procurement to get the upgrades done. This is when Clemson turned to Duke Energy for guidance.
The university started the conversation with Duke Energy in April of 2007. By mid-November, the university had a new generator, two new UPSs, 250-ton air-cooled water chiller, and four new computer room air handlers. The university went from piecemealing together their strategy to a fully functioning infrastructure.
A Board-Approved Financing OptionClemson University worked with Duke Energy to identify areas that are ready to be improved or equipment that needs to be replaced. The university signed a 10-year agreement with Duke Energy and amortizes the cost across the length of that agreement essentially transferring CapEx to OpEx. Instead of needing the funds upfront to purchase and install equipment, the contract spreads the cost across 10 years.
This structure has made budgeting a lot easier for the university. Approval is easier with an amortization schedule vs. obtaining approval for millions of dollars upfront. Most university campuses are struggling with deferred maintenance costs, especially in facilities. Now Clemson University’s facilities team can propose a solution that removes them from the CapEx competition on campus in exchange for a little more OpEx. Not only will this help with resiliency, sustainability, and efficiency initiatives now, but it will also make sure those goals deliver across the lifespan of those assets.
An innovative business model
Part of what makes Duke Energy’s contracts so successful is their flexibility. Duke Energy has its own in-house structuring, counsel, engineering, and operations teams. These teams determine what each client is good at, and then Duke Energy prices and builds solutions around what the customers do and what they need. As a company, Duke Energy wants to have relationships with customers working collaboratively to deliver solutions across time because that’s where the most significant energy savings and reliability services outcomes are found.
Considerable savings can occur when working together to develop these contracts and partnerships. Rather than simply selling a product and leaving the rest to the customer, Duke Energy is involved in the design, build, operations and maintenance phases. Working through these phases with a single vendor can save money while achieving the comprehensive outcomes, including sustainability, reliability, and resiliency.
Resources & People Mentioned
Note: The above project was performed by Duke Energy’s Business Energy Services team. Duke Energy Sustainable Solutions leverages these specialists to deliver innovative solutions to customers.
Connect With Our Guests
Jay Harris - Director of Data Center Services and Facilities for Clemson University
Jay Harris has been the Director of Data Center Services and Facilities for Clemson University’s Computing and Information Technology (CCIT) group since 2009. Among his responsibilities are the oversight and daily operations of Clemson’s two data center facilities, totaling approximately 19,000 square feet of white space, along with directing the enterprise print facility. The primary data center, with an aggregate feed of 5MW, houses a 1.4+ PFLOP supercomputer cluster dedicated to supporting research faculty at Clemson.
Mr. Harris has been with Clemson since 1998, working as a Unix systems administrator with the Computer Science Department before moving to CCIT in 2007 as the hardware architect. Prior to that time, he was a “professional” student.
Mr. Harris earned two BS degrees in Chemistry and Computer Science/Mathematics and a BA degree in Mathematics from Wofford College (Spartanburg, SC) in 1993, an MA degree in Analytical Chemistry from the University of North Carolina at Chapel Hill in 1996, and an MS degree in Computer Science from Clemson University in 2001.
Wayne Johnson - Key Segment Manager for Education
Wayne Johnson is key segment manager for the education segment at Duke Energy Sustainable Solutions and has a wealth of experience in energy innovation and solution finance. He also spent years as a facilities manager and energy executive in higher education.
Wayne’s out-of-the-box thinking helps him meet the challenges of energy infrastructure and asset management in education. Wayne designs energy solutions to help meet the needs of all project stakeholders, including facilities leaders, CFOs, presidents, heads of schools, faculty, staff, students and local communities. He uses his unique experience to help schools become more energy efficient, sustainable and viable for the future.
Wayne has been invited to speak at conferences and universities across the country about finance innovation for campus energy and sustainability projects. He also works closely with Duke Energy’s Emerging Technology organization to bring behind-the-meter innovation to campuses. Most recently, Wayne has been exploring the role of alternative fuels on campus via pilot project funding.
Wayne enjoys international travel, time on the lake and hiking with his family. Wayne has worked as a licensed electrical and general contractor and is an alumnus of Mars Hill University and The University of South Carolina. His master’s degree is in education administration.
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In this episode of Beyond the Meter, host John Failla is joined by three Duke Energy Sustainable Solutions team members. Mark Adams is the Business Development Manager, Mike York is the Strategic Account Manager, and Wayne Johnson is the Key Segment Manager for Education. These experienced executives walk through practical steps toward gaining approval for resiliency projects.
You will want to hear this episode if you are interested in...Achieving internal buy-in for energy managers is a common challenge. Many projects miss the mark on this critical first step in making the business case for a project. Fully understanding the project, need, and goal will lead to precisely what’s necessary for a project to achieve that goal. Starting with the end in mind and understanding the process will direct how the project is communicated.
Everyone has different communication styles, so choosing the right person to present varies by initiative. Typically, engineers can speak to engineers and do a reasonably good job communicating with finance. Still, many engineers would find it a challenge to translate an initiative into business results and talk to executives. The presentation must be succinct, with further data ready for when there are deeper questions. The goal is to give people the information they need to make a reasonable decision and not drown them in detail and minutiae. With data, details can become muddled in the impact, degrading the target outcome’s importance.
Begin with consensusThe default starting point for many projects has been receiving approval from finance. However, finance tends to wait to follow after the authority has expressed initial interest. At that time, a higher priority is placed on the project, and the project will receive more support. The entry point has to be with the individual with the need. Finance tends to look for a simple payback or some framework that may not apply well regarding the replacement of assets. The presenter will need to present the initiative in such a way as to anticipate and overcome objections.
Finance finds comfort in consensus. If approached with a project that already has people from various departments working together to push it forward, finance is much more likely to join. Finance will need cost comparisons, asset lift management expectations, and expenses. Anticipating these questions means knowing the people in finance and how they communicate.
Consider the wider audienceWhen proposing a project to your business, the decision-makers are the primary audience. Often overlooked are the people who don’t have the authority to approve a project yet affect how the project proposal is received. Considering these different perspectives and bringing them on board is crucial in making the business case for a project.
Success is unlikely if a solution doesn’t receive support from the engineering, facilities, and finance departments. This concept applies in other industries as well. In education, the sustainability officer doesn’t typically have much money to spend or authority to leverage but is influential in the process. Being attuned to the broader audience will help gain the project’s approval and its overall success.
Resources & People MentionedMark Adams - Business Development Manager
Mark’s experience with Duke Energy and Duke Energy Sustainable Solutions through his multiple roles has given him the opportunity to meet, listen and understand, through countless customer meetings across a wide spectrum of industries, the challenges and the ever-changing world they live and compete in daily. Through these meetings, he has learned that everyone has their own unique issues and challenges. His learned business development skills have given him the opportunity to work with diverse industries on many innovative projects.
Mark is married to Samona for 35 years and has a 31-year-old married son named Landon.
Mark is an avid golfer and loves working in his yard.
Mike York - Strategic Account Manager
Michael York has spent the majority of the past thirty years as an executive responsible for running operations with revenues between $275-$700M annually. During this period, he has managed capital budgets, and engineering staff and has successfully launched numerous service offerings. In addition to these responsibilities he has spoken at events such as Gartner Group conferences, North Carolina State University Executive Roundtable, Minority Economic Forum events and served on the Minority Competitiveness council under the US Department of commerce. He has authored the book Reset, numerous white papers and worked with the VA, Minority Entrepreneurial Council and Raleigh Rescue Mission.
Mike is a graduate of the Strategic Leadership Institute at Villanova University, Adizas Institute and Murray State University. Currently, he works for Duke Energy Sustainable Solutions in the area of sales enablement to facilitate complex deals and build compelling business cases for business developers and customers.
Wayne Johnson - Key Segment Manager for Education
Wayne Johnson is key segment manager for the education segment at Duke Energy Sustainable Solutions and has a wealth of experience in energy innovation and solution finance. He also spent years as a facilities manager and energy executive in higher education.
Wayne’s out-of-the-box thinking helps him meet the challenges of energy infrastructure and asset management in education. Wayne designs energy solutions to help meet the needs of all project stakeholders, including facilities leaders, CFOs, presidents, heads of schools, faculty, staff, students and local communities. He uses his unique experience to help schools become more energy efficient, sustainable and viable for the future.
Wayne has been invited to speak at conferences and universities across the country about finance innovation for campus energy and sustainability projects. He also works closely with Duke Energy’s Emerging Technology organization to bring behind-the-meter innovation to campuses. Most recently, Wayne has been exploring the role of alternative fuels on campus via pilot project funding.
Wayne enjoys international travel, time on the lake and hiking with his family. Wayne has worked as a licensed electrical and general contractor and is an alumnus of Mars Hill University and The University of South Carolina. His master’s degree is in education administration.
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This episode is made in partnership with Duke Energy Sustainable Solutions.
In this season of Beyond the Meter, we’re taking a closer look at the meaningful impact renewable energy projects have on the world around us. In this episode, host John Failla is joined by Darrell Booker, Corporate Affairs Specialist leading the Nonprofit Tech Acceleration Program for Black and African American Communities (NTA) at Microsoft Philanthropies, Cheryl Comer, Senior Strategic Account Manager - Duke Energy, and Tracy Woods, VP, Operations - American Association of Blacks in Energy (AABE), to talk about their collaborative efforts on the recently created Diversity In Clean Energy (DiCE) initiative. DiCE, a program to advance equity in clean energy, is an initiative sponsored by Duke Energy’s Strategic Account Management Program. Listen in to learn more about the progress being made to promote diversity in the energy industry.
You will want to hear this episode if you are interested in...For nearly 45 years, the American Association of Blacks in Energy (ABBE) has focused on energy policy and the impact of those policies on communities of color. They work on policies and professional development to ensure that their members can be cultural ambassadors in the communities where they live and work. AABE receives many calls from employers seeking diverse talent. To serve this need, they provide scholarships and programs for high school and middle school students interested in careers in the energy field, job postings through their newly revamped Career Center, and numerous programs like Black Energy Awareness Month.
The Diversity in Clean Energy (DiCE) InitiativeDiCE is a program sponsored by Duke Energy to drive visibility and open doors of opportunity for diverse suppliers in the clean energy field. At Duke Energy, DE&I (diversity, equity, and inclusion) is a business imperative inspiring how they work with employees, customers and their communities. They’re taking intentional action for the good of both the community and business.
The idea for DiCE was sparked by a request from T-Mobile via their Energy and Sustainability Program Manager, Amy Bond, who asked Cheryl what Duke Energy was doing to identify, train, track and utilize diverse suppliers. This question inspired Cheryl to open the conversation to her other strategic accounts, as she knew they would all benefit from this conversation around diversity, equity, inclusion, and how that relates to clean energy. Through these discussions, she realized that there was ample opportunity, interest and need for the resources supported by the DiCE initiative.
Collaboration in the energy industryThe energy industry is in the midst of a massive transformation. As one of the largest utilities in the United States, Duke Energy has an obligation to provide reliable, affordable, and increasingly cleaner energy to customers and communities. One of the most efficient ways to initiate change is by cross-industry leaders coming together, pooling resources, and solving complex problems.
While many corporations realize that they want to work with diverse suppliers, they don’t know where to start. The ultimate goal of the DiCE | AABE platform is to facilitate the inclusion of diverse suppliers into mainstream corporate supply chains and to eliminate systemic barriers. Everyone in this collaboration has something different to bring to the table: Duke Energy has the means, AABE has the connections, and Microsoft has the technology. As the DiCE | AABE platform continues to grow, there are endless opportunities to fulfill its mission and we look forward to seeing the positive effect it will have in the clean energy space.
Resources & People Mentioned
Darrell Booker - Corporate Affairs Specialist leading the Nonprofit Tech Acceleration Program for Black and African American Communities (NTA) at Microsoft Philanthropies
Meet Darrell, your “techie’s favorite techie” who leads one of Microsoft’s most important racial equity commitments, the Nonprofit Tech Acceleration of Black and African American Communities, a national program designed at leveling the tech playing field for nonprofits serving our most underserved communities. Prior to leading this program, Darrell served in an advisor role helping the world’s largest nonprofits such as The Bill & Melinda Gates Foundation, American Cancer Society, and the Salvation Army on their digital transformation to the cloud. Darrell has served in CIO and CTO roles in the past leading teams of developers in nonprofit, primarily child welfare, as well as other industries such as automotive and banking. Darrell also has an entrepreneurial spirit, co-founding a tech startup for the fitness industry used in hundreds of gyms across the U.S. and Canada.
Cheryl Comer - Strategic Account Manager in the Sales and Relationship Management Organization at Duke Energy
Cheryl Comer is a Senior Strategic Account Manager in the Sales and Relationship Management organization at Duke Energy. She is responsible for developing and sustaining long-term strategic customer relationships for mutual growth, profitability, trust, loyalty, and risk management. Her assigned strategic accounts are FedEx, Kroger, Microsoft, and T-Mobile. Cheryl brings a wealth of experience from the education and legal industries.
In addition to teaching middle school and high school students music theory, solfeggio, string, symphony orchestra, and music history, she served as a high school principal of an alternative school in Phoenix, Arizona. She managed a school of 350 students and 30 staff members. During her tenure as principal, she learned to effectively balance considerations from competing stakeholders such as state mandates, instructional and support staff, parents, students, and community. Under her leadership, graduation rates and test scores increased.
Cheryl is also a licensed attorney in North Carolina and Louisiana and practiced law at a mid-size, litigation boutique in downtown New Orleans before joining Duke Energy in 2018. She continues to practice law in the capacity of a pro bono attorney with Legal Aid of North Carolina and often lends a hand to family and friends when in need of sound legal advice. She is a community activist in Gaston County and Diversity, Equity, and Inclusion champion. Cheryl’s first love, however, is the cello. She began playing in an exploratory program in the 4th grade and never stopped! She plays the violin, viola, cello, and bass but is proficient on cello. Cheryl is a graduate of Interlochen Arts Academy and the University of Michigan (where she won principal cellist of the most advanced orchestra). She earned a master’s degree in Educational Leadership from Western Michigan University and a Juris Doctor from the University of Detroit School of Law. She has been a licensed attorney since 2009.
Cheryl’s passions include international travel, spending time on the beach with her family, and enjoying the zest of life. She grew up in Kalamazoo, Michigan, has three children, and resides in Charlotte, N.C.
Tracey Woods - VP of Operations at American Association of Blacks in Energy (AABE)
Tracey Woods is an energy industry veteran with over 3 decades of experience. He currently runs operations for the American Association of Blacks in Energy (AABE), a policy non-profit serving 2,000 members through 36 chapters across the US. Before coming on staff at AABE, he ran the Construction Services division at Con Edison in NYC. His teams were instrumental in restoring the steam loop after Superstorm Sandy devastated the city. The Empire State Building, The Museum of Modern Art, and the United Nations all use steam for winter heating and summer cooling. He led the effort to ensure these and other businesses had heat for the winter of 2012 after the unprecedented devastation from the most powerful storm to ever hit NYC. His leadership skills had been developed commanding substation operations at Jersey Central Power & Light, and through multiple operations management roles at Exelon utilities in Chicago and Philadelphia. He is a degreed electric engineer who has also worked as a lineman, substation operator, facilities supervisor, and utility trainer.
He is a fan of the great outdoors, jazz, and R&B music, and is working off his bucket list of travel destinations.
Connect with Duke Energy Sustainable Solutions
In this episode of Beyond the Meter, host John Failla is joined by Terri Dalmer, Vice President of Solar Business Development at CleanChoice Energy, and Owen Grant, Business Development Manager at Duke Energy Sustainable Solutions. They discuss the broad impact community solar can have on businesses and diverse communities nationwide. You won’t want to miss the insights and reflections they have to share from their over 30 years of experience.
This episode is made in partnership with Duke Energy Sustainable Solutions.
You will want to hear this episode if you are interested in...Community solar consists of facilities that produce less than five megawatts of electrical capacity. It allows residents, small businesses, and other organizations, such as municipalities, to receive credit on their electricity bills for the power produced by these solar arrays. It differs from residential solar in that it is an off-site project with no financial investment from a consumer and serves multiple levels of subscriber offtake.
The impressive growth of solar is due to the diligent policy work at the state level, where legislation is being supported to expand the renewable market. The dynamics of state programs are a significant influence on solar’s success. Currently, about 19 states and DC have a wide variety of programs. Some of the newest markets coming on board currently are Virginia, New Mexico, and Pennsylvania. Solar is a dynamic and growing market that offers a lot of opportunities.
Community solar projects in MassachusettsMassachusetts provides an excellent opportunity to work on ground-mount, front-of-meter projects. A nice feature of the Massachusetts program is that these projects can be operated either as community solar or by directly selling electricity to utility companies. Duke Energy found this quite an attractive project, deciding that the community solar route made more sense financially. That’s how Duke came to work with CleanChoice as a subscription management company to bring in small customers.
Duke Energy and CleanChoiceDuke Energy is a best-in- class company, so they needed a best-in-class collaborator to help with their community solar pilot project. They’ve been pleased with the relationship with CleanChoice and their ability to help Duke Energy navigate the ins and outs of the community solar program’s SMART (Solar Massachusetts Renewable Target) element as well as the utility coordination. Together they’ve created a model project that other companies should consider.
One of the values of Duke Energy is serving its communities. With community solar, the benefits are kept local. It’s an opportunity for both the small and large customers in a community to participate in the project. Having a large anchor tenant allows the project to open up to customers that might not otherwise be qualified to participate in a solar project. The local element of these projects provides a kind of equity of access to renewables as part of the energy transition.
Resources & People MentionedTerri Dalmer - Vice President of Solar Business Development at CleanChoice Energy
Terri Dalmer is Vice President of Solar Business Development at CleanChoice Energy, responsible for overseeing a community solar management services portfolio as well evaluating market expansion opportunities and partnerships with solar as it relates to both management services and project development. Ms. Dalmer has over 20 years of experience in the energy and commodities fields with sales roles at Morgan Stanley and ConEdison Solution. She led the commercial renewable energy retail sales departments for both Crius and CleanChoice, encouraging mid-to-large-sized organizations to embrace green products and advance corporate sustainability initiatives. Terri is a graduate of Trinity College, CT, with a Bachelor of Arts degree in History.
Owen Grant - Business Development Manager at Duke Energy Sustainable Solutions
Owen Grant is Business Development Manager at Duke Energy Sustainable Solutions where he is responsible for the development and acquisitions of small utility and community solar projects. Mr. Grant led Duke Energy’s first commercial community solar project which came online in 2020. This effort included project acquisition, internal pilot program approval, and external stakeholder engagement. His prior experience includes institutional equity sales at Oppenheimer, and over 13 years of experience in renewable energy including wind and solar energy development, and financial management. Owen has a B.A. from Hamilton College and an MBA from IESE Business School in Barcelona, Spain.
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This episode is made in partnership with Duke Energy Sustainable Solutions.
In this season of Beyond the Meter, we’re taking a closer look at the meaningful impact renewable energy projects have on the world around us. Industry guests discuss how their cleaner energy transitions are driving change, both within their organization and the larger community. Our guest for this episode is Diana Kotler, Executive Director at Anaheim Transportation Network. Host John Failla and Diana discuss one of the hottest topics in the industry: fleet electrification. Diana has extraordinary insights and experience on the topic that we’re excited to share. Listen in to learn more.
You will want to hear this episode if you are interested in...Diana is from Southern California, which is known to have the worst air quality in the nation. To ensure that the air remains liveable and breathable, the City of Anaheim had to find alternatives to fossil fuels. They looked to electrification in order to improve air quality and ensure that their developments would allow the city to continue to depend on tourism and convention business. This combined approach created the opportunity to generate local revenues and taxes, which, in turn, provide services to the community.
Interestingly, while the electrification effort in Anaheim started with a focus on air quality and health benefits, most organizations today are getting involved because of the need to decarbonize operations. While they did discuss fossil fuels and reduced carbon footprint, those were just peripheral discussions at the time. Diane says it doesn’t matter so much where the emphasis is placed, as long as the work provides a better environment for future generations.
Community impactAnaheim is on its way to becoming the largest operator of electric buses in Southern California. The city is also beginning to integrate some twelve-passenger electric vans into the fleet for on-demand services that don’t require as much capacity as a bus. They also have 10 slow-speed smaller vehicles that operate in neighborhoods connecting schools, libraries, and eateries downtown. Altogether the city serves about 10 million passengers annually.
The service for the smaller vehicles is called FRAN: Free Rides Around the Neighborhood. It is based in the Colony district of the city, which is rooted in tradition and history. When FRAN was introduced in the neighborhood, it was an immediate success. As FRAN began to go deeper into the neighborhoods, people started asking when it could serve this park or that area. People were fighting to have FRAN serve their community. While capacity declined due to the pandemic, service is slowly but surely being reinstated.
Overcoming challenges in electrificationThe technical expertise and guidance of Duke Energy Sustainable Solutions has been immeasurably valuable to the City of Anaheim. DESS had the in-depth experience connecting a public sector participant with private capital that the city didn’t have the reach to achieve. Duke Energy Sustainable Solutions supports operations and ensures that the infrastructure is robust. The partnership of Duke Energy Sustainable Solutions and the City of Anaheim means that the Anaheim Transportation Network operates not only today but also twenty years into the future.
As more vehicles are added to Anaheim’s fleet, infrastructure needs to adapt. For example, if the city were to switch to another bus manufacturer, the charging technology and chargers would be different. Therefore, standards will be necessary at some point so that any brand of vehicle can use any charging station. Acceptance of electrification is another challenge. At the beginning of electrification, there was a lot of opposition because people were afraid of this unknown entity. Over time, that hesitancy has faded, and people are embracing technology. As with any new technology, there is a learning process of people adapting to change, and change is the hardest thing to accomplish.
Resources & People MentionedDiana Kotler - Executive Director at Anaheim Transportation Network
Ms. Kotler’s career includes over 25 years of experience in the transportation field. She began with the City of Anaheim overseeing transportation planning efforts. Since 2003, Ms. Kotler serves as the Executive Director for the Anaheim Transportation Network (ATN). ATN’s mission is to provide public transit services for the residents, visitors, and employees of Anaheim and surrounding communities. Ms. Kotler is a graduate of California State University, Long Beach (CSULB) with an undergraduate degree in Business Administration and Finance. Ms. Kotler also earned her graduate degree from California State University, Long Beach with a concentration in Economics and Urban Planning.
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This episode is made in partnership with Duke Energy Sustainable Solutions.
Municipalities across the U.S. experience any number of challenges when building infrastructure projects and energy solutions, but one of the biggest is building with future needs in mind. The issues of resilience and sustainability are front and center in this undertaking, and the guests on this episode are on the front lines of the fight.
Join John Failla of Smart Energy Decisions as he hosts a conversation about resilience and sustainability, with his guests Ann Kloose, City of Fresno Manager of Sustainability; Whit Remer, City of Tampa Sustainability and Resilience Officer; and Michael Kilpatrick, Key Segment Manager for State and Local Governments at Duke Energy Sustainable Solutions.
You will want to hear this episode if you are interested in...In Whit Remer’s view, resiliency is the top-line of any sustainability plan. It requires looking at the shocks and stressors that affect the community being served. He says the acronym, E.S.G. — the Environmental, Social, and Governance measurement of energy solutions — is a helpful way to remember what resiliency is all about. Sustainability comes into the picture when the Environmental area is considered. How can we take care of the water, land, and air in a community? A good resiliency plan should include sustainability initiatives to ensure that the provision of energy for the community is not damaging the area, and in fact, is helping to improve the community.
There’s a “Resiliency Movement” happening in municipalities across the U.S.Michael Kilpatrick has the opportunity to see and hear what a variety of communities across the U.S. are doing to increase both the resiliency and sustainability of their energy solutions. He says that in the past, the two were often not tied together. But things are changing now, due to the impacts of COVID and a growing realization that sustainability and resilience support each other. This new approach is benefiting communities across the nation.
Community-wide, resiliency is simply defined as improving the quality of life across the entire population. As an example, the design of streets has an amazing impact on a community. Do they include protected bike lanes? Are they complete and well maintained? Are they aesthetically pleasing? Do they include walking trails or sidewalks as part of their design? These factors and many others create vibrant, connected neighborhoods that provide access to businesses, community features, and public services conveniently and easily.
The biggest challenges when building future-ready projectsIt’s impossible to predict the future, but municipalities have been attempting to wisely forecast future needs when planning infrastructure and improvements. But working to meet future needs doesn’t happen without challenges. Communities around the nation are finding common roadblocks such as…
It’s clear that there are many challenges facing cities around the world, but the dedication, cooperation, and expertise of individuals like Ann, Whit, and Michael are making a difference from which other cities can take notice.
Connect With Our GuestsAnn Kloose, City of Fresno Manager of Sustainability
Ann Kloose has over 25 years of combined government and utility industry experience and currently serves as the Sustainability Division Manager for the City of Fresno. She is committed to serving the citizens of Fresno and is responsible for guiding the City’s energy efficiency programs, sustainability efforts, and energy policy issues. Ann’s experience also includes City Council Chief of Staff, Utility Outreach Manager, State Communications Coordinator for the Concord Coalition, and Sr Government Relations at PG&E. She also serves as a Board member on the Fresno Fire Chief’s Foundation, Board Secretary of Jazz Fresno, and is an instructor and Board member at the San Joaquin Valley Political Academy. Ann graduated from Fresno State University with a Bachelor of Science in Business Administration.
Connect with Ann on LinkedIn
Whit Remer, City of Tampa Sustainability and Resilience Officer
As the City of Tampa’s first Sustainability & Resilience Officer, Whit is advancing Mayor Jane Castor’s commitment to 100% renewable energy and building a more resilient and equitable city. In partnership with international resilience experts and community partners, Whit led the creation of the Resilient Tampa roadmap - an extensive process identifying Tampa’s shocks, stresses, and resilience opportunities in coordination with frontline communities. Prior to joining the City of Tampa, Whit was Counsel and Director of Public Policy for the Insurance Institute for Business & Home Safety (IBHS), an insurance-backed research organization focused on building safety and community resilience. Whit also held roles for the American Society of Civil Engineers (ASCE) as a lobbyist and lead author of the American Infrastructure Report Card. Following the 2010 BP oil spill, Whit worked for Environmental Defense Fund (EDF) in Washington, D.C. Whit holds a law degree from Loyola University of New Orleans, a Master of Urban and Regional Planning degree from the University of New Orleans, and a bachelor’s degree in geography and political science from Florida State University. Whit is a member of the Florida Bar, the American Institute of Certified Planners (AICP), an ENVISON Sustainability Professional, and Courtesy Faculty for the Patel College of Global Sustainability at the University of South Florida.
Connect with Whit on LinkedIn
Michael Kilpatrick, Key Segment Manager for State and Local Governments at Duke Energy Sustainable Solutions
In his role at Duke Energy Sustainable Solutions, Michael is focused on helping State Governments, Cities, Towns, and Villages solve complex energy problems by delivering the solutions that meet their needs. His focus areas include public transit, airports, seaports, water/wastewater, municipal electrics, and smart-city technologies. Michael began his career in energy as an Energy Trader which led him to Duke Energy. During his time at Duke Energy he has also held roles in Natural Gas Transportation, Products and Services Management, and Business Development focused on Distributed Generation. Michael has a strong understanding of organized energy markets, public policy, and renewable energy which he leverages to help Municipalities pursue their sustainability goals. Michael is a graduate of North Carolina State University where he received his Bachelor of Science in Business Management with a concentration in Finance and Accounting.
Connect with Michael on LinkedIn
Connect with Duke Energy Sustainable Solutions
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Environmental, Social, and Governance factors (ESG's) refer to a set of standards that socially conscious investors use to screen potential investments. ESG's are increasing in importance and many companies are looking to ESGs to guide sustainability decisions and to prove their sustainability commitment to customers and stakeholders.
Join us for this episode as Cari Boyce, Katherine Neebe, and Doug Esamann join host John Failla to discuss the steps Duke Energy has taken in the adoption and implementation of ESGs in moving toward its sustainability goals.
You will want to hear this episode if you are interested in...ESG refers to how a company performs in these three key areas:
Environmental criteria: how does the company perform in terms of its ecological and environmental responsibility to the community?
Social criteria: how does the company manage relationships with employees, suppliers, customers, and the communities where it operates?
Governance: how does a company’s leadership, executive pay, audits, internal controls, and shareholder rights operate?
Companies that navigate trends in the ESG space tend to outperform companies that ignore those trends. For that reason, ESG's should be a core consideration to a company’s strategy and fundamental to the way the company does business.
Sustainability has been a core value at Duke Energy for 20 yearsDuke Energy, being a major electricity provider, sees itself as a major contributor to the well-being and fulfillment of the people who live in the communities it serves. As a result, the team at Duke has learned to listen to stakeholders, customers, and investors to know what’s important to everyone. The company also pays close attention to the environmental needs and impact of any projects it is involved with.
When it comes to ESG goals, Duke’s emphasis tends to be more on environmental aspects since it is a company that impacts the environment directly by virtue of what it supplies. But the social and governance aspects are just as important. The challenges are many; among them are the pressures to “green” their energy supply while doing it in ways that are affordable for customers. The Duke team is committed to continuing the search for the right balance and proper perspective to make it possible to do both.
It’s imperative for companies like Duke to focus on ESG goalsAs the demand for ESG consideration increases from investors and customers alike, Duke Energy is proving themselves to be a leader in the field. Emerging energy technologies like solar and wind are options customers want to have as energy options, and Duke is providing them.
As proof of its commitment in these areas, to-date, Duke has retired more coal-based power plants than any other industry player and by 2030 Duke will no longer be producing energy via coal within the Carolinas. In Indiana (which is considered “coal country”) it will only be 10 to 15 years before coal-based energy production is no more for Duke. As a result of these commitments, the carbon intensity Duke is serving to its customers is some of the lowest in the country.
Though many who are driving the renewable energy transition want Duke and other energy suppliers to make this transition more quickly, it’s an issue where goals have to be pursued at the proper pace. Duke has a two-fold commitment, to supply reliable energy for customers while at the same time moving the needle forward in the renewable transition.
Resources & People MentionedOR www.duke-energy.com/our-company/irp
Cari P. Boyce - SVP Enterprise Strategy & Planning, Duke Energy
Cari Boyce serves as senior vice president of enterprise strategy and planning for Duke Energy. She leads the company’s strategy development and strategic analysis efforts. Her team is also responsible for market fundamentals and load forecasting.
Before assuming her current position in October 2019, Boyce was Duke Energy’s Senior Vice President of Stakeholder Strategy and Sustainability and President of the Duke Energy Foundation. She led the company’s philanthropic activities to address the needs of the communities where its customers live and work. The Duke Energy Foundation annually provides more than $30 million in charitable grants. In addition, she was responsible for developing the company’s stakeholder outreach strategy and overseeing sustainability initiatives and reporting.
Prior to that, Boyce was Duke Energy’s Vice President of Policy, Sustainability, and Stakeholder Strategy. She was responsible for the development, communication, and integration of the company’s position on environmental and energy policy issues, sustainability initiatives and reporting, as well as stakeholder outreach. From August 2016 through March 2017, she also served as the interim lead of the company’s federal government affairs office.
Boyce served as Vice President of Environmental and Energy Policy from 2012 through 2015. She also served as Vice President of Corporate Communications for Progress Energy from 2009 through 2012. Boyce joined Progress Energy in 2006, initially serving in the role of Director, External Communications.
Prior to her employment at Progress Energy, Boyce worked in state government in New York and North Carolina for 15 years. She served as the Director of Communications for the North Carolina governor’s office and was later promoted to the role of Director of External Affairs, where she was responsible for managing the federal and regional offices for the governor, as well as the governor’s communications and constituent relations offices. She also served as a senior adviser for policy and communications for the North Carolina attorney general, and as a legislative assistant in the New York State General Assembly.
Boyce currently serves on the board of the Raleigh Chamber of Commerce.
A native of Ticonderoga, N.Y., Boyce earned a Bachelor of Arts degree in political science and history from Siena College. She also earned a Master of Education degree from North Carolina State University. Boyce has one sheltie, Archie.
Katherine Neebe, President, Duke Energy Foundation, VP National Engagement & Strategy, and Chief Sustainability Officer
Katherine Neebe serves as Vice President of National Engagement and Strategy and Chief Sustainability Officer for Duke Energy. She also serves as President of the Duke Energy Foundation. In these capacities, she leads Duke Energy’s stakeholder engagement efforts to develop solutions to meet customer needs for continued reliable and affordable energy – while simultaneously working to achieve the company’s goal of net-zero carbon emissions by 2050. The Duke Energy Foundation provides philanthropic support to meet the needs of communities where Duke Energy customers live and work.
Katherine joined Duke Energy in August 2020 from Walmart, where she led environmental, social, and governance strategy and oversaw stakeholder engagement on behalf of Walmart’s sustainability team.
From 2007-2013, Katherine worked for the World Wildlife Fund where she managed one of the world’s largest corporate-NGO partnerships, a $97 million sustainability-driven initiative focused on water, agriculture, and climate that was active in over 45 countries.
Over the past 20 years, Katherine has worked with a wide range of corporate, government, and nonprofit organizations. Weaving together her intensive business experience and commitment to social and environmental responsibility, she brings in-depth insight to effective stakeholder engagement and an ability to ground sustainability into actionable terms.
Katherine is a First Movers fellow through the Aspen Institute, received her Master of Business Administration from The Darden School at the University of Virginia, and holds a Bachelor of Arts in English from Colorado College.
Doug Esamann, EVP Energy Solutions, President, Midwest/Florida Regions, and President Natural Gas Business, Duke Energy
As Executive Vice President, Energy Solutions, Doug Esamann is responsible for corporate strategy and planning, emerging technology, and the company’s regulated and commercial renewable energy operations. Additionally, he has responsibility for sales and services to commercial, industrial and wholesale customers; the development and marketing of products and solutions for all customer segments; and the company’s economic development efforts.
As President of the Midwest and Florida regions, he has responsibility for the profit/loss, strategic direction, and performance of the company’s regulated electric utilities in Indiana, Ohio, Kentucky, and Florida. Esamann also serves as President of Duke Energy’s natural gas business, where he oversees all of the company’s natural gas operations in the Carolinas, Ohio, Kentucky, and Tennessee.
Previously, Esamann served as President of Duke Energy Indiana, the state’s largest electric utility, serving approximately 810,000 customers in 69 of the state’s 92 counties. He was responsible for the company’s regulatory, governmental relations, economic development, and community affairs work in Indiana. He served in that role from November 2010 until June 2015. He assumed added responsibility for the natural gas business in October 2019.
Prior to that, Esamann was Senior Vice President of Corporate Strategy for Duke Energy, where he led the company’s strategy development and business planning efforts, including load forecasting and market fundamentals. Following the merger between Duke Energy and Cinergy in April 2006, Esamann served as Group Vice President of Strategy and Planning for Duke Energy’s regulated utilities, with responsibility for integrated resource planning, environmental compliance planning, transactional support, customer market analytics, load research, and renewable energy compliance.
With Cinergy, he served as Senior Vice President of Energy Portfolio Strategy and Management for Cinergy’s commercial business unit, with responsibility for fuel management, environmental risk management, generation dispatch, power purchases and sales, portfolio analytics, load forecasting, generation asset planning, demand-side management planning, and environmental compliance planning.
Esamann began his employment with Public Service Indiana (predecessor of PSI Energy) in 1979. In the course of his PSI/Cinergy career, he held a variety of leadership roles, including Vice President and Chief Financial Officer of the commercial business unit from 1999 until 2001, and president of PSI Energy from 2001 until 2004.
Esamann has been active on a number of community and industry boards. He currently serves as Chairman of the Board for Energy Systems Network, a nonprofit industry initiative focused on clean technology development. He is a member of the board of directors for the Electric Power Research Institute (EPRI). He also serves on the board of trustees for Discovery Place, a hands-on science and technology museum for visitors of all ages based in Charlotte, N.C.
A native of Plainfield, Ind., Esamann earned a Bachelor of Science degree in accounting from Indiana University. He and his wife, Kimberly, have two daughters, a son, and six grandchildren.
We’ve all heard of the new electric vehicles that Tesla and other manufacturers are producing, but when you look at electric vehicles from a broader fleet perspective, the possibilities for reducing carbon emissions long-term are exciting! The Smart Energy Decisions team believes this issue of fleet and public transportation conversion to be a key component in moving the energy transition forward, so this conversation was especially interesting to us.
Our guests on this episode are Catherine Kummer, Climate Advisor for the American Cities Climate Challenge to the City of Charlotte, NC, and Michael Luhrs, Vice President of Market Strategy and Solutions for Duke Energy. Speaking from their unique positions, each of them provides a wonderful perspective on the issues driving the move toward fleet and public transportation electrification, how it’s being accomplished on the ground, how the issue impacts corporations, and what role utilities like Duke are playing in making the transition possible. It’s exciting to hear what’s happening and what is projected to happen in the years to come. Don’t miss this enlightening and encouraging conversation.
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Charlotte, NC is leading the charge in electrifying its fleets
When asked what is fueling the drive behind the electrification of municipality fleets and public transportation, Catherine says that, quite honestly, it’s the cities themselves. As the Climate Advisor for the City of Charlotte, NC she has a front-row seat to the initiatives that the City Hall and City Council are taking in this important step toward the smart energy transition.
The city of Charlotte has implemented an aggressive public education campaign surrounding its clean energy goals, which include community outreach and engagement via many platforms. The city has also put into place two new policies that support electrification goals. These come directly from their Strategic Energy Action plan and aim to entirely electrify the city's fleet by 2030. Currently, as part of that plan, they are working toward the addition of 27 electric vehicles to their light-duty fleet, at an investment of over $740,000, which would make 42 total electric vehicles for the city. The city is also ensuring that the charging infrastructure required is part of that expansion. It’s cities like Charlotte that are leading the way nationwide.
Corporate & utility drivers toward electrification of vehicles
When it comes to why corporations are moving toward the electrification of their vehicles, Michael puts it best when he says it's about sustainability and efficiency — or being clean and cost-effective. Duke Energy has recognized that its constituents are taking on the mantle of the renewable energy transition. With that, corporations are adapting to provide the value to their customers that they want and need. A significant benefit can also be derived from the cost savings involved when implementing electric vehicles. Maintenance, fuel expenditures, noise and emissions pollution, and more go into these savings.
Utilities see the fundamental shift occurring globally in the form of mandates from many cities around the globe that ban emission-producing vehicles by specific dates. Utility companies like Duke can look across the value chain to both produce and deliver the resources needed. The initial load increase for utilities will only be 2% to 4% in most cases, but long term, that demand will grow. The ability to put the infrastructure needed in place is the strength of the value proposition utilities provide.
The total cost of ownership enables the cost of EVs to make sense
Much of the debate about the cost of electrifying municipal or corporate fleets and public transportation has to do with the initial outlay of cash required to get started. While it is a significant upfront investment, that should not be allowed to be the deciding factor. Why? Simply put, it’s an extremely short-sighted approach.
Both Catherine and Michael speak persuasively about the long-term benefits that come from fleet electrification in terms of cost reduction, emissions reduction, and other infrequently considered benefits. Because of this issue, Catherine has developed her own “Total Cost of Ownership” calculations to show exactly how and when cost reductions will occur in the implementation of the Charlotte plan so that all stakeholders can see the black and white of the issue and make informed decisions that benefit the big picture.
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Catherine Kummer - Climate Advisor American Cities Climate Challenge
Catherine Kummer serves as a Climate Advisor for the City of Charlotte as part of the Bloomberg Philanthropies American Cities Climate Challenge—and in partnership with NRDC (Natural Resources Defense Council)—which works to accelerate climate action in 25 cities throughout the United States. Catherine joined the Climate Challenge advising the City of Charlotte after spending the last eight years as the Senior Director of Green Innovation for the National Association of Stock Car Auto Racing, NASCAR. A native of Raeford, North Carolina, Catherine holds a B.A. from the University of North Carolina at Chapel Hill, an M.A. in Sustainability from Wake Forest University and Executive Education for Sustainability Leadership from Harvard University.
Michael Luhrs - VP Market Strategy & Solutions
Michael Luhrs serves as Vice President of Market Strategy and Solutions for Duke
Energy. In this role, he is responsible for bringing integrated solutions across the digital
and physical energy infrastructure to provide unique value and solutions nationally.
Michael’s strong focus on innovation, transformation and growth of customer solutions
has proven successful with improving and accelerating departments through disciplined
innovation, strategy alignment, revenue growth, regulatory adaptation and driving cost
efficiencies.
The teams aligned under Michael’s purview are: Home & Business Services, Market Strategy, Connected Communities, Solutions Development, Solutions Partner, Transportation Electrification, and Portfolio Structuring. Collectively, the Market Strategy and Solution team generate approximately $500M in EBIT each year. The functions of these departments lead the evolution of the business from strategy to solutions development to execution across all customer segments. They cover a broad range of solutions from demand response, non-regulated products (such as behind the meter energy protection and insurance/risk mitigation services), digital infrastructure services, small cell and macro wireless, outdoor lighting, and electrification of transportation.
Michael offers more than 20 years of experience in the energy industry. Known for his excellence in business strategy and operations, Michael is a creative thinker and problem solver. He has a knack for developing client-centered solutions and generating a positive impact to the bottom line.
Before assuming his current position, Michael served as General Manager of Business Excellence for Duke Energy. Prior to the merger with Progress Energy in 2012, Michael served as General Manager of Energy Supply Finance for Progress Energy. He has held several other leadership roles including Resource Planning Manager, Audit Manager, as well as roles in Generation Operations. Born in Colorado, Michael holds a Bachelor of Science degree in Chemical Engineering, as well as Bachelor of Arts degrees in both Management Finance and Economics, from North Carolina State University. He was also distinguished with Summa Cum Laude and Phi Beta Kappa honors.
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Institutes of higher education are large consumers of energy. From the lights and heat that are needed to keep students and faculty comfortable enough to learn effectively, to the equipment, technology, and staff required to keep things running, the expense is enormous. But for those same reasons, these institutions have a tremendous opportunity to push forward the move toward sustainable energy solutions, which will result in a cleaner environment and better future, and cost savings for them.
Today, three guests from the realm of higher education join John for a frank conversation about the overall challenges faced by institutions of higher learning when it comes to renewable energy. Join John and his guests, Bill Guerrero of Ithaca College, Dennis Elliot of Cal Poly, and Wayne Johnson of Duke Energy for this enlightening conversation.
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There are vast differences in the way institutes of higher education make decisions and implement them when it comes to the capital improvements required to move toward sustainable and energy-efficient solutions for their campuses. The predominant way these institutions move the needle is through the inclusion of sustainability initiatives within the university or college’s Master Plan. These plans are revisited and revamped often because the situation on school campuses is changing all the time. New needs arise and circumstances demand new approaches. It’s a perfect opportunity to move their energy usage toward sustainable solutions.
This conversation highlights the approach two leaders in higher education have taken when it comes to renewable energy improvements on campus. Cal Poly and Ithaca College have both focused on integrating sustainable energy improvements into their Master Planning process, with one of those schools even creating an independent energy Master Plan due to the increased importance of the issue.
The issue of resiliency is of paramount importance for higher educationThe wildfires that have raged across California in 2020 illustrate one of the many reasons colleges and universities need to build resiliency into their energy procurement solutions. Cal Poly discovered that their energy solution was inadequate as a result of the fires. The institution relied on a sole provider and delivery mechanism that was endangered by the wildfires. The impact of a power loss is massive to facilities, educational systems, remote learning, and more.
To address these issues, many opportunities exist to ensure power is not disrupted and education continues. Regional transmission systems with various substations are one solution, as are generators use in a synchronized fashion. On-site batteries can be used to implement load-shifting during peak energy consumption hours, and larger schools are looking into microgrids, co-generation, and combined heat and power sources.
The most effective ways to fund energy improvementsThe COVID pandemic of 2020 has shown all of us that the economic conditions we enjoy one day may be in jeopardy the next. It’s an example of how various crises can shift the focus of an organization or institution to new areas, and environmental sustainability goals could be a regrettable casualty when this occurs. Add to that, the fact that many colleges face serious asset replacement issues shortly. 80% of schools surveyed say they plan on funding those capital improvements through increased enrollment, but because of the pandemic, full enrollment is not expected to happen for many years.
The reality is that sustainability initiatives compete with every other need at institutions of higher learning, and the assets needed for energy projects are behind-the-scenes and not as easily noticed as the other more superficial things like paint, carpet, landscaping, and building facades. Those in charge of energy, facilities, and capital improvements have their work cut out for them in trying to gain the buy-in for energy improvements and upgrades during such times. But it’s entirely possible, and our guests give many helpful suggestions about how to position your budget requests in ways that enthuse and engage your stakeholders.
Resources & People MentionedBill Guerrero, Vice President for Finance and Administration, Ithaca College
Bill has served in the education industry for over 21 years in education and independent schools. Ithaca College is a Private, Residential, Liberal Arts College with about 5,800 students and 1,700 faculty/staff. Bill’s areas of responsibility are Finance & Accounting, Auxiliary Services, Information Technology, and Facilities Services including Environmental Sustainability. With 2.6 M feet of space, the majority of which was built in the 1950s and 1960s, Ithaca’s initiatives have secured it the AASHE Gold Star Rating. The Environment America Research & Policy Center ranks Ithaca College #8 in percent of electricity derived from renewable resources.
Dennis Elliot, Director of Energy, Utilities, and Sustainability, California Polytechnic State University, San Luis Obispo.
Dennis Elliot serves as the Director of Energy, Utilities, and Sustainability in the Facilities Management and Development Department at California Polytechnic State University, San Luis Obispo. Dennis holds a bachelor's degree from Cal Poly in Mechanical Engineering, is a licensed Professional Engineer in the state of California, and a Certified Energy Manager. In his 37 years at Cal Poly in a variety of energy-related roles, Dennis has helped lead operation and maintenance of building HVAC and central plants; design, construction, and commissioning of new buildings and utility systems; utility metering, building automation, SCADA, and building data analytic systems; energy and water conservation programs; renewable energy projects; sustainability educational outreach and curriculum infusion initiatives; LEED Certification and AASHE STARS programs; Master Planning and Strategic Planning; Zero Waste Programs and the campus' Climate Action Plan. Dennis helped found and still mentors Cal Poly's Green Campus Program of student peer educators, serves on Cal Poly’s Academic Senate Sustainability Committee, and chairs the campus Sustainability Advisory Committee.
Wayne Johnson, Duke Energy’s Key Segment Manager For EducationWayne has served as a Facilities Management and Energy Executive in Higher Education and brings a wealth of experience to Duke Energy. Wayne has also managed safety and accreditation processes for his campus and has provided oversight and program responsibility for a regional K-12 outsourced facilities management firm. Wayne has a passion for “out of the box” thinking that generates a creative process in meeting the challenges facing energy infrastructure and asset management in education. Wayne strives to create a “synergy” that builds solutions to meet the needs of all campus constituents: Facilities leaders, CFOs, Presidents, Head of School, faculty, staff, students, and local communities. His unique perspective and experience when combined with Duke Energy’s ability to execute can be of great support as schools look to become energy efficient, sustainable, and viable for the future. Wayne enjoys international travel, time on the lake and hiking, especially when his extended family and wife can join in the adventure. Wayne has worked as a licensed electrical and general contractor and has degrees from Mars Hill University and The University of South Carolina where his advanced degree is in Education Administration.
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While many people know Kroger as the nation’s largest traditional food retailer, few know that they are effectively the fifth largest consumer packaged goods manufacturer in the nation and have more than 2800 retail food stores under a variety of banner names. In this episode, we learn that Kroger is committed to protecting people and the planet by advancing positive change in their company and communities and realizing that they could have multiple environmental and social impacts through their own operations, through the supply chain, and in other areas.
Zero Hunger, Zero Waste is what Kroger named their social impact plan to end hunger in their communities and to eliminate waste in their company by 2025. This plan was launched in September of 2017 and was inspired by their purpose to feed the human spirit. They are always looking to the future and have recently announced their new, and very ambitious, 2030 ESG Goals. Joining Smart Decisions Founder John Failla for this closer look are Kroger’s Lisa Zwack, Head of Sustainability, and Denis George, Category Manager – Energy.
You will want to hear this episode if you are interested in...
Stakeholder engagement is a great way for Kroger to learn what their key internal and external stakeholders think about what they are doing and what they think Kroger should be doing moving forward. Kroger engages with its stakeholders through its materiality assessment early in the year. It is a great focused opportunity to get input from their various stakeholders, investors, NGOs, and any number of people outside of the company as well as inside the company. Kroger wants to hear what is most important to their leaders as well. Investors are a key audience. There is increased investor interest in how companies are managing climate risk and climate impact and how they are reducing energy usage and moving to more renewables and reducing greenhouse gas emissions.
Kroger is generally always trying to increase and improve the amount of transparency that they use when they talk to their stakeholders as they know that they are trying to get more decision-useful information for their purposes of making investments in different companies. Kroger prides itself on being very in tune with what investors are looking for and being responsive to that. They also took part in a qualitative climate risk assessment late last year. Kroger assesses and manages risk as a company overall, but this assessment was a great foray into the more dedicated climate risk assessment process, which is something else investors are looking for companies to do.
Historically Driven by Expense SavingsTwenty-some years ago, when Denis started with the company, they were more “Zero Energy, Zero Waste” before they were “Zero Hunger, Zero Waste.” Denis states that if they can fulfill their mission to their customers by using less energy, that is just a smart way to operate a business. They learned long ago that through energy efficiency they could achieve that very quickly and very uniformly. They have also found that one can achieve cost reduction in many other ways - through contract negotiations, better rates from utilities, items of that nature, and, as renewables continue to come on and there are more and different ways to engage in renewable energy acquisition those costs are coming down. This is very consistent with Kroger’s desire to reduce expenses, to maintain reliable well-lit stores, keep food safe and tasty while ensuring the quality of their food, as well as to contribute to the environment. Denis comments that it is wonderful when all those goals that can sometimes seemingly conflict come together and, by doing what they have been doing with reducing the amount of energy and starting to bring on additional renewable purchases, that they are beginning to achieve a lot of the goals all at the same time.
Safety and Quality are ParamountThree of Kroger’s four drivers mentioned in this podcast come up in varying order. Cost reduction is number one nearly 80 percent of the time, followed by greening the environment, but the one most interesting point of the conversation is the notion of food safety because that is a unique and very important driver for the entire food industry.
You could save a lot of money by turning everything off, but ice cream doesn’t work well in a zero-energy environment. Everyone’s been inside a grocery store and knows how much energy it uses, but milk has to maintain a certain temperature, the quality of ice cream depends on how cold you keep it - too cold is actually as bad as too warm. There are not only a lot of state, federal, and local food requirements to follow but a lot of other things Kroger wants to do to maintain freshness as well. Those are the rules by which Kroger must live that perhaps might not be needed in a clothing retail store or an auto parts place where humidity and temperature would not affect the product as much as it does fresh produce and fresh meat. Kroger must respect those guidelines and principles to sell their product to their customers in a very safe and comfortable environment.
Resources & People MentionedLisa Zwack, Head of Sustainability
Lisa is the Head of Sustainability at The Kroger Co., the nation’s largest grocery retailer, headquartered in Cincinnati, Ohio. In this role, she leads and executes on Kroger’s sustainability strategy across a variety of topics, including the company’s progress towards its 2020 sustainability goals as well as goals for the next decade. Previously, Lisa served as Sustainability Manager for Staples, Inc. for nearly five years, where she played a key role in implementing and communicating the company’s global sustainability vision. She earned her MBA from the Ross School of Business and her MS and BS degrees from the School for Environment and Sustainability, all at the University of Michigan, during which time she worked with several leading companies on sustainability-related projects.
Denis George, Category Manager – Energy
As Category Manager — Energy for The Kroger Co. (www.thekrogerco.com) — one of the Nation’s largest grocery and retail companies — Denis George manages the Company’s renewable energy acquisition, gas & electricity contracts, utility agreements, regulatory intervention, and related matters. From 1998 to 2016, Denis served as Kroger’s Corporate Manager — Energy with responsibilities that also included energy efficiency initiatives, carbon footprint calculations, mechanical system design, and Energy Star program compliance. Over these years, Kroger received numerous national and regional awards for energy efficiency and sustainability, including the Energy Star “Partner of the Year” Award (twice), the Alliance to Save Energy's top award — the "Galaxy" Star of Energy Efficiency, and an “Award of Excellence” from Platt’s Publications. Mr. George has presented before numerous Commissions and Associations, including the Edison Electric Institute, American Public Power Association, Touchstone Energy Partnership, Green Retail Decisions, Smart Energy Decisions, and the Critical Consumer Issues Forum. He serves on the Customer Advisory Board of Smart Energy Decisions and has previously served on numerous utility customer advisory groups. Denis also served two terms on the State of Ohio Public Benefits Advisory Board, a non-compensated Board advising the State of Ohio and utilities on low-income consumer energy needs. From 1980 to 1997, Denis worked at The Dayton Power and Light Company, serving in several legal and management positions that included appearances and representation before the Public Utilities Commission of Ohio as well as the Federal Energy Regulatory Commission. Mr. George received a Juris Doctor Degree in 1985 from The University of Cincinnati College of Law and a Bachelor of Arts degree in Economics/Business Administration, cum laude, from Wittenberg University in 1980. He remains a licensed Attorney at Law in the State of Ohio. Denis and his wife, Alice Sutherland George, live in Loveland, Ohio.
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