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Ralph W. Russell, II, founder of Henrico County, VA - based energy consulting firm eDiscoveri, helped attendees at the October 2, 2014 meeting of the IEEE Richmond Section discover strategies for energy cost reduction. Russell showed how commercial, industrial and governmental organizations can use low-cost/no-cost strategies to reduce energy costs. Methods to optimize the acquisition of utility services such as electricity, natural gas, propane, fuel oil and water/sewer were presented. Strategies such as meter totalization, contract adjustments, and sales tax exemptions were discussed. An IEEE member for many years, Russell’s profile is at: http://tinyurl.com/p7z7z2t.
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“Helping Customers Discover Energy Solutions”
DISCOVERING LOW-COST/NO-COST STRATEGIES FOR REDUCING ENERGY
COSTS
Ralph W. Russell, II, CEMPresident – eDiscoveri
Presented to IEEE Richmond Section2 October 2014
Energy Cost Issues
www.eDiscoveri.com 2
Keys to Energy Management Who is in charge of managing energy usage &
cost? What is the cost of energy & what are the
available rate tariffs? When is energy is used? Where is energy used? Why is energy used? How much energy is used? Practice simple energy management techniques
Reduce equipment run time Use more efficient equipment Shift load to off-peak period
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Electricity Fundamentals
Ohms Law Volts = Current x
Resistance V = A x R Units Volts is in volts Current is in amps Resistance is in ohms
Power P (watts) = A (amps) x V
(volts) A (amps) = P (watts) / V
(volts)
KW W (watt) x 1,000 = KW
(kilowatt) Demand Rate at which energy is
used
KWH KW (kilowatt) x Time
(hours) = KWH (kilowatt – hour)
Energy consumed over a period of time
4
Terminology
Cooling Degree Days (CDD) Cooling degree
days indicate how summer weather affects building cooling energy use.
Heating Degree Days (HDD) Heating degree
days indicate how winter weather affects building heating energy use.
5
Definitions
kW (kilowatt) kWh (kilowatt-hour) On-Peak CMD (Contract Minimum Demand) Riders
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Demand
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Electric Bill Components
Billing Determinants
Rate Schedule Billing Period Dates Billing Days Off-Peak Usage (kWh) On-Peak Usage (kWh) Distribution Demand
(kW) Off-Peak Demand (kW) On-Peak Demand (kW) rKVA
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Electric Bill Components
Bill Details Bill Details
Distribution Service Basic Customer Charge Distribution Demand rKVA Demand
Electricity Supply Service On-Peak Demand Charge Off-Peak Demand Charge Adjustment Charge
Meter Behind Transformer
On-Peak Energy Charge Off-Peak Energy Charge Fuel Rider B Rider BW Rider C1A and C2A Rider R Rider S Rider T1 Rider W
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Electric Bill Components
Bill Details
Sales and Use Surcharge
Distribution Facilities Charge
Transmission Facilities Charge
State/Local Consumption Tax
Local Utility Tax
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Low-Cost/No-Cost Strategies for Reducing Energy Costs
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Rate Schedule Change
Tax Deductions & Exemptions
Utility Rebates Utility Contract Metering
Billing Errors Demand
Response Operational
Changes Networking Walk-Through
Energy Audit
10 – Operational Changes
10
www.eDiscoveri.com 13
Operational Changes
Turn it off Shift production to off-peak periods Use start time and stop time
optimization to minimize consumption Review daily demand graphs for
opportunities to peak shave or shift load
Determine cost benefit of installing more efficient lighting and motors
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9 – Billing Errors
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Billing Errors
Common causes of billing errors: Metering errors Calculation errors Out of date rate schedules Miscommunications between internal
departments
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8 – Rate Changes
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Rate Schedule Changes
Explore & understand available rate schedules from local utility company (electricity, natural gas, fuel oil, propane, water/sewer).
Request rate comparison from utility or energy consultant such as eDiscoveri.
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GS-1, 2, 2T, 3 & 4
GS-1 – 30 kW or less GS-2 – 30 kW – 500 kW GS-2T – 30 kW – 500 kW Time of
Usage GS-3 – 500 kW or greater.
Secondary Voltage GS-4 – 500 kW or greater. Primary
Voltage
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Dominion Virginia Power Special Tariffs Schedule 6TS – Thermal Storage Schedule 10 – Large General Service
Variable Pricing Calendar year divided into “A”, “B” and “C”
days “A” days most expensive. Maximum of 28
“A” days in any calendar year “B” days mid range “C” days least expensive. Minimum of 60
“C” days in any calendar year Day classification found at +1 800 446 4877
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Dominion Virginia Power Riders Rider A – Fuel Charge Rider Rider B – Biomass Conversion Rider C1A – Peak-Shaving Increment Rider Rider C2 – Energy Efficiency Increment
Rider Rider R – Bear Garden Generating Station Rider S – Virginia City Hybrid Energy Center Rider T1 – Transmission Rider W – Warren County Power Station Sales and Use Surcharge
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7 – Tax Exemptions & Deductions
7TAXES
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Tax Deductions & Exemptions Tax Deductions & Incentives
The U.S. Department of Energy DSIRETM (Database of State Incentives for Renewables & Efficiency) www.dsireusa.org
Tax Exemptions Sales tax exemptions available in some
areas for state and municipal sales tax on energy.
Sales tax refund ranging from 12 to 48 months available in some areas.
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6 – Utility Rebates
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Utility Rebates
Start your investigation into utility rebates at www.dsireusa.org.
After locating a rebate, check the utility’s website to confirm its availability.
Current programs from one utility for commercial and industrial accounts include: Energy Audit Duct Testing & Sealing
Distributed Generation Lighting Window Film
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5 – Utility Contract
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Utility Contract
Review Agreement for Electric Service (Contract) that most commercial, industrial and governmental customers have with the local electric utility.
Review Contract for adjustment of rate schedule, Contract Minimum Demand and extra charges such as facilities charges.
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MeteringPrimary Metering & Totalized Metering Combining all of the meters into one
monthly invoice. Reduction of the demand and demand
cost since most accounts don’t hit their daily peak demands at the same time.
Sub-metering Customer owned metering to measure
energy consumption of specific equipment or business areas.
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4 – Demand Response
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Demand Response
Demand Response (also known as load response) is end-use customers reducing their use of electricity in response to power grid needs in return for a payment.
End-use customers participate through curtailment service providers.
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3 – Alternative Financing
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Alternative Financing Terms Power Purchase Agreement (PPA)
Contract between two parties, one who generates electricity for the purpose (the seller) and one who is looking to purchase electricity (the buyer).
Utility Energy Service Contract (UESC) Contracting vehicle that allows utilities to
provide to their Federal customers comprehensive energy and water efficiency improvements and Demand-reduction services.
Energy Saving Performance Contract (ESPC) Allows Federal agencies to complete energy
savings projects without up-front capital costs and special Congressional appropriations.
32
2 – Walk Through Energy Audit
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Walk-Through Energy Audit Identifies energy cost, consumption,
use, location and timing. Involves touring the facility and
collecting data that includes information on customer’s site, operations, HVAC, processes, lighting, envelope, refrigeration, and office equipment.
Establishes baseline of energy consumption and cost to measure success of future energy projects.
www.eDiscoveri.com 34
1 - Networking
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Networking
Talk to your peers inside and outside of your company.
Attend professional society meetings such as IEEE, ASHRAE, and AEE.
Participate in LinkedIn on-line communities such as Association of Energy Engineers.
Attend conferences. Develop a personal energy training
plan.www.eDiscoveri.com 36
Low-Cost/No-Cost Strategies for Reducing Energy Costs
www.eDiscoveri.com 37
Rate Schedule Change
Tax Deductions & Exemptions
Utility Rebates Utility Contract Metering
Billing Errors Demand
Response Operational
Changes Networking Walk-Through
Energy Audit
Natural Gas
Rebates Customer Incentive Programs
Heat Recovery Solar Hot-Water Retro-Commissioning Control Systems
Rate Choice Rate Comparisons Tax Exemptions
www.eDiscoveri.com 38
Fuel Oil
Daily Prices Fixed Contracts Fill-Up during Summer and before
Hurricane Season Tax Exemptions
www.eDiscoveri.com 39
Water/Sewer
Deduct/Exclusion Meter for applications such as landscaping, manufacturing, etc.
Reduce Strong Waste Water Surcharge Jet out lines that may be contaminated Replace grease traps
Impervious Area Charge Incentive Programs Rain gardens Rain barrels Pervious paving Green Roofs Storm water reuse
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Propane
Fixed Negotiated Contract Compare Suppliers Tax Exemptions
www.eDiscoveri.com 41
About eDiscoveri
eDiscoveri's mission is to help customers:
Manage relationships with electric utilities
Increase operational uptime through improved electric supply reliability
Reduce energy costs
www.eDiscoveri.com 42
Electric Utility Liaison
eDiscoveri can help customersreduce the amount of their staff
timeassociated with electric utilityinteractions by: Assisting customers with
managing their relationships with electric utilities
Managing periodic meetings with various utility departments
Maintaining up to date utility contact information
Developing, maintaining and implementing communications channels to be used during emergencies
www.eDiscoveri.com 43
Electric Supply ReliabilityeDiscoveri can help customers
improvetheir electric supply reliability by: Maintaining a log of electric
utility disturbances and outages Reporting disturbances and
outages to utility on behalf of customers
Managing communications between utility and customer during electric supply outage emergencies to ensure minimal customer outage time
Preparing report outlining root cause of outage and recommending preventive and mitigation measures
www.eDiscoveri.com 44
Contact Us
Contact us for a free consultation on how we can help you discover low-cost/no-cost strategies for energy cost reduction.
eDiscoveriP. O. Box 29254Henrico, VA 23242+1 804 291 7667 [email protected]
www.eDiscoveri.com 45
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