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Custom Energy
FREQUENTLY ASKED QUESTIONS

Q: Who is Custom Energy?

Q: What is a performance contract?

Q: Why should I look at updating my energy consuming systems?

Q: How do you measure and verify the savings that you project?

Q: How does your performance contracting process work?

Q: What makes Custom Energy different than other energy services companies?

Q: What value does Custom Energy bring if I have a local relationship with an engineering firm and a general contractor?

Q: Does Custom Energy provide energy consulting?

Q: Can Custom Energy handle my energy supply and alternative power needs?

Q: What should I attack first, the price I pay for electricity or the amount of electricity I use?

Q: How much can I save if I look at upgrading my facilities?

Q: What facilities are the best candidates for a performance contract?

Q: How can you help me finance a capital improvement project?

 

Answers


Q: Who is Custom Energy?

A: Custom Energy Services is a national, product independent, energy services company with offices in Overland Park, Kansas. Custom Energy is one of the pioneering companies in providing energy efficient facility upgrades through guaranteed performance contracts.

Q: What is a performance contract?

A: Performance contracting is an innovative method of using savings from energy efficient infrastructure improvements to pay for project installation costs over a set period of time. No up-front capital is typically required. Custom Energy develops, designs, constructs, and arranges financing for your project. We guarantee the savings and will write you a check if savings fall short of our guarantees.

Q: Why should I look at updating my energy consuming systems?

A: Many of today's existing buildings have electrical, mechanical, plumbing, and control systems that have outlived their useful life and are energy inefficient. Custom Energy can engineer and install new systems and controls, guarantee the resulting energy savings and finance the entire project often without any of your capital dollars being used. According to ENERGY STAR ® many facilities can reduce their energy bills by 20 to 30 percent through energy efficient solutions.

Q: How do you measure and verify the savings that you project?

A: We abide by the industry accepted guidelines of the International Performance Measurement and Verification Protocol (IPMVP). While there are multiple ways to measure and verify demand-side savings projections, the ultimate method that gets used is determined in consultation with you and based on the particular energy conservation measure being installed, your comfort level with our calculations, and the economics of the particular method.

Measuring supply-side savings is much easier. We simply take your current energy usage and calculate what you would have paid at your old rates. We then compare this amount to your current bill to determine the actual savings.

Q: How does your performance contracting process work?

A: Performance contracting is a turnkey approach to construction. Custom Energy will manage the process from start to finish, including:

Project development Project financing
Conceptual engineering Commissioning
Savings and investment analysis
Final design and engineering
Training
Savings measurement and verification
Contract development Savings guarantees
Construction management  

 

The process starts with Custom Energy working with your facilities personnel to identify energy savings and system upgrade opportunities within your facility.

You may then elect to have us develop a preliminary energy analysis that outlines the upgrades to be completed and provides an investment analysis for your review. This serves as verification that there are opportunities for us to assist you.

Upon approval from you, we will proceed with a comprehensive energy audit—in effect a conceptual engineering and financial analysis of the project.

Finally, we will enter into a contract to perform the upgrades and guarantee the resulting savings. After the installation, we will perform system training, measure and verify the savings, and provide you with periodic reports detailing your energy saving performance.

Q: What makes Custom Energy different than other energy services companies?

A: As one of the largest independent energy services companies, Custom Energy strives to deliver a project of the very best value to our clients. Not being owned or affiliated with utilities or product manufacturers allows us to be unbiased in our approach to developing the right solutions for you. We thoroughly investigate not only the technical requirements that you have, but the people, financial and business requirements as well. We work with you to select the very best solutions from all the options available in the marketplace.

Q: What value does Custom Energy bring if I have a local relationship with an engineering firm and a general contractor?

A: We are energy experts. We’ve worked in conjunction with our clients’ preferred engineer, architect and contractors on numerous occasions. Our energy engineers have knowledge of the newest, best, and most reliable technologies and will consult with you to choose the right solution for your facilities.

Our project managers and engineers understand the time and cost to complete construction in existing facilities. They will make sure that you get the most value out of your construction dollar. We don’t build new buildings or bid construction projects. We’ve honed our skill sets to work in existing facilities—concerning ourselves with the people who work there and the issues they face.

Q: Does Custom Energy provide energy consulting?

A: Yes, Custom Energy provides energy consulting for demand and supply side services to many clients. With deregulation on the horizon, it is critical that building managers have an energy plan to save energy costs.

When you need to develop an energy plan, we can help.

Q: Can Custom Energy handle my energy supply and alternative power needs?

A: Yes, we’re well versed and have considerable experience in providing on-site power, co-generation, and renewable energy technologies.

Q: What should I attack first, the price I pay for electricity or the amount of electricity I use?

A: It depends on where your facility is located. Generally, the cheapest kilowatt hour is the one you don't use, which would argue for starting on the demand side. That being said, if you have limited time, in some markets there are pilot deregulation programs that are first-come, first-served.

 

By working with a company like Custom Energy, however, you are able to attack both simultaneously. This approach is often the best approach. In many cases, the nature of your load profile is critical in determining the price you pay for each unit of electricity. By reviewing both opportunities simultaneously, you are able to make demand reduction decisions that get you better supply prices.

Q: How much can I save if I look at upgrading my facilities?

A: The amount of money you can save on your utility bills can be substantial and depends on a number of factors: age and type of equipment, run hours, energy rates, and efficiency of your buildings. ENERGY STAR estimates that savings can range from $.30 to as much as a $1.00 per square foot.

 

Keep in mind, however, that the energy savings are actually being diverted to pay for your infrastructure improvements. Of course, any excess savings generated from the upgrades are yours to keep; we don’t believe in “shared savings” programs where the energy services company keeps a portion of the extra dollars.

 

It’s really a question of how you would rather spend your money—with the utility company, or on your facilities.

Contact us and we can help determine what your savings could be.

Q: What facilities are the best candidates for a performance contract?

A: A facility that needs major capital improvements within its energy infrastructure, but that lacks the company capital or financing to do the project.

Q: How can you help me finance a capital improvement project?

A: There are a wide variety of financing options available that may be beneficial to you. We work with the nations leading financing experts to secure outstanding rates, and always explore grants, loans and other options that can help pay for projects.

Financing is not a profit center for Custom Energy. It is simply our goal to help you find financing that provides you the greatest value.

 

Contact us as we have several financing plans that could meet your needs.


 

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