"There can be so many energy blind spots for inhouse lawyers," Elena Cahill, JD, CEM

Energy for commercial buildings is usually regarded as a cost albatross which must be endured.  Bad attitude. 

In fact, that mindset could be causing many energy blindspots when inhouse lawyers are handling contracts with suppliers.  Also, they could be missing out on opportunities which could increase the value of the real estate.

Elena Cahill, JD, CEM (Certified Energy Manager) and head of Globele Energy addresses these issues in this exclusive interview with Law and More.

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JD:  Why are  inhouse lawyers often not picking up on possible cost efficiencies when it comes to energy contracts for their commercial buildings?

EH:  Let's back up a little, Jane.  In many states  the energy for commercial buildings had and still may be supplied by a monopoly - the utility.  Among the exceptions is Connecticut where's there is deregulation.  Because lawyers have been dealing with a monopoly they may have developed a mindset that assumes no or little room for negotiation of terms and conditions.

JG:  So, energy contracts can be negotiated?

EC:  That's a big piece of my business.  Education = money.  We introduce commercial building energy consumers to what they need to focus on when locking in anything with an alternative supply company as well as teaching the consumer what on the ultility bill they can deal with to save significant money.

JG:  What should inhouse lawyers be looking at that they may not be?

EC:  One is to have their arms around what the business might be doing in the short term.  It might be investigating relocating headquarters from the Northeast to South Carolina.  If it doesn't factor in that possibility and negotiate for a one year instead of four year contract, they could be stuck with a whopper of an early termination fee. 

Another is what will be the price.  If they are aware of trends in pricing and anticipate that electricity will go down in a year, then they shouldn't lock themselves into a long term contract.  Of course there are no guarantees but many energy experts have had a good track record in forecasting price and supply.

A third concerns the fine  print. such as relating to quantity.  It's imperative to read it, think about it, and if it isn't in their financial self interest negotiate it.

JG: You mentioned they could boost the value of real estate.

EC:  All the time now.  There are so many government sustainability initiatives that will fund part or all of energy efficiency measures.  Those in themselves will increase the value of the real estate. 

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Elena will be back t Law and More on other energy matters.  You can reach her at elenacahil@aol.com.

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