On-Site Energy Manager Pilot

Phipps Housing Services

FSG Role

  • Consulting Engineer

Organization Type

  • Non-Profit Housing

Timing

  • Complete July 2027

Construction Cost

  • TBD

Target Energy Savings

  • 10% in both electricity and natural gas

Building Type

  • Mid- and High-Rise

  • Commercial

Size

  • 31 buildings

  • 1,548,046 square feet

  • 1,458 dwelling units

Existing Conditions

  • Manual systems for operations and maintenance

  • Hydronic boilers, baseboard fintube, PTAC, make-up air

  • Mixed lighting from T8 & CFL to LED

  • Insulation per Code

  • Standard aerators, showerheads

Overview

Phipps Houses Services Inc. (PHSI), with support by Facility Strategies Group (FSG), is partnering with NYSERDA’s On-site Energy Manager (OsEM) Program to strengthen its energy management practices and reduce utility consumption across its residential portfolio. PHSI, a leading nonprofit provider of affordable housing, owns and operates a diverse portfolio of residential and commercial buildings across the city. With rising energy costs and increasing pressure to decarbonize the built environment, Phipps recognized the opportunity to align its operational goals with long-term sustainability outcomes. Through the OsEM initiative, the organization committed to a 24-month engagement that brings in external expertise to identify savings opportunities and build internal capacity.

The project focuses on achieving a 10% reduction in both electricity and natural gas usage across targeted properties by implementing low-cost, high-impact operations and maintenance (O&M) measures. In addition to near-term energy and cost savings, the initiative lays the groundwork for future electrification and carbon reduction strategies. The OsEM will support planning efforts related to transitioning from fossil fuels, improving system efficiency, and exploring opportunities for electrification of space heating, water heating, and appliances. By embedding energy management expertise within its organization, Phipps is taking a proactive approach to improving resident comfort, lowering long-term operating costs, and advancing its mission of providing high-quality, sustainable affordable housing.

Approach and Methodology

Of the PHSI portfolio, a cluster of 31 buildings located in the Bronx were selected for the OsEM program due to their proximity as well as age ranges. The engagement was designed in two phases. In the first 15 months, FSG personnel is leading energy management activities. In the final 9 months, responsibilities will transition to an in-house energy manager hired and trained through the program. This structure ensures continuity, knowledge transfer, and institutionalization of energy management practices.

The set energy reduction targets for the project include 10% for both electricity and natural gas across participating buildings. These savings will be achieved through operational and maintenance-based improvements, such as:

  • Conducting walkthrough audits and revising maintenance protocols

  • Adjusting hydronic heating and domestic hot water boiler operation

  • Installing high-efficiency aerators and showerheads

  • Replacing lamps with LEDs and repairing or adding lighting controls

A cross-functional internal energy team was formed to support planning and execution. Regular meetings and monthly check-ins with NYSERDA ensure accountability and alignment. Training for facility staff and building operators further reinforces best practices and enables a smoother transition to internal management.

The OsEM program is implemented through a structured, phased approach that combines external expertise with internal resources to drive energy savings and build organizational capacity. Key elements of the approach include:

  • Walkthrough Audits: Comprehensive audits across properties to identify low-cost operational improvements and potential upgrades, focusing on lighting, heating, water use, and controls.

  • Energy Management Plan: A living plan developed early in the engagement, setting clear, measurable targets for electricity and natural gas reductions and outlining best practices such as optimizing setpoints, upgrading lighting, repairing controls, and preventive maintenance.

  • Energy Tracking and Monitoring: An energy tracking system collects and analyzes utility and operational data to support transparent reporting and data-driven decision-making.

  • Cross-functional Team Meetings: Monthly meetings with a cross-functional energy team facilitate ongoing communication, progress monitoring, and prioritization of energy-saving actions.

  • Measurement and Verification (M&V): A robust M&V strategy quantifies energy savings, verifies results, and informs continuous improvement throughout the engagement.

  • Transition to In-house Energy Manager: The program transitions responsibility from the FSG consultant to a dedicated in-house PHSI energy manager to sustain momentum and align with broader decarbonization and electrification goals.

This approach balances immediate operational improvements with strategic planning, helping to future-proof Phipps’ housing portfolio while achieving meaningful energy and carbon reductions.

Deliverables

The deliverables include a comprehensive Energy Management Plan within the first three months, outlining strategies to achieve a 10% reduction in electricity and natural gas use. This living document will guide implementation and be updated quarterly. An energy tracking and monitoring system will be established to measure performance using utility data and maintenance records, supported by a Measurement & Verification (M&V) plan based on industry standards. Progress will be documented through required quarterly and final reports submitted to NYSERDA.

Throughout the engagement, FSG and Phipps will maintain a cross-functional energy team, conduct monthly meetings, and carry out regular walkthrough audits to identify energy savings opportunities. Training sessions will be held for facilities staff to reinforce O&M best practices. Reports will summarize identified measures, including potential capital and electrification projects. At project close, FSG & Phipps will submit a final report, case study, and roadmap to NYSERDA to support knowledge-sharing and long-term adoption of energy management strategies.