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Portfolio Settings

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  rev. 2011-12-20        

Default portfolio-level settings are established automatically at the time of setup.  They should be reviewed and modified to your situation using the Edit Portfolio button.

A new portfolio can be added at any time by users with the appropriate permissions using the Add New Portfolio button, available at the Data Source level.

There are two tabs in the set up process: General, and Financial.

Under the general Tab, add a unique name for the Portfolio. there are places for a Description and Notes.  There are also options for setting up the Energy and Emission  Reduction Goals.

The Financial Tab offers more detailed financial options to be set.

Energy Reduction Goal and Emission Reduction Goal

Energy reduction and emission reduction goals are set by corporate executives and are often published in communications to employees, customers, and shareholders.  By their nature they are high level and are not explicitly tied to specific activities or conservation investments.  They provide a basis for tracking and quickly reporting on the effectiveness of corporate programs over time.


                                                               What is the Difference Between a Goal and a Target?  Goals and targets are defined differently in ManagingEnergy.  A goal is a broad enterprise objective.  A target is expected energy use or emissions over a particular time period, after energy conservation measures have been implemented.




Entire Organization

A Meter, Facility, or Group of Facilities

Time Period

Defined Achievement Date

Any Reporting Period

How Calculated

Defined by the ManagingEnergy subscribing organization.

Calculated using the Baseline Model, Independent Variables, Opportunity Impacts, and Baseline Adjustments

Goals apply to the entire organization and are specified by the ManagingEnergy subscribing organization.  Targets are calculated by ManagingEnergy using the baseline.

Financial Settings

The Financial tab under the Edit Portfolio button allows input of variables used for realistic reporting on opportunity costs and returns on investment.

Internal Bond or Discount Rate - The effective rate of interest that the facility owner would like to exceed with energy conservation measures.  It may be the rate at which money is borrowed to implement measures.  Clearly, measures should yield a greater return than the cost of borrowing to implement them.  It could be the rate the facility owner is able to get from available money if it is placed safely elsewhere.  Energy conservation measures will then be compared against financial market investments.  Or it may be a hurdle rate chosen to reflect the risk inherent in construction projects.  The interest rate is used in the Net Present Value calculation.  A positive net present value indicates that an opportunity will provide a greater return than the interest rate being used.


                                    ManagingEnergy will supply default values for financial settings, but it's important to confirm that they match your situation.  Many opportunity and energy savings reports incorporate these values.

Project Contingency Allowance - A value added to the best estimate of opportunity cost to reflect the risk of the unexpected during implementation.  Contingency is expressed as a percentage.
Project Engineering/Project Management Allowance - A value added to the best estimate of opportunity cost to price in professional services and internal management time required.  The opportunity cost should include only the labour and materials needed for implementation.  By including or excluding Project Engineering in the reports, the user can see the impact on financial feasibility and the facility owner can make decisions about using internal or external resources for detailed design, project management and engineering costs.
Financial (Fiscal) Year End - The year-end month used in your financial accounting.  Many reports and dashboards allow the selection of either calendar year or fiscal year periods.


                                    By convention, fiscal years are identified by FY followed by the year of the  final month.  For an enterprise with a fiscal year end of February, FY2010 would indicate the period from March 2009 to February 2010.


Related Topics

Investment Scenarios


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