Strategic Planning Energy

Objective
Strategic Energy Planning
Choices
Learn a process to manage energy issues.

Describe energy issues and how they relate to Key
Performance Indicators KPI.
Produce a template of an Energy Plan.
Infrastructure
Infrastructure
Financial
Performance
Partnership
Low Hanging Fruit

Energy Efficiency
Partial Upgrades
Code Compliance
Comprehensive Renewal
LEED EB
Phasing
Financial
Return To Energy Costs of Five Years Ago

How do you make it happen?
Facility & Vehicle Budgeting

$1,400,000
$1,200,000
Reactive Condition
Proactive Reduced Expense
Annual Expenditure
Net Savings
Quick Paybacks
Financing
Equity Contributions
Multiple Funding Streams
ROI
Priorities
$1,000,000
$800,000
$600,000
$400,000
$200,000
$2006
2008
2010
2012
2014
2016
2018
2020
Fiscal Year
Partnership
Performance
Dependence / Independence
Training
Risk Allocation
Measurement & Verification
Reporting
Why Create an Energy Plan?
Utility Expenses
O&M Expenses
Energy Usage & Demand
Occupant Comfort
Complaint Reduction
Carbon Emissions
Sort through the Motivating Factors to develop your

Countys or companys primary objectives and focus.
Key to obtaining Buy-in and acceptance by senior
management.
Illustrate the Business Case and gain competitive
advantage.
Integrate energy management into your

Administrations critical planning and management
functions.
Identify the impact that changing business needs have
on energy use and cost.
Tie energy performance indicators to key business
measures.
Make energy information available to those making
decisions.
Plan for future volatility

Understand current energy spend
Define actions for improved energy management
Track success & improved business performance

Identify opportunities to Avoid Cost
Fuel Price Escalations are Real

P r ic e S u m m a r y
P e rc e n t C h a n g e
Year
Avoided Cost = the savings

associated with not having to purchase additional power
at the current rates due to reduced consumption or
taking advantage of low-cost periods of time to consume
energy.
Increasing Energy Costs
Electric 3% escalation & 30% one-time rate hikes

Natural Gas 5% to 10% annual escalations
Heating Oil 10% to 20% escalations
Propane 10% to 20% escalations
2004
5 8 .9 6
2005
7 0 .3 7
2006
7 8 .4 1
2007
9 2 .8 9
4 7 .0 9
4 7 .1
4 6 .2 3
8 5 .9 5
c
D ie s e l ($ /g a l)
1 .8 1
2 .4 1
2 .8 1
2 .7 8
E le c tr ic
5 .8 7
5 .8 1
5 .9 7
6 .0 2
b
G a s o lin e ($ /g a l)
1 .8 5
2 .2 7
2 .6 5
2 .6 6
C o a l A n th r a c ite
C o a l B itu m in o u s
d
H e a tin g O il ($ /g a l)
1 .5 4
2 .0 4
2 .4 2
d
N a tu r a l G a s ($ /m c f)
1 0 .7 5
1 2 .8 2
1 3 .8 8
1 3 .3 9
P ro p a n e
6 0 .1 1
7 3 .5 1
9 2 .1 2
1 0 1 .8 7
4 1 .4 4
5 6 .4 9
6 9 .7 5
7 0 .3 8
a
W T I C r u d e ($ /b a rre l)
a
W e s t T e x a s In te rm e d ia te .
O n -h ig h w a y re ta il.
2 .4 6
W e ig h tin g
Annual
17%
33%
Increase
1
9
.3
5
%
1 1 .4 3 %
19.2%
0 .0 2 %
-1 .8 5 %
27.5%
1 6 .5
36.5%3 3
-1
.0
2
%
2 .7 5 %
0.9%
2 2 .7
17
22.3%
3 2 .5
1 8 .5
37.0%
1 9 .3
8 .3
14.9%
2 2 .2 9 %
2 5 .3 2 %
23.2%
3 6 .3
2 3 .5
23.3%
50%
E
1 8 .4 7 %
8 5 .9 2 %
-1
0 .8 4 %
0 .3
1 .8
-3 .5
1 0 .5 8 %
0 .9
A v e ra g e re g u la r p u m p p ric e .
R e s id e n tia l a v e ra g e .
Turnaround
Value to an Energy Manager
To produce quick results; not sustainable over the

long-term.
Focused job responsibilities

Ability to track usage and cost data
Identifies opportunities for significant improvements
Allocate costs to business processes, programs, and
projects
Create accountability for departmental actions
Improve the visibility of utility expenditures to the
organization
Get participation from the entire organization
Transformation Definition
Trans`for`ma`tion n. The process of motivating
organizational members to alter their patterns of
behavior in alignment with shifting demands of the
external environment.
Examples: selling off assets, lowering costs, cutting

employees
Transformation Formula
Tr = f(D, M, P)
Tr = Transformation
D = Dissatisfaction
M = Model of future state
P = Process
Based on the work of Michael Beer
Steps in Energy Planning
How Well Can You Define Your Situation?
Inventory
What do I have?
How old is it?
What is its condition?
How long was it expected to last?
How is it operating?
Assess the impacts
Is it wasting energy?
Is it causing complaints?
Is it costing $$ to maintain?
Will it cause an emergency upon failure?
Better Question:
How well can you
communicate your
situation?
What is the process for moving forward???
What is in an Energy Plan?
FIVE FOCUS AREAS
FIVE FOCUS AREAS
1.
2.
3.
4.
5.
Management of energy DATA

Management of the energy SUPPLY
Energy USE in facilities
Efficiency of operating EQUIPMENT
ORGANIZATIONAL INTEGRATION
1.
2.
3.
4.
5.

Management of Energy Data
Utility Bill Analysis
Relate to Key Performance Indicators (KPI)
1.
2.
3.
4.
5.
At least 12 months of bills (24 preferred).

Determine usage patterns by account.
Determine usage patterns by function.
Determine usage patterns by process.
Identify the critical few.
Sort data by most costly to operate

Sort data by most costly to maintain
KPI Key Performance Indicators

Performance Measures monthly, quarterly, annually
Financial Measures
$ energy / $ Annual Budget

$ energy / $ Tax Contribution
$ energy / $ sales
or
Btu / $ sales
or
$ energy / $ Earnings
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

Btu / direct labor hour or
Btu / Degree-day
or
Btu / unit-degree day
or
$ energy / Btu consumed
$ energy / unit of production

$ energy / direct labor hour
$ energy / Degree-day
Btu / unit-degree day-sq ft
1.
2.
3.
4.
Relate energy use & cost to business performance.

Formulates the basis for contrasting to benchmark
data.
Develop agreed upon method of tracking ongoing
performance and outcomes.
State the data in the business and financial terms used
by senior management, i.e. a savings of $35,000 = 0.2
mils of taxes, etc.
KPI Key Performance Indicators

Current Condition
Facility Fuels
Electric
Natural Gas
Coal
Propane
Fuel Oil
Water Sewer
Garbage
Facility Maintenance
Service Contracts
Material & Parts
Other
Vehicle Fuels
Deisel
Gasoline
Other
Vehicle Maintenance
Service Contracts
Material & Parts
Other
Annual Use
Increase
Annual Cost
Escalation
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
3.2%
18.7%
0.0%
0.0%
0.0%
1.1%
8.2%
$
$
$
$
$
$
$
215,000
140,000
16,000
8,500
$
$
$
$
$
$
$
221,880
166,180
16,176
9,197
$
$
$
$
$
$
$
228,980
197,256
16,354
9,951
$
$
$
$
$
$
$
236,308
234,142
16,534
10,767
$
$
$
$
$
$
$
243,869
277,927
16,716
11,650
$
$
$
$
$
$
$
251,673
329,899
16,900
12,605
$
$
$
$
$
$
$
259,727
391,591
17,085
13,639
0.0%
0.0%
0.0%
7.5%
0.0%
0.0%
$
$
$
85,100
-
$
$
$
91,483
-
$
$
$
98,344
-
$
$
$
105,719
-
$
$
$
113,648
-
$
$
$
122,172
-
$
$
$
131,335
-
0.0%
0.0%
0.0%
0.0%
20.6%
0.0%
$
$
$
3,800
-
$
$
$
4,583
-
$
$
$
5,527
-
$
$
$
6,665
-
$
$
$
8,038
-
$
$
$
9,694
-
$
$
$
11,691
-
0.0%
0.0%
0.0%
3.0%
3.0%
0.0%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Energy Budget
Maintenance Budget
Facility & Vehicle Budget
Total Budget
Millage Value
Facility & Vehicles
% of Budget
Millage Required
2008
Cost
Typical Escalation
4.6%
2.0%
2009
383,300
85,100
468,400
2010
418,016
91,483
509,498
2011
2012
2013
2014
458,068
504,416
558,201
620,772
693,733
98,344
105,719
113,648
122,172
131,335
556,411
610,136
671,849
742,944
825,068
$ 5,634,962
$ 2,997,310
$ 5,894,170
$ 3,057,256
$ 6,165,302
$ 3,118,401
$ 6,448,906
$ 3,180,769
$ 6,745,556
$ 3,244,385
$ 7,055,851
$ 3,309,272
$ 7,380,420
$ 3,375,458
8.3%
0.16
8.6%
0.17
9.0%
0.18
9.5%
0.19
10.0%
0.21
10.5%
0.22
11.2%
0.24
Report the Data
Type of Data Available
1.
One person must be responsible for developing and

maintaining standardized reports.
Energy data must be distributed on a regular, timely,
periodic basis.
Senior management must periodically review the
energy data.
2.
3.
1.
2.
3.
4.
5.
Use Profile - Monthly
Load Profiles
Interval Data
Sub-metered Data
Energy Allocation by Cost Center
Energy Use by Process
Use Profile - Hourly
Electric Energy Needs of Pennsylvania Agencies
45,000
40,000
35,000
30,000
25,000
20,000
Jan
Annual Load
Feb
Mar
Apr
May
PPL 375,000 MWh
Jun
Jul
Aug
Sep
Oct
GPU 260,000 MWh
Nov
Dec
APS 115,000 MWh

Loa d N e e ds f r om P P L, GP U , a nd A P S Te r r i t or i e s
Use Profile - Hourly

FIVE FOCUS AREAS
Consecutive Mondays
900
1.
2.
3.
4.
5.
800
Demand KW
700
600
500
400
300

200
100
0
0
300
600
900
1200
1500
1800
2100
2400
Time of Day
Management of Energy Supply
Focus areas regarding energy supply
Finding Billing Errors
1.
2.
3.
4.
5.
Billing errors
Rate structure and applicable riders
Rate assignment
Deregulated supply of energy commodity
Reliability and quality of energy supply
1.
2.
3.
4.
5.
6.
7.
Are you being assessed taxes?

Are the kWh, kW & CCF metered accurately?
Has a meter been replaced (same constant)?
Has a rate change been implemented?
Are you getting credit for previous payments?
Are there inappropriate late fees?
Are you being billed for closed buildings?
Rate Structure, Riders, and Assignment
Procure Deregulated Energy Commodity
1.
2.
3.
4.
Identify abnormally high unit prices for a particular

month ($ / kWh, or $ / MCF).
Ask your utility to provide a best rate analysis at least
once per year.
Identify changes in operations that may warrant a
different rate.
Educate yourself, maintenance personnel and senior
management on the rate structure.
1.
2.
3.
4.
5.
Are there any consortiums that are providing buying

power opportunities?
Contrast on-tariff commodity to market-priced
commodity?
Maintain historical usage and load profiles to be ready
for shopping opportunities.
Can you leverage technology to minimize load
variability to a supplier? Take advantage of supplier
pricing options?
Keep abreast of future prices of your most costly
energy commodities.
Quality and Reliability of Energy Supply
FIVE FOCUS AREAS
1.
2.
3.
4.
Do you have critical loads? Do you maintain an

emergency response shelter? Any Homeland Security
concerns?
Do you have a back-up energy supply due to
interruptions to the meter?
Do you have a back-up plan due to energy
interruptions to particular pieces of equipment.
Document problems, interruptions, sags, harmonics as
to date, time, and duration. Identify the impact on the
business.
1.
2.
3.
4.
5.

Management of Energy Use
Identify how efficiently energy is being used

Facility walkthroughs
Benchmarking by facility type
Focused energy audits
Investment grade energy audits
Commissioning & retro-commissioning
Continuous commissioning
80%
Amount of Time
1.
2.
3.
4.
5.
6.
Load Profile - Probability of Demand

100%
60%
40%
20%
800 KW has a 3.5% probability of occuring.
That is equivalent to 306 hours per year.
0%
0
100
200
300
400
500
600
700
800
900
1000
Demand KW
Facility walkthroughs
Benchmark facility types
1.
2.
3.
4.
5.
Find the equipment and processes that utilize the most

energy.
Identify the operating hours for this equipment.
Identify the maintenance required by this equipment.
Interview operators for ideas of more efficient
operation and controls.
Rank the equipment and processes by highest overall
cost.
Contrast to Benchmarks
Electric { $0.06 to $0.10 per kWh }
Natural Gas { $9.00 to $12.00 per MCF}
Fuel Oil (non-highway) { $3.50 per gal }
Coal { $120 per ton }
Gasoline { $3.50 per gal }
Diesel (highway) { $4.50 per gal }
Average Fuel Economy Auto { 20 to 25 mpg }
Average Fuel Economy Sm Truck { 15 to 20 mpg }
Do your costs compare?
Per Account
Per Building
Per Vehicle class
1.
2.
3.
4.
Rank the buildings according to your KPIs.

Compare the buildings to like facilities and processes.
Establish performance goals.
Develop action items for improvement.
Excellent source for building comparisons:

U.S. DOE Commercial Building Energy Consumption and Characteristics
public use databases, 1995-2003
EUI by Activity
Energy Intensity for
Sum of Major Fuels
(thousand Btu/
square foot)
Northeast
Principal Building Activity
Education ........................................
Food Sales ......................................
Food Service ...................................
Health Care .....................................
Inpatient ........................................
Outpatient .....................................
Lodging ...........................................
Retail (Other Than Mall)...................
Office ..............................................
Public Assembly ..............................
Public Order and Safety ..................
Religious Worship ...........................
Service ............................................
Warehouse and Storage .................
101.6
248.1
272.8
212.2
275.3
84.7
92.3
65.0
101.2
89.2
132.5
52.1
79.8
41.6
Midwest
86.3
219.1
218.8
205.6
272.2
124.4
109.0
102.7
108.8
101.7
105.9
52.8
85.0
74.7
South
75.5
187.7
283.4
169.8
226.7
60.9
96.9
68.7
87.0
93.2
113.1
38.3
66.3
26.7
West
77.6
Q
243.8
179.6
246.8
115.3
103.7
63.2
72.1
91.2
Q
27.6
80.0
39.0

Energy Audits
1.
2.
Self-performed, Focused Audits
Focused on a given opportunity

Develop specific improvement opportunities
Attempts to identify true cost of operation
May consider life-cycle costs
Look to external resources for some help
Performing an Energy Audit

Interviews Ask the operators, maintenance supervisors,
floor supervisors. Understand the operation and seek
inefficiencies, deferred maintenance, and ongoing
problems.
Initial Walk-through Understand the overall operation.
Gather Data Nine major systems
1.
2.
3.
4.
5.
6.
7.
8.
9.
Investment Grade Audit Business Case
Performed by a third party

Comprehensive review of all equipment and processes
Will focus on energy consuming items and their control
Will review 3 years of maintenance records
Will consider age of equipment, operating life expectations,
options for equipment replacement
Focused on least life-cycle cost, NOT lowest first-cost
Building envelope
Boiler and steam distribution
HVAC equipment
Electrical supply system
Lights, windows and reflective surfaces
Hot water distribution
Air compressors and air distribution
Motors
Manufacturing processes
Commissioning, Retro-Cx, and Continuous Cx
FIVE FOCUS AREAS
1.
2.
3.
Commissioning
Performed with new equipment installations

Starts with design and ends with functional testing
Retro-Commissioning
Performed on existing equipment

Review current operating conditions
Identify desired operating conditions
Creates a deficiency report and suggested repairs
1.
2.
3.
4.
5.

Continuous Commissioning (Needs-based Maintenance)
Metering and instrumentation to track on-going performance of

existing systems
Keep a record (control chart) of process
Investigate and repair significant changes in operations
Efficiency of Equipment
Efficiency of Equipment and Processes
Maintenance Procedures
1.
2.
3.
4.
5.
6.
Impact of Maintenance Procedures

Control Systems
Use of Upgrades
Alternate Fuel Sources
Procurement of New Equipment
1.
Corrective Maintenance
2.
Must be timely
Must be done correctly the first time
Preventative Maintenance
Be proactive to avoid problems

Tends to reduce overall maintenance costs
What is the value in this? Contrast to KPI
Control Systems
System Upgrades
1.
Are controls in place and working
2.
Are controls in Manual?

Identify problems with the control system
Can the controls be repaired? Too old, needs an
upgrade?
What capabilities will new controls provide
Can additional systems be monitored and controlled?

Allow for more information and trending to make better
control decisions?
Provide the ability to part-load various systems?
1.
2.
3.
4.
5.
6.
7.
8.
Lighting
Over-sized Equipment
Motors (Fans and Pumps) & VFDs
Advanced controls
Steam trap replacements
Condensing boilers
Insulation
System redesign
Alternate Fuels and


1.
1.
Alternate Fuels
2.
Dual fuel capability

Back-up supply with multiple sources
Manage fuel market pricing
Use life-cycle costs, NOT just first cost

Incorporate operating costs as selection criteria
Specify energy efficient standards in RFPs
Continuously track over time
Utilize reporting capabilities of the control system

Maintain monthly, daily logs of critical equipment
Assign costs to equipment, processes, and functions
2.
Provides data to verify claims of outsourced services
3.
Provides data to solidify a business case to senior

management
Organizational Integration
FIVE FOCUS AREAS
Put Energy In Front of Everyone
1.
2.
3.
4.
5.

1.
2.
3.
4.
5.
6.
7.
8.
9.
Energy Manager Drive it!

Awareness by ALL
Energy is controllable Manage it!
Employee impact on energy Training
Include energy impact in outsourced services
Have a budget for energy management
Develop funding options early
Develop impact goals and communicate results
CREATE AN ENERGY MANAGEMENT MANDATE!!!
Scoring Your Energy Strategy

Processes
Data
Supply
Use
Equipment
Organizational
Integration
Programs
Projects
Accessible
0%
Load Profiles
0%
Monthly Bills
0%
Interval Data
0%
Benchmark & KPI
0%
Reporting
0%
Error Resolution
Sub-Metering
0%
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%
Benchmark & Rank Facilities
0%
Operating Procedures
0%
DE Audit
0%
Commissioning
0%
On-going Monitoring
0%
System Upgrades
0%
Corrective Maint
0%
Preventive Maint
0%
Systems Control
0%
Lighting Upgrades
0%
Standards
0%
Alternate Fuels
0%
New Technology
0%
System M&V
0%
Project Approval
0%
Awareness & Participation
0%
Energy Planning
0%
Defined Energy Manager Role
0%
Performance & Training
0%
Results Auditing
0%
Resource Mgmt
0%
Financial Impact & Incentives
0%
Budget Preperation
0%
Accountability
0%
Adapted from GEM Management Consultants, Inc.

Processes
Processes
Accessible
Accessible
Data
Data
M onthly Bills
Monthly
Benchm ark & KPI
Benchmark
Reporting
100%
0%
100%
0%
Load Profiles
Profiles
Load
Interval Data
Projects
Projects
100%
0%
100%
0%
Sub-M etering
Sub-Metering
100%
0%
100%
0%
100%
0%
Optim ize
Rate Optimize
100%
0%
100%
0%
M anagem ent
Account Management
100%
0%
W alk Through
Through
Walk
100%
0%
100%
0%
Error Resolution
Resolution
Error
Supply
Supply
Developing the Strategic Energy Plan
Program s
Programs
Supplier Choice
Choice
Supplier
Reliability & Quality
100%
0%
100%
0%
Dem and -- Supply

Supply Optim
ize
Demand
Optimize
M anagem ent
Risk Management
100%
0%
100%
0%
Diagnostic Audit
Audit
Diagnostic
Operating Procedures
100%
0%
100%
0%
Com m issioning
Commissioning
100%
0%
100%
0%
M onitoring
On-going Monitoring
100%
0%
DE Audit
Audit
DE
Use
Benchm ark & Rank Facilities

Benchmark
Corrective Maint
M aint
Corrective
100%
0%
Preventive Maint
M aint
Preventive
100%
0%
System Upgrades
Upgrades
System
100%
0%
Equipm ent
Equipment
System s Control
Systems
100%
0%
Lighting Upgrades
100%
0%
Standards
100%
0%
Alternate Fuels
100%
0%
New Technology
100%
0%
M &V
System M&V
100%
0%
Project Approval
100%
0%
Organizational
Integration
Integration
Awareness & Participation
100%
0%
Energy Planning
100%
0%
M anager Role
Defined Energy Manager
100%
0%
Perform ance & Training

Performance
100%
0%
Results Auditing
100%
0%
Resource Mgmt
M gm t
100%
0%
Financial Impact
Im pact & Incentives
100%
0%
Budget Preperation
0%
100%
Accountability
0%
100%
Developing the Strategic Energy Plan
Selling The Plan

Be the expert you know more
about this topic than anyone
else in the room. Be confident
in your message.
Use visual aids and give
examples from the information
that you have gathered.
Emphasize the importance that
everyone in the organization
can affect the energy spend.
It is critical that senior
management endorses, and
lives the mandate.
Be the cheerleader!
The Strategic Energy Plan is a

work in progress.
It is a living document that is
reviewed, and updated on a
regular basis.
It offers direction to the Energy
Manager on daily basis.
It outlines aggressive, achievable,
measurable, time sensitive goals.
Results are reported to senior
management on a quarterly basis.
Alternate Appendices can include:
Audit results
Financial Assessments
List of past successes and WIP
Implementing the Strategic Energy Plan
What data are needed

How to organize the data
How to communicate the information
How to obtain funding for changes
10
Overview
Process Flowchart
What does it take to Implement Change and Improvements?
Time
Money
Expertise
What Data Are To Be Kept

What is Critical To Success for
the chosen opportunity?
Identify the data that
communicates your CTS
What Goals have been

established?
Identify the data that

communicates and quantifies your
goals
Communicate the Data!

Team must see the data
Team must own the data
Administrators must understand
the data
Illustrate the data in a way to
support the goals
80% / 20% Rule! Prioritize!
Identify the opportunities with most

impact
Dont bite off more than you

can chew!
This is a process!
Eat the elephant one bite at a
time
A series of continuous
improvements
STAY FOCUSED!
Cause
1
Effect
Cause
3
Communicating Energy Profiles

Cost by Energy Commodity
Cause
2
Cause
4
Cause
5
Communicating Energy Profiles

Cost by Function
11
Looking For Opportunity Buildings

Rank Buildings by:
Commercial Building - Energy End-Use Consumption

Space Heating
Lighting
Water Heating
Space Cooling
Office Equipment
Cooking
Ventilation
Refrigeration
Computers
Other
Total
Total
Electric
Other Fuels
28.2%
2.8%
25.4%
19.8%
18.4%
1.4%
12.1%
2.1%
10.0%
8.6%
7.9%
0.7%
4.6%
4.3%
0.3%
4.3%
0.4%
3.9%
4.0%
3.7%
0.3%
3.1%
2.9%
0.2%
2.4%
2.2%
0.2%
12.8%
4.3%
8.5%
100.0%
49.0%
51.0%
Total $ Spent
Total kBTU
$ per Sq Ft
Energy Use Index kBTU / Sq Ft
Prioritize Opportunity based on Team Goal

Reduce cost focus on highest cost building
Make buildings more efficient focus on EUI
Identify the first building to improvements
Looking For Opportunity Vehicles

Rank Vehicle Classes by:
Total $ Spent
Total Departmental $ Spent
Total Consumption (Gallons or Miles)
$ per Mile or $ per Hour
Efficiency of Use MPG or Hours/gal
Total Maintenance $
Reduce cost focus on highest cost vehicles

Energy costs
Maintenance costs
Make vehicles more efficient focus on MPG
Identify the first vehicle class to obtain improvements
Looking For Opportunity Vehicles
Looking For Opportunity Lighting

Rank Outdoor Lighting by:
Total Energy $ Spent

Total Energy $ per Fixture
Total Energy $ per Sq Mile or $ per Linear Mile
Number of Maintenance Calls per Fixture
Average life of lamps & ballasts
Reduce cost focus on highest cost fixture types

Energy costs
Maintenance costs
Reduce maintenance requirements increase lamp and
ballast life
Identify the first outdoor lighting system to obtain

improvements
12
Looking For Opportunity Lighting
Looking For Opportunity

What are the implications to the organization?
Define the improvement opportunity
Result
Result
Result
Result
in
in
in
in
energy savings?
maintenance savings?
improved quality of service?
improved comfort levels?
Develop a plan for implementation

What will be done & Who will do it? (Implement)
Determine the data needed to quantify change. (Control)
Determine the frequency of data collection. (Control)
Funding Improvements
The Continuing Question is
Fund out of Operating Budget
Do you have the Time, Money and Expertise to:
Piecemeal approach
Cross over two fiscal periods to double the impact
Bond Issue
Unallocated bond issue dollars available

Need voter approval, and appears as debt
Conduct a thorough energy analysis?

Determine necessary improvements from energy and facilities
analysis?
Make the improvements?
Tax Exempt, Lease-Purchase Funding
Legislation allows for up to 15 year lease-purchase

Appears as an expense item, no voter approval needed
Guaranteed* savings will cover the lease payment
* A clear understanding of what is guaranteed is

recommended. Ask about calculations, stipulations and
assumptions for energy, operational savings and avoided
capital.
Construction Options
Design-Bid-Build
Traditional Design-Bid-Build
Identify
Need
Budget
Build
First Cost Driven
Performance Contracting
Classic
Reduce Scope Procurement
Cycle
Appropriate
Lifecycle Cost Driven
Design
Bid
Review
Costs
Value = Cheap delivery system
13
Identify
Need
Identify
Need
Budget
Classic
Procurement
Cycle
Budget
Classic
Procurement
Cycle
Appropriate
Appropriate
Design
Reduction in scope from funding shortfalls
Designed to first cost budget; little or no

consideration of long-term performance
Identify
Need
Identify
Need
Budget
Classic
Procurement
Cycle
Appropriate
Design
Bid
Budget
Classic
Cycle
Appropriate
Design
Bid
Review
Costs
Review
Costs
How often do bids come back as expected?
Contractor not bound to design or operational intent
Identify
Need
Identify
Need
Budget
Build
Classic
Cycle
Appropriate
Design
Bid
Budget
Build
Classic
Cycle
Appropriate
Design
Bid
Review
Costs
Review
Costs
Change orders & claims:

Contractor not vested in operations
More symptoms, exchange old problems

for new set of problems
14
Performance Metrics
Identify
Need
Identify
Need
Budget
Budget
Commissioning
The
PC
Cycle
The
PC
Cycle
Appropriate
Change
Course
Campus Audit
Design /
Build
Appropriate
Change
Course
Campus Audit
Energy and facility audit to determine needs and

opportunities consistent with Energy Strategy!
Value = Outstanding performance per $$ spent
Identify
Need
Identify
Need
Budget
The
PC
Cycle
Budget
The
PC
Cycle
Appropriate
Change
Course
Campus Audit
Design /
ESCO is responsible for entire project

single source accountability
Identify
Need
Performance Metrics
Identify
Need
Budget
The
PC
Cycle
Change
Course
Campus Audit
Design /
Build
Designed for operational and lifecycle performance
Commissioning
Appropriate
Budget
Commissioning
Appropriate
Change
Course
Campus Audit
Design /
Build
Commissioning and verification
of project performance after construction
The
PC
Cycle
Appropriate
Change
Course
Campus Audit
Design /
Build
The ESCO is your partner for the long term:
15 year performance guarantee
15
Contrasting The End Result
Contrasting The End Result
Design Bid Build

Increased Project Scope due to Design Criteria
Over-sized Equipment, ductwork & Piping Systems
Little Re-use of Existing Systems
Wasted Construction Dollars
Inefficient Systems Selection

Based on First Cost not Lifecycle = Higher Lifecycle Cost
High Cost to Operate and Maintain

Multiple Parties of Responsibility
Finger Pointing, no Resolution
Performance Contract
Minimum Project Scope to Accomplish Results, no
Waste
Maximize use of Construction Dollars = Lower Total
Project Cost
Guaranteed Operational Performance
Low Cost to Install, Operate and Maintain
Single Source of Responsibility, no Finger Pointing,
Issues Resolved
Project Cost Control
Driven by Best Value, Savings must Justify Cost
Project Cost Control

Driven by Budget, last minute Slash & Burn
Working the Strategy!
Working the Strategy!
Organize a team of devoted believers

Realize the teams limitations and develop the
necessary skills
Identify a purpose that can be supported by the
decision makers
Measure the existing conditions audit and interview
Analyze and contrast to benchmarks
There are risks and costs to a program of action,
but they are far less than the long-range risks
and costs of comfortable inaction.
- John F. Kennedy
Identify opportunities
Collect data to quantify the impact of change
Improve conditions through implemented changes
Control the environment and evaluate the outcome
Identify the effectiveness of the change
Correct false assumptions
Make adjustments in behaviors and equipment
Make corrections for organizational environment

Standardize procedures
Communicate the results and leverage to others
GO TO TOP! IDENTIFY THE NEXT OPPORTUNITY!
Result of a Successful Strategy

Reduce the amount of dollars given to utilities, fuel
suppliers, and maintenance contractors
Inefficient operation
Ineffective operation
Improved environmental and operating conditions

Improved air quality
Improved sound quality
Healthier work environment
Behavior modification of most stakeholders
Determination to maintain long-term improvements
16

Strategic Planning Energy

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Objective

Strategic Energy Planning

Learn a process to manage energy issues.

Low Hanging Fruit

Return To Energy Costs of Five Years Ago

Facility & Vehicle Budgeting

Why Create an Energy Plan?

Why Create an Energy Plan?

Sort through the Motivating Factors to develop your

Integrate energy management into your

Plan for future volatility

Why Create an Energy Plan?

Fuel Price Escalations are Real

Avoided Cost = the savings

Increasing Energy Costs

Electric 3% escalation & 30% one-time rate hikes

Why Create an Energy Plan?

Value to an Energy Manager

To produce quick results; not sustainable over the

Focused job responsibilities

Examples: selling off assets, lowering costs, cutting

Based on the work of Michael Beer

Steps in Energy Planning

How Well Can You Define Your Situation?

Assess the impacts

What is the process for moving forward???

What is in an Energy Plan?

What is in an Energy Plan?

FIVE FOCUS AREAS

FIVE FOCUS AREAS

Management of energy DATA

Management of energy DATA

Management of Energy Data

Management of Energy Data

Utility Bill Analysis

Relate to Key Performance Indicators (KPI)

At least 12 months of bills (24 preferred).

Sort data by most costly to operate

KPI Key Performance Indicators

$ energy / $ Annual Budget

Energy Utilization Index (Buildings)

Energy Cost Index (Buildings)

$ energy / Btu consumed

Btu / unit of production or

$ energy / unit of production

Relate energy use & cost to business performance.

KPI Key Performance Indicators

Management of Energy Data

Management of Energy Data

Report the Data

Type of Data Available

One person must be responsible for developing and

Use Profile - Monthly

Use Profile - Hourly

Electric Energy Needs of Pennsylvania Agencies

PPL 375,000 MWh

GPU 260,000 MWh

APS 115,000 MWh

Use Profile - Hourly

What is in an Energy Plan?

Management of energy DATA

Management of Energy Supply

Management of Energy Supply