Page 1 Reducing Emissions, Increasing Efficiency, Maximizing Profits Part 2: Is Recovery Profitable? p Savings associated with pressure reduction p Costs

Page 1Reducing Emissions, Increasing Efficiency, Maximizing Profits

Part 2: Is Recovery Profitable?Part 2: Is Recovery Profitable?

Savings associated with pressure reductionSavings associated with pressure reduction

Costs of manual and automated regulationCosts of manual and automated regulation

Economics of optionsEconomics of options

Discussion QuestionsDiscussion Questions


Steps to Identify OpportunitiesSteps to Identify Opportunities

Identify Excessive Leakage CharacteristicsIdentify Excessive Leakage Characteristics

Estimate Potential Pressure ReductionEstimate Potential Pressure Reduction

Estimate Volume of Gas Saved and O&M Savings Estimate Volume of Gas Saved and O&M Savings

Summarize Total Savings Summarize Total Savings

Compare the Cost of Pressure Reduction OptionsCompare the Cost of Pressure Reduction Options

Conduct Economic Analysis Conduct Economic Analysis


Excessive Leakage CharacteristicsExcessive Leakage Characteristics

Determine current operating characteristics of Determine current operating characteristics of your systemyour system Frequency and method of setting pressuresFrequency and method of setting pressures

Objective is to achieve the right balance Objective is to achieve the right balance between savings and costsbetween savings and costs Older systems with cast iron lines are more Older systems with cast iron lines are more

leak-prone and can benefit from continuous leak-prone and can benefit from continuous pressure adjustmentpressure adjustment

Newer systems with plastic lines are less leak-Newer systems with plastic lines are less leak-prone and may be more suitable for manual prone and may be more suitable for manual adjustmentadjustment


Set-Point/Demand RelationshipSet-Point/Demand Relationship

Estimate your system DR set-points Estimate your system DR set-points characteristics from peak demand and characteristics from peak demand and minimum meter calibration conditionminimum meter calibration condition

IDEAL SET POINT AS A FUNCTION OF AMBIENT AIR TEMPERATURE


Pressure ReductionPressure ReductionUsing Manual AdjustmentUsing Manual Adjustment


Pressure ReductionPressure ReductionUsing Automatic AdjustmentUsing Automatic Adjustment


Estimate Volume of Gas SavingsEstimate Volume of Gas Savings

Estimate gas leakageEstimate gas leakage

Estimate reduced gas leakageEstimate reduced gas leakage One Partner found leakage rate in their low pressure One Partner found leakage rate in their low pressure

system to be linearly proportional to system pressuresystem to be linearly proportional to system pressure Apply percent pressure reduction to leakage rate to Apply percent pressure reduction to leakage rate to

estimate gas savingsestimate gas savings


Maintenance Cost ReductionMaintenance Cost Reduction

Estimate Maintenance CostEstimate Maintenance Cost Average of 56 leaks repaired / mile / yearAverage of 56 leaks repaired / mile / year Average leak repair cost reported by Gas STAR partners is Average leak repair cost reported by Gas STAR partners is

$1,010 / leak repair (based on data from 19 companies)$1,010 / leak repair (based on data from 19 companies) Average leak repair cost reported by 1995 GRI/GTI study is Average leak repair cost reported by 1995 GRI/GTI study is

$1000 / repair (including costs to pinpoint leak and $1000 / repair (including costs to pinpoint leak and evacuate pipe)evacuate pipe)

Estimate Repair SavingsEstimate Repair Savings Percent leak reduction is linearly proportional to percent Percent leak reduction is linearly proportional to percent

pressure reductionpressure reduction 50% factor applied to relationship between % reduction in 50% factor applied to relationship between % reduction in

leaks and % reduction in system pressureleaks and % reduction in system pressure


Summarize Total SavingsSummarize Total Savings

Based on a hypothetical system delivering 1 Bcf/yr through 50 miles of cast iron, 25 Based on a hypothetical system delivering 1 Bcf/yr through 50 miles of cast iron, 25 miles of protected steel, 25 miles of plastic pipe; 10 district regulators; 10 low miles of protected steel, 25 miles of plastic pipe; 10 district regulators; 10 low pressure points.pressure points.


Compare the Cost of Pressure Compare the Cost of Pressure Reduction OptionsReduction Options

Increase frequency of manual DR adjustmentIncrease frequency of manual DR adjustment Primary cost is laborPrimary cost is labor

Install automatic control systemsInstall automatic control systems Capital costs: system hardwareCapital costs: system hardware Operating costs: communications and powerOperating costs: communications and power


Manual Adjustment CostsManual Adjustment Costs

Total implementation costTotal implementation cost Additional set point changes per regulator (3)Additional set point changes per regulator (3) Number of visits per set point change (4)Number of visits per set point change (4) Hours per visit (0.5)Hours per visit (0.5) Labor cost ($60/hr)Labor cost ($60/hr) Number of regulators adjusted (10)Number of regulators adjusted (10)

Manual adjustment cost exampleManual adjustment cost example Implementation cost = 3 x 4 x 0.5 x $60 x 10Implementation cost = 3 x 4 x 0.5 x $60 x 10 Total cost = $3,600/yrTotal cost = $3,600/yr


Is Recovery Profitable with Manual Is Recovery Profitable with Manual Adjustment?Adjustment?

Manual DR adjustment, annual to quarterlyManual DR adjustment, annual to quarterly


Compare the Cost of Pressure Compare the Cost of Pressure Reduction OptionsReduction Options

Based on GRI-93/0039 and “Methods and Benefits for Automation of DRsBased on GRI-93/0039 and “Methods and Benefits for Automation of DRs


Example: Automation Capital CostsExample: Automation Capital Costs

District Regulator

Low Pressure Point

10 Units 10 Units

$22,500 $22,500

$34,500 –

$26,000 $26,000

$83,000 $48,500

$83,000 $48,500

$24,500 $24,500

$20,000 $20,000

$210,500 $141,500

Source: GRI-93/0039 and “Methods and Benefits for Automation of DRs.”

Capital Costs for Automatic Pressure Control

Communications Equipment / Link

Total Capital Cost

Installation

Power Supply Connection

Enclosures, Mountings & Fittings

Total Hardware Cost:

Controller and Sensors Hardware

Pneumatics Hardware

Hardware:


Example: Automation Operating CostsExample: Automation Operating Costs

Power CostPower Cost DR and LPP power requirements (10 W)DR and LPP power requirements (10 W) Electricity cost ($0.06/kWh)Electricity cost ($0.06/kWh) System annual hours of operation (8,760)System annual hours of operation (8,760) Number of DRs and LPPs (10 + 10)Number of DRs and LPPs (10 + 10) Example cost = $105/yearExample cost = $105/year

Communication CostCommunication Cost Number of calls to reset controllers (2 per day)Number of calls to reset controllers (2 per day) Number of set point adjustments (365 days/year)Number of set point adjustments (365 days/year) Cost per call ($0.10/call)Cost per call ($0.10/call) Number of DRs and LPPs (10+10)Number of DRs and LPPs (10+10) Example cost = $1,460/yearExample cost = $1,460/year

Total Operating Cost = $1,565 per yearTotal Operating Cost = $1,565 per year


Automated DR adjustmentAutomated DR adjustment

Is Recovery Profitable with Automated Is Recovery Profitable with Automated Adjustment?Adjustment?


Discussion QuestionsDiscussion Questions

To what extent are you implementing this opportunity?To what extent are you implementing this opportunity?

Can you suggest other alternatives?Can you suggest other alternatives?

What additional information would you need for a better What additional information would you need for a better analysis of this opportunity?analysis of this opportunity?

What are the barriers (technological, economic, lack of What are the barriers (technological, economic, lack of information, regulatory, focus, manpower, etc.) that are information, regulatory, focus, manpower, etc.) that are preventing you from implementing this practice?preventing you from implementing this practice?

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Page 1 Reducing Emissions, Increasing Efficiency, Maximizing Profits Part 2: Is Recovery Profitable? p Savings associated with pressure reduction p Costs