Top Ten Energy Saving Ideas for Local Government Facilities Presentation to GGFOA Annual Conference 2004 by Wayne Robertson, PE Energy Ace, Inc.
Energy Ace, Inc.
Investments in Energy Efficiency
Among the Best an Owner can Make With Costs Rising, more and more Owners are recognizing this Two Ways to Save Money on Energy – Use Less and Pay Less “Use Less” means energy conservation “Pay Less” means utility rate optimization © Energy Ace, Inc. 2004
Energy Awareness Back in Style
Energy is largest line item in typical office building’s operating budget “Electricity costs near 20-year highs” headline in USA Today last summer
Chart Data from www.eia.doe.gov/emeu/steo/pub/tab shtm.html
Cost of Electricity, Residential, in cents per kWh, 1990-2004 8.8 8.6 8.4 8.2 8 7.8 7.6 7.4 1
2
3
4
5
6
7
8
9
10
11
12
13
Average Compound Interest Rate = 0.68%
© Energy Ace, Inc. 2004
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Back in Style, Cont’d
Natural Gas prices at very high levels and likely to remain so, says Fed chairman Alan Greenspan
Cost of Natural Gas, Residential, $/CCF, 1990-2004 12
10
8
6
4
2
0 1
2
3
4
5
6
7
8
9
10
11
12
13
Average Compound Interest Rate = 3.8%
© Energy Ace, Inc. 2004
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Energy Issues
Energy Costs Rising – Ga Power received a fuel cost increase in 2003, has applied for a rate increase this year and expects to ask for another fuel cost increase next year. – Gas Prices have been rising and are at long term highs.
At the same time, budgets are being cut © Energy Ace, Inc. 2004
© Energy Ace, Inc. 2004
Energy Programs for Cities & Counties
Only Two Ways to Save Money on Energy Expenses – Pay less --- be sure you are on the best rates possible – Use less --- reduce waste, improve efficiencies
Here’s our Top Ten ideas to help you with both © Energy Ace, Inc. 2004
Top Ten Ideas for Saving Energy Dollars
© Energy Ace, Inc. 2004
Number Ten – Go To Sleep Put your computers to sleep. EPA estimates that if you have 1,000 monitors in your facilities you could save $17,000 a year with their free software.
http://www.energystar.gov/index.cfm?c=power_mgt.pr_power_man agement
© Energy Ace, Inc. 2004
Number Ten – Go To Sleep EZ Save is a free centrally-administered software tool distributed by the EPA that: Polls monitors on a network to determine each monitor's power management settings Generates reports on the result of the polling Sets appropriate power management settings on monitors on the network Sets appropriate screen saver settings on monitors on the network so that users retain screen saver images Requires no special processes on the network, no special hardware, and no client installations Uses the existing power management functionality in Windows (95/98/ME/2000/XP) © Energy Ace, Inc. 2004
Number Nine – Flushing Money Stop Flushing Money Many water utilities will let you meter your cooling tower makeup water and deduct that from your sewage bill.
© Energy Ace, Inc. 2004
Number Nine – Flushing Money How much you can save depends on how many cooling towers you have, and their sizes. Figure on better than a 6 month payback.
© Energy Ace, Inc. 2004
Number Eight – Cool It! (in Winter)
Lower Temps in Winter, Raise them in Summer (cautiously, beware of reheat) 1 degree change may save 3% in small buildings Make Changes Gradual ASHRAE says at normal comfort setpoints 5% of people are not comfortable – Some too hot, some too cold – Impossible to please everybody at once! © Energy Ace, Inc. 2004
Number Seven – Delamp Overlit Spaces
Delamping - the removal of some fluorescent lamps from existing fixtures Measure light levels to determine if delamping is feasible Rule of Thumb: have at least 2 4-ft lamps per 64 sq ft Also disconnect the unused ballast © Energy Ace, Inc. 2004
Number Seven – Delamp Overlit Spaces Target Light Levels Office, Administration, Classrooms – 50 fc Bathrooms, Stairwells – 15 fc Dining, Corridors, Library – 30 fc Computer Labs – Keyboards 30 fc but monitors 3 fc! © Energy Ace, Inc. 2004
Number Six – Burning the Midnight Oil Tired of seeing the lights on all the time in your facilities? New technology has made Occupancy Sensors highly reliable, and lighting timers are effective, too.
© Energy Ace, Inc. 2004
Number Six – Burning the Midnight Oil
Coach your janitorial and office staff to turn off lights when they leave In planning new projects, specify lighting schedule control devices (required by energy code) Be sure your outdoor lighting is photocell controlled © Energy Ace, Inc. 2004
Number Five – DHW Tricks
Turn off Domestic Hot Water (DHW) in general restrooms Turn down DHW temps
– Handwashing – recommended 105F, code max is 110F – Showers – recommended 110F – Dishwashing - > 160F
Put Timeclocks on any circ pumps If electric DHW, time out during peak electric periods © Energy Ace, Inc. 2004
Number Four – Easy Money
Lighting Retrofits – usually fast paybacks Motors > 7.5 Hp – replace with high-e when burned out; do not rewind Controls – BAS, lighting, timeclocks, photocells – anything that will “turn it off” if people won’t © Energy Ace, Inc. 2004
Number Three Benchmarking
Benchmarking your buildings can be very instructive. How do your buildings rank relative to those of your peers? Is, say, $1.20/SF/yr pretty good or “needs improvement?” Why benchmark? – if your buildings are using less energy than similar buildings elsewhere, you’d like to know that what you’re doing is making a difference. – If they are doing poorly, you’d like to know that, too, so you can look for opportunities to improve.
© Energy Ace, Inc. 2004
Number Three Benchmarking
Some energy benchmarking tools are DOE’s EIA, BOMA’s EER and EPA’s Energy Star. – With Energy Star, for example, you enter energy consumption information and building data and the program computes your buildings rank and an Energy Star target. Go to http://208.254.22.7/index.cfm?c=business.bus_i ndex – EIA data can be found at http://www.eia.doe.gov/emeu/cbecs/contents.ht ml.
© Energy Ace, Inc. 2004
Ja n0 M 0 ar -0 M 0 ay -0 Ju 0 l-0 Se 0 p0 N 0 ov -0 Ja 0 n0 M 1 ar -0 M 1 ay -0 Ju 1 l-0 Se 1 p0 N 1 ov -0 Ja 1 n0 M 2 ar -0 M 2 ay -0 Ju 2 l-0 Se 2 p0 N 2 ov -0 Ja 2 n0 M 3 ar -0 M 3 ay -0 Ju 3 l-0 Se 3 p0 N 3 ov -0 3
Number Three – Benchmarking Benchmark Yourself 160
140
120
100
80 UL kWh Student Ctr kWh Linear (Student Ctr kWh) Linear (UL kWh)
60
40
20
0
© Energy Ace, Inc. 2004
Number Two – Learn How to Read (a utility bill)
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Number One – Pick the Low Hanging Fruit
Utility Rates Analysis - Savings that can be achieved without capital outlays – Best Rates – Billing Errors – Understand how Rate Schedules Work – Identify Simple Operational Changes that provide rapid savings © Energy Ace, Inc. 2004
Number One – Pick the Low Hanging Fruit
Electric Rates – SLM – RTP
Gas Rates – Consider the State Plan
© Energy Ace, Inc. 2004
Cornucopia of Rates
Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate
1 Residential Service 1H Residential Service - Add On Heat Pump Customers 1DR Residential Service - Time of Day 3 Residential Water Heating Service 6 General Service 6L Large General Service 10 Commercial Water Heating Service 14 Residential Service - Space Heating Customers 18 Standby Service 23 Municipal Street Lighting 24 Water-Supply and Sewage Pumping Service 25 Street, Highway and Traffic Signal Lighting 26 Private Outdoor Lighting 87 Governmental Service - Certain Rockford Customers ST Short Term Industrial Development Service CS Contract Service RTP Real Time Pricing (Experimental) HEP Hourly Energy Pricing IPP Independent Power Producer Service RCDS Retail Customer Delivery Service – Nonresidential CTC Customer Transition Charge PR Partial Requirements Contract Service RESS Retail Electric Supplier Service MSPS Metering Service Provider Service © Energy Ace, Inc. 2004
Cornucopia of Riders
Rider 2 Electric Line Extensions Rider 3 Qualified Solid Waste Energy Facility Purchases Rider 4 Parallel Operation of Customer's Generating Facilities Rider 6 Optional or Non-Standard Facilities Rider 7 Meter Lease Rider 8 Allowance for Customer-Owned Transformers Rider 9 Primary Metering Rider 11 Service at 69,000 Volts or Higher Rider 12 Conditions of Resale or Redistribution of Electricity by the Customer to Third Persons Rider 13 Governmental Pumping Service Rider 14 Water Heating Service Billing Adjustment Rider 16 Franchise Cost Additions Rider 19 Industrial Development Rider 21 Renewable Energy Resources and Coal Technology Development Assistance Charge and Energy Assistance Charge for the Supplemental Rider 23 Municipal and State Tax Additions
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Rider 25 Electric Space Heating. Rider 26 Interruptible Service. Rider 27 Displacement of Self-Generation Rider 28 Local Government Compliance Clause Rider 30 Interruptible/Curtailable Service Rider 31 Decommissioning Expense Adjustment Clause Rider 32 Curtailable Service Cooperative Rider AC Residential Air Conditioner Load Cycling Program Rider CB Consolidated Billing (Experimental) Rider FACR94 1994 FAC Reconciliation Rider FACR96 1996 FAC Reconciliation Rider FCR Fuel Cost Refund Rider GCB Governmental Consolidated Billing Rider IFC Instrument Funding Charge Rider ISS Interim Supply Service Rider PPO Power Purchase Option – Market Index Rider SBO Single Bill Option Rider TS Transmission Services Rider VRS Voluntary Resource Sharing Low-Income Energy Assistance Fund
Typical Power & Light Schedule Components
Service Charge (usually a fixed charge) Energy Charge (per unit, kWh) Demand Charge (per kW, actual or “billed”) Power or Fuel Cost Adjustment (usually per unit, kWh) Power Factor Charge Sales Tax © Energy Ace, Inc. 2004
Sample Power & Light Rate
MONTHLY RATE I. Basic Customer Charge: $500.00 II. kW Demand Charge: – $11.25 per kW for the first 5,000 kW of Billing
Demand – $10.25 per kW for the next 5,000 kW of Billing Demand – $ 9.25 per kW for all over 10,000 kW of Billing Demand
III. kWh Energy Charge: 3.629¢ per kWh © Energy Ace, Inc. 2004
Sample Electric Bill - One Months’ Data
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Two Years’ Data
© Energy Ace, Inc. 2004
Better Way to View Data - Table Form Date
Peak kW Demand
Bill Demand
Total kWh
Electric Service Total
Jan-01
2,117
1,750
1,257,152
$54,627
Feb-01
2,121
1,750
1,032,585
$49,488
Mar-01
2,273
1,750
1,173,139
$52,696
Apr-01
1,884
1,750
1,054,004
$50,038
May-01
1,850
1,750
1,055,697
$50,066
Jun-01
1,965
1,965
1,106,580
$54,268
Jul-01
1,813
1,866
1,008,725
$44,273
Aug-01
1,751
1,866
1,026,022
$51,091
Sep-01
1,742
1,866
1,009,120
$50,653
Oct-01
1,854
1,866
919,023
$48,347
Nov-01
1,929
1,866
1,201,173
$55,305
Dec-01
1,860
1,866
1,007,939
$50,586
© Energy Ace, Inc. 2004
Chart View, ABC Building Electric Use, 2001 & 2002 1,400,000
2,500
1,200,000 2,000 1,000,000 1,500 kW 600,000
1,000
400,000 500 200,000 0
0
Ja n0 M 1 ar -0 M 1 ay -0 1 Ju l-0 Se 1 p0 No 1 v0 Ja 1 n0 M 2 ar -0 M 2 ay -0 2 Ju l-0 Se 2 p0 No 2 v02
kWh
800,000
Peak kW Demand
© Energy Ace, Inc. 2004
Total kWh
Chart View, XYZ Building Electric Use, 2001 & 2002 1,600,000
3,500
1,400,000
3,000
1,200,000
2,500
1,500
600,000
1,000
400,000
500
200,000 0
0
Peak kW Demand
© Energy Ace, Inc. 2004
Total kWh
kW
2,000
800,000
Ja n0 M 1 ar -0 M 1 ay -0 1 Ju l-0 Se 1 p0 No 1 v0 Ja 1 n0 M 2 ar -0 M 2 ay -0 2 Ju l-0 Se 2 p0 No 2 v02
kWh
1,000,000
Data Behind the Data - Interval Data, Week
© Energy Ace, Inc. 2004
Zoom Further In - Interval Data, Day
© Energy Ace, Inc. 2004
Two Common Mistakes
Mistaking Peak Demand for Bill Demand Using Average Costs in Energy Computations
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The Ratchet - Bill Demand vs. Peak Demand
A clause that computes a “billing demand’ which is a percentage of the highest KW demand of the preceding 11 months. Example – “The Billing Demand shall be the maximum kW
registered or computed, by or from Company's metering facilities, during any 15-minute interval within the current billing month. However, the Billing Demand shall not be less than the greater of: (1) 80% of the maximum monthly 15minute demand during the billing months of July through October of the preceding 11 billing months, or (2) 60% of the maximum monthly 15-minute demand during the billing months of November through June of the preceding 11 billing months, or (3) 75% of the Contract Demand until such time as the Billing Demand first equals or exceeds the effective Contract Demand, or (4) 1,000 kW.”
© Energy Ace, Inc. 2004
Another Example of The Ratchet
“The Billing Demand shall be based on the highest 30-minute kW
measurement during the current month and the preceding eleven (11) months. For the billing months of June through September, the Billing Demand shall be the greatest of: – (1) The current actual demand, or, – (2) Ninety-Five percent (95%) of the highest actual demand occurring in any previous applicable summer month (June through September), or, – (3) Sixty percent (60%) of the highest actual demand occurring in any previous applicable winter month (October through May). For the billing months of October through May, the Billing Demand shall be the greater of: – (1) Ninety-Five percent (95%) of the highest summer month (June through September), or, – (2) Sixty percent (60%) of the highest winter month (October through May), including the current month. – In no case shall the Billing Demand be less than the greatest of: – (1) The contract minimum, or, (2) Fifty percent (50%) of the total contract capacity, or, (3) 500 kW.” © Energy Ace, Inc. 2004
Illustration of The Ratchet Bill Demand in Action Peak Demand vs Billing Demand, 2001 & 2003 2,500 2,000 1,500 1,000 500
Peak kW Demand
© Energy Ace, Inc. 2004
Bill Demand
Dec-02
Nov-02
Oct-02
Sep-02
Aug-02
Jul-02
Jun-02
May-02
Apr-02
Mar-02
Feb-02
Jan-02
Dec-01
Nov-01
Oct-01
Sep-01
Aug-01
Jul-01
Jun-01
May-01
Apr-01
Mar-01
Feb-01
Jan-01
0
Average Costs vs. Marginal Costs
For the ABC Building the Average Cost/kWh of electricity is 4.8 cents This value is easily computed but wrong to use. Why is it wrong? Because most rate tariffs are “declining block” schedules – the more you use, the less you pay © Energy Ace, Inc. 2004
Average Costs vs. Marginal Costs
ABC Building - the Marginal Cost/kWh of electricity is 2.5 cents, not 4.8 Less easily computed and often not used or not understood. Use of Average Costs results in overstatement of savings – A project that seems to have a 3 year payback using avg costs actually has nearly a six year payback © Energy Ace, Inc. 2004
Computing Marginal Costs
Sometimes Straightforward – Sample Rate – I. Basic Customer Charge: $500.00 – II. kW Demand Charge:
$11.25 per kW for the first 5,000 kW of Billing Demand $10.25 per kW for the next 5,000 kW of Billing Demand $ 9.25 per kW for all over 10,000 kW of Billing Demand
– III. kWh Energy Charge: 3.629¢ per kWh
To the Energy Charge add any other costs that vary with consumption – e.g., sales tax, fuel cost recovery factors Engineering judgment required to decide if demand is affected. © Energy Ace, Inc. 2004
Computing Marginal Costs Sometimes obscure
Excerpt from a Sample Rate:
– All consumption (kWh) not greater than 200 hours times the billing demand: – First 3,000 kWh ............................................ 10.099¢ per kWh – Next 7,000 kWh ............................................. 9.186¢ per kWh – Next 190,000 kWh ......................................... 7.860¢ per kWh – Over 200,000 kWh.......................................... 6.096¢ per kWh – All consumption (kWh) in excess of 200 hours and not greater than 400 hours times the billing demand ................................. 1.040¢ per kWh – All consumption (kWh) in excess of 400 hours and not greater than 600 hours times the billing demand ...................................... 0.822¢ per kWh – All consumption (kWh) in excess of 600 hours times the billing demand ............................................................... 0.594¢ per kWh
Derive marginal costs by performing a complete computation, then rerun using a lower kWh consumption value. © Energy Ace, Inc. 2004
City of Atlanta Case Study
© Energy Ace, Inc. 2004
City of Atlanta Results
City Hall – received a credit of nearly $20,000 by eliminating contract minimum demand Building at Atlanta Airport – credit of $44,000 from being on a wrong rate © Energy Ace, Inc. 2004
City of Atlanta Results
Civic Center – changed rate from Standard Power & Light (PL) to Time of Use, saving about $37,000 a year
© Energy Ace, Inc. 2004
City of Atlanta Results
City Hall East – Discovered a billing error that led to a credit of $101,000 Reduced the “Customer Base Line” yielding savings of $130,000 a year © Energy Ace, Inc. 2004
City of Atlanta Findings
Diminishing Returns – the largest buildings dominated the energy use profile
© Energy Ace, Inc. 2004
City of Atlanta
Water and Wastewater Plants biggest energy users by far! These profiles are typical for government facilities
© Energy Ace, Inc. 2004
College in South Carolina Water Consumption 2000 to 2004 70,000 60,000
Gallons
50,000 40,000 30,000 20,000 10,000
Jan-04
Oct-03
Jul-03
Apr-03
Jan-03
Oct-02
Jul-02
Apr-02
Jan-02
Oct-01
Jul-01
Apr-01
Jan-01
Oct-00
Jul-00
Apr-00
Jan-00
0
Water Leak Discovered from 200 miles away Credit of $48,000 for sewer charges © Energy Ace, Inc. 2004
Analyzing Utility Rates
Can be a Tricky Business Can be a Rewarding One Understanding Electric Rate Schedules – Dull but Profitable Work Closely with your Electric Utility Rep to identify rate options, riders and alternatives Discuss plant-side changes; solicit their advice Do Same with Gas and Water © Energy Ace, Inc. 2004
More Information
Get our free Energy Ace Newsletter More Energy Tips on our website, www.energyace.com This presentation will be posted to our website
© Energy Ace, Inc. 2004
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Bonus - Planning New Facilities - Energy Aspects
Energy Master Planning – Shared heating/cooling plants – Gas vs. Electric Choices
Establish Energy Goals – To assure energy efficiency – Perform trade-off studies and LCCA to select best systems
Develop Energy Budget – Project operating costs © Energy Ace, Inc. 2004
Planning New Facilities
Consider Your Options – gas vs. electric, summer boilers, winter chillers Don’t Overlook Customer Choice Opportunities Don’t Get Caught with your Standards Down – new energy code last year and newer ones on the way © Energy Ace, Inc. 2004
Planning New Facilities
- Environmental Aspects
Green, Sustainable Design Design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants in five broad areas: 1. 2. 3. 4. 5.
Sustainable site planning Safeguarding water and water efficiency Energy efficiency and renewable energy Conservation of materials and resources Indoor environmental quality © Energy Ace, Inc. 2004
Be a LEEDer - Green Building Design Means Energy
Efficiency Environmental Considerations Good Public Relations Reduced Operating Costs Lower Life Cycle Costs Does not have to be LEED™ but LEED™ is the generally accepted standard
© Energy Ace, Inc. 2004
Comprehensive Energy Management Program 1. 2. 3.
4.
Utility Rates Analysis to assure best prices are being paid Energy Audits to identify building retrofit opportunities Monthly Utility Review – collect and analyze energy use data for benchmarking and for good energy management A Plan for energy efficiency and sustainable design in new projects © Energy Ace, Inc. 2004
More Information
Get our free Energy Ace Newsletter More Energy Tips on our website, www.energyace.com This presentation will be posted to our website
© Energy Ace, Inc. 2004
