The Trend toward Outsourcing of Energy Services: Implications for Recruiting Participants in Utility C&I Programs

Robert M. Wirtshafter, Wirtshafter Associates, Inc.
Robert Bordner, Energy Market Innovations, Inc.
Pierre Landry, Southern California Edison
Mike Rufo, Xenergy Inc.

Keywords

Abstract

Commercial and industrial standard-performance-contract programs operated by California utilities have almost exclusively attracted only individual firms submitting projects invested on their own properties, and a small number of energy service companies many of whom focus their business on leverage utility incentive funds. This paper explores why program participation has not been attractive to other types of firms that supply businesses with energy services and related consulting services. This situation is surprising given that this paper identifies an increasing trend towards outsourcing of engineering services, property management, and facilities management. Interviews were conducted with various engineering and property/facilities management firms to determine the reasons for the low participation rates in utility-sponsored performance contracting programs.