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Review Energy Management Strategies to Assist the Bottom Line in the Economic Crisis

Date: 2/1/2009

In the late 1970's and early 1980's energy management became crucial when our Nation

encountered, along with the most of rest of the world, an oil embargo. The Executive Committee

of what was then called the American Hotel & Motel Association (AH&MA) worked through

the Hospitality, Lodging, and Travel Research Foundation (HLTRF) to confront the problem.

Under a $615,000 grant from the Department of Energy (DoE) the Engineers Committee and the

industry worked through Honeywell under a directed grant to substantially sub-meter energy use

in six different properties throughout the United States.

Based upon lessons learned in those years, the following suggestions are being offered as a

strategy for controlling energy costs in the present situation.

MANAGEMENT COMMITMENT

The strong support of management is necessary for the energy conservation efforts to succeed. It

must be more than "lip service." The following points should be understood from the start:

A. Accountability is the name of the game. All staff members should be expected to be

measured, in part, by how well energy conservation assignments are carried out.

B. Forever is how long the program will last. It is wrong to be wasteful when sources are

plentiful. It is positively self-destructive when those sources are not frugally accessed.

So, there must be a continuing effort to:

1. avert financial disaster for the owner, the manager, and the employees,

2. help the nation's efforts to reduce our reliance on foreign energy sources, and

3. slow down the depletion of our non-renewable resources through wasteful

practices.

To implement the program and to establish accountability, an Energy Action Group should be

organized, Such a Group might include the following persons:

 The owner (corporate headquarters)

 General Manager

 Energy Action Coordinator

 Human Resources Director and the Accountant or Controller

 Front Office Department Head

 Rooms Division

 Executive Housekeeper

 Director of Food & Beverages

 Director of Security

 Laundry Manager

 Manager-Banquet and Function Rooms

 Executive Engineer or Head of Maintenance

Since energy is consumed in every department, the Energy Action Group must include every

department head or an appointed representative.

The program will involve regular and sustained checking for compliance, a job for which the

manager will rarely have the time. An Energy Action Coordinator should be appointed to report

directly to the manager. This post might be assigned on a rotating basis to the department heads

or other responsible persons. It is desirable to have a single coordinator on a continuing basis, if

at all possible. This permits continuity in direction of the group without each new coordinator

losing time to become acquainted with the total program.

Call a meeting of the Energy Action Group. In large organizations, this first session would

involve only members of the group. In small operations, it might be useful to try to assemble the

entire staff.

The manager should be well prepared for this meeting by:

 reviewing the energy "facts of life" in the introduction,

 being able to describe specifically by means of actual cases how the property has been

affected by rising heat, light, and power costs related to the present state f the economy,

and

 carefully studying the information gained by a "walk through" of the property.

(Discussed below.)

The purposes of the meeting are to:

1. Explain the seriousness of the situation, and let the entire staff know that the failure to

control rising prices and to effectively control energy usage could have serious

implications. Be direct and use forthright language to make the point.

2. Make it clear that energy conservation is a critical element in facing the economic

downturn.

3. Describe the actions that are being planned to implement the program.

4. Define responsibilities.

5. Indicate a preliminary objective stated in terms of a percent reduction of energy

consumption (At least 15%).