SMG ENERGY GROUP provides holistic energy management plans, energy efficiency consulting services, and sustainable energy solutions for hospitals, biotech facilities, laboratories, data centers and other high tech buildings and facilities.

As energy experts we help customers save 30% to 50% of energy use and costs using existing techniques, technologies and business practices. That energy use reduction becomes recurring cost savings. An investment in SMG results in a payback many times over.

SMG ENERGY GROUP engineers, energy auditors and technicians are industry, utility and DoE trained and certified professionals. We provide the simplified energy efficiency solution best suited for your facility and your business model.

SMG ENERGY GROUP is the one-stop high tech energy efficiency team. We simplify the process and expedite results. Our approach is to employ not only the best technical skills but the best business and financial analyst and systems integration skills.

We develop with you a comprehensive return on investment model and plan for designing and implementing the enterprise wide energy management plan. CEOs and CFOs at most hospitals and high tech companies are looking for ways to drive costs out of their organization to improve the P&L and balance sheet but also see recurring cost savings from prudent investments like energy conservation.

We focus on energy management plans and implementation at a profit. The solution must be accretive to the balance sheet. In most cases we see paybacks within 4 to 8 months and internal rates of return of between 300% and 400%.

Developing and implementing an enterprise wide and holistic energy management plan is possible today. Using guidelines and engineering tools developed by DoE, EPA, USGBC, Green Grid, GGHC, the public utility firms and others the SMG ENERGY GROUP team is the enterprise solution for lowering operating costs and providing sustained value.

At SMG ENERGY GROUP our energy engineers, auditors and project managers help you reach a high state of energy efficiency.

Our areas of energy efficiency expertise are:

• Data Centers & Computing Sites
  Target savings: EPA typical 30% or more
• Healthcare & Hospitals
  Target savings: EPA typical 20% up to 40%
• Laboratories, Bio-Tech and High-Tech Facilities
  Target savings: EPA typical 15% up to 35% or more

Our energy management approach is holistic and involves a simple yet thorough four step process. Most importantly we look at your energy goals and business model and work to develop a financial return on investment (ROI) and internal rate of return (IRR) for implementing any energy migration program.

A summary of our four step process is:

SMG ENERGY GROUP simplifies your goal of achieving enterprise energy efficiency while meeting your internal and external customer needs. SMG ENERGY GROUP is easy to work with, energy efficiency certified and professional. We know energy; we know LEED and Energy Star. We know IT. Complementing your financial, facilities IT and operations teams we save you time, money and fit your business plan. With SMG ENERGY GROUP our clients receive comprehensive energy efficiency benchmarks and reports, options and recommendations for energy refresh plans including migration and upgrades of both hardware and software applications, infrastructure and energy cost savings and hands on help in securing utility company incentives and gaining energy certifications. We are both problem takers and problem solvers...

As the CIO or IT manager, laboratory or hospital operations manager or facilities chief your prime focus is keeping your operations up and running and your "customers" satisfied. You may have an energy, IT migration and lab refresh plan on the drawing table and everyone wants your attention: the box builders, VARs, contractors, MEP firms, vendors, applications teams, your CFO or budget chief and you may have political pressure to reduce costs and streamline operations. You are probably being asked to do more with less.

For a busy team energy benchmarks for the data center, hospital, lab or tech facility can seem complicated and fragmented. Applying for utility incentives for energy efficiency gains seems like a paperwork jungle. Do I have the expertise? Do I have the time? Is the payback worth the effort?

SMG ENERGY GROUP works with a wide range of hospitals, healthcare, data center and high tech sites, laboratories and biotech facilities and related firms throughout the United States. Headquartered in southern California the company employs a team of business analysts and operational professionals as well as utility trained and IT network certified project managers and auditors. Our SMG ENERGY GROUP professionals speak energy and they speak IT and they speak ROI.

Healthcare Energy Savings Opportunity

SMG Energy Group works with the hospital executive staff to identify energy costs savings across the enterprise. This focused return on investment (ROI) approach allows for a phased energy management plan implementation or turn-key approach depending on the hospital's working capital needs. Regardless of the approach we recommend the creation of an energy committee at the hospital and a CEO initiative to develop an energy management plan and to champion an energy minded culture.

Boards, Execs and CFOs recognize there are huge cost management opportunities in the hospital. ROI models exists as well as energy reducing technologies and best practices for the last five + years that are now being applied to the healthcare environment to curb costs. The demand for new services and technologies reducing overall TCO and the demand for technically savvy engineers in this space will grow rapidly.

• Healthcare organizations spend nearly $8.8 billion on energy each year to meet patient needs. Every dollar a nonprofit healthcare organization saves on energy has the equivalent impact on the operating margin as increasing revenues by $20 for hospitals or $10 for medical offices.
• Sixty-seven percent of healthcare CEOs list financial challenges as their number one concern and 75% of senior decision-makers believe energy costs are the least controllable business cost. Meanwhile, U.S. hospitals are the second most energy-intensive commercial space type, making the impact of unstable energy prices and of savings from energy efficiency investments particularly significant.
• Hospitals nationwide have been able to demonstrate that energy investments can create healthier hospitals — both for the environment and the bottom line. Facility managers today can position energy as a controllable cost that, when well-managed, can produce significant energy savings. ENERGY STAR partners effectively make the business case for energy performance investments by positioning energy as an investment-grade opportunity, using online financial tools to support their planning, and making an effective pitch that speaks in executive terms and aligns with the hospital's core mission.

At SMG Energy Group we focus on the ROI model and cost savings. Any energy management plan must be accretive to the hospital. Our goal is to work with each of our hospital clients to develop a hands-on plan for success and an energy management plan that employees in the enterprise can see, embrace and measure. The energy conservation program, ROI model and sustainability plans must all synch to work properly and gain maximum value including tangible savings.

There are 5,815 hospitals in the U.S. with a total of 951,045 registered hospitals beds according to the American Hospital Association. The average hospital uses 2.5 times the amount of energy as other commercial buildings, says the US Department of Energy, adding up to 836 trillion BTUs or $8.8 Billion in energy bills annually.

The trend in energy use is growing as we add more machines, computing and software tools, digital patient record systems and other power hungry machines, products and storage devices as well as cooling, heating, lighting and ventilation units.

A 25% energy use savings would amount to over $2.2 Billion per year, or $366,000 per hospital each year or $9,100 per bed per year. Energy efficiency represents a huge opportunity for hospitals and the healthcare industry.

Over the past decade healthcare industry leaders have focused on methods and practices for cutting overall hospital and healthcare costs including energy. The US DoE and Environmental Protection Agency (EPA) are looking at Green Building strategies for healthcare facilities and have created key tools including a program called Energy Smart.

In addition to its overall energy efficiency goals, Energy Smart Hospital program seeks to:

• Increase efficient and renewable energy applications in hospitals
• Reduce energy use and operating costs
• Create healthier healing and work environments
• Maximize successful hospital upgrades and design strategies
• Ensure reliable backup power during disasters
• Improve environmental performance

Emulated in part from the US Green Building Council (USGBC) the healthcare industry is developing a Green Guide for Healthcare (GGHC) which outlines self-certification goals and process for hospital and healthcare professionals. Energy efficiency is included. (See SMG ENERGY GROUP Knowledge page for links to the GGHC and USGBC documents).

The big consumers of energy in healthcare are:

• Water heating
• Interior Lighting
• Ventilation
• Cooling
• Data Center/Computing Site
• Motors/Fans/Compressors
• Refrigeration

The big culprits are the ventilation, cooling and energy needed to heat water. For ventilation and cooling they oftentimes use electrical centrifugal water chillers that become the largest single load factors in most facilities consuming up to 35% or more of the annual electrical use.

Integrated energy benchmarks, designs and HVAC systems yield efficiency. A systems approach to reducing energy use in heating, ventilation, air conditioning and data processing and storage can yield energy savings of 30% or more per year.

SMG ENERGY GROUP helps healthcare professionals simplify the energy efficiency solution. SMG ENERGY GROUP is trained and certified as facility LEED engineers and techs and hold electrical utility and DoE training and certifications. We can help you design and implement an energy efficiency benchmark and energy efficiency management plan that will save money and improve operations.

The key is the financial analysis and return on investment (ROI) model. Data points and metrics collected during the benchmarking and interview process lead to options and recommendations for an energy management plan for success. In almost every case a custom tailored plan is taken to best meet the financial and operational needs of the hospital. Characteristics and dynamics of early adopter energy conservation hospitals:

• Primarily Medium to Large Hospitals and Med Centers
• Large acute care 'power user'; 'enlightened,' innovative, established, environmentally sensitive, cost focused, ROI driven
• May be energy 'conscious' yet energy 'inefficient'
• Energy owner or experts unknown in the enterprise (fragmented)
• Economic pain. Board and Exec management directives to drive out hospital costs including energy costs based on clear return on investment models
• Political pain. Community, employee and industry sensitivity to notion better health management comes through better energy and environmental management of the medical center or hospital
  • Regional pain (be best for community)
  • Brand building pain (be best in region or specialties)
• Potential to gain incentive and rebate funds and grants from government and utilities

Graduated Implementation Approach Mitigates Risk and allows the hospital financial and energy teams to plow recurring savings back into energy conservation projects. This can result in many short term savings and ROI models of 2 to 4 months. IRR of over 300% are common.

• Non-traditional investment
• Diagnostic phase requires up front cost and sustained effort ($40K to $60K for large hospitals)
  • Scope of work
  • Initial diagnostic and investigation work
• Set aside percentage of hospital O&M and invest in facility energy savings
• Utility bill savings create new "revenue streams" that are used to fund more savings
• As each cost saving measure is completed the revenue stream from utility savings becomes larger—allows for diverting some of that savings to new reinvestment and upgrades

Hospital Energy Savings Opportunities

Load-dominated Areas:

• Patient Rooms
• Imaging
• MRI
• CT Scan
• Radiology
• Fluoroscopy
• Lounges
• Nourishment/Food Prep

• Waiting
• Laboratories
• Clean Utility
• Soiled Utility
• Corridors
• Exam Rooms
• Isolation Rooms
• Kitchens
• Toilets/Baths/Lockers

Electricity bills for Data Centers are over 20% of the typical enterprise and climbing. Most facilities are inefficient and have no energy management plan. At SMG Energy Group we help you develop and implement a holistic energy management plan involving the company executive team including the CEO, CFO and that has a defined return on investment (ROI). There are many options and approaches to crafting an energy conservation plan. We review these with you as well as your financial goals and options to achievement.

Utility companies, prompted by the US Department of Energy (DOE) are providing cash rebates per kW hour of electricity saved to thrifty customers. Nationally over $500 Million is available for data center rebates. In California over $100M is available from the top utility companies.

While many government and private sector firms employ large numbers of IT professionals to maintain networks few are qualified to perform comprehensive energy benchmarks and have the time or motivation to seek and secure energy rebates from their utility company. In addition, utility company promotion of business energy savings for implementation of energy efficient data centers is not widely known nor practiced and the process seems daunting to many. However, every utility company account executive has been given a quota to reduce energy usage of their customer base. Focus is on reduction of peak load. Key focus areas and metrics include:

• Energy Efficiency Benchmark
• Power Usage Effectiveness (PUE)
• Data Center Infrastructure Efficiency (DCiE)
• HVAC System Effectiveness
• On Peak Demand
• High level facility Metrics
• Energy benchmarking and continuous monitoring
• Temperature guidelines
• Air Management opportunities
• Cold and Hot Aisle Layout

Professional energy efficiency benchmarks pay for themselves many times over. CIO and IT managers can save both hard and soft dollars fast. Data Centers containing a large number of out-dated and under-utilized servers are difficult to manage and expensive to maintain.

Reducing server count and consolidating projects can help you gain greater efficiency. Fewer systems lowers data center space, power, and cooling requirements and reduces administrative tasks. Consolidating applications and servers can also reduce software licensing, support, and maintenance fees. As a result, companies can achieve significant capital and operating cost reductions.

Moving software running on older hardware and operating systems onto new, more powerful platforms often provides the side benefit of improving application performance.

Maximizing energy efficiency while maintaining - if not improving - data center performance and reliability is not just a matter of substituting better technologies and operational procedures. The broader institutional context of the design and decision-making processes must also be addressed.

We utilize best practices for optimizing energy efficiency and facility performance. The bulleted items indicate key objectives for capturing these benefits based on a report published by Energy Design Resources.

• Mechanical: Air flow management
• Mechanical: Air handler systems
• Mechanical: Humidification
• Mechanical: Plant Optimization
• IT Equipment: Selection
• Electrical Infrastructure
• Lighting
• Commissioning and Retro-commissioning

Company executives and CFOs are looking for ways to reduce operating costs. Utility costs, especially electricity costs are growing and are expected to rise at rates exceeding 20% a year for the foreseeable future. The nation's public and private laboratories, biotech facilities and related high tech sites are in need of an energy tune up. As in the hospital and data center market segments the SMG Energy Group provides turn-key energy management plans and support to clients in these segments.

Taking a holistic approach we work with the management team to identify opportunities and concerns and develop an energy management plan that suits the specific needs of the facility. The successful energy management and sustainability plan will include a baseline energy benchmark or audit, review of historical documentation, inventory and processes and creation of an energy committee that serves as the champions for instilling an energy management and energy conservation culture throughout the enterprise.

The primary goal is to achieve energy savings that make the enterprise more efficient and sustainable. It will require operational budget investments which can show both calculated and demonstrated cost reduction and recurring savings and a discernable ROI.

The SMG Energy Group approach:

• Identify and evaluate energy-saving opportunities that will cover investment costs
• Review engineering design and specifications
• Develop a project management plan from energy conservation design to benchmark to implementation to sustainability with a clear ROI and IRR and payback schedule
• Training and ongoing maintenance services.

Department of Energy's (DOE) Information Bridge: DOE Scientific and Technical Information
Green Technologies in Laboratory Buildings

Key Equipment to Reduce Energy Usage

With SMG Energy Group biotech and pharmaceutical firms, laboratories, and research facilities can achieve utility financial incentives, design assistance, performance audits and training to facilitate greater energy efficiency in their operations. Whether it's fine-tuning your production environment or improving your "green" profile, energy management initiatives provide a wide range of customized solutions to lower your electricity and natural gas costs and enhance your bottom line.

HVAC - HVAC systems in biotech/pharmaceutical manufacturing must meet Food & Drug Administration and other regulatory standards, efficiency measures must conform to current Good Manufacturing Practices (GMP). SMG Energy Group works with electrical utility firms who typically offer many energy-efficiency opportunities for HVAC systems that meet these requirements.

Motors and Drives - Motors and drives are used throughout the industry to operate HVAC systems, to drive laboratory or bulk manufacturing equipment—including mixers, pumps, centrifuges and dryers. High-efficiency motors and drives are also used to move and operate filling and finishing equipment.

Compressed Air - Many manufacturing applications such as equipment operation, spray systems, vacuum cleaning, and ambient air in hazardous areas require compressed air. Upgrading to more energy efficient equipment while taking advantage of utility incentives and rebates will result in valuable savings.

Server Virtualization - Server virtualization software enables you to optimize data and content traffic more efficiently across fewer servers, reducing both power and cooling costs for server rooms. Cutting the number of servers and powering down unused ones can yield energy savings of up to 80% without affecting applications or users.

Pumps - The pumping of coolants is an energy-intensive pharmaceutical application. Studies have shown that over 20% of the energy consumed by pumping systems could be saved through changes to equipment and/or control systems.

SMG ENERGY GROUP also works closely with all the power utilities to insure we are compliment with PUC and other regulatory mandates and also to develop and provide energy efficiency training to public and private entities and organizations.

Rebates - The easiest way for you to earn money on your energy-efficient purchases. for example, rebates are available on qualifying lighting, process boilers and HVAC fans as well as a variety of other energy-efficient upgrades.

Incentives - Utility technology incentive payments help offset the costs of energy-saving upgrades, whether that is the installation of new high-efficiency equipment or systems, or the retrofit of existing infrastructure. Incentives are based on the amount of energy saved. SMG Energy Group will work with and contact the utility company early in the design process—before start of the energy management project—to schedule the required pre-inspection of your existing equipment and optional technical support.

Benchmarking - Benchmarking with the Environmental Protection Agency's ENERGY STAR® Portfolio Manager allows you to track and assess energy performance across your entire portfolio of buildings in a secure online environment. Portfolio Manager will rate your facility's energy performance on a scale of 1 to 100 relative to similar buildings nationwide.Note: Beginning January 1, 2010 benchmarking is required for by most US utilities commercial customers who participate in energy-efficiency programs.

Audits - Our Technical Audit and Technology Incentives provide on-site facility valuations for customers using 20 kilowatts (kW) or more of electricity. These audits range from simple site assessments to comprehensive engineering studies and are designed to determine load reduction potential while also identifying energy-efficiency opportunities.

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