Helping your business thrive A Special Advertising Supplement
Save money
SMUD Commercial and Industrial Account Solutions Manager Rob Lechner says energy efficiency measures can improve the local economy. Photo by Tony Nguyen
with LED lighting Switch from your traditional light bulbs to LED bulbs to get …
• Outstanding light quality • Ambience choices from warm (looks like an incandescent bulb) to cool (daylight)
• Better reliability than incandescent or compact fluorescent bulbs (CFL)
• Dimming capability • Mercury-free lights
50x 6x Lasts
longer than incandescent bulbs and
longer than CFLs
Powering small business SMUD is committed to helping local economy thrive
Y
our business runs on hard-working employees, a
improvements. Business owners can also select their own
steady stream of customers and innovative ideas.
contractor and do it themselves. Either way, they can take
Your energy? You get it from SMUD.
advantage of the many rebates SMUD provides, which could
But from SMUD’s point of view, you’re more than a
customer. You’re part of the community.
90% 40% less energy than
incandescent bulbs and
less than CFLs
Your choices have expanded tremendously and now there is an LED for just about every lighting application. SMUD offers a number of incentive programs for customers interested in making the switch. See the complete list at smud.org/ businessrebates
typically cover 70 percent of improvement costs. “An investment in energy efficiency is an investment in
Small and midsized businesses play a vital role in our
your business,” Lechner says. “By reducing energy costs
community and help make Sacramento a great place to live,
through effective and impactful energy efficiency retrofit
work and play. As Sacramento’s community-owned, not-
projects, business owners and managers directly impact and
for-profit electric service, SMUD recognizes that when local
strengthen their company’s bottom line.”
businesses are successful, it’s good for everyone. For more than 65 years, SMUD has been an industry
Uses up to
By Michelle Carl
Beyond the cost savings, many business owners recognize that being a good steward of our resources is the right thing
leader in innovative energy efficiency programs, renewable power technologies and sustainable solutions for a healthier environment. SMUD helps businesses reduce their energy costs through efficiency programs and initiatives that are not only good for business, but also the environment. “SMUD’s commitment to energy efficiency enhances the quality
to do. SMUD helps those businesses
“ SMUD recognizes that a strong and vibrant energy efficiency initiative leads to a stronger and more vibrant local and regional economy.” Rob Lechner, Manager, SMUD Commercial and Industrial Account Solutions
through its Greenergy® program, which can help fulfill corporate mandates for renewable energy use. “What businesses want are ways to reduce energy costs that also benefit and protect the environment,” Lechner says. SMUD supports small and midsized businesses in other ways, too. SMUD relies on contractors to supply many of its needs, from electrical conduits
of life for our community,” says
to maintenance on its vehicles. SMUD
Rob Lechner, manager of SMUD’s
offers incentives to small and midsize
Commercial and Industrial Account Solutions team. “SMUD
businesses to bid on its contracts, infusing money into the
recognizes that a strong and vibrant energy efficiency
local economy. Private contractors doing business in the
initiative leads to a stronger and more vibrant local and
area have another advantage. SMUD’s rebates help reduce
regional economy.”
the cost of projects — a savings that is passed on to their
SMUD provides this assistance through several initiatives and programs that directly help businesses reduce their costs.
customers. SMUD is strengthening these programs and increasing its
SMUD can guide business owners — whether they own
outreach efforts so even more local businesses know about
their buildings or lease space — to make energy efficiency
the ways SMUD can help them thrive.
2 | Helping your business thrive | SMUD | smud.org/business | A Special Advertising Supplement
HOT ITALIAN Co-founder and Creative Director Andrea Lepore says being an eco-friendly business was important from the start. She enrolled in SMUD’s Greenergy® program, which offsets all or part of electricity use with renewable sources. Photo by Tony Nguyen
HOT ITALIAN, cool eco-design SMUD’s Greenergy® fuels Sacramento pizzeria by Matthew Craggs
Greenergy program
Sacramento prior to their 2009 opening, the
W
$5 or $10 per block (1,000 kWh per block) and SMUD
pizzeria placed a great importance on going
will meet the business’ electricity needs with power
green. From planning and construction to operation and
generated from renewable resources like wind, water and
something good for the environment, our
expansion, Co-founder and Creative Director Andrea
solar. Lepore enrolled immediately.
community and for your business. Business
hen HOT ITALIAN began construction in
Lepore and Maestro Pizzaiolo Fabrizio Cercatore worked
Greenergy allows businesses to pay an additional
“It took one phone call,” Lepore recalls. “You don’t
By enrolling in Greenergy, you can do
customers pay $5 or $10 extra on their utility
toward two goals — delivering authentic Italian pizza
see the difference when you turn on the lights, but you
bill for every 1,000-kilowatt-hour (kWh) block of
with a California twist and building and strengthening
feel better.”
energy they want to offset with renewable sources
Sacramento’s environmentally-minded community. “From the beginning, we did our research,” Lepore
For Greenergy Program Director Wade Hughes, this feel-good aspect is a driving force for the more than
like wind, solar and hydropower. SMUD also helps spread the word about your participation
says. “There were a lot of reports
2,000 local businesses that participate
in Greenergy, helping you market your business
coming out at that time suggesting
in the program.
to eco-conscious consumers. To date, over 2,000
buildings were the cause of 40 percent of greenhouse gases. We didn’t want to contribute to that, we wanted to do everything we could to decrease our footprint.” With design assistance from SMUD’s Savings By Design program, HOT
“We wanted to do everything we could to decrease our footprint.” Andrea Lepore, HOT ITALIAN Co-founder and Creative Director
“This is by far the easiest way for
businesses in the region have joined Greenergy.
business owners to do right by the environment and the region,” Hughes
Greenergy Partner
says.
• $5 per month for every kWh of energy offset • Good for businesses seeking to meet corporate
For Lepore and HOT ITALIAN, the commitment to their neighborhood, and the world in which it resides, expands
ITALIAN became a playground paradise
beyond efficient and renewable energy.
for the eco-friendly — there’s a solar
HOT ITALIAN’s rotating menu features
thermal water heating system, ENERGY
seasonal, organic, local, and non–GMO
mandates or certification for clean energy Greenergy Partner Plus
• $10 per month for every kWh of energy offset • Your business acknowledged on smud.org • Annual recognition in advertisements and
STAR equipment throughout the kitchen and bar, and
ingredients whenever possible, and Midtown residents
furniture made from reclaimed and recycled materials.
are often found enjoying a slice during one of HOT
The efforts earned HOT ITALIAN’s LEED certification
ITALIAN’s many community events, including a bicycle
other future marketing incentives that will
from the U.S. Green Building Council.
film festival, lunchtime concerts, and films in the park
connect Greenergy Partner Plus members to
across the street.
70,000 like-minded residential customers.
While HOT ITALIAN was constructed to use energy efficiently, Lepore wanted the restaurant’s energy
Authentic Italian pizza, community events, and
sources to be sustainable as well. She soon learned about
building a green consciousness — all powered by
SMUD’s Greenergy program.
Greenergy.
To learn more or sign up, visit smud.org/businessgreenergy
A Special Advertising Supplement | smud.org/business | SMUD | Helping your business thrive | 3
Better for business Nonprofit makes improvements to buildings for by Evan Tuchinsky clientele and saves on energy costs
W
hen ACC Senior Services
Senior Services Administration and Programs
assessed new lighting options,
building. The ACC Care Center also had LED
saving energy represented
lighting installed in the dining room (residents’
just one consideration. The new lights had
rooms there and at Greenhaven Terrace will
to shine brightly to enable elderly clients
go LED over the next several years). The
to see clearly at their care homes and
new admin building, former site of Merryhill
administrative offices in the Greenhaven
School, received additional upgrades inside to
Pocket area of Sacramento.
comply with Title 24 regulations.
Bill Clearwater, chief operations officer for
“We’ve done a portion of the plan and ACC then decided which elements of the
the nonprofit, consulted with SMUD and found
are very happy with it,” Clearwater says.
funding available to help offset the expense
“We were able to get some fairly significant
plan to implement, and when, depending on
of renovations at the four buildings owned by
savings from SMUD on the change-out.
business needs and financial considerations.
Lighting is better in our
Many businesses end up getting a majority
“ SMUD is a great partner when it comes to helping us save energy.”
parking lots, and I believe
of their upfront costs returned in the form of
we’re also saving a great deal
rebates. On average, owners see 73 percent
of energy.”
of their project costs covered by rebates.
Energy Solutions is
Clearwater explains, “because our parking lot
Bill Clearwater, Chief Operations Officer, ACC Senior Services
straightforward, according
lights are on all night long, plus they’re big
to Clearwater. Soon after
energy users.”
the organization. He also discovered SMUD’s full service energy efficiency program called Complete Energy Solutions that identifies opportunities for equipment upgrades and provides turnkey
The process for Complete
installation to businesses
ACC signed up for the
such as ACC.
program, Ecology Action,
Upgrading exterior lighting took top priority,
Bill Clearwater, chief operations officer at ACC Senior Services, made lighting improvements to facilities, resulting in benefits to clients and a reduction in energy use. Photo by Tony Nguyen
As additional phases take place, ACC will continue to have SMUD’s support. That’s a
Clearwater is pleased to have embarked on a commercial energy retrofit with SMUD. “We have found it to be very helpful,”
the company that runs Complete Energy
benefit of Complete Energy Solutions. As
at all four properties: ACC Care Center
Solutions for SMUD, sent their experts to
SMUD Product Services Coordinator Anson
Clearwater says. “SMUD is a great partner
(skilled nursing), ACC Greenhaven Terrace
conduct an inspection of each facility and
Battershell explains: “From start to finish, it’s
when it comes to helping us save energy, and
(independent and assisted living), the Meals
prepare a proposal for energy efficiency
a program that walks a customer through the
I would recommend that business owners
on Wheels by ACC office and the new ACC
improvements.
entire process.”
take advantage of it.”
ACC updated the exterior lighting
Changes that Plan your improvements and start saving
save
Businesses can save energy and money through a variety of improvements that reap benefits for property-owners, too. “New HVAC and lighting may improve the salability of a property or reduce the number of days it is on the market,” says SMUD Product Services Coordinator Anson Battershell. He adds that having a state-of-the-art, energy-efficient space for lease is a selling point for potential tenants. Being an eco-friendly business also holds appeal for your patrons.
Some improvements recommended by SMUD Lighting: Incandescent bulbs are out. What’s in?
Motor controls: Beyond HVAC fans, businesses
LED, or light-emitting diodes. This technology has
should install controllers for pumps, fountains and
blossomed to replace nearly any type of lighting
other motor-driven equipment.
fixture (interior or exterior) with high performance and low energy usage. But the CFL, or compact fluorescent lamp, hasn’t disappeared because they cost less than LEDs and work well for certain locations, such as hallways.
Sensors: Devices that dim lights in vacant rooms yield significant savings and have grown more sophisticated, even integrating into software systems and apps. Behavior: Customers can go online
HVAC: Replacing outdated, inefficient air
(smud.org/myaccount) to examine data from their
conditioning units can lead to great savings. But if
smart meter and locate any spikes in electricity
where the bills are going to be lower and the latest and
replacement isn’t an option, updating the sensor/
usage that could be reduced by modifying
greatest in energy efficiency is going on,” Battershell says.
control system, or installing a variable-speed
business operations.
“Potential tenants want that for their own reasons: a place
control for the fan motor, may improve efficiency. 4 | Helping your business thrive | SMUD | smud.org/business | A Special Advertising Supplement
Store Manager Michael Cochran of ABC Supply works in the company’s well-lit and energy efficient Sacramento warehouse. ABC Supply, which leases the space on Ramona Avenue, worked directly with SMUD to accomplish lighting upgrades before moving into the location. Photo by Tony Nguyen
ABC, which leases the warehouse space, took charge of these upgrades and agreed to make the investment. The company did, however,
The bottom line of the budget isn’t always the bottom line of the project. “We’re looking for energy savings, that’s
apply for rebates through SMUD that paid for
true,” Turner says, “but I always tell people
a portion of the project. Having to pay some of
that you don’t want to sacrifice performance
the cost out of pocket still made business sense,
for energy savings. Especially if you change
Burzinski explains, because ABC made “a long
your lighting system, you want to save money,
enough lease commitment” for
but you don’t want to reduce
the investment to pencil out with savings.
A bright start Leasee takes charge of energy upgrades at new Sacramento location by Evan Tuchinsky
A
“The paybacks are really within the first two years,” he says, “so after that it’s just free savings for us. It might have been a little more for us upfront, but knowing that the payback is coming in the next two years, it
“ Knowing that the payback is coming in the next two years, it was definitely worth doing.” Rodney Burzinski, Construction Manager, ABC Supply
was definitely worth doing.”
your lighting so much that you can’t do your job.” SMUD works with the customer on the account, be that the landlord or the tenant. In cases like ABC’s, where the tenant makes improvements, Turner recommends communication with the property owner to keep the
Since Burzinski could —
landlord in the loop.
and did — oversee the project, his company
ABC opened its Sacramento location
BC Supply, a wholesaler of
He wanted lighting inside and out that
participated in Express Energy Solutions,
in March. Burzinski, off to his next
exterior building supplies, has
offered optimal brightness for the energy
SMUD’s program for businesses that do not
project, recommends SMUD’s commercial
usage — meaning LED (light-emitting
require an outside consultant to plan and
programs to other businesses seeking to
So when the company expanded into
diode) systems. He wanted photo-cell
manage improvements.
save energy.
Sacramento, Construction Manager Rodney
sensors and occupancy sensors, so lights
Burzinski already knew what needed to be
about 500 locations nationwide.
“One thing I try to impress on customers:
“Definitely look into any of the programs
would brighten and dim based on the
If you’re doing anything that’s going to save
out there with rebates, whether it’s electrical
done to get the Ramona Avenue site up to
surrounding light and whether the rooms
electricity, give SMUD a call — there’s a
for lighting or controls for your HVAC
specification.
were occupied or vacant. He also wanted
chance we may offer a rebate or an incentive
systems,” he says. “There may be SMUD
to ensure the heating and cooling system
on it,” says Rodney Turner, SMUD strategic
assistance available that makes it more
worked as efficiently as possible.
account advisor.
affordable to do those upgrades.”
He came in well-acquainted with Title 24 regulations about energy efficiency.
Getting
Buy-in How to talk to your property owner about improvements
Even if a business doesn’t own its commercial space, the owner may have a chance to benefit from energyefficiency upgrades. Some landlords willingly make improvements, some agree to do so at tenants’ expense, others approve upgrades tenants perform on their own. In any case, when presenting a proposal, “it has to be a win for the landlord,” SMUD Strategic Account Advisor Mark Crume says. “There has to be a compelling reason.” One reason: “Does it improve property value?” Other considerations include the length of the lease and whom the lease stipulates as responsible for various items of maintenance (for instance, heating and air conditioning). Once the tenant determines those parameters, talking points suggested by Crume include:
• The reason for the upgrades (specifically what’s needed and why)
• Rebates from SMUD • Any amount the tenant will contribute to defray an expense of the property owner
• Benefits (better security from improved lighting, reduced maintenance from LED lights, etc.) Along with lobbying, timing can make a difference. “When you do your lease renewal, if you plan to stay, that’s a good time to negotiate for small improvements,” Crume says. “Before you sign on the bottom line.” One final piece of advice: “Make sure all upgrades are spelled out in writing.”
A Special Advertising Supplement | smud.org/business | SMUD | Helping your business thrive | 5
Select the
best product
for your project
W
hat can you do to help ensure that the product you select is a good choice? Picking the right lights to install or
making sure the new air conditioner is energy efficient is key to the success of your project. In order to participate in SMUD incentive and rebate programs, look for products that are rated or listed by one of the following:
Energy Star ENERGY STAR sets standards for energy-efficient consumer products (such as computer monitors,
How to find a
contractor
One of the most important steps in a successful energy-efficiency project is finding the right contractor. By selecting a licensed contractor who can identify and install qualified energy efficient equipment for your business, you’ll be eligible to receive SMUD rebates. Here is a checklist to help you select a contractor:
light bulbs or fixtures, dishwashers, etc.). Selecting these products can help owners improve the energy
To the extent possible, start by writing
Check with the Better Business Bureau to
efficiency of their businesses in ways that cost less and
down in advance what work you want
see that the contractor is in good standing
help the environment. Discover more about this U.S.
performed.
with them.
Environmental Protection Agency voluntary program
Finding a good contractor requires
Let the contractor know you’re
references. Get started by searching for
interested in participating in SMUD’s
them on a variety of websites, like
rebate program. Make sure that the
yelp.com or angieslist.com. Word of
contractor knows about SMUD’s rebate
mouth referrals from someone you trust
requirements.
at energystar.gov.
DesignLights Consortium The DesignLights Consortium provides information, education, tools and technical expertise for cutting-edge technologies. Since 2010, the DLC has administered the Quality Products List, a leading resource that distinguishes quality, high-efficiency
that has used a particular contractor is also helpful. Get bids from at least three different
Confirm with the insurance carrier that the contractor carries workers’ compensation and liability insurance policies.
LED products for the commercial sector. Search the
contractors.
Qualified Products List at designlights.org/qpl.
Ask each bidder for at least three
writing. Only sign a contract if you fully
references, and be sure to call or visit
understand the terms.
For more help selecting the right product and to review the rebate list, visit Express Energy Solutions at smud.org/ees.
each reference.
Get all project proposals/bids in
Never make a down payment of more
Only hire a contractor with a valid
than 10 percent and never pay in cash.
state license. To find one visit
Don’t complete payment until you are
cslb.ca.gov/Consumers/ or call
satisfied with the job.
800-321-2752 to learn how to select a licensed, qualified contractor; check the status of a contractor license; negotiate a clear contract; prevent disputes and mechanics liens; and resolve contractor disputes.
Keep a job file of all papers related to your project, including notes on discussions with the contractor, everything provided to you by the contractor, contracts, and payment receipts. Pay it forward. If you have a good experience take the time to share it with others.
6 | Helping your business thrive | SMUD | smud.org/business | A Special Advertising Supplement
Reinvesting in the local economy Small businesses reap benefits of SEED program
F
ive years ago, Chris Johnson made a decision that helped change his business fortunes.
by Evan Tuchinsky
“It’s a win-win situation for SMUD and the local economy,” says Lori Okamoto, program coordinator
He’d founded The Johnson Group, a
for SEED (smud.org/seed). “Reinvesting funds in our
professional staffing firm, in 2006. During its early growth
local economy helps us also support services in the local
phase, Johnson attended a lunch-and-learn session titled
community and build a strong vendor community.
“How to Do Business with SMUD” and got introduced to
“SMUD is community-owned, so everything that we do
SEED, a procurement program designed to support local
— all the programs and services that we provide — is to
suppliers.
help support the community and local economy.”
“SMUD made it clear that even
Johnson sees SEED as a “win-win-win”
though they’re a billion-dollar enterprise, they like to do business with small businesses,” Johnson says. “I really saw that it wasn’t this bureaucratic, checkthe-box kind of thing — they really had a passion to do that.” SEED stands for Supplier Education and Economic Development. Any statecertified small business that’s been a
situation because his business — one of
“SMUD made it clear that ... they like to do business with small business.”
the fastest-growing in Sacramento — has
Chris Johnson, Owner, The Johnson Group
contracts as a prime contractor and widened
SMUD customer for at least six months can
benefited so much from the relationship. The Johnson Group got certified by SMUD, then participated in a construction project as a subcontractor, providing skilled workers. The company has won multiple its scope to include other public sector entities along with private sector clients.
apply to receive incentives, which include
“Doing business with SMUD gave us
price breaks, extra points when bidding for a contract and
a lot of credibility,” Johnson says. “If all the other state
quicker payments once awarded a contract. SMUD also
contracting agencies were able to follow the SMUD
can reserve certain contracts for SEED vendors only (up to
model, there’d be so many other success stories because
$82,000, or $246,000 for multi-year contracts).
SMUD has it right.” Chris Johnson owns The Johnson Group, a professional staffing firm. SMUD supports local businesses like The Johnson Group by offering incentives for them to bid on SMUD contracts. Photo by Tony Nguyen
The funds to
get things done Loan programs Small businesses that want to make their buildings more energy efficient can receive upfront capital
through one of many loan programs. Opportunities include:
SMUD loans
Grow Sacramento Fund
State Loan Guarantee Program
SMUD makes loans of up to $10,000
Energy upgrades and business
SMUD partners with the California
to business customers investing in
improvements fall under the
Capital Financial Development
energy efficiency measures — and
parameters of this economic
Corporation to guarantee commercial
will consider higher amounts on a
development partnership, established
bank loans for small businesses in
case-by-case basis. SMUD offers
and capitalized by SMUD, the City of
Sacramento County that do not qualify
secured financing at 6.99 percent,
Sacramento, Sacramento County and
for conventional financing. These loan
generally for a term of 10 years (or,
the National Development Council, to
guarantees are provided in conjunction
for tenants, six months less than the
help eligible small businesses obtain
with those offered by the State of
time remaining on the property’s
financing. Loans feature customized,
California via state trust funds and
lease). Certain eligibility criteria must
flexible structures.
federal funds.
be met, but the application fee of
Contact: Dianna Sasser,
Contact: Anthony Rucker,
Grow America Fund,
California Capital Financial
info@growsacramentofund.com
Development Corporation, 916-442-1729
$100 per loan gets refunded if no loan is offered. Contact: SMUD’s Commercial
or 916-732-5499
Contact Center, 877-622-SMUD (7683) A Special Advertising Supplement | smud.org/business | SMUD | Helping your business thrive | 7
Return on
investment
Contractor passes on SMUD savings to customers Don Pezzuto Lighting has been providing lighting services to Sacramento businesses for 29 years. And while lighting
from a business standpoint, you can see it’s a cost-effective thing to do.” Once Pezzuto completes the job,
technology has changed dramatically in
he collects the rebate from SMUD. This
that time, Pezzuto says one constant has
arrangement has been a win-win for both
been SMUD’s commitment to helping small
Pezzuto and business owners looking to
businesses become more energy efficient
save money.
through its energy rebate programs. As a
“SMUD pays some of the highest
contractor, Pezzuto appreciates being able
rebates in the region, and it’s gone a long
to pass on these savings to his customers.
way toward getting people to retrofit their
“We try to step into the shoes of the
lighting,” Pezzuto says. “The people who
business owner,” Pezzuto says. “When
work in the rebate program are all really
we do a proposal, we show the business
professional and do a good job.”
owner the total cost of the project, what the cost is after the rebate and the return on
For more information on how to help your
investment. SMUD pays a very generous
customers save money with SMUD rebates,
amount on retrofitting, so if you look at it
visit smud.org/businessrebates
“SMUD pays a very generous amount on retrofitting, so if you look at it from a business standpoint, you can see it’s a cost-effective thing to do.” Don Pezzuto, Sacramento-area lighting contractor who uses SMUD rebates for his customers
Helping power your business As your community-owned and notfor-profit electric service, we structure our rates and services to benefit the community we call home. General Inquiries Sacramento Municipal Utility District 6301 S Street, Sacramento, CA 95852-0830 Monday through Friday 8 a.m. to 6 p.m. 24-hour deposit box near front entrance smud.org/business commercial@smud.org 877-622-SMUD (7683)
Access your savings at
Express Energy Solutions Find and submit rebates for energy-efficiency upgrades — easily and all online. smud.org/EES 916-732-5095 express.energysolutions@smud.org Complete Energy Solutions
A full-service approach to upgrading your site. Call for a free energy assessment. smud.org/CES 855-822-2936 ces@ecoact.org Greenergy Power your business with renewable energy. smud.org/businessgreenergy 877-622-SMUD (7683)
SEED (Supplier Education and Economic Development) Local small businesses receive incentives to participate in SMUD's competitive bid process. smud.org/SEED 916-732-5600 SEEDmgr@smud.org Various Loans Grow Sacramento Fund 916-732-5499 info@growsacramentofund.com State Loan Guarantee Program California Capital Financial Development Corporation 916-442-1729 cacaptial.org
smud.org/businessrebates A Special Advertising Supplement
SMUD Business Tools Online SMUD’s interactive tools and information can help you understand your bill and rates, calculate your energy consumption, identify opportunities for saving energy, find rebates, see success stories and more. smud.org/business