Havertys Takes Comfort in a Data Driven Energy Management Strategy

Use Case

With a mix of old and new retail storefronts, offices, and warehouse space, pinpointing exactly which buildings and aging systems were wasting energy and other resources was a formidable task.

Challenge

The retailer needed to gain additional insight into their annual energy spend to have a better understanding of these costs. At the time, there was no process for collecting or managing their energy data to establish baselines or benchmarks, and no foundation from which to build an energy strategy. Only 36 sites had various Energy Management Systems (EMS) installed, but no visibility to live meter data, forcing the company to rely heavily on data from multiple utility sources. Gaining access to better data became their top priority. Additionally, they needed to understand and document what their official energy-efficiency goals should be. A cross-functional team specializing in energy, waste, sustainability, and sourcing was formed to support this initiative. The team identified the following goals, spanning a five year time frame, with clear and actionable plans.

• Claim sustainability as a strategy
• Complete current-state assessments, including baseline metrics
• Set energy reduction goals and program expectations
• Clarify metrics and identify how progress would be measured

Set time frames for each goal, including a 25% kWh reduction in energy over a five year period

Knowing that data and formal processes would be integral to achieving these goals, the company turned to ENGIE Impact for help. ENGIE Impact provided the company with energy reporting and analytics to help identify usage patterns, track costs, and develop and help implement a consistent  energy management strategy across the entire organization.

Solution

Using newly-formed baselines built from the historical bill and trend data collected from the EMS at individual sites and facility meters, the teams were able to document other annual benchmarks extending more than five years out.

A collaborative strategy was put in place to ensure each action item outlined in the sustainability plan was achieved. Additional steps used to establish and support their strategic energy goals included facility audits to pinpoint systems that needed replacing; a cost-benefit and ROI analysis to prioritize capital projects with the greatest return; and ongoing training and education for all employees, from the board room to the sales floor.

From a cost management standpoint, ENGIE Impact helped the retailer gain control over their utility bill expenses by ensuring the bills were accurate and paid on time while also optimizing energy rates and obtaining refunds where applicable. Additionally, both companies worked to maximize the value of EMS and Smart Meters with the following efforts:

• Prioritize locations for EMS installs based on the greatest ROI
• Execute re-commissioning at 29 locations to make sure sites were properly controlled
• Install Smart Meters at showrooms and facilities for recording electric consumption in 15-minute intervals
• Regulate and optimize consumption at all new stores equipped with EMS
• Monitor and resolve EMS alarms and inbound service calls remotely to provide operational support and reduce maintenance truck rolls

Benefits

With this strategy in place, Havertys' energy management has resulted in significant bottom-line savings, improved operational efficiencies, and continued data insights. The data helped pinpoint and prioritize projects that provided the most immediate energy and cost savings:

• 16% reduction in energy consumption at a single site in one year
• 62% reduction in consumption at a Virginia Beach showroom in two years
• 29% total energy usage reduction in four years — surpassing the five-year goal of 25%
• $172,800 in estimated cost avoidance in a single year through reduced maintenance truck rolls

These savings also supported operational efficiency improvements, achieved through the data visibility and energy management support provided by Arcadia.