October/November 2008

The Business Of Green

King Soopers Partners With Xcel To Save Money

Creative collaboration reduces demand and maximizes energy efficiency

By Erin Mathe, Xcel Energy Media Relations

In today’s challenging energy world, it makes good sense – both economically and environmentally – to look for creative ways to maximize energy efficiency and reduce demand

And if effective partnerships can be formed with those shared goals in mind, so much the better. To that end, Xcel Energy has been working closely with King Soopers grocery stores in Colorado to do just that.

“We’ve built a solid and trusting relationship with King Soopers, and they now feel comfortable sharing with us their goals and plans for saving energy” said Bill Conrad, a supervisor in Account Management. “Recently, we’ve been working together more closely to get involved in any corporate initiatives to save energy that they are implementing.

“We’ve been directly involved in their Demand Side Management (DSM) strategies and have been helping them access our DSM rebates for eligible projects,” he added. “And that money is helping them to expand the scope of their energy-efficiency efforts.”

  King Soopers, part of the retail food chain Kroger Co., has a large frozen food production and distribution network, an ice cream plant, a meat plant and a bakery – all operating in company’s Colorado service territory.

King Soopers in recent years made energy efficiency one of its corporate goals, Conrad said, and has been exploring ways to reduce energy use by investing in upgrading or installing new, more efficient equipment. Working with Xcel Energy to take advantage of its energy-related rebate programs has helped give increased economic impetus to King Soopers’ energy-reduction efforts.

Parent company KROGER's S.A.V.E. program gives associates tips to reduce energy consumption in stores

 “Its budget to make these improvements in energy efficiency only goes so far, so when we can kick-in rebates, that money of course goes farther,” he said. “As a result, King Soopers is pushing to get more things done now.

  “This is work that previously might have been delayed into the future for budget reasons,” he added. “For example, we’ve been able to help them get DSM dollars that have allowed the company to expand its program to tune up, or recommission, its refrigeration equipment.”

Another significant advance in energy efficiency at King Soopers involves its retrofits and installation of evaporative condensing refrigeration systems at its facilities. And the company has agreed to consider energy-saving evaporative condensing as an option at all of its Colorado facilities.

Colorado’s dry climate allows for the use of evaporative condensing refrigeration as an option, compared to other parts of the country where higher humidity prevents the use of evaporative cooling systems. Typically, King Soopers has bought its cooling equipment on a national basis, he said, so it was a bit of a challenge to get it to consider a new regionally focused option.

King Soopers has implemented other energy savings initiatives as well, such as the installation of more energy-efficient lighting in its refrigeration cases and the installation of energy-saving motors to also maximize efficiency. "While Xcel Energy doesn't sell those energy-saving products, the company has been providing King Soopers with valuable consulting services prior to the purchase of the more energy-effiicient equipment", Conrad said. For example, if a company that produces a refrigerated display case is selling it as an 'energy miser', saying that it will save 20 percent in energy costs, Xcel Energy can test that claim and offer an independent assessment.

“We will analyze the energy efficient equipment option prior to its purchase,  and perhaps say, ‘Yes, it can save you that 20 percent, and we can offer you a rebate if you decide to purchase it,’” Conrad said. “That helps us meet our DSM goals, and it’s good that King Soopers then sees us as a valued resource and is looking to us to give our analysis of their energy-efficiency strategies and provide rebates.” The end result of these initiatives? King Soopers has saved 9.3 gigawatt-hours of electricity over the past year.

And this collaboration with King Soopers has been beneficial in another way as well, he added. The supermarket chain in February sold compact fluorescent light bulbs for 99 cents each as part of an Xcel Energy rebate program. A company bill insert encouraged customers to go to King Soopers and purchase the efficient light bulbs, and 200,000 were sold.

 “King Soopers is really promoting green initiatives, like its push for reusable grocery bags,” Conrad said. “They are openly looking for ways to be involved in joint marketing initiatives with us, and they are helping us promote our own energy initiatives by distributing our flyers in their stores."

“These are positive dynamics for everyone involved. We help them to analyze energy-efficient options, and we help them implement those options through rebates and realize long-term energy savings. And Xcel Energy, on the other hand, benefits from these DSM strategies in terms of reducing the need for new power plants and benefiting the environment.”

CBG /October/Novemberr 2008