Volume 15, Issue 63 | May 7, 2018

New EaaS Model Delivers Energy Resilience To Federal Agencies

Distributed Impact™ helps federal agencies turn energy into an asset

 


Concerns over continuity of operations, sustainability goals, regulatory compliance, severe weather events and rising energy costs are transforming the way federal agencies think about their energy needs.  Energy is no longer a line item expense, rather it is becoming part of a long-term resiliency strategy.

Large organizations with mission-critical functions are moving away from the traditional Energy-as-a-Commodity model, where electricity is typically purchased and delivered by a regulated utility via the grid, to a more modern and robust Energy-as-a-Service (EaaS) model.

The EaaS model supports a national trend toward in-house and expertise-driven energy management, which improves integration with distributed generation and energy storage assets, management of the energy load and interaction with the grid. EaaS provides government agencies with a future-ready solution for maintaining continuity of operations regardless of grid operations, by moving the electricity generation onsite in customized designs that enable cost-effective secure and resilient energy systems.

EaaS also empowers federal agencies with the flexibility to make choices regarding:

  • Diversification of their energy portfolio
  • Environmental impact of their energy use
  • Ownership and scalability of energy generation assets
  • Dependence on the grid and/or their own distributed generation assets
  • Redundancy and resiliency
  • Pricing and financing
  • Bill issuance and consolidation
This increased flexibility makes an organization’s energy operations more efficient, more sustainable and smarter.

EaaS, or what WGL Energy Systems (WGL Energy) calls Distributed Impact™, is an approach to energy management that helps federal agencies turn energy from an expense into an asset.

Distributed Impact™ draws from resources across the energy spectrum, combining electricity and natural gas with technologies like solar, CHP and fuel cells, along with wind power and energy efficiency. It allows large organizations to manage and integrate traditional and renewable energy resources, along with demand-side management technologies, with battery storage and/or fuel cells.  Inherent in the Distributed Impact™ approach is an additional layer of resilience and security to the grid, which ensures continuity of operations through energy assurance, further minimizing financial and economic risk to the organization.

WGL Energy’s approach to energy management considers adaptable distributed generation capabilities that enable organizations, campuses and eco-districts to “plug and play,” or integrate and package diverse energy solutions. Multiple options are tailored to serve a specific entity’s needs around energy assurance and can operate with or independent from the grid.

Longer-term planning for natural disasters, seasonal shifts in load demands, regulatory changes, greenhouse gas (GHG) emission standards and economic pressures help to ensure the bottom line spend of a federal agency, institution, joint military base, campus or community can remain fixed over time.

New information technologies, such as smart meters, or predictive analytics, provide the means for managing energy in a fundamentally different and more holistic manner than in the past.

The benefit of the Energy-as-a-Service approach is these integrated energy solutions can provide maximum impact with little to no upfront investment by the customer.

EaaS, or Distributed Impact™, is a transformative model for helping federal agencies navigate fluctuating energy markets, preserve capital through the efficient allocation of energy dollars, stay connected in times of crisis and achieve their sustainability objectives.

 

Click here to learn more about Distributed Impact™ and how to achieve energy resilience with EaaS.


Editor's Note

Heat Wave

Weekly review for April 29 - May 5, 2018

 

On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, April 27, 2018, was 1,343 BCF.  This is an increase of 62 BCF from the previous week and slightly above expectations. The traditional injection season usually begins around April 1. This year, however, the first injection of the season had a late start.

We experienced an early season heat wave with temperatures at or above 90 degrees in the Mid-Atlantic region. PJM real-time LMPs remained tame during the period, with a minimal increase in prices during the afternoons. Temperatures are forecasted to be normal to slightly above normal during the coming 7 to 14-day period.

Forward markets declined this week as the PJM West Hub 12 Month curve decreased 1.8% and the NYMEX natural gas 12-month curve decreased 3.9%.       

 

This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.


Energy Efficiency

Save Money with Regular Maintenance of Your Home’s HVAC System

Reduce your home’s energy consumption, improve energy efficiency and save money on your electric bills

 


Summer is on the horizon and the Washington, D.C. area can expect hot and humid weather in the coming months. As outdoor temperatures climb upwards into the 70’s, 80’s and 90’s, homeowners in the DMV will be switching from heating to cooling.

Is your home’s heating, ventilation and air conditioning (HVAC) system ready for the transition?

With a few simple maintenance activities, you can save money on your electricity bills by ensuring your HVAC unit is ready for summer and operating efficiently. And that savings can add up, considering how often your air conditioning unit runs during the summer months. 

The U.S. Energy Information Administration estimates that space cooling accounted for 15% of U.S. residential sector electricity consumption last year. Aside from the cost of cooling your home, the cost to repair or replace your HVAC system can add up.

Follow these routine maintenance tips to prolong the life of your home’s HVAC unit, keep it running efficiently and save money on your summer electric bills:

1.  Regular Maintenance

Schedule a semi-annual maintenance appointment with a licensed HVAC professional. With preventative maintenance, you can uncover any small issues before they evolve into more significant problems that are harder and more expensive to fix. 

2.   Improve energy efficiency

A regular maintenance schedule will ensure that your HVAC is working as efficiently as possible—leading to less energy use. Additionally, a well-insulated home will require less cooling in the spring and summer.

3.   Clean or replace air filters frequently

A dirty air filter reduces the efficiency of your HVAC system and negatively effects your home’s indoor air quality. The U.S. Department of Energy recommends that air filters be replaced or cleaned every two months—although if you have pets, you may need to change them more frequently.

4.   Keep indoor vents open

Closing vents and registers in your home creates extra pressure and causes your HVAC system to work harder—decreasing energy efficiency and increasing the strain on your HVAC system.

5.   Use a programmable thermostat

A programmable thermostat allows you to control your home’s temperature to avoid excessive energy usage on space cooling and allows you to lower usage during times when your home is unoccupied.

 

Implement these tips to reduce your home’s energy consumption, improve energy efficiency and save money on your electric bills.


Investor Relations

WGL Holdings, Inc. Reports Second Quarter Fiscal Year 2018 Financial Results


The following is an excerpt of a May 3, 2018, press release issued by WGL Holdings, Inc., disclosing the company's second quarter results. Please visit the WGL Holdings, Inc. website to view the full press release

WGL Holdings, Inc. (NYSE: WGL), the parent company of  Washington Gas Light Company ( Washington Gas) and other energy-related subsidiaries, today reported net income applicable to common stock determined in accordance with generally accepted accounting principles in  the United States of America (GAAP) for the quarter ended  March 31, 2018, of  $135.6 million, or  $2.63 per share, an improvement of  $12.5 million, or  $0.24 per share, over net income applicable to common stock of  $123.1 million, or  $2.39 per share, reported for the quarter ended  March 31, 2017. For the six months ended  March 31, 2018, net income applicable to common stock was  $273.6 million, or  $5.31 per share, an improvement of  $92.6 million, or  $1.79 per share, over net income applicable to common stock of  $181.0 million, or  $3.52 per share for the same period of the prior fiscal year.

During the six months ended  March 31, 2018, we are reflecting a decrease in current year tax expense from the year-over-year reduction in the corporate tax rate from 35% to 21% included in the Tax Cuts and Jobs Act ("Tax Act") enacted in  December 2017. As a result,  Washington Gas began passing on to customers approximately  $39.5 million, on an annual basis, through reduced rates beginning in the second fiscal quarter. We have also remeasured our accumulated deferred income tax assets and liabilities, which resulted in recording a  $60.3 million income tax benefit (net) in GAAP net income. Non-GAAP operating earnings (described below) have been adjusted to eliminate the re-measurement impact on deferred income taxes of the legislation.

On a consolidated basis, WGL uses non-GAAP operating earnings (loss) to evaluate overall financial performance, and evaluates segment financial performance based on earnings before interest and taxes (EBIT) and adjusted EBIT. Operating earnings (loss) and adjusted EBIT are non-GAAP financial measures, which are not recognized in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. Both non-GAAP operating earnings (loss) and adjusted EBIT adjust for the accounting recognition of certain transactions that we believe are not representative of the ongoing earnings of the company. Additionally, we believe that adjusted EBIT enhances the ability to evaluate segment performance because it excludes interest and income tax expense, which are affected by corporate-wide strategies such as capital financing and tax sharing allocations. Refer to "Reconciliation of Non-GAAP Financial Measures," attached to this news release, for a more detailed discussion of management's use of these measures and for reconciliations to GAAP financial measures.

For the quarter ended  March 31, 2018, operating earnings were  $109.5 million, or  $2.12 per share, an improvement of  $13.4 million, or  $0.25 per share, over operating earnings of  $96.1 million, or  $1.87 per share, for the same quarter of the prior fiscal year. For the six months ended  March 31, 2018, operating earnings were  $204.4 million, or  $3.96 per share, an improvement of  $49.0 million, or  $0.94 per share, over operating earnings of  $155.4 million, or  $3.02 per share, for the same period of the prior fiscal year.

View source version on businesswire.com:  


Weather

Local Heating Degree Days*

 

 


Heating Degrees Day** 

 

Nov - 17

Dec - 17

Jan - 18

Feb - 18

Mar - 18

Apr - 18

 Actual

456

792

900

549

657

312

 Normal

466

786

899

728

568

270

 Departure from Normal

2%

.7%

.1%

24%

13%

 13%

 Warmer

Colder

Colder

Warmer

Colder

Colder

**Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day's average temperature is less than 65 degrees, subtract the average temperature from 65 to find the number of heating degree days for that day.