Energy Management

JCPenney has invested more than $120 million to install energy management technology, lighting retrofits and high-efficiency heating, ventilation and air-conditioning (HVAC) systems in our stores. We continue to pursue a variety of other energy conservation programs and work to engage our 150,000 Associates to seek out innovative ways to save energy.

In 2008, these combined efforts resulted in year-over-year elimination of approximately 80 million pounds of greenhouse gas emissions by reducing energy use across our facilities. Energy consumption essentially remained flat with 2007, even though we opened 35 new stores. At the end of 2008, more than 800 stores were equipped with an Energy Management System, which provides remote monitoring of the store’s electrical and mechanical systems, schedules the operation of lighting and HVAC equipment, monitors store comfort levels and identifies opportunities for saving energy. More efficient lighting was installed in 74 stores in 2008, saving more than 10 million kWh annually of electricity and reducing CO2 emissions by more than 14 million pounds.

 

In our pilot Advanced Energy Management (program, advanced metering systems are installed in selected facilities that provide daily reports of electricity usage broken down into 15 minute intervals. The data provides clear visibility into electricity usage patterns and has helped to identify opportunities for substantial savings in utility expenses and reduced emissions. We expanded the AEM pilot project to an additional 27 stores in 2008 and expect to grow the number of stores with AEM to more than in 2009.

Stores are encouraged to designate an Energy Captain, an Associate who takes responsibility for monitoring energy usage data, identifying opportunities for improvement and promoting energy-saving efforts throughout the store. A Company-wide campaign, Monthly Utility Mania, rewards stores and other units for developing energy-saving solutions and promoting energy conservation.

MUM has evolved from a one-month effort to a year-round communication and action campaign. The MUM program has yielded a variety of suggestions from Associates, including converting light bulbs in display lamps on the selling floor to compact fluorescents and installing occupancy sensors on lunchroom drink machines so the compressors cycle off at night.