Business rebates

Ongoing renovations at the Official Kentucky Derby Host Hotel add to its beauty and charm “across the board” while reducing costs

In the last decade, compact fluorescent lighting and LEDs earned an unwarranted wrap for being less visually appealing than traditional incandescent lighting. As it was, the more energy-efficient lighting options were not the favored picks.  

Now, high-end commercial properties like Louisville’s Galt House Hotel – which serves as the Official Host Hotel for Churchill Downs and Kentucky Derby – have effectively shattered these misconceptions. The Galt House upgraded its gorgeous chandelier features and lighting fixtures, as well as emergency lighting, to CFL and LED alternatives.

Before converting more than 50 chandeliers – each containing anywhere from eight to 60 individual bulbs – to LED technology, Kenny Franklin, Director of Engineering, said personnel were changing out chandeliers’ incandescent bulbs about three times per week.

“It was very labor intensive,” said Franklin.

“In our chandeliers, we changed from 40-watt light bulbs to 3-watt LEDs four or five years ago,” he said. “Out of about 1,200 bulbs, we have not changed more than 50 bulbs since we switched to LED technology. It is absolutely phenomenal.”

The hotel qualified for $77,000 in energy rebates offered to commercial customers of Louisville Gas and Electric Company and Kentucky Utilities Company to help offset the costs for these lighting improvements and other various energy-saving renovations.

Through the utilities’ Commercial Rebate Program, commercial customers can apply for commercial rebates every year to help offset the costs incurred from making qualified energy-efficient improvements. This program was expanded again in 2014, following approval from the Kentucky Public Service Commission, to offer rebates for even more qualified items and improvements.   

While many of the hotel’s ongoing renovations add to the facility’s beauty and ambiance, they also allow the hotel to better control its energy usage and help reduce operating costs.

The hotel’s RIVUE and SUITE Towers offer around-the-clock services to accommodate guest rooms and apartments, office space, six restaurants and lounges, more than 50 meeting rooms and two ballrooms.

The hotel has installed in-room energy management systems for each of the 1,300 guest rooms and luxury apartments for better temperature control when rooms are unoccupied. New high-efficiency insulated windows have been added throughout RIVUE Tower, as well as four new cooling towers for more moderated usage and a geothermal heating and cooling system in SUITE Tower.

An Energy-Savings Trifecta: Take Advice from Galt House’s Kenny Franklin

1. Start with safe bets out of the gate.

“Lighting is pretty straightforward. If you have the capital to invest, the return on capital can be fairly fast.”

2. Automate whenever possible.

“Our thermostats have occupancy sensors. We go to an unoccupied setting in our rooms so we don’t get to a point where we’re spending more money to correct temperatures than we are in savings.”

3. Run the numbers.

“We did the math. We looked at the payback period. We figured out if it was a good investment for the long term and if it increased the energy efficiency of the building… We are always looking for ways to improve our operations and increase our energy efficiency.” 

Learn why Kentucky-based Hubbuch & Company hasn't changed a light bulb in almost three years

Like most businesses, Hubbuch & Company wanted to find ways to reduce its operating costs and pinpoint areas to reduce its energy usage.   
 

Hubbuch & Company President and CEO John Hubbuch, above, and his company have reduced lighting expenses and saved energy over the last several years since participating in LG&E and KU's energy efficiency programs.

Established in 1933, Hubbuch is a family-owned and operated business founded by the father of current company President and CEO John Hubbuch. The multi-disciplined architecture and interior design firm has headquarters in Louisville and a branch office in Lexington.

"A few years ago, we requested a commercial energy analysis from LG&E and KU," said John Hubbuch, president and CEO. 

During this on-site inspection through Louisville Gas and Electric Company and Kentucky Utilities Company, Hubbuch got the recommendation to replace its old, inefficient lighting. In total, the company replaced more than 200 standard light bulbs with more energy-efficienct compact fluorescent lighting alternatives.

The utilities' Commercial Rebate Program also helped offset the company's costs after purchasing the more energy-efficient upgrades. After submitting applications and proof of purchase, as required to participate in the program, Hubbuch received a rebate check for more than $2,000.

The unexpected benefits

In addition to realizing energy savings and the $2,000 rebate, the company has seen dramatic improvements in its day-to-day lighting maintenance and expenses.  

We used to replace about 10 bulbs a week. It's been almost three years, and we still haven't had to replace a single energy-efficient bulb, said Hubbuch.

As much as 40 percent of a typical commercial facility's overall energy usage may be attributed toward lighting, and according to ENERGY STAR®, today's high-efficient lighting fixtures use about one-fourth the energy of traditional lighting.

Offset the upgrade costs  

All LG&E and KU commercial customers are eligible for up to $50,000 in rebates per year, per facility, to help offset the purchasing costs of more energy-efficient products and equipment.

Rebates are available for lighting, air conditioning systems, motors, pumps, variable frequency drives and customized improvements that save at least one kilowatt of peak energy load.

From the utilities' viewpoint

LG&E and KU provide customers with tools and resources to help them better manage energy usage and reduce energy consumption, and customer participation in energy efficiency programs offsets part of LG&E and KU customers' growing energy demand, which can help delay the need for constructing additional generation.

"When we assess least-cost options as part of our long-term planning process to provide customers with the energy they need, we factor in the energy efficiency programs' ability to help them voluntarily reduce their energy usage and consumption," said David Huff, Director of Customer Energy Efficiency and Smart Grid Strategy for LG&E and KU.

To date, the portfolio of commercial and residential programs has been able to offset about 300 megawatts of demand. 

Are you an LG&E and KU business customer? Visit LG&E and KU online to sign up for programs available to help your business.

Apply Now 

• By phone: 800-356-5467
• Online: Sign in to My Account

Be sure to have your account number and tax ID or social security number handy.

Eligible rebate items and amounts have changed since this story published. Please visit lge-ku.com/bizrebates for the current rebate categories and amounts.

For large indoor sports complexes, like Lexington Tennis Club, facilities include features like vaulted ceilings, open floor plans, ample lighting and lengthy hours of operation. While these features are extremely appealing to members, they also can serve as challenges for facilities managing their energy use. 

Lexington Tennis Club, one of the largest indoor tennis facilities in the United States, operates 364 days per year, from 6:30 a.m. to 11 p.m. Three buildings house 15 indoor air-conditioned tennis courts and amenities including: a pro shop, fitness facility, babysitting area and pool.

Controlling and maintaining a consistent temperature in large open buildings can be difficult, and lighting is paramount for an indoor sports complex. Lexington Tennis Club previously used metal halide lighting fixtures, totaling 180 light bulbs, for its courts.

 "It's tennis. You have to be able to see, and the brighter lighting helps," described Ralph Currie, Lexington Tennis Club chief financial officer and part owner. While the tennis club is diligent about turning lights off when the courts are not in use, the facility operates nearly around the clock.

 The tennis club worked with Lexington-headquartered Big Ass Fans to install 24-foot industrial ceiling fans and upgraded lighting to improve efficiency.

 Because the tennis club is a Kentucky Utilities Company commercial customer, the lighting improvements qualified for about $16,000 in rebates through the utility's commercial rebate program. The program is available to commercial customers of KU and Louisville Gas and Electric Company by application and offers rebates of up to $50,000 annually per facility to help offset eligible energy-efficient upgrade costs.

Improvements.

According to Currie, reconfiguring the locations of more efficient lighting fixtures using fluorescent bulbs has maximized the lighting coverage on the courts, decreasing the number of previously needed lighting fixtures by about 20 percent. 

Joanne Wallen, club manager of Lexington Tennis Club, overlooks one of three facility buildings that recently received lighting upgrades and fan installations to help maximize energy efficiency

In two of the three buildings, Currie said electric usage is down by about 20 percent compared to the same time last year, and he noted electric bill decreases - as much as $2,000 in one month.

Using the new fans, Currie said, "In the summertime when it's warmer, they allow us to turn up the thermostat and create a breeze. In the winter, the fans will help push down and circulate the naturally rising warm air."

Effective long-term follow-through.

 While Currie noted monthly energy improvements, he also anticipates light-bulb expenses decreasing over time. The previous bulbs in the metal halide fixtures were known to discolor and expire within four to 12 months, costing about $10,000 to $12,000 annually to replace. The new fluorescent bulbs' lifespan is guaranteed for five years.   

"It was an incredibly inefficient system. It's an ancillary benefit to have the longer lifetime of the bulbs," said Currie.     

"Where we really expected the greatest efficiency was a significant reduction in electricity use; we have realized that," said Currie. "The lights are wonderful, and the fans have worked out really, really well."

Apply Now 

• By phone: 800-356-5467
• Online: Sign in to My Account

Be sure to have your account number and tax ID or social security number handy.

Eligible rebate items and amounts have changed since this story published. Please visit lge-ku.com/bizrebates for the current rebate categories and amounts.

Republic Bank discovers energy-saving solutions during expansions and renovations

Since forming its corporation in 1982 and becoming a public company 15 years later, Republic Bank has continually grown its business for its customers. With locations in five states, the Kentucky-based financial institution also finds ways to test technologies and incorporate solutions into its renovations and expansions to save energy.    

"Anything we do is based on what's in the long-term best interests for Republic and the communities we serve," said Republic Bank Chairman and CEO Steve Trager. "We're looking for ways to monitor expenses and do the right things for our community."  

From automating energy-intensive systems, using fluorescent lighting, and installing programmable thermostats to replacing boilers and insulating windows, Republic Bank is testing a gamut of technologies to see which measures make the best fit before adopting them across its locations.  

"By testing a lot of these features, we have and would expect to carry some of these features into our other buildings," said Carol James, Vice President, Manager of Facilities, Republic Bank. "We're like everyone else. We try to get the most bang for our buck when we can."   

In the last several years, the bank's property management team applied for commercial rebates offered by Louisville Gas and Electric Company and Kentucky Utilities Company. As a commercial customer with the utilities, the bank's locations are eligible for up to $50,000 in rebates, per facility, each year to help offset improvement costs.

"It's a great program," said Trager. "It was one of the things that got us over the hump to make these kinds of investments." 

The company made energy-efficient improvements at its Republic Plaza and Republic Corporate Center in Louisville and has earned more than $14,000 in rebates to help offset improvement costs for HVAC equipment, chillers and a technology called variable frequency drives.
 

This variable frequency drive allows Republic Bank to better moderate the energy it uses for various motors and equipment. "It helps cut back on redundancy in power," said Carol James, Vice President, Manager of Facilities, for Republic Bank.

Automation systems and variable frequency drives offer commercial properties better control of energy usage. Rather than the "all-on or all-off" approach used in more traditional motors and equipment, automation systems and variable frequency drives only require the amount of energy necessary to run at the time, providing a more moderated use of power.

"We have better control over some of the areas heated and cooled. We can make those adjustments quickly when necessary, which also helps save energy," said James.

As for what's next for Republic Bank and its other locations, James says the company will look at LED lighting.

"If you look at five to 10 years in the banking landscape, I think people will have comfort in knowing we're going to be here," said Trager. "We have invested long term in energy efficiency because we're going to be here long term. We were here for you yesterday. We're here for you today, and we'll be here for you tomorrow."  

Apply Now 

• By phone: 800-356-5467
• Online: Sign in to My Account

Be sure to have your account number and tax ID or social security number handy.

Eligible rebate items and amounts have changed since this story published. Please visit lge-ku.com/bizrebates for the current rebate categories and amounts.