News Updates for the Week of May 28

1.      Cooper Industries Sold to Eaton for $11.8 Billion - The acquisition will allow Cleveland-based Eaton, an industrial manufacturer, to further expand its power management reach and its electrical business.  The acquisition is expected to close by the end of 2012, after which Eaton and Cooper will be combined as a new company, expected to be called Eaton Global Corporation Plc., incorporated in Ireland, where Cooper is currently incorporated. Alexander Cutler, Eaton’s CEO and chairman, will lead the combined company.  Based on 2011 revenues, Eaton and Cooper combined would have revenues of $21.5 billion that year. http://www.bizjournals.com/houston/news/2012/05/21/cooper-industries-sold-to-eaton-for.html

2.   Electric Rates Going Up in 2015 - Your electric rates are going up but not until 2015. That year, electric bills are set to be about $130 a year more than now, according to the results of annual auction that decides which electricity providers will be paid for committing to run their power plants so the lights stay on. 5/18 McClatchy-Tribune Regional News

3.   Coal Plant Closures Could Send Electricity Costs Soaring - Residential electricity prices are expected to spike by more than 10 percent beginning in 2015, with consumers paying between $150 and $330 a year more than this year, as coal plants, the least expensive producers of electricity, continue to close. 5/18 McClatchy-Tribune Regional News

4.      California Poised to Issue 2013 Title 24 Building Efficiency Standards - The California Energy Commission is in the final stages of adopting changes to the 2008 Building Energy Efficiency Standards contained in the California Code of Regulations (CCR), Title 24, Part 6 (also known as the California Energy Code). The revised standards were approved May 9, 2012 and are scheduled to take effect in January 2014. Mandatory requirements also include the use of daylighting sensors to adjust lighting systems near windows to produce more or less light based upon the amount of natural light entering the space. 5/21 Glass on Web

5.      Smart Buildings: Ten Trends to Watch in 2012 and Beyond - Demand for efficient HVAC and lighting systems, as well as other types of hardware like controls and submeters, is growing as the value proposition for energy efficiency is proven again and again.  In addition, advances in software for building energy management systems (BEMS) as well as for building design (through building information modeling, or BIM) are making it easier to design and maintain high performance buildings. This white paper report from Pike Research examines these trends worldwide. http://www.pikeresearch.com/research/smart-buildings-ten-trends-to-watch-in-2012-and-beyond

6.      Existing-Home Sales Increased 3.4% in April - According to the tally from the national Association of Realtors, there’s the beginning of a return to normalcy taking place across housing. Existing-home sales in April rose to a seasonally adjusted annual rate of 4.62 million, up 3.4% from a downwardly revised 4.47 million in March. Compared with a year ago, existing starts are up 10.0%. The national median existing-home price for all housing types jumped 10.1% to $177,400 in April from a year ago; the March price showed an upwardly revised 3.1% improvement. 5/22 HCN

7.      JEDEC Publishes Five International Thermal-Testing Standards For LEDs - The JEDEC Solid State Technology Association, the standards organization based in Arlington, VA, has announced the publication of a new series of standards for component-level testing of high-brightness/power LEDs. Development within JEDEC’s JC-15 Committee involved LED industry leaders, and resulted in the new JESD51-5x series of standards aimed at thermal characterization of power LED components. The four standards, JESD51-5, JESD51-50, JESD51-51, JESD51-52 and JESD51-53, are in compliance with the International Commission on Illumination's (CIE) existing LED measurement recommendations. http://www.jedec.org/standards-documents/results/jesd51-5

8.      EC&M's Top 30 Rankings of Electrical Design Firms - The companies on EC&M’s 2012 Top 30 Electrical Design Firms list earned $1.1 billion in revenue related to electrical design services in 2011. By comparison, last year, 27 design firms reported $553.9 million in revenue related to electrical design services for 2010. In addition, the 17 design firms on this year’s list that also reported revenue related to electrical design services in last year’s survey averaged a year-over-year increase of 6.1%. http://ecmweb.com/images/205ecmCStable1.gif

9.      Speaking Out: LEDs: The Time is Now - LED usage in commercial lighting is expected to grow at an annual rate of 39 percent for the next three years, putting LED commercial lighting sales at $4.5 billion a year by 2015 (from a report published by the Strategies in Light conference). The overall market for LED products for applications such as backlighting for televisions, laptops and mobile devices is declining due to the saturation of the TV market, which will cause a flood of LED components into the commercial lighting market bringing lower prices and increasing adoption rates. In 2010, the global LED market—all products included—increased by 93 percent (Strategies in Light report). Such impressive growth rates for products using LED technology have brought major global attention from electronics manufacturers eager to enter large markets that previously had barriers to entry, such as the U.S. commercial and residential construction markets. http://ewweb.com/mag/electric_leds_time/

10.   NEMA Lighting System Index Jumps 5.2% - The National Lighting Bureau (NLB) reports that first-quarter 2012 NEMA Lighting Systems Index (LSI) performance bested fourth-quarter 2011’s by 5.2%, a gain that NLB Executive Director John Bachner characterized as “cause for optimism, especially in light of encouraging year-over-year data.” Bachner noted that year-over-year performance, while strong at 3.7%, was less robust than quarter-over-quarter performance because of “intervening quarterly fluctuations. Nonetheless, year-over-year and quarter-over-quarter performance, taken as a whole, is extremely positive.” http://www.nlb.org/Index.cfm?pid=10213

News Updates for the Week of May 21

1.      Energy Efficiency Gaining Ground in Inefficient States, ACEEE Says - Energy efficiency is gaining momentum in states that have traditionally been behind the curve in pushing such technology, according to research by the American Council for Energy-Efficient Economy. The report draws on a series of interviews with stakeholders in states ranked in the bottom ten of the State Energy Efficiency Scorecard: Alabama, Kansas, Mississippi, Missouri, North Dakota, Oklahoma, South Carolina, South Dakota, West Virginia and Wyoming. 5/17 Environmental Leader

2.      LEDs Revolutionize the Market for Recessed Lighting and Control by Susan Bloom - As an estimated 5-million-piece market valued at nearly $1 billion in U.S. sales, recessed lighting has been a familiar go-to configuration within millions of professional and residential lighting applications for decades. Once dominated by incandescent lighting, however, the recessed market has changed; LEDs now deliver a new level of energy efficiency, long life, low maintenance costs, and light and color quality to the recessed lighting market, proving this once-standard setup is anything but. 04/’12 Electrical Contractor

3.      The Overall Value of the Lighting Market Will Shrink as Energy Efficient LEDs Displace Conventional Technology, According to Pike Research - While today cost remains a barrier to the adoption of more efficient lighting, particularly LED lighting, those costs are declining rapidly and mass adoption could happen in a relatively short timeframe. According to a recent report from Pike Research, LEDs will displace more than 52% of the global market for lamps in commercial buildings by 2021. The cleantech market intelligence firm anticipates that the combination of declining prices for LED lighting and the accompanying extended lamp lifetimes will have the effect of shrinking the overall value of the market. While revenues from LED lamps in the commercial sector will rise by 8.5% through 2021, to $2.7 billion, Pike Research forecasts, the overall market for commercial lighting will peak at $54 billion in 2012 before contracting through the remainder of the decade, hitting about $30 billion in 2021. 5/18 BUSINESS WIRE

4.      ENERGY STAR Vision and Guiding Principles Document - The U.S. EPA finalized the Vision and Guiding Principles for ENERGY STAR products.  These include a focus on products that meet the highest energy conservation standards without sacrifice in performance or functionality and an emphasis on transparency and a collaborative relationship with industry and other stakeholders. www.energystar.gov/productdevelopment 

5.      Revised Solid-State Lighting R&D Multi-Year Program Plan (MYPP) Is Now Posted Online - The MYPP is an important part of DOE's SSL R&D program, because it guides our Core Technology Research and Product Development implementation as well as our funding solicitations. But the MYPP's influence extends well beyond the halls of government, with many of its figures, graphs, and projections being widely used throughout the industry – overseas as well as here in the U.S.
http://apps1.eere.energy.gov/buildings/publications/pdfs/ssl/ssl_mypp2012_web.pdf

6.      Quantum Light™ Optic - QD Vision's Quantum Light™ optic enables LED lighting companies to produce lamps and downlight fixtures that combine the familiar warmth and color of incandescent bulbs with the energy efficiency of LED technology. The first lamp incorporating Quantum Light™ optics became available in the first quarter of 2010. The Quantum Light™ optic is applied to the exit face of an LED replacement lamp or downlight fixture. These quantum dot-enhanced products demonstrate high color quality and efficiency, together with energy savings of up to 80% and 50,000 hours of product life. http://www.qdvision.com/quantum-light-optic

7.      Commerce Dept Slaps Tariffs on Chinese Solar by Doug Chandler - The U.S. Department of Commerce yesterday announced that it would order tariffs of 31% and more on solar photovoltaic (PV) panels imported from China after a preliminary finding that Chinese companies were selling panels in the United States at prices below fair market value—i.e., dumping.  If this preliminary finding is affirmed by U.S. trade officials this fall, will have a significant effect on the cost of solar power development and possibly on the availability of panels in the U.S. market. 5/18 http://livewire.electricalmarketing.com/

8.      Next Generation Luminaires Design Competition Announces 2012 Indoor Winners - Winners in the Indoor category of the fourth annual Next Generation Luminaires^TM Solid-State Lighting Design Competition were announced at LIGHTFAIR^® International in Las Vegas. Out of 114 entries from 43 companies, 53 were recognized as winners this year, meaning they were considered worthy of specification. Three of this year's winners were designated as "best in class."

• Intense Lighting for its MBW2 LED Track accent lighting fixture 
• Albeo Technologies Inc. for its H-Series LED high-bay luminaire 
• Lithonia Lighting for its ST Series LED utility/general purpose luminaire

More information on all the winning entries is available at www.ngldc.org

9.      What Lamps Will Be Phased Out? - Lighting industry experts discuss the new standards for lamp efficiency. Results of a recent survey of energy-efficient lighting professionals across the country in December by Hudson, Wis.-based Precision-Paragon (P2), an online source for lighting retrofit systems and information, reveals the demand for energy-efficient lighting is growing, despite the sluggishness of the recovery of the general U.S. economy and the severe downturn in the construction industry. http://ecmweb.com/market_trends/what-lamps-will-be-phased-out-20120401/

10.  Construction Employment Remains Nearly Flat in April - The construction industry lost 2,000 jobs in April, following similar declines of 3,000 in March and 1,000 in February, but still added 63,000 jobs over the past year as the industry unemployment rate shrank to 14.5%—the lowest April level in four years, according to an analysis of new federal employment data released recently by the Associated General Contractors of America. 5/16 EC&M

11.  Home Energy Management - The home energy management (HEM) market continues to struggle for more traction.  By now, with major deployments of smart grid infrastructure in place, the expectation had been that a smarter grid would be enabling the wider use of new tools and incentives for consumers to use energy more efficiently.  This Pike Research report examines global and regional home energy management trends as they play out along a continuum of five segments: paper bills, web portals, standalone systems, in-home displays, and integrated HAN/HEM systems. The study also explores the drivers and inhibitors shaping the market, plus major technology issues. http://www.pikeresearch.com/research/home-energy-management   

12.  Rexel Expands Its Presence in the USA with the Strategic Acquisition of Platt Electric - In one of the largest acquisitions in years, Rexel has purchased Platt Electric Supply, Beaverton, Ore., the largest regional chain in the Pacific Northwest and Mountain states. This acquisition represents an investment of c. €300 million (enterprise value) for Rexel and will be accretive by the end of 2013.

13.  Philips Signs 200th Licensee for Its LED Luminaire Licensing Program - Royal Philips Electronics has unveiled Paulmann Light GmbH as the 200th licensee of its LED luminaire and retrofit bulb licensing program. The Philips licensing program was first launched in July 2008, and now includes a number of companies described by Philips as “key lighting players,” such as Cooper, Trilux, Acuity Brands, Cree, Osram, Neo-Neon and Zumtobel.  Through the program, licensees are given access to a wide range of basic LED control and system-level technologies available for use in branded LED-based luminaires and retrofit bulbs for general illumination, architectural, entertainment and theatrical markets. The royalty rates are 3% of the net selling price for a single-color luminaire, 4% for a tunable-white luminaire, and 5% for a color-changing luminaire or for a retrofit lamp. Luminaire makers do not pay a royalty if they have purchased all the components, including the LED light engine and driver, from a qualified supplier, namely Philips, Osram or Zumtobel. http://www.ledsmagazine.com/news/9/5/16

14.  Peter van Strijp, Former Philips SSL CEO, Takes Helm at Planar LED Lighting Pioneer Oree - Oree announced that LED lighting veteran Peter van Strijp has been named as the company’s new CEO. Mr. van Strijp has served as Oree's Chairman of the Board. This move comes as Oree’s focus shifts into aggressive sales, while building new channels and acquiring new high-profile accounts. The company is increasing its emphasis on the general lighting market for its LightCell™ technology, with an emphasis on Europe and Asia. Mr. van Strijp is a former Exec Vice President at Philips Lighting, where he held senior management positions like CEO of the global Lighting Electronics business and later on he became the CEO of Philips Solid State Lighting business group as well as a board member at Lumileds. www.oree-inc.com

Something to Think About

“Is that the best you can do?” - Whether you are a buyer or seller, you always want the “best” price, right?  But who defines “best?” Which side of the table gets “best?" What are the rules for doing that when conflict is certainly at play?  

It’s a competition, and the name of this game is negotiations.  Winners and losers could happen in this game too as both sides compete to define “best” to their satisfaction.  It doesn’t matter which side you are on, your responsibility is to be a good negotiator. And in this game of sport, if you are really, really good, everybody wins.  Never anticipate what the other side is thinking. Go into every negotiating situation with an open mind and listen to what the other party is saying. "Why don't you throw out a number?"  

There are differing schools of thought on this, and many people believe you should never be the first person in a negotiation to quote a price. Let the other side start the bidding, the thinking goes, and they will be forced to show their hands, which will provide you with an advantage. But some research has indicated that the result of a negotiation is often closer to what the first mover proposed than to the number the other party had in mind; the first number uttered in a negotiation (so long as it is not ridiculous) has the effect of "anchoring the conversation." 

And one's role in the negotiation can matter, too. In the book Negotiation, Adam D. Galinsky of Northwestern's Kellogg School of Management and Roderick I. Swaab of INSEAD in France write: "In our studies, we found that the final outcome of a negotiation is affected by whether the buyer or the seller makes the first offer. Specifically, when a seller makes the first offer, the final settlement price tends to be higher than when the buyer makes the first offer." When constructing an aggressive (but not absurdly aggressive) first offer, there are generally two values on which you should focus. 

First, consider your alternatives to agreement and create a reservation price—a specific value at which you'd prefer to walk away rather than reach a deal. Now you'll be prepared to accept any agreement that exceeds your reservation price and reject any value that falls below it. Second, determine your ideal outcome, or target price—the agreements or values that would fulfill all of your negotiation hopes and desires. Knowledge of your reservation price is crucial, but it's your target price that you should pay attention to when constructing a first offer. Mussweiler, my colleague Victoria Husted Medvec, and I have found that negotiators who focus on their target prices make more aggressive first offers and ultimately reach more profitable agreements than those who do not.  http://hbswk.hbs.edu/archive/4302.html

News Updates for the Week of April 30

1.     States Push Efficiency - States like Pennsylvania are looking to lead by example on energy efficiency through proposed legislative measures. The legislation calls for the state Department of General Services to establish an energy efficiency savings target for all state buildings. The target is to attain a 20 percent reduction in energy use in all state buildings by the end of 2013, and 30 percent by 2017, when compared with energy use and energy purchases for the fiscal year ending June 30, 2008. Maryland’s House Bill 1088 establishes an energy efficiency on-bill financing program for residential and commercial customers in the state to encourage utility customers to make energy efficiency improvements to residential and commercial properties through low- or no-interest loans repaid directly to a utility on a utility bill. New York became the first state to pass a statewide on-bill financing program in 2011, and others, including Colorado and Hawaii, have shown interest. Another state looking into energy efficiency is New Jersey. 4/25 Energy Biz

2.     Demand Expectations for the Lighting and Furnishing Products Sectors in 2012 - A new report by World Market Intelligence that analyzes the global interior design industry's view point on changing product demand patterns. The report features the opinions of interior design industry respondents related to the following:

R Change in demand for lighting and furnishing products

R Demand for new products in lighting, furnishing and office furniture
http://www.researchandmarkets.com/product/4e5f44/demand_expectations_for_the_lighting_and_furn

3.     Lighting Products Demand Expectations in 2012 - A new report by World Market Intelligence that analyzes the global interior design industry's view point on changing product demand patterns. This report forecasts the change in demand for lighting products. The report features the opinions of interior design industry respondents related to the change in demand for lighting products. http://www.researchandmarkets.com/product/4a8ac5/lighting_products_demand_expectations_in_2012

4.     DOE Releases CALiPER Application Summary Report 14 - The U.S. DOE has completed Series 14 of testing through the DOE Solid-State Lighting (SSL) CALiPER program. Report 14 of testing focused on LED downlight retrofit units. The report provides an overview of photometric performance results and compares the results to similar products that use conventional light sources, results from earlier CALiPER testing, and manufacturer ratings. A summary of the results is now available for download on the DOE SSL website at www.ssl.energy.gov/reports.html

5.     Commercialization of LED Fixtures to be Significant - Demand for lighting fixtures in the US is projected to increase 7.4 percent annually to $25.1 billion in 2016. This represents a recovery from the declines posted between 2006 and 2011, as both motor vehicle production and construction activity recover from low 2011 levels.  LED-based lighting fixtures are expected to provide especially strong growth through 2016 due to the rapid pace of technological advances in the LED light sources which will make them more energy-efficient, brighter and more affordable. In addition, while some LEDs can be used in place of traditional incandescent bulbs, lighting fixture manufacturers are also developing fixtures which are specifically designed for LEDs and help to optimize their performance. 4/27 SBWIRE

6.     New OCEAN URL www.energycodesocean.org - At this time, all links and resources using the previous URL www.bcap-ocean.org  will remain active and direct users to the same pages as before. 

7.     BCAP 2010+2011 Annual Report - The 2010-2011 Annual Report for the Building Codes Assistance Project.  Includes the status of BCAP and codes today, major projects in 2010 and 2011, new projects for 2012, BCAP's services offered, financial information, and more. http://energycodesocean.org/resource/bcap-20102011-annual-report

8.     GE LED City: A Brief Introduction to LEDs - The future of lighting is spelled LED.  GE Lighting Solutions recently produced an animated video short that does a nice job of presenting some powerful facts that help promote the benefits of LED lighting. See a brief video and LED 101 to learn more about the many benefits of GE LED technology including energy-cost savings of up to 90%, long-lasting performance, and design and construction that is free from mercury, lead and glass. http://www.gelightingsolutions.com/education--resources/led-education/led-city-video http://www.gelightingsolutions.com/education--resources/led-education/led-101

9.     Cuomo to Invest $800 Million for New York Energy Efficiency N YGovernor Andrew Cuomo is investing $800 million to enhance the energy efficiency of state and local government buildings, with a goal of reducing consumption by 20 percent over the next four years. About $450 million will be spent on updating state buildings, and $350 million on projects for local government, school district and public hospital facilities, he said. The power authority will issue as much as $800 million in debt to finance the projects, and repay the bonds from the resulting electric-bill savings. The upgrades include automated energy-management systems, electric motors and new lighting fixtures. Chicago Mayor Rahm Emanuel announced a similar plan last month for the Windy City to fund as much as $225 million in energy-efficiency upgrades using a mix of public and private investment.  4/26 Bloomberg

10.  HIA Pushes Energy Efficiency Measures in Local Businesses - In the first known initiative of its kind, the Hauppauge Industrial Association of Long Island is encouraging local businesses to become more energy efficient to save money for both their companies and Long Island residents. HIA business owners will be offered the opportunity to have a trained professional conduct a free energy audit of their company, to provide a benchmark of their energy usage.The Hauppauge Industrial Park, home to more than 1,300 companies within its 1,400 acres, is estimated to have paid more than $30 million to LIPA for electricity in 2009.  4/26 Commack Patch

11.  Atlanta Aims for Energy Efficiency in Buildings - Economic development officials in Atlanta are hoping a new project can lure new businesses downtown by making the area's buildings more energy efficient.  The plan calls for using up to $8 million in funding from the Westside tax allocation district to help building owners conduct energy audits or retrofit structures, especially offices that struggle with vacancies. Invest Atlanta would pay as much as 40 percent of the cost of the work, with the landlord footing the rest of the bill. 4/20 AP

12.  Georgia Power Recognized as The National Leader in EPA's ENERGY STAR Campaign - The U.S. Environmental Protection Agency (EPA) has named Georgia Power the 2011-2012 National Pledge Leader for its "Change the World, Start with ENERGY STAR" campaign. An ENERGY STAR partner since 2004, Georgia Power has exchanged more than 680,000 compact fluorescent light bulbs (CFLs) with customers for pledges since participating in its first EPA annual pledge campaign in 2006. 4/26 PRNewswire

13.  FPL to Reopen Application Period for Solar Photovoltaic Rebate Program on May 3 - Florida Power & Light Company announced today that beginning on May 3, customers interested in installing a solar-powered photovoltaic (PV) system can apply for 2012 incentive funding on a first-come, first-served basis for residential and business customers.  The PSC has authorized $15.5 million for FPL's 2012 solar rebate program, which opened in October 2011 and will continue through September 2012. Program details at: www.FPL.com/solarrebates  4/ 24 PRNewswire

14.  Carnegie Mellon Reports that DC Power is Cheaper for LED Lighting - Researchers at Carnegie Mellon University have published a paper evaluating the cost of energy for lighting systems and concluded that a DC grid is far less expensive powering LED lighting. In reality, the report is hardly a surprise. Fluorescent lighting was designed for AC-powered applications. LEDs require an AC-DC conversion, and generally a second, constant-current DC conversion to operate from the AC line. Every conversion wastes energy and a DC grid eliminates a conversion stage. And in the case of the additional savings in a solar installation, those DC solar cells also minimize conversions. http://www.ledsmagazine.com/news/9/4/28

15.  U.S. Economic Growth Slows to a Rate of 2.2 Percent in First Quarter - The Commerce Department says the economy expanded at an annual rate of 2.2 percent in the January-March quarter, compared with a 3 percent gain in the final quarter of 2011. Without autos, growth would have been about 1.5 percent. With 12.7 million people unemployed, today’s economy needs much faster growth to boost hiring. Growth would have to be roughly 4 percent for a full year to lower the unemployment rate, now 8.2 percent, by 1 percentage point. 4/26 Washington Post

16.  DOE Publishes Updated SSL R&D Plan - The U.S. Department of Energy has published the April 2012 edition of the Solid-State Lighting R&D Multi-Year Program Plan (MYPP). The MYPP reviews SSL technology status and trends for both LEDs and organic LEDs (OLEDs) and offers an overview of the current DOE SSL R&D project portfolio. DOE will continue to update the MYPP on an annual basis, with input from industry partners and workshop attendees, to incorporate new analysis, progress, and new research priorities as science evolves. To download a PDF of the 2012 MYPP, go to www.ssl.energy.gov/techroadmaps.html

17.  Pike Research Expects LED Lighting to Take Off in Asia Pacific - A recently published report, "Energy Efficient Lighting in Asia Pacific," from market research company Pike Research based in Boulder, CO states that in most Asia Pacific markets, governments are committing large amounts of funding to basic LED lighting infrastructure, creating an abundance of business opportunities. The firm expects sales of LED lighting systems to increase rapidly over the next ten years and to accelerate sharply after 2015. Unit shipments, including lamps and luminaires, will rise from 66 million in 2011 to 542 million in 2021 -- an increase of more than 700%. http://www.pikeresearch.com/research/energy-efficient-lighting-in-asia-pacific

18.  2012 DOE Solid-State Lighting Manufacturing R&D Workshop June 13–14, 2012 • San Jose, CA
The DOE Solid-State Lighting (SSL) Manufacturing R&D Initiative was created in 2009 to forge government-industry partnerships focused on a common goal: to reduce the cost and improve the quality of SSL products.  http://www1.eere.energy.gov/buildings/ssl/sanjose2012.html

19.  EPA Releases List of Top 50 Green-Powered Organization - See the Top 50 Green Power Partnership organizations voluntarily using clean, renewable electricity from resources such as solar, wind and low-impact hydropower.  http://www.epa.gov/greenpower/toplists/

1st)                    Intel Corporation  

2nd)                  Kohl's Department Stores

3rd)                   Microsoft Corporation

4th)                   Wal-Mart Stores, Inc. / California and Texas Facilities

5th)                   Whole Foods Market

6th)                   Staples

7th)                   City of Houston, TX

8th)                   Starbucks

9th)                   City of Austin, TX

10th)                Hilton Worldwide