Exelon Corp.'s environmental positions are paying off.
The Chicago-based utility has retrofitted its headquarters
so as to comply with green standards for commercial office
buildings -- a move that is winning accolades from all
corners.
|
Ken Silverstein
EnergyBiz Insider
Editor-in-Chief |
While the strategy requires an upfront premium, it will
eventually reap returns while also cutting the level of
harmful emissions. Commercial and industrial sites are
often some of the most voracious users of energy. Because
lots of those facilities are old, for example, they may be
using antiquated equipment that is not energy efficient.
But, many businesses are realizing that they can save big
bucks if they implement some sensible conservation
features.
In Exelon's case, it consolidated its downtown Chicago
locations into one suburban location. It chose to
modernize existing space and to conform to U.S. Green
Building Council standards. Altogether, the renovation
that covers more than 220,000 square feet and 10 floors
came at a 5 percent premium, the utility says. But, that
will pay for itself within five years in the form of
increased energy savings. This is the largest office space
ever to be given the highest environmental rating awarded
by the green building council.
"Our headquarters is a demonstration that other
businesses can achieve attractive and functional results
by renovating existing offices to meet the standards of
the Green Building Council," says Helen Howes, vice
president environment, health and safety for Exelon in
Philadelphia. "They can do this by using commercially
available products that come with a modest premium."
Controlling demand at large plants and commercial
buildings has been an overlooked process. Experts can
study a facility's technologies and operating protocols
and determine where the pitfalls lie. They can then
provide a good range of retrofits and the potential
savings that those innovations will produce. The costly
part would be any detailed engineering that is necessary
to execute the plan.
In terms of resource management, Exelon purchased more
than 60 percent of the project and construction materials
from manufacturers located within 500 miles to reduce
emissions associated with transportation. Three-quarters
of construction waste was recycled or salvaged, and almost
one-third of furniture and other materials were reused to
reduce waste. Exelon is also buying renewable energy
certificates to offset 100 percent of electricity usage
for the office space from regional wind power facilities.
And as far as energy conservation goes, Howes says that
96 percent of the products that the utility is now using
are Energy Star certified, meaning their efficiency levels
have been recognized by third parties. That includes
everything from copy machines to appliances. The building,
furthermore, uses advanced lighting as well as
sophisticated heating and cooling systems. It all works
with sensors that make automatic adjustments.
"Energy efficiency and sustainability have become two
of the most important factors in building design," says
Donna Robertson, dean of the Illinois Institute of
Technology's College of Architecture. "I'm optimistic that
Exelon's leadership in building green will inspire other
similar projects."
Setting the Example
The eventual goal is to create forward momentum and to
encourage all businesses to participate in the green
culture. According to the Green Building Council, offices
consume 70 percent of the electricity load in the United
States. They account for roughly 38 percent of all
greenhouse gas emissions here and over the next 25 years,
carbon dioxide emissions from those structures are
projected to grow faster than any other sector, at 1.8
percent a year.
That's why the Green Building Council, in conjunction
with like-minded organizations, has issued a memorandum
asking building owners to make their properties
carbon-neutral by 2030. Those buildings would use no
energy from external power grids and could be built and
operated at fair market values, it says, adding that the
average building that is certified under the Council's
standards uses 32 percent less energy.
Exelon's project may likely be trend setting. Compared
to its previous space, the company has reduced electricity
consumption by more than 43 percent and water consumption
by 30 percent. It has also created a healthier and more
productive work environment. From workstations, offices
and conference rooms, all employees have outside views so
they can benefit from natural light. In addition, air
quality was improved through the use of low-emitting
materials, paints, carpeting, furniture and finishes, and
the installation of high-density air filters.
That efficiency initiative is all part of the company's
vision to voluntarily reduce greenhouse gases by 8 percent
from 2001 levels by the end of 2008. "We believe climate
change is real," says Exelon's Howes. "We believe there
should be federal legislation. I'd say to those who are
doubters that they are now being overwhelmed with science
and the evidence of global warming that we are already
seeing."
An increasing number of businesses are getting greener.
North Carolina-based Bank of America, for example, is
cutting its energy use by at least 3 percent annually by
enhancing building operations and educating employees.
Since 2004, the bank says that it has saved at least $8
million. At the same time, it has a goal of reducing its
own greenhouse gas emissions by 7 percent by 2008.
Xcel Energy, meantime, is spending $75 million to
encourage energy conservation among its customers. Take
Kaiser Permanente, which built a new $70 million medical
office building and is working with Xcel to install modern
transformers, heating and cooling equipment and lighting
systems. The $200,000 investment is expected to yield an
annual energy savings of $90,000 a year, says Kaiser.
"There is a groundswell, says Howes. "We are starting
to see momentum build for energy conservation. We will see
more and more renovations that incorporate green
elements."
The greening of corporate America speaks volumes about
the movement's credibility. It's not just about clean air
and healthy living. It's also about saving money and
setting the right example. Exelon has given the cause a
giant thrust forward. And it's a near certainty that other
mega-businesses will follow suit.
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