Duquesne Light’s parent picks up energy efficiency business
Energy efficiency firms are often hired as contractors by electric utilities that are obligated by law to decrease how much energy their customers consume.
The owners of Pittsburgh electric utility Duquesne Light Co and its sister fiber optic cable firm, DQE Communications LLC, announced another local addition to their portfolio: The Efficiency Network.
Duquesne Light Holdings Inc.’s new president and CEO, Steve Malnight, said on Tuesday that the North Shore-based energy efficiency firm represents a growth opportunity as sustainability and environmental consciousness become ever more entrenched in business and institutional decisions.
“Customers have changing needs for energy going forward,” Mr. Malnight said.
The local utility’s job is to deliver electricity when it’s needed, and Duquesne Light serves that purpose well, he said.
“But there are other needs that some of our customers have that Duquesne Light is not able to serve,” Mr. Malnight said. “That’s the gap that we saw [The Efficiency Network] fill.”
Energy efficiency firms are often hired as contractors by electric utilities that are obligated by law to decrease how much energy their customers consume.
Through programs paid for by customer rates, utilities typically offer rebates for energy efficient lighting or other conservation projects. Energy efficiency service firms connect customers to those
opportunities and guide them in the process.
The Efficiency Network was started by Rob Campbell and Troy Geanopulos in 2012, three years after they sold their previous energy efficiency firm to Constellation Energy.
The current venture was founded to help commercial and industrial customers act on energy efficiency projects, like swapping out old windows for tighter seals, replacing lights in a warehouse, or navigating largescale projects like building retrofits.
Management and work of The Efficiency Network, which has 35 employees, will not change, Mr. Malnight said. He envisions its footprint growing in Pennsylvania and the Northeast.
The terms of the deal were not disclosed.
The holding company, which is owned by a consortium of private equity interests, isn’t closing the door on potential acquisitions, Mr. Malnight said. It was attracted to The Efficiency Network in part because of its Pittsburgh base, its project pipeline and its culture.
It’s a culture that has taken a beating over the past few years in the corruption scandal of former Allentown major Mayor Ed Pawlowski. Court records revealed that between 2013 and 2015, one of The Efficiency Network’s executives, Patrick Regan, conspired with Allentown city officials to steer a $3 million contract for new LED street lights to his firm in exchange for campaign contributions to the mayor.
“We did extensive due diligence and clearly looked at that issue,” Mr. Malnight said. “They terminated that employee. They brought in outside investigators and support — to understand what happened, but also to build a strong ethics program in the company.”
The acquisition also will bring the energy efficiency firm under the parent company’s compliance program, he noted.