Purchased Utilities and OMP Roundtable

UC Budget Conference

October 22-23, 2007Clif Bowen, Moderator

University of CaliforniaChange in Systemwide Purchased Utilities Costs

for State-Eligible Space (SOMP) and Budgeted OMP

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

99-00 00-01 01-02 02-03 03-04 04-05 05-06

Year

Per

cen

tag

e In

crea

se

1. Increase in State-EligibleSpace2. % Change in PU Costs

4. % Change in PU Costs($/GSF) 5. % Change in Budgeted OMP(in $M)

University of California Change in Natural Gas and Electricity Consumption and Expenditures

between 1999-00 and 2006-07 (with 1999-00 as baseline)

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

Year

Per

cen

tag

e (1

.00

= 10

0%)

Natural Gas Consumption (therms)

Natural Gas Total Expenditures

Electricity Consumption (kWh)

Electricity Total Expenditures

Maintained Gross Square Feet(MGSF)

University of CaliforniaCurrent 3-Year UC/IOU Partnership

• $16.5 million in projects• 49 projects• Of this total, $8 million covered by incentive grants (at $1/therm and

$.24/kWh) and $8.6 million financed by UC• Yielding:

– Avoided 32 million kWh/year – Avoided 1.8 million therms/year

• 22 MBCx projects included yielding: – Savings of 7.3 million kWh/year – Savings of 940,000 therms/year

• Of $3.7 million in project costs, $2.7 million was covered by incentive grants. UC contributions totaled $1 million (or 27.2% of total costs)

• Average payback period: a little over half a year

University of CaliforniaPolicy on Sustainable Practices

Clean Energy Standard:

“…As with renewable energy projects, the University will develop funding sources and establish a program for financing retrofit projects. The initial goal for energy efficiency projects will be to reduce systemwide growth-adjusted energy consumption by 10 percent or more by 2014 from the year 2000 base consumption level…”

(From March 22, 2007 revision of Policy on Sustainable Practices and implementation guidelines.)

University of CaliforniaProposed New IOU Partnership

Opportunity for significantly increased IOU funding for UC energy projects.

• IF UC can by June 2008 (March 2008 – preliminary findings):– Produce a Strategic Energy Plan (we’ve set aside $1.8 million from Enron

settlement)– Address internal barriers to timely implementation– Identify and commit central matching funding

• THEN IOUs would be prepared to fund up to $300 million over 6-year period starting in January 2009.

– UC matching funds of approximately $200 million ($33 million a year) at established partnership rates (currently $.24 per kWh and $1 per therm, with cap of 80% project value)

– Partnership consultant estimated a 10% reduction goal in 2014 would equal a reduction of 1300 million kWh, or up to $130 million per year in perpetual energy savings (in current dollars) for UC’s $200 million investment

– Potential inclusion of Municipal Utilities (to be negotiated)

University of CaliforniaState-Eligible Space By Building Type

(Small Buildings = < 20,000 gsf)

Complex, 46%

Small Basic, 9%

Basic, 42%

Small Complex, 3%

Basic

Small Basic

Complex

Small Complex

A survey of the 20 largest buildings at four UC campuses suggests that on average COMPLEX buildings use 2.2 times as much energy as BASIC buildings.

Basic

Small Complex

Small Basic

Relative Energy Used in Complex Buildings

University of CaliforniaBuilding Construction By Decade

(All Buildings in Blue and State-Eligible Buildings in Red)

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

pre-1900 1900-09 1910-19 1920-29 1930-39 1940-49 1950-59 1960-69 1970-79 1980-89 1990-99 2000-06

Decade of Construction

Gro

ss S

qu

are

Fee

t (O

GS

F50

)

Opportunities for energy retrofits of existing buildings:

58% of UC facilities were constructed before 1976

46% were built between 1950 and 1975

UCSB Natural Gas, Electricity and Water Consumption Percentage Change Between 1999-00 and 2006-07

(using 1999 as baseline)

-0.40

-0.35

-0.30

-0.25

-0.20

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07

Year

Per

cen

tag

e C

han

ge

(1.0

0 =

100%

)

Natural Gas Consumption(therms)

Electricity Consumption (kWh)

Water Consumption (ccf)

Maintained Gross Square Feet(MGSF)(in thousands)

UCLA’s Energy Conservation Initiative: Estimated Costs and Energy Savings

from Multi-Building HVAC System Upgrade

• Total Program Cost– Fan Subsystems 185 (in 25 buildings)– Cost per System $90,000– Total Program Cost $16.7 M

• Savings and Payback– Project Cost/SF $16.7 M/4,2 M SF $3.93/SF– Current Energy Cost/SF $4.10/SF– Projected Energy Savings 25% of $4.10/SF $1.02/SF– Projected Payback $3.93/SF/$1.02SF/YR 3.83 Years