MY CONCERNS



THE CONCERN
Can I Afford This?
Here is a short article (“Do I need a backup generator”) that discusses how to determine if a backup power is financially justified. It is easy to afford by selecting Backup Power-as-a-Service: Rather than investing capital upfront, Backup Power-as-a-Service provides everything for a low monthly fee. Other benefits include: a) you are not responsible for service and maintenance, b) all regulatory and utility filings, permitting and emissions are handled by your service provider, and best of all, c) the service provider monetizes the generator by selling services to the grid and shares those savings with you. For customers in areas with high demand charges or high price volatility, the shared savings can completely offset the monthly payment.
CONCERN
What If The Generator Doesn’t Start?
This is the number one concern we hear most. This fear was realized during Super Storm Sandy when over 60% of diesel backup generators failed to start. The primary cause of failed starts is poor battery maintenance. Backup generators are like your car, and unless maintained, tested, and serviced, these batteries will fail to start the generator. It is best to contract with a generator service company to perform routine services – don’t wait until you need the generator to service it. Battery issues are almost non-existent with Backup Power-as-a-Service because the service provider uses the generator periodically to make money, and any service or maintenance issues are identified early and resolved before an outage. A well-maintained generator will have an uptime reliability in excess of 98.5%.
CONCERN
How Do I Know You’re Installing Top Quality Equipment?
Our contract stipulates that we only use new Tier-One equipment. You can rest assured that you will get the best equipment when ownership passes to you at the end of the service contract. In addition, our capital providers require us to use high-quality equipment covered by long-term maintenance contracts. Lastly, Exergy makes most of its profit using the generator to sell services to the grid. We, therefore, have an incredible incentive to ensure the generator always works, so we only purchase the best.
CONCERN
How Long Do Power Outages Last?
Reasonably good statistics can be obtained from SAIDI (System Average Interruption Duration Index), a reliability index that utilities publish that measures the average amount of time a customer experiences an outage. The following links provide both data and background.
https://www.eia.gov/electricity/annual/html/epa_11_01.htmlhttps://en.wikipedia.org/wiki/SAIDI
SAIDI information is comprehensive, but misleading. The numbers are reported on a per-customer basis, which dramatically understates the duration of an outage for those experiencing an outage. They take the total number of outage hours divided by the total number of customers served by that utility.
Since only a small percentage of customers are actually without power, you need to divide the SAIDI number by the percentage of customers who actually do not have power. For example, if the SAIDI number is 1 hour but only 5% of customers are actually without power, the effective outage duration for those without power is 1 hour / 5%, or 20 hours.
Averages are also misleading. There is a huge difference between being down once a year for an hour, and being down 60 times in a year for 1 minute each time. A one-minute power outage could require several hours to recover. It’s important to remember that how long your operation is down is more important than the length of the outage.
Outage duration follows a probability curve. The following graph displays the probability of an outage as a function of the outage duration.

The statistics can be confusing and very granular. Exergy helps you get the right information for your decision. Book time with one of our consultants here, it’s free.
CONCERN
Is There Fuel Supply Risk?
This depends on the type of fuel used by the generator. Natural gas is the most reliable because it is supplied by underground pipelines with various redundant paths to ensure delivery. The Department of Defense commissioned a study (insert link) to determine the most reliable fuel for their military bases in the US. The report concluded that natural gas was far superior to all other fuels.
Diesel is readily available under most circumstances, but availability can be an issue during prolonged weather-based outages. This is due to two issues: First, weather-related outages typically are caused by downed power lines that may make roads impassable. Second, if the destruction is sufficiently severe, FEMA may be dispatched and enact diesel rationing to assure priority supply for the most life-threatening uses. Diesel availability issues have been a frequent problem for hurricane prone areas.
CONCERN
Do I Have Control Over When The Generator is Used?
Yes, but there is a trade-off: The more restrictions you place on generator usage, the less we can participate selling services to the grid. Since we share this profit with you, this directly impacts how much profit you earn from the generators. Other than that, there are no restrictions. We have numerous eldercare facilities that restrict usage during the evening and at night.
CONCERN
Will I Incur Penalties If I Participate in Demand Response Programs?
No, Exergy is the entity involved providing grid services, so we take full responsibility for complying with all rules and regulations.
CONCERN
What Happens If I Move My Operations?
Our contract provides several options:
- You can move the equipment to your new location; you are responsible for the cost to move and reinstall;
- You can terminate our agreement by paying the Stipulated Loss charge, and sell the equipment;
- You can terminate the agreement by paying the Stipulated Loss charge and Exergy will reclaim the equipment; we will pay you the salvage value we receive; or
- You can have your existing landlord or new lessee take over the contract.
CONCERN
What If I Outgrow The Generator?
Generators can be joined and run in parallel to provide greater power: If your load grows beyond what can be serviced by the current generator, we can add generators in parallel for an additional monthly payment. If you have non-essential loads, we can install load shedding controllers to turn off selected loads when the generator is running, thereby foregoing the need for additional power generation.
CONCERN
What If I Lease My Space?
Most of our customers lease their space, so this is not an issue: The landlord simply signs an form stipulating that Exergy owns the equipment, and the equipment is not considered a fixture of the property.
CONCERN
What If I’m Located in a Flood-Prone Area?
We check on potential environmental issues as part of our design and engineering and adapt accordingly. For flood prone areas, generators are installed on raised platforms to operate even if the area is flooded. It is important that all the other electrical systems, especially the service entrance equipment, has also been designed for flood tolerance.
CONCERN
What Do You Guarantee?
Exergy guarantees that only new equipment will be used, the equipment will be serviced and maintained according to the manufacturer’s requirements and specifications, and all parts will be from the manufacturer. Additionally, we are responsible for all grid communications, permit filings, reports, and meeting regulations.
CONCERN
What If the Power Quality Solution Doesn’t Work?
If our proposed solution fails to resolve your power quality issue, we will continue to work until it is resolved. Any additional labor and engineering required for such efforts is borne by Exergy.
CONCERN
How Quickly Will Someone Be On-Site to Perform Repairs?
Typically, a technician can be on-site the following day, unless you elected for a higher service-level agreement.
CONCERN
How Noisy Are Generators?
Generators are not whisper quiet; however, we utilize noise attenuating enclosures and will work closely with you to take advantage of natural noise abatement characteristics of your property. The following graph describes what you may hear with recognizable examples, and as a function of distance from the generator. Most generators have a noise level between 65 and 70 decibels at 20 feet.

CONCERN
Will The Generator Start Immediately So There Is No Downtime?
Generators do not start immediately; the Fast-Start generators take about 10 seconds to start before they take on load – you will go dark for roughly 10 seconds. Non-Fast Start generators take about 30 seconds to start and warm up before taking on load. Note: this is only relevant during grid outage, not when Exergy uses the generator to sell services to grid – when Exergy uses the generator for grid sales, we start the generator early and ramps it up fully before synchronizing the generator to the grid and transferring the load. Your operations will not be affected when the generator is used in this manner.
CONCERN
How Much Does It Cost To Run The Generator?
This depends on the fuel type and price, as well as the generator’s efficiency. As a very rough rule of thumb, a natural gas generator will cost between 8- and 12-cents per kWh, and a diesel generator will cost between 18- and 25-cents per kWh.
