AUGUST 2012
VOLUME 40 NUMBER 3
The Magazine of The interNational Association of Lighting Management Companies, NALMCO®
RELIGHT VS. RETROFIT
HOW DOES THE INDUSTRY
QUANTIFY VALUE?
DO YOU KNOW
WHERE YOUR ECONOMY IS?
REGULATIONS SET
New Efficiency Standard For
Fluorescent Ballasts
COUNTDOWN
TO
OCTOBER
THE 59TH ANNUAL NALMCO
CONVENTION & TRADE SHOW
BOARD OF DIRECTORS
PRESIDENT
Fred Hauber, CLMC®, CSLC, CLEP, CET
Eastern Energy Services, Inc.
Phone: (609) 801-1990
Email: fred@easternenergyservices.com
PRESIDENT-ELECT/TREASURER
Vicki Wood
Tri-County Lighting Services, Inc.
Phone: (714) 288-1711
Email: vwood@tclighting.com
IMMEDIATE PAST PRESIDENT
Jim Frank, CLMC®, CSLC
Facility Solutions Group
Phone: (913) 422-8400
Email: jim.frank@fsgi.com
Lighting Management & Maintenance
is published by the interNational Association of
Lighting Management Companies (NALMCO®)
QUESTIONS & FEEDBACK
NALMCO HEADQUARTERS
1255 SW Prairie Trail Parkway
Ankeny, IA 50023
Phone: (515) 243-2360
Fax: (515) 334-1174
Email: director@nalmco.org
Molly Lopez, CAE – Editor
Heather Tamminga, CAE – Assistant Editor
Carol Henderson – Advertising
Echo-Factory – Graphic Design
Documation – Printer
VICE PRESIDENTS
Chris Frank, CLMC®, CSLC, CLEP
Scott Mendelsohn
Colorado Lighting, Inc.
Phone: (303) 288-3152
Email: cfrank@coloradolighting.com
Imperial Lighting Maintenance Co.
Phone: (773) 794-1150
Email: scott@imperiallighting.com
Steve Kath, CLMC®
Chris Munford, CLMC®
The Retrofit Companies
Phone: (507) 455-2181
Email: skath@retrofitcompanies.com
Lighting Maintenance & Service, Inc.
Phone: (801) 281-0400
Email: cmunford@lmslighting.com
ASSOCIATE MEMBER REPRESENTATIVES
Randy Breske, CLMC®, CSLC, CLEP
Bruce Ryman
Precision-Paragon [P2]
Phone: (800) 657-0883
Email: rbreske@p-2.com
Osram SYLVANIA
Phone: (720) 244-4076
Email: Bruce.Ryman@sylvania.com
Lance Burghardt, CLMC®, LC
Lighting Management & Maintenance publishes information for
the benefit of its members and readers. The sponsor (NALMCO®),
the publishers and editors of Lighting Management & Maintenance cannot be held liable for changes, revisions or inaccuracies
contained in the material published. For more detailed information
on the products, programs, services or policies covered in Lighting Management & Maintenance, it is recommended that readers
contact the appropriate person, company, agency or industry group.
Philips Lighting Company
Phone: (315) 559-2325
Email: lance.burghardt@philips.com
EX-OFFICIO ADVISOR
Ray Pustinger, CLMC®, CSLC, CEM, CDSM
Echo-Factory
Phone: (562) 513-5306
Email: ray@echo-factory.com
LM&M | August 2012
3
August 2012
22
®
NALMCO
COMMITTEES, REPORTS & UPDATES
06
08
10
13
14
15
PRESIDENT’S MESSAGE
COMMITTEE LISTS
COMMITTEE REPORTS
BOARD UPDATES
CERTIFICATION RECOGNITIONS
“CHOOSE NALMCO” CAMPAIGN CONTINUES!
NEWS
INDUSTRY & MEMBER NEWS
16
17
17
18
19
19
19
20
21
NALMCO AT LIGHTFAIR®
NALMCO EXHIBITS AT LARGEST ENERGY
CONFERENCE AND TECHNOLOGY EXPO
NEMA RESPONSE TO ENERGY & WATER BILL
NLB’S HIGH BENEFIT LIGHTING® AWARDS PROGRAM
MAXLITE’S NEW PRODUCT MARKETING MANAGER
EPCO IN MINNESOTA’S TOP 100 COMPANIES
CRESTRON EXPANDS WEST COAST RESOURCES
GANASSI RACING TEAMS & SOL, INC. PARTNER
GRAYBAR CELEBRATES ITS FIRST LEED FACILITY
Volume 40
Number 3
28 36
LIGHTING MAINTENANCE,
SALES
&
MANAGEMENT
FUTURE TRENDS & BUSINESS
22
REGULATIONS SET NEW EFFICIENCY STANDARD
FOR FLUORESCENT BALLASTS
By Craig DiLouie, LC
25
IT’S ALMOST NOVEMBER – DO YOU KNOW WHERE YOUR
ECONOMY IS?
By Chris Kuehl
28
RELIGHT VS. RETROFIT:
HOW DOES THE INDUSTRY QUANTIFY VALUE?
By Raymond A. Pustinger, CLMC, CSLC, CEM, CDSM
34
ASK A LIGHTING PRO
SPECIAL SECTION
35
36
NALMCO 2012 SPRING SEMINAR
59TH ANNUAL NALMCO® CONVENTION & TRADE SHOW
SPOTLIGHT
PEOPLE, PRODUCTS AND INITIATIVES
43
44
48
NEW MEMBERS
NEW RELEASES: THE INDUSTRY’S LASTEST PRODUCTS
MEMBERSHIP CONTEST
UP-TO-DATE
CALENDARS, TRAINING & EVENTS
34 ADVERTISING INDEX
50
50
CALENDAR OF EVENTS
EDUCATIONAL FACILITIES & TRAINING SCHEDULE
LM&M | August 2012
5
FUTURE TRENDS & BUSINESS
RELIGHT VS. RETROFIT
how does the industry
quantify value?
By Raymond A. Pustinger
CLMC®, CSLC, CEM, CDSM
Energy efficient lighting, relight, retrofit, 1-for-1, investment grade, low hanging fruit,
commodity, value add, deeper retrofits. These are all terms that industry professionals
use when discussing energy saving lighting projects, market strategies, opportunities,
and technology applications.
Clearly, compelling opportunities continue to be presented
by rapidly evolving lighting technology. Not so clear is the
path to successful energy saving projects. Investing capital in
energy efficiency is a scary proposition for facilities professionals. Developing and selling energy saving projects can be
a costly, lengthy, daunting process for lighting professionals.
For every success story, there is a corresponding cautionary
tale of failed projects, good technology poorly applied, and
projects poorly executed.
The objective of this discussion is to increase the recognition of value in energy efficient retrofit and relighting, and
encourage greater balance and awareness in weighting
price and value. A small gain in these areas would mean
huge financial and environmental gains for the facilities and
energy efficiency communities alike.
COMMODITIZATION VS. VALUE ADD
The battle between commoditization and value add has been
a constant in energy efficient lighting since the first energy
saving F40T12 lamps were introduced in the 1970s. Remember the first F40/T12/CW Econ-O-Watt, Watt Miser, and Super
Saver lamps? These products gave birth to the energy efficient lighting industry, spawning group re-lamping projects
fueled by energy saving lamps, and initiating a continuum of
innovation and one-upmanship that continues to this day. It
goes something like this; products seek differentiation and
price by adding performance, squeezing out more efficacy,
or both. When successful, the products proliferate, become
a new standard, and pricing commoditizes. Soon after, the
next iteration comes along, and the cycle repeats. Purveyors
of energy efficient retrofit and relighting lighting projects
experience a similar cycle as new technology, techniques,
and applications are developed in the market place.
The funny thing is that while everyone would like to buy at
commodity price point, we’d all like the unique value of our
products and services to be recognized with price. No one
wants to be commoditized or receive commodity service, we
want value. So how does the industry quantify value? The
answer is, not very well at all.
Therein lies the challenge facilities and energy efficiency professionals wrestle with. When you consider the multitude of
variables in technology, product quality, iteration, functionality, and pace of adoption, it can be an overwhelming task
for the buyer to quantify value. Unfortunately, the simplest
thing to quantify, total project cost, becomes the safety net.
After all, how often is one criticized for being frugal? Worse
yet, sometimes doing nothing is seen as a safer choice than
investing in energy saving technology, and viable projects
are not executed. For those who develop quality retrofit and
relighting projects, it can seem a hopeless task to find buyers
who recognize and respond to quality.
LM&M | August 2012
29
Faced with an overwhelming array of choices and the task
of quantifying value across disparate proposals, far too
many retrofit/relight buy decisions are made based solely on
price. Sadly, in these cases, facility owners may invest less,
but pay more per unit of benefit, or worse, pay for negative
benefits. Equally unfortunate is that the ability to offer a low
priced lighting retrofit requires little skill or experience. Many
unqualified retrofitters enter the market, seemingly validated
by the market acceptance of new technology. They are
awarded projects based on price alone, make poor product
applications, inaccurate performance claims, fall short on
execution, and leave the buyer disappointed. This hurts not
only the buyer, but lighting professionals as well. Why? It
is a case of guilt by association. The buyer’s bad experience
casts a negative reflection on all lighting professionals.
Adding insult to injury, unskilled or unqualified retrofitters
generally underestimate the cost of doing a professional job,
while those who do recognize the cost of delivering quality
are measured against unrealistic price levels established by
unqualified retrofitters.
As facilities and energy efficient lighting professionals, we
can do better.
DEFINING RETROFIT AND RELIGHT
Retrofit: In the context of an energy saving lighting project,
the term retrofit typically applies to a straight replacement of
30
LM&M | August 2012
components in an existing lighting system, 1-for-1 replacement of luminaires, and sometimes basic occupancy/vacancy
based lighting controls. In a retrofit, the priority is energy
savings, and incremental improvements in the quality of
the illuminated environment are tertiary benefits. Another
characteristic of a retrofit is that the existing system, the
baseline, is assumed to be functional and well suited to the
use of the space. No significant design changes or revisions
to performance criteria are considered. In these retrofits, the
shortest payback measures are targeted, essentially harvesting the “low hanging fruit” and delivering the greatest short
term return on investment and quickest simple payback.
These are cost and commodity driven projects.
Relight: The term relighting is typically used to describe
energy efficient lighting project where the site is addressed
from almost a blank slate. Yes, there is an existing lighting system, but the project starts with defining anew the
requirements of the illuminated environment, and a solution
is designed to meet those requirements in the most energy
efficient and financially compelling manner possible. Most
often, these solutions will go beyond a component retrofit,
to include complete luminaire replacement, modifications
to the fixture layout, and new approaches to aesthetics and
means of illumination that align with the current use of the
facility. Relighting projects may deploy the same or similar
technology as a retrofit, but will go deeper into the project,
beyond the low hanging fruit. These projects often include
FUTURE TRENDS & BUSINESS
occupancy/vacancy based lighting controls, advanced lighting controls with communications capabilities and demand
response functionality, and address both interior and exterior
lighting. Deep retrofits, as they are referred to by utilities, require investment grade application engineering, a value add
approach to service and execution including a sophisticated
presentation of project economics, and a significant investment in staff time and client education during the project
development cycle.
Consider the statements below. Do they apply to
Commodity Retrofit? Or Value Added Relighting?
Owners need them
Utilities support them
Lighting professionals prefer them
They do more good for the owner, suppliers, industry
and environment
The point is, each of the statements apply equally to both
commodity retrofit and value added relighting, so long as
the project is executed professionally and with a regard for
lighting fundamentals. With that said, determining which
path to take is a matter of site specific circumstances, ownership priorities, and economic realities. Both approaches are
needed, worth doing right, and worthy of respect.
WHEN TO CHOOSE COMPREHENSIVE
RELIGHTING, COMMODITY RETROFIT
Comprehensive Relighting: Typically, facilities best suited
for a comprehensive relighting approach are larger sites that
are owned, on long term leases, heavily configured to the
user, very dependent on a quality illuminated environment,
or are one of many in a larger portfolio. These buyers have
more to lose with a bad project, more to gain with a good
one, and more ability to fund comprehensive scopes. When
evaluating return on investment, they are in a position to
benefit from positive cash flow and improved life cycle costs
over a longer horizon. Typically, these are longer sales cycles,
12-24 months is common. Early in the project development
cycle, relationships are formed and commitments made
where the owner and supplier commit to the necessary
project development investments.
Commodity Retrofit: Quite often, facilities which are better
suited for a commodity retrofit approach are those with basic
lighting systems in place, short term occupancy certainty,
less demanding illumination requirements, perhaps a scarcity
of capital, or scarcity of resources to investigate comprehensive options. In these cases, harvesting the low hanging fruit
allows the facility to leverage available capital, limited staff
resources, and utility incentives. Commodity projects can
achieve quick simple paybacks and deliver very high return
on investment scenarios; however, deeper savings opportunities may not be harvested.
In either approach, the facilities professional should do a
thorough job of establishing expectations, investigating
options, and evaluating quality suppliers. Do this and they
are more likely to avoid common pitfalls, and wind up with a
successful project.
Table 1 illustrates how the additional investment in a comprehensive relighting scope, or deep retrofit, might compare to a 1-for-1
commodity scope. Both projects are based on the same facility, a
250,000 square foot industrial plant. It seems a contradiction, but
properly designed & executed, both are great projects.
Table 1.
(A) 1-FOR-1 RETROFIT
(B) INVESTMENT GRADE
RELIGHTING
VARIANCE
INITIAL COST
$132,517
$239,225
$106,708
ANNUAL ENERGY SAVINGS
$67,957
$100,592
$32,634
10 YEAR CASH FLOW NET OF INVESTMENT
$547,057
$766,693
$219,635
INTERNAL RATE OF RETURN (10 YEAR)
50%
41%
-10%
SIMPLE PAYBACK YEARS
1.95
2.38
0.43
23
28
5
PROJECT DATA
SIMPLE PAYBACK MONTHS
LM&M | August 2012
31
FUTURE TRENDS & BUSINESS
The decision on which approach should be deployed comes
back to the site situation, owner/occupant priorities, financial
horizon, available capital, and the illumination requirements
within the facility. A quick look at Table 1 illustrates the case
for the additional investment in column B: With the additional investment, the project cost increases by $106k (81
percent), while the simple payback period increases by only
5 months, the Buyer increases their annual savings by $32.6k
(48 percent) and the ten year positive cash flow increases by
$219.6k (40 percent).
Table 2 provides line item detail that illustrates how the scope
and savings expand from the 1-for-1 scope to the comprehensive relight scope. By looking at the components of the project
and their simple paybacks line by line, it is clear to see how
easy it can be to gravitate toward the low hanging fruit, short
payback measures. It is also clear that in so doing, substantial
savings and performance opportunities are left unrealized.
Again, both projects have merit, based on site and ownership
specific priorities.
CONCLUSIONS
The decision on how to approach projects is situational; there
is no absolute correct solution.
For Buyers: Out of all the considerations, the most important
thing is to engage quality resources, determining early in
the process if your supplier candidates are qualified. Second,
determine whether your candidate’s approach aligns with
your needs. Many energy service companies, lighting retrofit
contractors, relighting professionals, and other project developers are geared to focus on either commodity or comprehensive, and will excel only at one or the other. Some have
the ability to go either way, and tailor their approach to your
situation. Whether you go down the commodity or comprehensive path, you should choose a partner whose approach
aligns with your needs. Finally, seek to become an educated
buyer during the process, require a well-defined contract
scope of work that creates accountability, set expectations
in advance, and invest in demonstration installations before
mobilizing the complete project.
Table 2.
250K SF INDUSTRIAL PROJECT:
COMPONENTS OF COST AND
SAVINGS
TURNKEY PROJECT COST
ANNUAL ENERGY
SAVINGS
10-YEAVR NET
CASH FLOW
IRR
SIMPLE PAYBACK
$132,517
$67,957
$547,057
50%
1.95
+ ADVANCED LIGHTING
CONTROLS
$33,129
$13,578
$102,646
40%
2.44
+ COMPREHENSIVE
RELIGHTING SCOPE
$19,878
$6,878
$48,903
33%
2.89
+ LED TASK LIGHTS
$10,500
$2,800
$17,500
23%
3.75
+ OUTDOOR - REPLACE 400MH
AREA LIGHTER
$29,684
$7,170
$42,016
20%
4.14
+ OUTDOOR - REPLACE 250MH
WALL PACK
$13,517
$2,209
$8,570
10%
6.12
SUB-TOTAL:
ADDITIONAL INVESTMENT
GRADE PROJECT COMPONENTS
$106,708
$32,634
$219,635
28%
3.27
(B) TOTAL:
INVESTMENT GRADE
RE-LIGHTING PROJECT
$239,225
$100,592
$766,693
41%
2.38
(A) BASE PROJECT:
INTERIOR COMMODITY
GRADE 1-FOR-1 RETROFIT
32
LM&M | August 2012
For Project Developers: It is critically important to have a
clear strategy. There is an enormous market for commodity
deployments of technology, and if that is to be your niche,
be the best at it. Excel by developing streamlined solutions
geared to deliver great price, quality work, and seamless
execution. There is no reason for commodity to be associated
with poor service or execution, it can and should be good
business. There is an equally compelling market for deep
retrofits, investment grade relighting projects, and this work
is also needed and rewarding. Just like it does for the buyer,
this approach requires more investment of your time, effort,
and expense, and can also deliver greater rewards. The key to
success here is to have a process that identifies commodity
buying circumstances and comprehensive buying circumstances early in the project development cycle.
With greater awareness of the need to properly balance price,
value, qualifications, and scope, combined with a spirit of
collaboration, buyers and sellers of energy efficient lighting
projects can create more value together, and in that case,
everybody wins.
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PRODUCTSANDSUPERIORCUSTOMERSERVICE
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INCLUDING#&,,INEAR&LUORESCENT()$ANDE()$PRODUCTS
#ALL"!,,!34TODAYAND
GETTHEPOWERYOUNEEDTOSUCCEED
About the Author:
Raymond A. Pustinger CEM, CDSM, CLMC, CSLC,
has been involved with energy efficient retrofit
and relighting projects since 1989, first managing,
designing, and selling projects as a contractor,
and later supplying energy efficient luminaires
and conversion kits to the ESCO, Contractor, and
Distribution markets as an OEM.
Energy Intelligence in Lighting.
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2EVIEWOURCASESTUDIES
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Ÿ)'((Le`m\ijXcC`^_k`e^K\Z_efcf^`\j
LM&M | August 2012
33
PRESIDENT’S MESSAGE
By now you have all received an email that LM&M is now available for download in PDF form. This will allow for our members to read our publication
on their smart phones or tablet devices. LM&M is also available for anyone
to download from the website. Feel free to share the publication with your
customers! We hope that it may increase our readership and help promote
NALMCO to the end-users who will then, in turn, contract with our member
companies for service.
The Board and some of the members continue to staff our NALMCO booth at
various conventions and trade shows across the country in order to promote
the value of our certifications and membership. If you have a show in your
area and want to exhibit for NALMCO please contact director@nalmco.org.
HOW LONG IT STAYS BRIGHT
(LUMEN DEPRECIATION)
HOW WELL IT WORKS
WITH CONTROLS
HID
LAMP COST
FLUORESCENT
promote
nalmco
L I G H T I N G T E C H N O LO G I E S
HID
FLUORESCENT
INDUCTION
LED
INDUCTION
1953
S TAC K I N G U P T H E F E AT U R E S
E N E R G Y- E F F I C I E N T
WHERE DID WE GET THE NUMBERS?
Efficienc y, life-span and lumen-maintenance data is based on common MH400,
Long Life T5 and T8 fluorescent lamps, major brand induction systems, and
delivered lumens from common high wattage LED fixtures.
LED
CE
SIN
L E T ’ S C O M PA R E
LIGHT SOURCE EFFICIENCY
LIGHT DISTRIBUTION
HOW EFFICIENTLY IT TURNS ELECTRICITY INTO LIGHT
Initial Lumens per Watt
End of Life Lumens per Watt
140
120
100
85
85
80
LATERAL LIGHT SPREAD
80
80
75
56
49
49
60
Each technology has different potential to control light distribution characteristics.
Fixtures with more light distribution options can allow for more flexible layouts often reducing the overall amount of fixtures required to get uniform illumination,
and therefore the overall energy consumption of the lighting system.
40
Also, we are currently involved with updates to various industry publications
that our members have helped develop. One example is the upcoming
revamp of the [IESNA/NALMCO Recommended Practice for Planned Indoor
Maintenance (RP-36)]. If you would like to assist in some way or contribute
pertinent data, please send your comments to: director@nalmco.org and we
will forward your ideas/questions or concerns to professional groups who
are currently studying these issues.
20
0
HID
FLUORESCENT
INDUCTION
LED*
*Varies greatly by fixture and application
HID
FLUORESCENT
INDUCTION
LED
LIGHT DISTRIBUTION CAPABILITIES
I N F I X T U R E E F F I CAC Y
HID
EFFICACY NET OF FIXTURE USING S/P ADJUSTED LUMENS
If you have an ANY ideas, or would like to share ways that we can improve
your experience with the organization, please don’t hesitate to speak with
NALMCO Board members or NALMCO staff representatives. We are here to
serve you!
Initial Lumens per Watt
126
113
120
100
113
INDUCTION
85
79
75
80
REMINDER: The 59th Annual Convention and Trade Show will be held in
Rancho Mirage, Calif., at the Westin Mission Hills Resort & Spa October 14–17,
2012. Save the dates and plan to attend!
FLUORESCENT
End of Life Lumens per Watt
140
49
49
60
LED
40
20
0
HID
Let’s make this a banner year for promoting the organization and growth of
membership. Recruit one General Member this month.
FLUORESCENT
INDUCTION
LED*
*Varies greatly by fixture and application
SO, WHICH IS THE BEST?
It depends. Every lighting technology
has unique features that make it the right
technology for a specific application.
T Y P I CA L L I F E S PA N
HOW MANY HOURS OF CONTINUOUS OPERATION BEFORE
IT NEEDS TO BE REPLACED
Please send your comments to:
director@nalmco.org
120,000
Sincerely,
Fred Hauber, CLMC®, CSLC, CLEP, CET
NALMCO® President
100,000
G E T H E L P TO DAY
80,000
WAN T HE L P PI CKI N G T H E R IG H T LIG H T IN G T E C H F O R YO U R N E X T P R O J E C T ?
60,000
GET IN TOUCH WITH OUR LIGHTING EXPERTS.
40,000
20,000
0
HID
6
FLUORESCENT
INDUCTION
LED*
*Varies greatly by fixture and application
LM&M | August 2012
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