“I am very pleased to have someone with Rick’s experience and credentials join our company,” said Drew Fellon, president and CEO of Fellon-McCord. “Rick’s unique experience brings to Fellon-McCord’s current and potential clients enhanced opportunities to lower their energy costs through innovative approaches to energy management,” Fellon continued.

“I am thrilled to join the Fellon-McCord team,” stated Sievertsen. “The company’s breadth and depth of experience and nearly two decade performance history in the energy management field is unparalleled. Over the years, I’ve worked with many successful companies developing products and services which helped them and their clients achieve their corporate goals. I look forward to working with the Fellon-McCord team to help make our next two decades even more successful.”

Sievertsen most recently worked with Honeywell Utility Solutions, where he was responsible for integrating its corporate offerings to its commercial and industrial clients, including Honeywell’s efforts in commercial automated demand response. Before joining Honeywell, he served as vice president client solutions for Advantage IQ. Other positions include serving as chief executive, sales and marketing for Sebesta Blomberg & Associates, Inc., founder and CEO of Innovative Energy Partners and vice president, strategic accounts for TXU Energy Services. Earlier in his career, Sievertsen held several senior-level positions with companies such as Alliant Energy and Iowa-Illinois Gas and Electric Company.

About Fellon-McCord
Fellon-McCord is an energy consulting and management company working with its clients to source the most economic and reliable energy supplies available. A pioneer in energy consulting and management since 1992, it focuses on the physical, financial, regulatory and legislative components of the global energy markets. Fellon-McCord serves industrial, commercial and institutional consumers across North America and globally. To learn more, log-on to www.fellonmccord.com.

Fellon-McCord, a Platinum-level NRECA Associate Member based in Louisville, Kentucky, is an energy management firm that helps its clients mitigate the price and reliability fluctuations of energy sources like natural gas. The company got its start in the volatile days of energy deregulation in the early 1990s. Two decades later, in an equally unpredictable energy market, Fellon-McCord excels with a self-described strategy of “professional expertise with a personal touch.”

Company President and CEO Andrew R. Fellon said Fellon-McCord currently works with numerous electric cooperatives, as well as their customers and suppliers, across the country. He added that co-ops, which make up about 30 percent of the company’s energy management group business, have come to them for short-term project consulting as well as long-term management services.

“Fellon-McCord’s relationship with the cooperative community began in 1993 with our work in the area of natural gas procurement for East Kentucky Power,” Fellon said. “Since that time, we have expanded our services to include all fuel types and components along the supply chain from point-of-origin to point-of-consumption.”

Consistent Goals

Fellon said that cooperatives’ commitment to low prices and reliable service make them a natural fit with Fellon-McCord.

“Their goals of making the best decisions for their members in the short- and long-term are consistent with that of Fellon-McCord,” he said. “We very much enjoy working with our cooperative clients.”

Fellon said the company quickly realized the benefit of its association with NRECA, and has been a regular conference exhibitor and advertiser in RE Magazine.

“NRECA has offered our company an efficient and professional forum through which we have been able to meet many other NRECA cooperative members,” he said. “We started as a Silver-level Associate Member in early 2009, but the overall value we have received convinced us to increase to the Platinum Level in 2010. ”

http://newsletters.nreca.coop/nrecam/issues/2010-04-12/index.html

Fellon-McCord & Associates LLC has found a new home for its growing energy-consulting business.

The 18-year-old Louisville-based company, located at 9960 Corporate Campus Drive in the Hurstbourne Green business complex, plans to move in April or May to Faulkner Real Estate Corp.’s Ormsby Three building in the Forest Green Corporate Office Park, according to president and CEO Andrew Fellon.

Forest Green is located at North Hurstbourne Parkway and Dorsey Lane.

Fellon-McCord initially will lease 13,500 square feet on the top floor of the six-story, 150,000-square-foot building, Fellon said, but it has the right of first refusal for the remainder of the space on the floor.

The company has outgrown its 9,400 square feet on Fenley Real Estate’s Corporate Campus. Company officials looked at several sites before choosing Ormsby Three, he said.

Ormsby Three was selected, Fellon said, because it is “brand new space” that is being built out to the company’s specifications.

It also is centrally located for Fellon-McCord’s 66 employees, he said. “The bulk of them live out in that general direction.”

Building now 73 percent leased
The Fellon-McCord deal brings occupancy at Ormsby Three, which opened in 2007, to 73 percent, according to Jeff Ellison, vice president and director of leasing for Faulkner Real Estate. He said the company has continued to sign leases, even during the recession.

Ellison said Faulkner was fortunate in the case of Fellon-McCord to have a large block of contiguous Class A office space available to accommodate the expanding firm.

“(You) have to be in the game when it comes to economic development,” he said. “It allows for these opportunities. It’s why we built this building.”

The “campus environment” has helped Faulkner lease its three office buildings at Forest Green, according to Ellison.

Its Ormsby One is 100 percent leased, and Ormsby Two is 75 percent leased.

Company plans to add 40 jobs
Fellon-McCord plans to fill its new space quickly. Its expansion effort calls for the addition of at least 40 employees in the next three years. The workers are being hired to keep up with growing demand for the company’s advisory and management services.
Fellon-McCord helps commercial and industrial businesses buy energy and manage energy expenditures. Its clients include automotive, building materials, chemical, food processing, aluminum and steel, municipal and institutional customers.

Demand for consulting and management services has been high during the economic downturn, Fellon said, as companies look for every opportunity to save money.

Fellon-McCord announced its expansion plans during a December meeting of the Kentucky Economic Development Finance Authority in Frankfort.

The KEDFA board granted the company preliminary approval for $1 million in state tax incentives for up to 10 years under the Kentucky Business Investment program.

The expansion requires an investment of nearly $4.2 million, including rent payments. The initial 20 new hires, a mix of analyst and management positions, will have an average hourly wage of $23 and an annual payroll of $800,000.

Private-equity firm took minority stake
Fellon-McCord was founded in 1992 by Fellon and business partner John McCord, who now is company chairman.

They sold it to Baltimore-based Constellation Energy in 2003 but bought it back as part of an investor group in 2008.

In January, Chicago-based Baird Venture Partners bought a minority interest in Fellon-McCord. Officials did not disclose the size of its stake, but they described it as “significant” in a Business First article at the time.

Company officials considered Houston and Chicago for expansion but chose Louisville, largely because of its “readily available, steady work force,” Fellon said.

“Louisville is a wonderful community,” he added. “It’s got great people in it. We really want all of our operations here.”

LOUISVILLE, KY – February 25, 2010 – Fellon-McCord’s advisory services help companies comply with new Securities and Exchange Commission (SEC) rules for disclosing climate-related business risks.

On February 8, the SEC issued guidance for public companies on how to make known any material risks associated with climate change. Companies are being asked to disclose the potential financial and operational impacts of climate change regulations and legislation; chief among those are financial impacts related to the cost of energy.

Fellon-McCord can specifically assist clients with the following SEC-identified risks:

1. Domestic legislative and regulatory risk
Material effects such as added energy costs under a cap-and-trade system, added costs of renewable portfolio standards and added costs associated with EPA regulation of greenhouse gases
2. Potential impacts of international accords
The impact of international climate agreements and other climate-related activities

Fellon-McCord provides companies the ability to identify and report any material risks related to energy costs. Fellon-McCord’s proprietary data management system, dataPoint™, measures and tracks energy consumption across all company facilities, allowing for accurate and auditable compliance with these new SEC guidelines. Fellon-McCord analysts review and quantify by location any energy costs and reliability impacts related to climate change regulations and legislation. This information is communicated to clients in a format that assists with the SEC reporting requirements. Inquiries may be directed to Brian Habacivch at (502) 214-9419, or bhabacivch@fellonmccord.com.

About Fellon-McCord
Fellon-McCord is an energy consulting and management company working with clients to source the most economic and reliable energy supplies available. Fellon-McCord serves industrial, commercial, and institutional consumers across North America and globally.

“I am very pleased to have someone with Rusty’s experience and credentials join our company,” said Ray Culver, Fellon-McCord’s vice president, sales and marketing. “Fellon-McCord’s business has seen a consistent pattern of growth during the past 18 months. We are experiencing significant increases in new business opportunities nationally, and are excited to be in a position to grow our company,” Culver continued.

“In my new role, I will continue to work with corporate clients by helping them understand and manage their ‘energy spend.’” stated Rusty Longhurst. “Anyone who has reviewed a corporate utility bill lately knows how complex they have become. It takes a great deal of market knowledge and expertise to competently manage current costs and address future price fluctuations. This is the value Fellon-McCord brings to its clients.”

Fellon-McCord recently announced that it will create at least 40 new jobs at its Louisville headquarters in the next three years – 20 of which will be added within the next 12 months. In addition, Fellon-McCord has recently added a strategic investment partner, Baird Venture Partners. This investment provides the company with additional resources to enable it to continue to grow the business globally

About Fellon-McCord
Fellon-McCord is an energy consulting and management company working with its clients’ energy procurement and facilities’ engineering personnel to source the most economic and reliable energy supplies available. A pioneer in energy consulting and management since 1992, it focuses on the physical, financial, regulatory and legislative components of the global energy markets. Fellon-McCord’s clients include leading automotive, building materials, chemical, food processing, aluminum and steel, municipal and institutional consumers. To learn more, log-on to www.fellonmccord.com.

Andrew (Drew) Fellon, president and CEO of Fellon-McCord stated, “For many companies, 2009 was a challenging year. Our business was able to pull through it a better, stronger company thanks to our employees.” He continued, “We have a very dedicated team; they do a fantastic job everyday with a true focus on our clients’ satisfaction. I am confident that, with their continued dedication, 2010 will bring even more opportunities.”

Fellon-McCord recently announced that it will create at least 40 new jobs in the next three years – 20 of which will be added within the next 12 months. In addition, the company will be more than doubling its office space.

The Best Places to Work in Kentucky awards program was created in 2005 and is a project of the Kentucky Chamber of Commerce, Kentucky SHRM Council and Best Companies Group.

This statewide survey and awards program was designed to identify, recognize and honor the best places of employment in Kentucky. The Best Places to Work in Kentucky 2010 list is made up of 64 companies.

About Fellon-McCord
Fellon-McCord is an energy consulting and management company working with its clients’ energy procurement and facilities’ engineering personnel to source the most economic and reliable energy supplies available. A pioneer in energy consulting and management since 1992, it focuses on the physical, financial, regulatory and legislative components of the global energy markets. Fellon-McCord’s clients include leading automotive, building materials, chemical, food processing, aluminum and steel, municipal and institutional consumers. To learn more, log-on to www.fellonmccord.com.

Chicago-based private-equity firm has acquired a stake in Fellon-McCord Associates LLC.

Baird Venture Partners acquired “a significant minority interest” in Fellon-McCord, a Louisville-based energy-consulting and management firm, said Drew Fellon, co-founder, president and CEO.

The injection of capital will allow Fellon-McCord to enhance technological capabilities and research with the goal of expanding globally, Fellon said.

“We help clients find the most reliable energy source at the best price. Technology is playing a bigger and bigger part, and we want to stay on the cutting edge of research and technology,” he said.

“And, of course, that takes time and money.”

Choosing the right suitor
Fellon declined to disclose the value of the transaction or the size of the position Baird Venture has taken in Fellon-McCord.

Fellon and John McCord, co-founder and chairman, maintain controlling interest and will continue to manage day-to-day operations.

Although he didn’t rule out a future sale, Fellon said the Baird Venture deal is “not about putting a strategy in place to ramp this thing up to sell it.”

“Had we been interested in building it up and selling it out, there were a number of companies” interested in buying a majority position on the way to an acquisition by a larger company, he said.

Fellon declined to identify the companies. But “they were very nice and called regularly,” he said.

He characterized the deal with Baird Venture as long term, with Baird Venture interested in Fellon-McCord’s potential in ‘green’ technology.

“Our capability is absolutely something they wanted to add to their portfolio,” Fellon said. “Strategically, it’s an important (investment category) for them.”

Because the firm has a large number of large commercial and industrial clients, Fellon-McCord is involved in green energy and clean energy, Fellon said.

His company helps customers evaluate renewable energy sources, he said.

“We do carbon tracking, greenhouse gas emission tracking and help reduce carbon footprints while staying efficient.”

Portfolio addition
Baird Venture is the venture-capital fund of Baird Private Equity, a global investment firm with substantial positions in Asia, according to its Web site, www.bairdprivateequity.com.

Baird Venture invests in early-stage and expanding companies, according to the site. It has a portfolio of 26 companies, mostly in medical, life-sciences and business-services categories.

Fellon-McCord uses analytical models to help large companies predict and manage energy usage, manage risk, monitor regulatory changes and manage payments, among other services.

The firm also manages natural gas acquisitions for clients.

Clients include heavy manufacturers, automotive suppliers, building materials manufacturers, chemical companies and municipalities.

Expansion plans
Last month, Fellon-McCord announced a potential expansion during a meeting of the Kentucky Economic Development Finance Authority.

KEDFA granted the company preliminary approval for $1 million in tax incentives based on a $4 million-plus investment that would include adding 20 jobs that pay $23 per hour, for a total annual payroll increase of about $800,000.

Fellon-McCord leases about 9,400 square feet at 9960 Corporate Campus Drive in the Hurstbourne Green business park, but executives stated that the KEDFA incentives would allow the firm to double its space.

Fellon-McCord was founded in 1992. The firm was sold in 2003 to publicly traded, Baltimore-based Constellation Energy Group. But it was bought back by an investor group that included the founders.

Fellon-McCord & Associates LLC, a Louisville-based energy-consulting business, plans to add at least 40 jobs in the next three years to keep up with growing demand for its advisory and management services.

The 17-year-old company, which currently has 60 employees, also is looking to more than double the amount of space that it leases at 9960 Corporate Campus Drive in the Hurstbourne Green business park, according to president and CEO Andrew Fellon.

The firm is looking at several other sites in Louisville for its potential expansion, Fellon said, although he declined to identify them. The company currently occupies 9,400 square feet at Hurstbourne Green.
Company plans call for 20 jobs to be added in the next year, Fellon said. They would be a mix of analyst and management positions.

Company looked at Chicago, Houston
Fellon-McCord announced its potential expansion plans during a Dec. 10 meeting of the Kentucky Economic Development Finance Authority in Frankfort.

The KEDFA board granted the company preliminary approval for $1 million in state tax incentives for up to 10 years.

The expansion would require an investment of nearly $4.2 million, including rent payments, according to the KEDFA filing. The 20 initial new jobs would have an average hourly wage of $23 and an annual payroll of $800,000.

Fellon said his company considered Chicago and Houston as possible sites for expansion but wanted to stay in Louisville because it is “a great place to live.”

He called the state incentives “always important” to any company’s growth plans.

Owners bought back firm in 2008
Fellon-McCord was founded in 1992 by Fellon and business partner John McCord, who now is company chairman.

They sold it in 2003 to Baltimore-based Constellation Energy but bought it back as part of an investor group last year.

Fellon said his firm is growing because the economic downturn “has caused companies to look even harder at their energy costs.”

Fellon-McCord helps commercial and industrial businesses buy energy and manage energy expenditures. Its clients include automotive, building materials, chemical, food processing, aluminum and steel, municipal and institutional consumers.

“We are increasingly in demand,” Fellon said.

Tom Stundza — Purchasing, 10/15/2009

Energy is a sellers’ market due to the global rationalization of the supply base but new capacity expansions now and in the future will shift crude oil and natural gas into well-supplied markets, says Brian Habacivch, senior vice president of research and publications at the Fellon-McCord energy management and procurement firm.

While not predicting a buyers’ market anytime soon, he tells Purchasing’s Smart Sourcing Summit in Chicago that “there’s plenty of oil in the world (and) natural gas is migrating into an over-supplied market.”

He says “the U.S. is an energy giant, it just doesn’t act like one,” and tells the audience that “we’re not running out of oil.” He also says the U.S. has so much natural gas in storage and more coming from shale processing that the country is on the verge of becoming a major world supplier.

Habacivch notes that natural gas buyers and sellers alike were burned in the past by price volatility. “The price spikes made buyers more sensitive to prices paid and the fact that these costs needed to be managed,” he says. That’s why the market today is much more transparent than in the past with buyers becoming more sophisticated and beginning to question why they allowed suppliers to shift all energy-cost risk to them through restrictive supply contracts.

He sees more hedging ahead and more use of third-party energy suppliers. “Natural gas market volatility and a lack of data transparency have forced buyers to get more sophisticated about the ins and outs of the energy marketplace,” Habacivch says. He adds that there is more corporate-level involvement in both energy procurement and risk management. “Because of that, in natural gas procurement, especially, you can expect more reliance on long-term physical supply deals and less trust in financially driven contracts.”