In the News
ConsumerPowerline Expands Strategic Energy Management Platform to Include Steam Asset Management in Metro-New York AreaInternational Facility Management Association
April 2006
Nations Leading Demand Response Provider Partners with Mosto Technologies, NYC'sLeading Steam Management Provider
ConsumerPowerline (www.consumerpowerline.com), one of the nation's leading strategic energy asset management firms, announced that it has partnered with Mosto Technologies (MTI), New York's leading steam management provider to expand its platform of energy management services to include steam assets in its portfolio.
The partnership will allow ConsumerPowerline (CPLN) to integrate steam services into it's client offerings while enabling Mosto's roster of clients to take advantage of ConsumerPowerline's leading energy management offerings-specifically participation in local demand response programs.
In addition to this specific deal, a key feature of this partnership is the unique rewards it can create for entrepreneurs like Steve Mosto, founder and CEO of MTI, to partner with the company. ConsumerPowerline has created a unique revenue sharing structure that transparently incentivizes partners, and shares with the entrepreneur any new revenue and profit that this relationship creates.
In the case of the Mosto/ConsumerPowerline partnership, CPLN will provide MTI the capital required to automate its unique offerings. Any such automation that MTI creates with ConsumerPowerline translates into an equity ownership for MTI in ConsumerPowerline and its steam subsidiary and a higher transaction price if MTI and ConsumerPowerline decide to merge the two companies in the future.
Vinay Gupta, Chief Operating Officer of ConsumerPowerline added, "The transaction price is transparently determined by the revenue, profitability and growth of the entrepreneur's and ConsumerPowerline's joint efforts. This unique structure eliminates the risk for the entrepreneur seeking to work with a bigger firm and reduces the time that is needed to complete the transaction. ConsumerPowerline intends to use this same relationship structure to attract other entrepreneurs to work with its portfolio to deliver their unique value and hence participate in that incremental growth-not just in terms of new revenue and profits-but as equity partners."
Clients of both firms stand to gain from the combined electricity/steam offering. "A little known fact among many New York City building owners is that spending on steam assets can equal or surpass spending on electricity each year. Beyond that, most do not understand that steam, like electricity, is a controllable expense, and that with smart, strategic counsel, consumers can save a great deal of money," said Chelle Izzi, Direct of Asset Services at ConsumerPowerline. "Our clients look to ConsumerPowerline for a complete suite of energy management offerings, and adding steam to our portfolio will allow us to more completely serve the needs of our clients in New York City."
Steve Mosto, founder and CEO of Mosto Technologies added, "By partnering with the leading energy asset firm in the New York City market, we have broadened our ability to provide a more robust energy management platform. ConsumerPowerline is a trailblazer in the energy curtailment and asset management market and few, if any, companies can deliver the breadth and depth of client expertise and energy knowledge like ConsumerPowerline. We are honored to have ConsumerPowerline as a strategic partner and look forward to developing additional offerings to service our combined client base."
After a detailed analysis of steam usage in New York, Mosto Technologies has found that 3-5% of steam use in the city is being wasted or poorly utilized, resulting in the waste of millions of dollars annually. The company currently works with clients such as Tishman Speyer, Cushman & Wakefield, Equity Office, Vornado, as well as providing its expertise at many signature buildings including the McGraw-Hill building, and the Chrysler Center.
"As the majority of New York's commercial and residential buildings utilize steam resources year round--for heating in the winter and cooling in the summer--by working with large steam using customers, Mosto has been able to implement remediation programs to dramatically lower costs to the tune of millions of dollars each year," added Gupta. "We look forward to bringing these savings to our current and future clients."
"As the energy markets become more sophisticated, it is imperative for firms like ConsumerPowerline to offer holistic services to its clients in order to distinguish itself from the competition. We are always looking for new ways to maximize a building's energy assets for potential savings and steam energy has been an area we had been investigating for some time," Gupta concluded. "With Mosto Technologies as our newest partner, we have been able to fill this void in our product offerings and we anticipate an eager adoption of these steam monitoring services by our customers."