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We help the best buildings in the world get that way.
LDD WorkshopEnergy 101
2008
We help the best buildings in the world get that way.
Special thanks to our workshop sponsors
Energy 101
Workshop Objective
• Introduce the global perspective on energy economics.
• Identify what this means for your organization.• Begin to understand your energy bills.• Understand the impact of your energy use.• Consider a plan to manage your energy use.
Energy 101
A Global Perspective
• Global energy demand• Hubbert theory of fossil fuel supply• How will this affect future costs?
Past history is the best predictor of future performance.
Energy 101
Energy 101
Energy 101
Energy 101
Energy 101
What Does This Mean?
• Energy demand is growing• Increased reliance on fossil fuels• New discoveries fuel production• Production must meet growing demand
Energy 101
Individual Oil Well Production
One oil well acts with a long, fairly stable plateau
-Source: diagrammatic
Energy 101
Hubbert Curve: Four Oil Wells
Four wells begin to create a smooth curve
-Source: diagrammatic
Energy 101
Hubbert Curve: Eight Oil Wells
Eight wells smoothes the curve more
-Source: diagrammatic
Energy 101
Time
Idealized Hubbert Curve
Am
ount
The Hubbert Model
Hundreds or thousands of oil wells would ideally look like a bell curve
Energy 101
The Hubbert Curve
Fossil fuel discoveries• Exponential growth• Peak numbers reached• Discoveries begin declining
Fossil fuel production• Wells are drilled – technology improves• Production increases• Peak output is reached• Production begins declining
Energy 101
Discovery Production
Time
Idealized Discovery and Production Curves
Am
ount
The Hubbert Model
Discovery fuels the production
Energy 101
US Oil Production
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1946 1956 1966 1976 1986 1996 2006
Thousa
nd B
arr
els
Per
Day
Source: Energy Information Administration – www.eia.doe.gov
Oil Crisis
1970s oil production began to fall…what happened?
Energy 101
Pennsylvania Coal ProductionA need for alternate sources!
Energy 101
US Natural Gas Production
Source: Energy Information Administration – www.eia.doe.gov
0
50
100
150
200
250
300
350
400
450
500
1946 1956 1966 1976 1986 1996 2006
Thousa
nd C
F per
Day
Similar trend in natural gas
Energy 101
Don’t see electric – It is a by-product of other fuels!
Energy: Important to Our Economy
Energy 101
Fuel Price Escalations are Real
Price Summary
2004 2005 2006 2007 17% 33% 50%
Coal Anthracite 58.96 70.37 78.41 92.89 19.35% 11.43% 18.47% 16.29%
Coal Bituminous 47.09 47.1 46.23 85.95 0.02% -1.85% 85.92% 42.35%
Dieselc ($/gal) 1.81 2.41 2.81 2.78 33 16.5 -1 10.56%
Electric 5.87 5.81 5.97 6.02 -1.02% 2.75% 0.84% 1.15%
Gasolineb ($/gal) 1.85 2.27 2.65 2.66 22.7 17 0.3 9.62%
Heating Oild ($/gal) 1.54 2.04 2.42 2.46 32.5 18.5 1.8 12.53%
Natural Gasd ($/mcf) 10.75 12.82 13.88 13.39 19.3 8.3 -3.5 4.27%
Propane 60.11 73.51 92.12 101.87 22.29% 25.32% 10.58% 17.44%
WTI Crudea ($/barrel) 41.44 56.49 69.75 70.38 36.3 23.5 0.9 14.38%
c On-highway retail. d Residential average.
Year
a West Texas Intermediate. b Average regular pump price.
AnnualIncrease
19.2%27.5%36.5%0.9%
22.3%37.0%14.9%23.2%23.3%
Energy 101
Real Budget ImplicationsCurrent Condition
Annual Use Annual Cost 2008 2009 2010 2011 2012 2013 2014Increase Escalation Cost
Facility FuelsElectric 0.0% 3.2% 215,000$ 221,880$ 228,980$ 236,308$ 243,869$ 251,673$ 259,727$
Natural Gas 0.0% 18.7% 140,000$ 166,180$ 197,256$ 234,142$ 277,927$ 329,899$ 391,591$
Coal 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Propane 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Fuel Oil 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Water Sewer 0.0% 1.1% 16,000$ 16,176$ 16,354$ 16,534$ 16,716$ 16,900$ 17,085$
Garbage 0.0% 8.2% 8,500$ 9,197$ 9,951$ 10,767$ 11,650$ 12,605$ 13,639$
Facility MaintenanceService Contracts 0.0% 7.5% 85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$
Material & Parts 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Vehicle FuelsDeisel 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Gasoline 0.0% 20.6% 3,800$ 4,583$ 5,527$ 6,665$ 8,038$ 9,694$ 11,691$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Vehicle MaintenanceService Contracts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$
Material & Parts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
383,300$ 418,016$ 458,068$ 504,416$ 558,201$ 620,772$ 693,733$
85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$
Facility & Vehicle Budget 468,400$ 509,498$ 556,411$ 610,136$ 671,849$ 742,944$ 825,068$
Total Budget 5,634,962$ 5,894,170$ 6,165,302$ 6,448,906$ 6,745,556$ 7,055,851$ 7,380,420$ Millage Value 2,997,310$ 3,057,256$ 3,118,401$ 3,180,769$ 3,244,385$ 3,309,272$ 3,375,458$ Facility & Vehicles
% of Budget 8.3% 8.6% 9.0% 9.5% 10.0% 10.5% 11.2%Millage Required 0.16 0.17 0.18 0.19 0.21 0.22 0.24
Energy Budget
Maintenance Budget
4.6%2.0%
Typical Escalation
Energy 101
Facility & Vehicle Budgeting
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
2006 2008 2010 2012 2014 2016 2018 2020
Fiscal Year
An
nu
al
Ex
pe
nd
itu
re
Reactive Condition
Proactive Reduced Expense
Return to Energy Costs of Five Years AgoHow do you make it happen?
Energy 101
What can be done to prepare for the reality of higher fuel costs?
• Reduce consumption? How much?• Raise budgeted allocation? Increase taxes?• Develop a strategic plan!!!!
Implications??
Energy 101
Any Guesses?• Coal• Oil• Natural Gas• Wind generated electricity
Can these be leveraged in your plan?
What Energy Sources Come from Pennsylvania?
Energy 101
• Understand what is HYPE vs. REALITY.• You need to be able to communicate your situation.• Work towards developing a Strategic Energy Plan.• Need to gain an understanding of what we are going
to manage!!!!
Starting a Process to Take Control
Energy 101
How Well Can You Define Your Situation?
Better Question: How well can you communicate your situation?
Energy 101
Beginning in 2010, the five electric companies that serve 85 percent of the state’s electric customers have all but guaranteed they will increase customers’ bills by as much as 50 percent …The impending 2010 expiration of rate caps, projected to cause electric bills to jump by at least 30 percent, is getting attention in Harrisburg and has local political hopefuls talking.
This week, state Rep. Camille “Bud” George, D-Clearfield, and state Sen. Lisa M. Boscola, D-Bethlehem, met with Gov. Ed Rendell to persuade him to consider extending the rate caps. Boscola and George have bills targeted toward that end.
Is electricity rate caps extension possible? By MIKE REUTHER [email protected] February 7, 2008
Rate Caps Going Away
Energy 101
Energy – What do you pay for?
ELECTRICITY• Generation (*)• Transmission (*)• Distribution• Consumption• Maximum Rate of Use• Inefficient Use• Stranded Costs (*)
* Partial Regulation until 2010.
NATURAL GAS• Commodity Purchase• Transportation• Distribution• Consumption• Seasonal Use
Energy 101
Tariff • The document that the PUC must approve that establishes the
method and pricing of a regulated commodity.Rate
• A specific pricing class within the tariff.Demand
• The billed rate at which electricity has been used over the billing period.
On-peak • A term used to represent the energy used during normal
business hours. The time period varies by utility.Off-peak
• A term used to represent the energy used during non-business hours, typically evenings, holidays and weekends.
Block • A grouping of energy to be billed at a specific rate, i.e. a block of
kWh.200 hours use of demand
• Language found in many rates that refer to a block of kWh that is equivalent to 200 kWh per kW demand, or 200 hr x billed kW
Tariff Terminology
Energy 101
Electric Account – Demand (KW)
Fifteen Minute I nterval Data
0
100
200
300
400
500
600
700
800
Time of Day
Dem
an
d K
W (
KW
h p
er
hr)
Monthly Peak Demand695 KW
Energy 101
Electrical Distribution System
GenerationTransmission
Distribution
Energy 101
Examples of an Electric Rate Tariff
Distrib CTC ITCCapy & Energy Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
PPLGS-3
Monthly Fee: $0.00
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
PPLGS-3
Monthly Fee: $0.00
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
Rate information from the Tariff
Summarized for Analysis
Energy 101
Exercise #1 – Rate Interpretation
UGI GS-4 Rate
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
Blk 1
Blk 2
Balance
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITCCapy & Energy Xmission
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
Blk 1
Blk 2
Balance
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITCCapy & Energy Xmission
$3.59
$1.30
$0.03033
$0.02303
$0.02031
$5.68
$2.23
$0.08287
$0.07272
$0.06892
$0.19
$0.19
$0.00162
$0.00162
$0.00162
200 KWh / KW
300 KWh / KW
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
Blk 1
Blk 2
Balance
UGI GS 4
Monthly Fee: $9.94
Total
200 KWh / KW
300 KWh / KW
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
Blk 1
Blk 2
Balance
UGI GS 4
Monthly Fee: $9.94
Total
$9.46
$3.72
$0.11482
$0.09737
$0.09085
200 KWh / KW
300 KWh / KW
Energy 101
Exercise #2 – Calculate an Electric Bill
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
PPLGS-3
Monthly Fee: $0.00
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
April Usage informationMeter Constant = 300
Meter Reads: Present = 3462Previous = 3112
Peak Demand = 150 kW
Summary of Charges
Energy 101
Exercise #2 – Calculate an Electric Bill
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
PPLGS-3
Monthly Fee: $0.00
UGI GS 4
Monthly Fee: $9.94
Distrib CTC ITC Xmission Total
Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400
Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937
Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456
Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237
Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000
Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000
Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600
Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655
April Usage informationMeter Constant = 300
Meter Reads: Present = 3462Previous = 3112
Peak Demand = 150 KW
Summary of Charges
350 x 300 = 105,000 kWh
30,000 KWh
30,000 KWh
150 KW x 200 kWh/KW = 30,000 kWh
45,000 KWh
150 KW $1,332.90
$2,081.10
$1,636.80
$2,356.65
Energy 101
Use Profile - Monthly
J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec
20,000
25,000
30,000
35,000
40,000
45,000
Annual Load
PPL 375,000 MWh
GPU 260,000 MWh
APS 115,000 MWh
Energy 101
Use Profile - Hourly
Energy 101
How much do you use at any given time?• The rate at which electricity is used is measured as
“kilowatts” or kW.• The utility needs to provide enough wire and transformer
size to satisfy your largest “demand” of electricity. The utility meter can keep track of your largest 15-minute consumption every month.
Demand Costs: Rate of Use
Energy 101
Not all electrons are created equal!• Some electrons require more “room” in the wire than
others. Electric loads that have a high amount of motors and fans require more wire capacity! – some utilities charge for this inefficiency.
Reactive Costs:Power Factor < 1.0 (pf% < 100%)KVAR > 0KVARh > 0KVA (instead of KW)
Reactive Costs: Result of Inefficient Use
Energy 101
Need to pay for upgrades that are still being depreciated and divestiture of generating plants!
Stranded CostsHow will utilities collect on previous investments?
Energy 101
Natural Gas – Distribution System
Generation
Transmission
Distribution
Energy 101
Transportation • This refers to the pipeline movement of natural gas from a well-
head to your local distribution company (LDC).
Distribution • Refers to the underground pipes that your local LDC maintains
to deliver natural gas to your buildings.
Well-head• The originating location where processed natural gas is available
to the pipeline.
City Gate• The delivery point at which the LDC receives natural gas from
the pipeline and transitions it to their own distribution pipes.
Burner-Tip • The delivery point at which the end user receives natural gas
from the LDC.
Natural Gas Tariff Terminology
Energy 101
CF, CCF, or MCF• A common measure of volume of natural gas at a given pressure
provided by the LDC at your local meter. Measured as cubic feet (CF), 100 cubic feet (CCF), or 1000 cubic feet (MCF).
DT, or dekatherm • The energy content of natural gas. This is the typical
measurement used in the transportation pipeline.
Shrinkage and Loss • Refers to the natural gas lost to the atmosphere.
Natural Gas Tariff Terminology
Energy 101
Sample Natural Gas Bill
Energy 101
• Outdoor Lighting• Street Lighting and Traffic Control• Vehicles• Water & Waste water treatment• Specific process needs (steam, chilled water)• Water consumption• Others???
Other Energy Consuming Areas
Energy 101
Taking Control of Energy Bills
.
• Learn to understand how YOUR energy is billed.• Utility Bill Analysis!
Local LDD Local DEP 3rd Party Utility representative
• Look for opportunities to save energy and $$.• Learn to communicate what you uncover.• Determine why it is important to YOUR
Administration.
Energy 101
Knowledgeable Understanding
Energy 101
EUI by Activity
North-east
Mid-west South West
Principal Building ActivityEducation ........................................ 101.6 86.3 75.5 77.6Food Sales ...................................... 248.1 219.1 187.7 QFood Service ................................... 272.8 218.8 283.4 243.8Health Care ..................................... 212.2 205.6 169.8 179.6 Inpatient ........................................ 275.3 272.2 226.7 246.8 Outpatient ..................................... 84.7 124.4 60.9 115.3Lodging ........................................... 92.3 109.0 96.9 103.7Retail (Other Than Mall)................... 65.0 102.7 68.7 63.2Office .............................................. 101.2 108.8 87.0 72.1Public Assembly .............................. 89.2 101.7 93.2 91.2Public Order and Safety .................. 132.5 105.9 113.1 QReligious Worship ........................... 52.1 52.8 38.3 27.6Service ............................................ 79.8 85.0 66.3 80.0Warehouse and Storage ................. 41.6 74.7 26.7 39.0
Energy Intensity for Sum of Major Fuels
(thousand Btu/square foot)
Energy 101
Exercise #3 – Simple Analysis
Use the “Annual Energy Management Report – Buildings”.For the Terminal Building (14,000 sq ft), do the following: 1. Calculate the operating cost per sq ft ($ / sq ft), and 2. Analyze the EUI.
Sum of kwh onAccount Name Ttl kwh mmBtu cost Misc Fee ccf mmBtu costCounty Garage 843 3 187.71$ 1.09$ - - -$
Entrance Sign 6,639 23 651.79$ 4.94$ - - -$
Fire Building 40,667 139 3,642.71$ 27.89$ 278 29 635.86$
Hanger #1 28 0 94.36$ 0.72$ - - -$
Hanger #2 5,023 17 513.13$ 4.31$ - - -$
Hanger #3 46 0 95.91$ 0.61$ - - -$
Hanger #4 32 0 94.76$ 0.63$ - - -$
Hanger #5 523 2 136.79$ 0.80$ - - -$
Maintenance Building 48,685 166 4,227.02$ 32.41$ 4,023 414 5,466.20$
Obstruction Light 670 2 146.59$ 0.79$ - - -$
Street Light 1,958 7 264.76$ 11.28$ - - -$
Terminal 277,680 948 22,322.09$ 156.52$ 16,839 1,731 21,571.18$
Vault Building 96,139 328 8,762.10$ 64.92$ - - -$
White Building 1,770 6 304.23$ 2.45$ - - -$
Grand Total 480,703 1,641 41,443.95$ 309.36$ 21,140 2,173 27,673.24$
Electric Natural Gas
Energy 101
Knowledgeable Understanding Vehicles and Traffic Lighting
Energy 101
KPI – Key Performance Indicators
Current ConditionAnnual Use Annual Cost 2008 2009 2010 2011 2012 2013 2014
Increase Escalation CostFacility Fuels
Electric 0.0% 3.2% 215,000$ 221,880$ 228,980$ 236,308$ 243,869$ 251,673$ 259,727$
Natural Gas 0.0% 18.7% 140,000$ 166,180$ 197,256$ 234,142$ 277,927$ 329,899$ 391,591$
Coal 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Propane 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Fuel Oil 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Water Sewer 0.0% 1.1% 16,000$ 16,176$ 16,354$ 16,534$ 16,716$ 16,900$ 17,085$
Garbage 0.0% 8.2% 8,500$ 9,197$ 9,951$ 10,767$ 11,650$ 12,605$ 13,639$
Facility MaintenanceService Contracts 0.0% 7.5% 85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$
Material & Parts 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Vehicle FuelsDeisel 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Gasoline 0.0% 20.6% 3,800$ 4,583$ 5,527$ 6,665$ 8,038$ 9,694$ 11,691$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
Vehicle MaintenanceService Contracts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$
Material & Parts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$
Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$
383,300$ 418,016$ 458,068$ 504,416$ 558,201$ 620,772$ 693,733$
85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$
Facility & Vehicle Budget 468,400$ 509,498$ 556,411$ 610,136$ 671,849$ 742,944$ 825,068$
Total Budget 5,634,962$ 5,894,170$ 6,165,302$ 6,448,906$ 6,745,556$ 7,055,851$ 7,380,420$ Millage Value 2,997,310$ 3,057,256$ 3,118,401$ 3,180,769$ 3,244,385$ 3,309,272$ 3,375,458$ Facility & Vehicles
% of Budget 8.3% 8.6% 9.0% 9.5% 10.0% 10.5% 11.2%Millage Required 0.16 0.17 0.18 0.19 0.21 0.22 0.24
Energy Budget
Maintenance Budget
4.6%2.0%
Typical Escalation
Energy 101
KPI – Key Performance Indicators
Performance Measures – monthly, quarterly, annually• Financial Measures
$ energy / $ Annual Budget $ energy / $ Tax Contribution $ energy / $ sales or $ energy / $ Earnings Btu / $ sales or Btu / $ Earnings
• Energy Utilization Index (Buildings) Btu / sq ft
• Energy Cost Index (Buildings) $ energy / sq ft or $ energy / Btu consumed
• Productivity Measures Btu / unit of production or $ energy / unit of production Btu / direct labor hour or $ energy / direct labor hour Btu / Degree-day or $ energy / Degree-day Btu / unit-degree day or Btu / unit-degree day-sq ft $ energy / Btu consumed
Energy 101
Processes Programs ProjectsAccessible 0% Load Profiles 0% Sub-Metering 0%
Monthly Bills 0% Interval Data 0%
Benchmark & KPI 0%
Reporting 0%
Error Resolution 0% Supplier Choice 0% Demand - Supply Optimize 0%
Rate Optimize 0% Reliability & Quality 0% Risk Management 0%
Account Management 0%
Walk Through 0% Diagnostic Audit 0% DE Audit 0%
Benchmark & Rank Facilities 0% Operating Procedures 0% Commissioning 0%
On-going Monitoring 0%
Corrective Maint 0% Preventive Maint 0% System Upgrades 0%
Systems Control 0% Lighting Upgrades 0% Standards 0%
Alternate Fuels 0% New Technology 0%
System M&V 0%
Awareness & Participation 0% Energy Planning 0% Project Approval 0%
Defined Energy Manager Role 0% Performance & Training 0% Results Auditing 0%
Resource Mgmt 0% Financial Impact & Incentives 0%
Budget Preperation 0% Accountability 0%
Organizational Integration
Data
Supply
Use
Equipment
Processes Programs Projects
Accessible 100% Load Profiles 100% Sub-Metering 100%
Monthly Bills 100% Interval Data 100%
Benchmark & KPI 100%
Reporting 100%
Error Resolution 100% Supplier Choice 100% Demand - Supply Optimize 100%
Rate Optimize 100% Reliability & Quality 100% Risk Management 100%
Account Management 100%
Walk Through 100% Diagnostic Audit 100% DE Audit 100%
Benchmark & Rank Facilities 100% Operating Procedures 100% Commissioning 100%
On-going Monitoring 100%
Corrective Maint 100% Preventive Maint 100% System Upgrades 100%
Systems Control 100% Lighting Upgrades 100% Standards 100%
Alternate Fuels 100% New Technology 100%
System M&V 100%
Awareness & Participation 100% Energy Planning 100% Project Approval 100%
Defined Energy Manager Role 100% Performance & Training 100% Results Auditing 100%
Resource Mgmt 100% Financial Impact & Incentives 100%
Budget Preperation 100% Accountability 100%
Organizational Integration
Data
Supply
Use
Equipment
Scoring Your Energy Strategy
Energy 101
Motivating Factors - Choices
Infrastructure Financial
Performance Partnership
Energy 101
Choices: Infrastructure
Low Hanging FruitEnergy EfficiencyPartial UpgradesCode ComplianceComprehensive RenewalLEED EBPhasing
Energy 101
Choices: Financial
Net SavingsQuick PaybacksFinancingEquity ContributionsMultiple Funding StreamsROIPriorities
Energy 101
Dependence / IndependenceTrainingRisk AllocationMeasurement & VerificationReporting
ChoicesChoices: Partnership
Energy 101
Choices: Performance
Utility ExpensesO&M ExpensesEnergy Usage & DemandOccupant ComfortComplaint ReductionCarbon Emissions
Choices
Energy 101
Emission Considerations
Issue >>GreenhouseGas Global Warming
OzoneSulphur Dioxides
Acid RainMercury
ParticulatesBreathing Asthma
Energy Source Units CO2 NOx SO2 Hg PM10
Coal lb/ton 5680.000 9.000 91.433 0.0001300 0.800000
Electric lb/kwh 1.234 0.003 0.010 0.0000001 0.000125
Fuel Oil No 2 lb/mmBtu 159.290 0.129 1.014 0.0000000 0.002860
Fuel Oil No 6 lb/mmBtu 178.570 0.393 1.121 0.0000000 0.010000
Natural Gas lb/mmBtu 117.080 0.150 0.001 0.0000000 0.001860
Propane lb/mmBtu 139.180 0.149 0.000 0.0000000 0.004260
Butane lb/mmBtu 152.130 0.160 0.000 0.0000000 0.006380
Carbon Neutral Footprint?
Energy 101
Emissions – Carbon Footprint
0
20
40
60
80
100
120
Am
ou
nt
of
CO
2
2005 2006 2007 2008 2009
Carbon Footprint
Vehicular
Purchased
On site
Energy 101
Closing Thoughts
Knowledge is the first step to understanding• Know what energy you are buying• Know where the largest dollars are spent• Know what is using the most energy• Know what is important to your Administration
Next steps…• Determine your baseline• Determine possible improvements• Communicate what can be done to manage energy• Develop the plan to TRANSFORM your organization