Performance History of One of the Pioneers of Energy Efficiency

Sid Pelston, Managing Director of the Alliance for Energy Efficiency, is a pioneer in the energy efficiency industry – since 1976. Mr. Pelston conceived and implemented the synergistic business model of partnering with trade associations, management companies, equipment manufacturers, installation contractors, utilities and government agencies. Leveraging the massive buying power of the members and clients of these organizations, significant price advantages can be obtained from suppliers.

The reduced energy project cost from product suppliers and installing contractors, combined with utility incentives often produced no-cost energy projects. It’s tantamount to a Double Rebate. The trade association and property management fiduciary relationships with members and clients provides AEE with highly preferred access to the marketplace, not as a typical vendor, but rather as a trusted extension of the businesses’ trusted advisor. This eliminates significant overhead, marketing and operating expenses to produce a compelling opportunity for buildings of all sizes and types to implement projects to reduce energy cost.

The relationships and achievements of Mr. Pelston noted below demonstrate broad diversity of experience and superior performance. The examples listed in the “Performance History” demonstrate noteworthy results achieved by companies, cities and schools guided by Mr. Pelston’s companies over decades of time.

HISTORY — New Energy Ventures – #1 Supplier During Electricity Deregulation

When the electricity markets were deregulated in the 1990s, Mr. Pelston as Senior Vice President of New Energy Ventures (NEV), led the marketing effort by NEV to form partnerships with over 50 trade associations and property management companies, which led to a massive number of companies contracting with NEV to secure their electricity needs from hydroelectric and other lower-cost power producers. That program was so successful that NEV became the nation’s #1 non-utility supplier of electricity by its third year of operation.

HISTORY — Rand Corporation

The Rand Corporation contracted with Mr. Pelston to serve as Senior Advisor – Energy and Environment to assist Rand to develop the strategies and develop the contacts to provide its services to companies in the private sector. Until then, Rand had primarily offered its expertise and services almost exclusively to the military and government agencies.

HISTORY — California Energy Commission (CEC)

Mr. Pelston owned Energy Innovation Group (EIG) from 2000-2018. A team organized by EIG qualified for funding by the CEC to reduce energy demand. EIG reduced more energy demand than any other CEC funded company, including major utility subsidiaries. As a result, the EIG team was granted $2 million additional CEC funding.  EIG reduced energy demand by 17,000 kilowatts. The CEC issued a report to EIG describing the success of the program. EIG’s program was also featured on the CEC website.

HISTORY — Southern California Edison (SCE)

EIG was first awarded funding as a third-party implementer in 2009 by SCE to reduce energy demand. Through its unique marketplace partnering business model, EIG achieved significant demand reduction and utilized 100% of the funding allocated to it.  SCE reallocated funding multiple times from other third-party programs to provide added funding for EIG. EIG was awarded additional contracts and funding through 2013 in consideration of its ability to effective bring the marketplace into the SCE program.

HISTORY — Pasadena Unified School District (PUSD)

EIG presented a big picture strategy for PUSD to reduce energy demand and maintenance cost for the lighting, controls, ventilation, heating and air conditioning in all PUSD facilities. EIG completed a study, developed an Opportunity Report, organized and managed all the resources and arranged with Pasadena Water & Power (PWP) to provide funding to cover costs for PUSD to complete a comprehensive energy upgrade project. The end result for PUSD was to achieve a major reduction in energy expense and take advantage of the financial incentives arranged with PWP.

HISTORY — Boston Edison

Boston Edison was falling short of its demand reduction goals in 1990. They were unsuccessful in securing three major energy users for their program – being Brandeis University, City of Boston and Boston Unified School District. Mr. Pelston was well known for his big picture and thinking outside-the-box performance to reduce energy demand throughout Massachusetts. As a result, the utility requested Mr. Pelston to take over the task to bring these three entities into the Boston Edison program. In relatively short order, all three responded favorably to Mr. Pelston’s rationale and approach, and contracted to participate in the Boston Edison program.

HISTORY — South Bay Cities Council of Governments

During the early 2000s, the California Public Utilities Commission (CPUC) provided funding to the Southern California South Bay Cities Council of Governments to engage in an “Energy Rewards” program to reduce energy costs for commercial buildings in their cities. EIG was selected to develop and implement the Energy Rewards program. EIG was able to arrange for each city to take on a very different role, which was not typical of a government body, by becoming marketing partners to sponsor events to inform their businesses of the opportunity. See the South Bay Cities report of the program result. Businesses were provided all new lighting, reduced lighting cost an estimated 50%, reduced maintenance cost, helped the environment and never had to invest their own funds. The Torrance, CA website summarizes the results for their city.

HISTORY — Building Owners & Managers Assn (BOMA)

BOMA is the world’s largest commercial building trade association. EIG partnered with BOMA Greater Los Angeles and San Francisco to guide BOMA members to reduce energy cost with utility and manufacturer incentives generally covering the full cost of energy projects. The results were noted in BOMA’s Newsletter, which stated: “We are changing the way an association thinks and acts with opportunities individual companies might not be able to find on their own.”

HISTORY — City of Redondo Beach, CA

Contrary to the city’s standard approach of step by step energy projects, EIG proposed a Big Picture strategy to reduce energy by 20% for all buildings in the City of Redondo Beach, CA. The city authorized EIG to develop the energy project and manage its implementation. Two years after the project commenced, the California Energy Commission issued a Flex Your Power award to the city for having reduced its energy demand 21%.

HISTORY — City of Beverly Hills, CA

For the 7-year period 2009-2016, EIG completed studies, developed strategies and implemented projects that reduced energy costs in all Beverly Hills city buildings. EIG secured grants and rebates, and arranged 0% interest financing to cover the cost of the projects, which enabled the City to significantly reduce energy use with no cash outlay.