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The City Council approved a $2 million contract Thursday with a nonprofit community energy company that is expected to install high-efficiency lighting equipment in 1,000 small businesses in Berkeley and Oakland.  

The program, funded by a grant from the California Public Utilities Commission, will be administered by the Community Energy Services Corporation, which has operated out of the city’s Housing Department since 1986. CESC will be expected to retrofit 700 small businesses in Berkeley and another 300 in Oakland with high efficiency lighting equipment by June 30, 2003. Businesses that take advantage of the program could save as much as 40 percent on their electricity bills. 

Currently CESC is assembling a group of technical experts and lighting design professionals to develop the program, which is expected to be available in January. 

“We’re going after non-residential and non-governmental businesses,” said city Energy Officer Neil De Snoo. “The ones that will benefit the most are the businesses that have long hours like book stores, some schools and laundromats.” 

He added that offices and restaurants could also benefit from the program. 

De Snoo said CESC will take a “one-stop shopping” approach to the program. The service will include a briefing on the potential savings, a cost analysis and installation of the equipment. 

“This will be designed to be as smooth and seamless as possible from the initial consultation to development of the businesses’ specifications to installation,” De Snoo said.  

The lighting retrofits are being aimed at businesses that are less than 10,000 square feet and use less than 20 kilowatts. De Snoo said the initial cost to business owners will be about 60 cents a square foot and that the typical business will recoup its investment in two years depending on energy rates.  

De Snoo said many businesses will be interested because they are using lighting systems that were installed years ago and are now outdated.  

CESC Director Nancy Hoeffer said business owners will be offered lighting schemes specifically designed to improve lighting for their businesses.  

“Retail businesses will have different needs than an office,” Hoeffer said. “We’ll look at what they have now and examine how we can provide them with the most efficiency, and the most savings.” 

Hoeffer said options for business owners will include daylight harvesting techniques which will take advantage of natural lighting as well as installation of technical equipment such as light sensors that can adjust electrical light according the amount of available natural light.  

“These lighting techniques not only save money but can improve worker productivity in offices and make products look better in retail outlets,” Hoeffer said.  

Councilmember Linda Maio said Berkeley was lucky to get such a large grant and she expects businesses to make use of the program: “I think businesses will feel well-served by the saving they will get in the long run, and it will save energy, which will help to reduce global warming. It’s a perfectly wonderful thing.” 

Mayor Shirley Dean said she expects the program to be popular with small business owners despite the widespread worries about the downturn in the economy.  

“This is a great program,” Dean said. “I think business owners are going to be careful because of the current economic environment, but the fact remains that anything that saves money in the current economic environment is a good thing to do.” 

Downtown Business Association Director Deborah Bahdia agreed. “We think there will be a lot of businesses interested in this program,” Bahdia said. “I have already spoken with at least two business owners that are very interested.” 

Bahdia said that the length of a business owners lease will be a key factor is selling the high-efficiency lighting systems. She said there will be little incentive for business owners who are unsure if they will be in the same location for less than two years. 

Hoeffer said that businesses which are secure in their leases can’t go wrong with investing in energy-efficient lighting. She said that after two years, businesses will recoup their investment and begin to see a return. 

“There are so many ways that businesses have to shell out capital, but this is one of the best ways because where else can you get a 40 percent return on your money?” Hoffer said.  

Marc Weinstein, owner of Amoeba Records said he installed what was considered high-efficiency lighting in his Telegraph Avenue record store 10 years ago. 

“I don’t know if they can reduce my electrical output but it they say they can save me money I’m willing to listen,” he said.