Professional Documents
Culture Documents
PROGRAM
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WEEK 2
WEEK 2: READINGS
The Energy Management Handbook (Doty & Turner)
Chapter 18: Electric and Gas Utility Rates for C & I Consumers
Market
Market area (primary vs.
secondary, accelerating vs.
idling)
Physical, legal and social
constraints
Supply conditions and demand
Market cycles
Market factors (vacancy
rates, absorption rates,
market rents, new
construction starts)
Causes
Economic
Capital appreciation
Property improvements
Cash flow
Value-Added
Medium-term hold
(Stars)
Core
Long-term hold
(Cash Cows)
Distressed
Identify improvements or
sell (Dogs)
Exercise: Using the interactive AEP Real Estate Matrix, click and drag each of the
AEP Portfolio properties into the quadrant where you feel it belongs. Explain your
reasoning for each of the properties.
Review
Using a property from the
AEP Portfolio, visit the
website for propertys local
electric utility company to
find the applicable rate
schedule. Review the rate
schedule, using Chapter 3 in
the Guide to Energy
Management as a reference,
to understand the different
terms.
Demand
Consumption
Power factor
Sales tax
WEEK 2: HOMEWORK