Energy crisis gone, but not forgotten

Real Estate Weekly, Oct 24, 2001 by Wayne Taub

With energy supply, demand and pricing grabbing newpaper headlines on almost a daily basis, accountability has become a major concern for property managers all over the country. As early as April, real estate professionals throughout New York City became extremely concerned that we might be faced with the same brown-outs and black-outs experienced in California.

As the seasons change and the temperature cools, the immediate threat of an energy crisis will certainly diminish, but the problem hasn't gone away. The real estate industry has no choice but to closely examine energy consumption, and develop ways to reduce it. Recognizing the need for long-term solutions, Con Edison received approval from the New York Public Service Commission to extend its voluntary load reduction and emergency demand response programs, through Oct. 31, 2002. Both programs provide owners with financial incentives to shed load, and curtail demand.

Stepping up to the challenge, Insignia/ ESG has formed an alliance with GE Lighting and National Energy Services to cut energy costs and usage included in its entire portfolio of properties managed throughout the New York Metropolitan area. Through its participation in the program, each building managed by Insignia/ ESG will also be eligible for Energy Star designation -- an EPA-sponsored "stamp of excellence" honoring the top 25 percent of the nation's most energy efficient properties.

The first phase of the program, which rolled out in April, was a full audit of selected properties in the metro region.

By taking responsibility for consumption, every property stands not only to reduce costs and increase revenues, but also to contribute to the energy solution for the long-term, instead allowing the problem to worsen and/or reach crisis levels.