|5-A – 5-E
DEPARTMENT OF PUBLIC WORKS: MANAGING ENERGY COSTS
While energy-related costs might represent a relatively insignificant portion of a facility’s total operational costs, the City’s aggregated energy costs represent a large operating expense for which there exists no comprehensive approach to managing this cost center.
Estimated Annual Impact:
Estimated Implementation Costs:
Barriers to Implementation:
One of the most impressive successes of Philadelphia Mayor Edward G. Rendell’s Private Sector Task Force was the creation of the Municipal Energy Office (MEO). The MEO was established in FY94 and charged with cutting Philadelphia City government’s energy expenditures by 5 to 10 percent within five years’equivalent to an annual cost savings of between $1.35 million and $2.7 million.
The MEO’s initial goal proved modest, as its initiatives resulted in over $28.5 million in cumulative savings between FY94 and FY99. Additionally, this well-directed effort towards managing energy costs enabled Philadelphia to attract an additional $5.7 million in grant commitments through FY99 to support capital projects designed to produce further energy management benefits.
The list of recommendations included within this template represent some of the more successful initiatives undertaken by the MEO. If the decision is made to pursue the implementation of these recommendations, consideration should be given to assigning the responsibility of managing the implementation to either the proposed general services department (see Recommendation 1-A of this report) or the Office of Management Initiatives (see Recommendation 5-A of the Citywide section of this report).