The Solution - Issue 25

The Solution The Quarterly Publication of the Edison Energy Team

Issue 25 • April 2019

A quarterly publication highlighting relevant industry and Edison Energy team news keeping subscribers ahead on trends, upcoming events, industry leaders, and more.

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The Solution | Quarterly | April 2019

this issue 4

Edison Eye On: Walmart's Project Gigaton

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Featured Project

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Philanthropy

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Spotlight On

10

Insights from Supply

14

What's Next

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Eye On Project Gigaton: A Billion Tons of Sustainable Opportunity

While the goals of Walmart's Project Gigaton may seem ambitious – avoiding emissions from one billion metric tons (a gigaton) of greenhouse gases across its value chain – the retail giant is already making significant progress. Here's how you can get involved.

WHAT EXACTLY IS PROJECT GIGATON? Established in 2017, Project Gigaton is a sustainability initiative launched by Walmart. The goal is to remove 1 billion metric tons of greenhouse gases (GHG) from its supply chain by the year 2030. Suppliers are encouraged to participate in Project Gigaton by setting their own sustainability goals. Since the launch of the program, hundreds of Walmart suppliers have joined the initiative.

WHAT PROGRESS HAS BEEN MADE SO FAR? According to Smart Energy Decisions, within the first two years, Walmart has already avoided 93 million metric tons* of emissions through a variety of renewable energy initiatives. One of Walmart's goals included in Project Gigaton is to power its stores with 100% renewable energy.

In order to achieve this, they have set a milestone of powering 50% of their operations with renewables by 2025. In 2018, Walmart completed 136 contracts for solar and wind projects, which will ultimately supply the chain with roughly 2.14 billion kilowatt hours of renewable energy annually. They have also increased their number of locations utilizing on-site solar to 500 across 22 states.

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The Solution | Quarterly | April 2019

WHAT IS YOUR OPPORTUNIT Y? While working to reduce greenhouse gas emissions, Walmart suppliers can drive budget certainty and risk mitigation while potentially saving hundreds of millions of dollars on their own energy costs. In fact, the country’s largest energy users waste $80 billion in electricity and natural gas expenses every year.

CHECK OUT OUR WHITE PAPER: The $80B Energy Savings Opportunity for C&I Customers

Click here to download the white paper.

HOW WE CAN HELP If you are already on the path to greater sustainability, or just at the beginning, Edison Energy can accelerate your program, or get you started on a strategic footing – Lowering energy costs, mitigating risk, and improving sustainability performance.

›› We’ve helped companies successfully purchase more than 2.8 gigawatts of renewable energy in the U.S. and Mexico, making us one of the country’s leading renewable energy advisors. ›› Edison Energy counts one in four of the Fortune 50 as customers, and have supported greening their supply chain through reducing GHG emissions and implementing energy efficiency initiatives throughout their facilities

NEXT STEPS If you are serious about setting sustainability goals, and want to learn more about how we can help you set, implement, and achieve them, fill out this form, and our team of experts will reach out to you.

*PROJECT GIGATON BY THE NUMBERS: Within two years, Walmart has already avoided 93 million metric tons of emissions. This is equivalent to:

THE GREENHOUSE

THE CARBON DIOXIDE

THE CARBON

THE CARBON DIOXIDE

THE CARBON DIOXIDE

GAS EMISSIONS FROM

EMISSIONS FROM

SEQUESTERED FROM

EMISSIONS FROM

EMISSIONS FROM

passenger vehicles

19.7M

homes' energy use

11.1M

109.4M acres of U.S. forests

gallons of gasoline

10.5B

DRIVEN FOR ONE

FOR ONE YEAR

IN ONE YEAR

CONSUMED

11.9T fully charged

SMARTPHONES

YEAR

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Featured Project Ribbon Cutting Event Commemorating Paterson School District Going Solar At the beginning of April our team attended a ribbon cutting ceremony celebrating the completion of a rooftop solar project that spanned 10 schools in the Paterson School District in New Jersey.

This initiative was part of a larger Energy Savings Program where a set of Energy Conservation Measures (ECMs) were developed and implemented across 17 schools in the Paterson School District. The Program is an established offering from New Jersey’s Board of Public Utilities Clean Energy Program and rewards large energy using public customers who comprehensively upgrade their facilities through investments in energy efficiency.

Senior Project Manager Michael Starkey with the switch at the solar rooftop ribbon cutting event.

Edison Energy served as the owner's representative, acting as the owner's "eyes and ears": on site, throughout project duration. While solar installations alone are expected to generate up to $20.2 million in energy savings, additional energy conservation measures identified by our team could result in annual utility savings of 2,931,324 kWh of electricity and 209,671 therms of natural gas annually.

A LOWER CARBON FOOTPRINT The savings will also result in a net reduction of greenhouse gases and will reduce the school's carbon footprint by 5,712,172 lbs of CO2 annually, which is equivalent to:

THE GREENHOUSE

THE CARBON DIOXIDE

THE CARBON

GAS EMISSIONS FROM

EMISSIONS FROM

SEQUESTERED FROM

passenger vehicles

homes' energy use

acres of U.S. forests

DRIVEN FOR ONE

FOR ONE YEAR

IN ONE YEAR

550

310

YEAR

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The Solution | Quarterly | April 2019

3,049

Completed solar rooftop array on School 9 in Paterson, New Jersey

Philanthropy Special Olympics World Games Congratulations to Chris Wines

Every two years, athletes from all over the world gather for the Special Olympics World Games. This year, the games were held in Abu Dhabi, where 7,500 athletes representing 190 nations gathered to compete.

One of the athletes representing Special Olympics USA, was Chris Wines. Chris Wines is a Special Olympics New Jersey athlete and a competitor in Edison Energy's Annual One More Tri Unified Triathlon; finishing 5th in the 19 & Under age group and taking home Gold in the Special Olympics division.

At the World Games, Chris competed in two events: the Triathlon, where he took home 4th place; and the 800 M Freestyle, where he took home Silver!

Congratulations Chris – your hard work and determination is inspiring!

Photo by 5chw4r7z / CC BY

Beat Hunger CanPetition Supporting Local Food Banks Through Canned Goods Drive WHAT: Edison Energy is hosting a CanPetition - an office-wide competition to build structures out of canned or non-perishable food items. Offices will compete to build the most creative structure. All cans will then be donated to local food banks.

WHO: Edison Energy regional offices in Asbury Park (includes NJ & VA), Boston, Canada, Chicago, Dublin, Newport Beach, and New York WHEN: Starting April 22 through May 14 WHY: To give back to our communities by donating to local food banks

Chris (far right) at the World Games (Photo by SONJ)

For more information, please email Ali Clunk at ali.clunk@edisonenergy.com.

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Spotlight On

Ongoing Cx Project Winner MSKCC Evelyn H. Lauder Breast Center Takes Home BCxA Award The Edison Energy team would like to congratulate Robert Berninger and the Memorial Sloan Kettering Cancer Center (MSKCC) Evelyn H. Lauder Breast Center for being awarded ‘Ongoing Commissioning Project of the Year’ by the Building Commissioning Association (BCxA) Northeast Chapter.

Every year, the BCxA recognizes projects and programs that exemplify the successful implementation of the commissioning process. The nominated projects and programs highlight superior project team performance and demonstrate the value of the commissioning process to the new construction, major renovation, existing buildings and ongoing commissioning markets.

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The Solution | Quarterly | April 2019

We are proud to have been able to drive and support the MSKCC team’s energy efficiency, operational, and conservation efforts throughout the last two years and are honored to work with a leading organization committed to achieving excellence across efficiency, reliability, and sustainability.

Click here to read more about MSKCC’s award and outstanding accomplishments in not only meeting, but sustaining, their goals and objectives for reducing energy use, utility cost, and creating energy conservation.

Renewables RFPs Issued at University at Buffalo As part of the Localizing Buffalo's Renewable Energy Future initiative (spearheaded

by UB - with a goal of generating 100 megawatts of on- and off-site renewables energy), University at Buffalo has issued requests for proposals (RFPs) for onsite installations for the five institutions involved with the initiative: UB, SUNY Buffalo State, SUNY Erie, the City of Buffalo, and Erie County.

Edison Energy worked with UB to draft the RFPs and develop a uniform set of criteria that would be used to evaluate and audit potential project sites.

Congratulations to UB and the rest of the team involved with the initiative.

Spotlight On Energy Stars of 2019 Congrats to the winners of this year's Energy Star Partner of the Year for Sustained Excellence in Energy Management. We are honored to have worked with you!

Bristol-Myers Squibb NEW YORK, NEW YORK Key Achievement: ›› Sustaining more than a two percent energy intensity reduction for 2018 to contribute to a long-term improvement of 12.2 percent since 2012.

Focus on Energy MADISON, WISCONSIN Key Achievement: ›› Achieving over 1 million British thermal units in energy savings after completing 1,600 Home Performance with ENERGY STAR (HPwES) projects - a 27% increase from HPwES projects compared to 2017.

General Motors DETROIT, MI Key Achievement: ›› Reducing manufacturing energy intensity by 19 percent and avoiding $164 million in energy costs since 2010, equivalent to the profit from the sales of over 120,000 vehicles.

Tishman Speyer NEW YORK, NEW YORK Key Achievement: ›› Benchmarking 100 percent of owned properties in ENERGY STAR Portfolio Manager® for 7 consecutive years, with 43 properties achieving ENERGY STAR certification in 2018, representing 25 million square feet of space. ©Edison Energy. All rights reserved.

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Insights from Supply Natural Gas Storage Report 4/25/2019 for the week ending 4/19/2019

U.S. Natural Working Gas in Underground Storage

4,500 4,000 3,500 3,000 2,500

Regions

Weekly

Current

Year Ago

5-Year Avg

2,000

Change

Storage

(07/20/17)

(2013-17)

1,500

Bcf

Bcf

Bcf

YOY ∆

Bcf

5-Yr ∆

23

251

205

22%

277

-9%

1,000 500

East Region Midwest Region Mountain Region Pacific Region South Central Region

10

264

213

24%

338

-22%

4

70

84

-17%

117

-40%

0

1

4

7

10

13

16

GAS STORAGE RANGE (1994-2018)

19

22

25

28

31

34

5-YEAR AVG (2014-2018)

37

40

43

2017

46 2018

49

52 2019

Weekly Storage Change vs Previous Year & 5 Year Average 150

10

138

177

-22%

216

-36%

45

616

604

2%

761

-19%

92

1,339

1,284

4.3%

1,708

-21.6%

100 50 0 -50 -100

TOTAL

-150 -200

Historical Comparison of Data

-250

Expectations

+ 88 to 97 , 2 Bcf stronger than expected

-300

5 Year Avg

+ 40 Bcf , 52 Bcf stronger than 5-Yr Avg

-400

Previous Year

- 18 Bcf , 110 Bcf weaker than Prev Yr

-350

Jan-19

5-YEAR AVG (2014-2018)

Feb-19

Mar-19

Apr-19

May-19

2019

Jun-19

2018

Jul-19

Aug-19

COMMENTARY The EIA reported an injection of 92 Bcf this morning, increasing total U.S storage inventories to 1,339 Bcf. Market expectations for the injection varied between 88 and 97 Bcf with a consensus of +90 Bcf. Going into the data release, the prompt contract was trading at $2.453, $0.009 lower than yesterday's close of $2.462.

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The 12-month strip was trading at $2.618, $0.011 lower than yesterday's close of $2.628. Immediately after storage was announced, the prompt contract (May) increased by $0.012 and the 12-month strip increased by $0.011 to $2.465 and $2.629, respectively.

Energy Perspectives WEATHER NOAA’s 6-10 day weather outlook predicts probabilities for above normal temperatures for the majority of the United States including the MidAtlantic, Ohio Valley, Mississippi Valley, Heartland, High Plains, Desert Southwest, Pacific Southwest, Southeast, and southern Intermountain regions. The Northeast, Great Lakes, and the southeastern area of Texas are showing normal temperatures during this time period. The Pacific Northwest, northern Intermountain and northern High Plains regions are showing below average temperatures.

More severe weather is expected to hit the Oklahoma-Texas region late Monday into Wednesday afternoon. Widespread rain will likely bring flooding to flood prone areas. Much of the Southeast and Mid-Atlantic regions are expected to experience dry and warmer conditions Monday afternoon, warming even more into Tuesday.

THIS WEEK IN NATURAL GAS The prompt month May NYMEX contract closed Thursday at $2.490; the 12-month strip closed at $2.701 and the winter strip closed at $2.866. Last week the EIA reported an injection of 92 Bcf for the week ending Friday, April 12, 2019. Total storage inventories now stand at 1,247 Bcf, 57 Bcf lower than this time last year, and 414 Bcf below the fiveyear average.

According to the EIA, total storage inventories in each region are: ›› 228 Bcf in the East (-14% below the 5-year average) ›› 245 Bcf in the Midwest (-23% below the 5-year average) ›› 66 Bcf in the Mountain (-43% below the 5-year average) ›› 128 Bcf in the Pacific (-39% below the 5-year average) ›› 571 Bcf in the South Central (-23% below the 5-year average) Natural Gas Storage Summary

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THIS WEEK IN ELECTRIC

NATURAL GAS MARKETS

Six of the seven hubs tracked in this publication lost strength last week. The Northern Illinois Hub was the exception, adding $0.20 per MWh, just a nickel shy of the year high price of $26.20 per MWh posted on April 15th and 16th. Both Texas hubs showed the largest decrease in prices. Houston hub lost $1.10 per MWh and ERCOT-S lost $0.90 per MWh, both reaching the lowest pricing seen at those hubs for the year. WCMA and PJM-W saw declines of $0.55 and $0.30 per MWh from the previous week’s pricing. SP-15 and ATSI hubs saw the least movement, losing $0.20 and $0.10 per MWh.

The forward NYMEX futures market has continued the downward trend over the past week with four consecutive lower closes posting last week and a new 52 week low on the May contract with Thursday’s close at $2.49. This is over a dime lower than where the contract closed at the beginning of last week. The May contract will settle at the end of the trading session this Friday. The bears have full grip of the market reins at the moment as market fundamentals are depressing the forward NYMEX pricing and, if pricing holds, we will likely see market opportunities as the downward pricing pressure reaches out into the outward curves. Natural gas storage is only 57 Bcf behind last year’s inventory levels, aided by early season injections and stronger builds than historically seen. It is estimated that this deficit could be eradicated with this week’s storage report. The long-term temperature forecast was released by NOAA last Thursday and is calling for warmer than normal temperatures for the month of May and continues to call for warmer than normal temperatures through the peak summer cooling season which could provide some upward pricing pressure on the forward market with anticipated increased power gen demand.

Calendar Year 2019 Wholesale Electricity Prices

NYMEX prompt May contract settled today at $2.524 ›› Pricing up $0.034 from last Thursday’s close at $2.49 (4/18) • 52-week average: $2.675 • 52-week low: $2.49 • 52-week high: $2.889

1 2 The Solution | Quarterly | April 2019

PETROLEUM MARKETS For the seventh week in a row, the prompt NYMEX crude contract closed higher albeit fractionally.

The May contract finished higher on Thursday at $64.00 per barrel, up $0.14 or 0.2% on the week.

The continued fears of tightening supply, as well as some improving economic metrics coming from China, supported prices for another week.

U.S. inventory levels for crude oil for the week decreased by 1.4 million barrels which was less than what the market was expecting. Gasoline inventories declined by 1.2 million barrels which was below market expectations and substantially less than the 7.7 million-barrel draw from the previous week.

Refinery capacity utilization rates were basically unchanged at 87.7% for the week, still at historically low levels, due to ongoing maintenance. Expect utilization rates to increase in the coming weeks as the traditional summer driving season officially starts in May.

have allowed eight countries to import Iranian crude through May 2nd. Frankly, it is surprising that this has not been a bigger driver in the market place until now.

Baker Hughes reported Friday afternoon that the number of oil rigs decreased by eight for the week.

The total count is now at 825. This comes as a surprise as expectations were for rig counts to at least maintain levels if not continue to grow given the strength of the forward price curve. This drop will also lend support to the market in the near term.

Looking ahead, the crude complex has shown its fundamental and technical strength by not having a significant pull back in prices since breaking above the 200-day moving average. With the report that the U.S. will not be extending the Iranian sanction waivers, this has pushed prices above the $65 per barrel resistance level in early trade. Technically this is significant and if prices can close above this level, then $67.50 and $70 per barrel become likely price targets.

U.S. production levels for the week slipped back to 12.1 mbpd. It has been the markets opinion that U.S. production levels would be steadily increasing throughout the year. Given that we have flat-lined at this level for over two months has given pause to this market opinion.

The focus globally continues with concerns about world supply levels with OPEC cuts, sanctions against Iran and Venezuela, and the threat of fighting within Libya disrupting upwards of 400,000 barrels per day of oil.

Late Sunday evening, the Washington Post reported that the Trump administration will announce that the State Department will not extend the waivers which

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What's Next?

A snapshot of some of our upcoming events

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RIMS ANNUAL CONFERENCE Boston, MA • 4/28 - 5/1

VP of Sales, Rob Federighi, will be attending the annual Risk Management Society (RIMS) Conference in Boston this year. → Click here to register

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CLEANMED NASHVILLE Nashville, TN • 5/7 - 5/9

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TSC SUMMIT 2019 Chicago, Illinois • 5/7 - 5/9

Our team will be attending The Sustainability Consortium Summit. Managing Director, Greg Pool will also be speaking on a panel on GHG Reduction Goals. → Click here to register

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REBA SPRING MEMBER SUMMIT Orlando, FL • 5/7 - 5/9

Sr. Account Manager Curt Hurst will be speaking on a panel on Funding Resilient Energy Systems on Wednesday, May 8th. → Click here to register

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As a member of the Renewable Energy Buyers Alliance (REBA) our team will be attending the spring Summit in Orlando. → Click here to register

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WALL STREET MEETS CLEAN STREET – AN EXECUTIVE FORUM New York, NY • 5/9

David Klockner, Vice President of Edison Energy's Installations team, will be attending the Advanced Energy Economy (AEE)'s Wall Street Meets Clean Street Executive Forum. → Click here to learn about the Advanced Energy Economy

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MINDSHARE 2019 Washington, DC • 5/14 - 5/15

MindShare is the annual corporate sustainability event for members of the World Resources Institute’s Corporate Consultative Group (CCG). → Learn more

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DIGITAL 350 SUMMIT Austin, Texas • 5/21 - 5/22

CEO Jay Zoellner will be speaking on a panel on Smart Buildings and Microgrids → Click here to register

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ACORE REFF WALL STREET New York, New York • 6/18 - 6/19

Sr. Director of Energy Markets and Sustainability Emily Williams will be speaking on a panel " Evolving Demand from the C&I Sector: New Contracts and Market Incentives". → Click here to register

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IECA SUPPLIER COUNCIL MEETING

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IETC 2019 New Orleans, Louisiana • 6/18 - 6/20

Washington, DC • 5/22 - 5/23 Edison Energy will be attending the Industrial Energy Consumers of America (IECA) Natural Gas & Electricity Resources Supplier Council Meeting. → Click here to learn more about the IECA

Christen Blum and Emily Williams will be presenting on " Why Corporations are Buying Renewable Energy and How to Structure a PPA". Emily Williams will also be moderating a panel on trends in corporate procurement of renewables. → Click here to view the program and register

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