BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION 32-1061 23 FEBRUARY 2011 Civil Engineering PROVIDING UTILITIES TO U.S. AIR FORCE INSTALLATIONS COMPLIANCE WITH THIS PUBLICATION IS MANDATORY ACCESSIBILITY: Publications and forms are available for downloading or ordering on the ePublishing website at: http://www.e-publishing.af.mil. RELEASABILITY: There are no restrictions for release of this publication. OPR: HQ AFCESA/CEN Supersedes: AFI32-1061, 15 March 2002 Certified by: AF/A7CA (Lt Col Stephen Wood) Pages: 61 This instruction implements AFPD 32-10, Installations and Facilities, and Title 10, United States Code (U.S.C.) Section 2686 and 10 U.S.C. 2872a. This instruction applies to managing, supplying, purchasing, and selling utility services on an Air Force installation and applies to the Air Force, Air National Guard (ANG) and Air Force Reserve Command (AFRC). Users should send comments and suggested improvements on AF Form 847, Recommendation for Change of Publication, through major commands (MAJCOM), Air National Guard (ANG), and Headquarters Air Force Civil Engineer Support Agency (AFCESA), 139 Barnes Drive, Suite 1, Tyndall AFB FL 32403-5319, to USAF/A7CA, 1260 Air Force Pentagon, Washington DC 20330-1260. Forms may be electronically forwarded to AFCESA/CEN Workflow Mailbox, AFCESACEN.CorpMailbox@tyndall.af.mil. Ensure that all records created as a result of processes prescribed in this publication are maintained in accordance with AFMAN 33-363, Management of Records and disposed of in accordance with the Air Force Records Disposition Schedule (RDS) located at https://www.my.af.mil/gcss-af61a/afrims/afrims/. SUMMARY OF CHANGES This AFI is substantially revised and was totally rewritten and reorganized. Reader review of the entire instruction is recommended. New information that has been added includes energy policy and guidance; (does not include energy conservation information); rate calculations formulas; reimbursable customer determinations; figures and tables; accounting codes; and meter and reporting guidance. 2 AFI32-1061 23 FEBRUARY 2011 Chapter 1—RESPONSIBILITIES 5 1.1. The Air Force Civil Engineer, Headquarters US Air Force (HQ USAF/A7C). .... 5 1.2. Headquarters Air Force Civil Engineer Support Agency, Energy Division (AFCESA/CEN): ................................................................................................... 5 Headquarters Air Force Civil Engineer Support Agency, Operations Division (AFCESA/CEO). ................................................................................................... 5 1.4. Air Force Real Property Agency (AFRPA). .......................................................... 5 1.5. Major Command (MAJCOM): .............................................................................. 5 1.6. Installation Commander: ........................................................................................ 5 1.7. Base Civil Engineer: .............................................................................................. 6 1.8. Base Contracting Officer: ...................................................................................... 6 1.9. Base Staff Judge Advocate: ................................................................................... 7 1.10. Civil Engineer Energy Manager (One per installation required by Energy Independence and Security Act (EISA) of 2007): ........................................................................ 7 1.11. Civil Engineer Resource Manager/Advisor: .......................................................... 7 1.12. Facility Managers: ................................................................................................. 8 1.3. Chapter 2—PURCHASING UTILITIES 9 2.1. Utility Acquisition Authority. ................................................................................ 9 2.2. Determining Utility Service Requirements. ........................................................... 9 2.3. Types of Purchased Utilities. ................................................................................. 9 2.4. Types of Utility Contracts. ..................................................................................... 10 2.5. Acquiring Electric Service. .................................................................................... 11 2.6. Acquiring Natural Gas Service. ............................................................................. 11 2.7. Acquiring Water and Sewage Service. .................................................................. 12 2.8. Connection and Termination Charges or Liability. ............................................... 12 2.9. Rate Schedules. ...................................................................................................... 13 2.10. Rate Changes. ........................................................................................................ 14 2.11. Utility Bills and Payment. ...................................................................................... 16 Model Utility Bill Payment Process. ..................................................................... 17 2.12. Utility Purchase Contract Review. ......................................................................... 18 2.13. Utility Service Folders. .......................................................................................... 18 Figure 2.1. Chapter 3—PRODUCING AND MANAGING UTILITIES 3.1. Ownership of On-Base Utility Systems. ................................................................ 19 19 AFI32-1061 23 FEBRUARY 2011 3 3.2. Government Owned. .............................................................................................. 19 3.3. Public or Private Utility Provider Owned. ............................................................. 19 3.4. Utility Privatization (UP) Owned. ......................................................................... 19 3.5. Housing Privatization (HP) Owned. ...................................................................... 19 3.6. Operations, Maintenance, and Repair Costs. ......................................................... 20 3.7. Project and Capital Investment Costs. ................................................................... 21 Chapter 4—PROVIDING UTILITIES 22 4.1. Utility Service Agreements. ................................................................................... 22 Table 4.1. Reimbursable Customer Service Agreement Form Matrix. ................................... 23 4.2. Restrictions. ........................................................................................................... 23 4.3. Provided Without Reimbursement. ........................................................................ 23 4.4. Provided With Reimbursement. ............................................................................. 24 4.5. Selling Water to Non-Federal Customers. ............................................................. 26 4.6. Base Closure Locations. ......................................................................................... 26 4.7. Calculating Utility Reimbursement Rates. ............................................................ 26 Figure 4.1. Capitalized Investment Cost of Facilities. ............................................................. 27 Figure 4.2. Total Annual Maximum Capacity for Electricity (kWh). ...................................... 27 Figure 4.3. Basic Cost. ............................................................................................................. 28 Figure 4.4. Connection Fee Charges. ....................................................................................... 28 Figure 4.5. Distribution Line Losses or Gains. ........................................................................ 29 Figure 4.6. Sole Benefit Test for Determining O&M Costs. .................................................... 30 Figure 4.7. System O&M Cost. ................................................................................................ 30 Figure 4.8. Other Utility Costs. ................................................................................................ 30 Figure 4.9. Military Labor Costs. ............................................................................................. 31 Figure 4.10. Capitalized Investment Charges. ........................................................................... 31 Figure 4.11. Administrative Overhead. ...................................................................................... 31 Wheeling Charge. .................................................................................................. 32 Wheeling Charge. .................................................................................................. 32 4.9. Utility Invoices and Payment. ................................................................................ 32 4.10. Billing Waivers. ..................................................................................................... 32 4.11. Utility Reimbursable Rate Review. ....................................................................... 32 Utility Rate Chart - Utility Rate Factors. ............................................................... 34 4.8. Figure 4.12. Table 4.2. 4 AFI32-1061 23 FEBRUARY 2011 Chapter 5—MEASURING UTILITY CONSUMPTION 35 5.1. Meters. ................................................................................................................... 35 5.2. Funding Meter Installation. .................................................................................... 35 5.3. Meter Consumption Data and Reading. ................................................................. 35 5.4. Utility Consumption Estimating. ........................................................................... 36 5.5. Electricity and Natural Gas Estimating. ................................................................. 36 5.6. Water and Wastewater Estimating. ........................................................................ 36 5.7. Vending Machine Estimating. ............................................................................... 37 5.8. Defense Utility Energy Reporting System (DUERS). ........................................... 37 Attachment 1—GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 39 Attachment 2—COST ACCOUNTING CODES 48 Attachment 3—CONTENTS OF UTILITY SERVICE FOLDER 52 Attachment 4—POTABLE WATER SERVICE SPECIFICATIONS FORMAT 54 Attachment 5—SEWAGE SERVICE SPECIFICATIONS FORMAT 55 Attachment 6—STEAM SERVICE SPECIFICATIONS FORMAT 56 Attachment 7—ELECTRIC SERVICE SPECIFICATIONS FORMAT 57 Attachment 8—NATURAL GAS SERVICE SPECIFICATIONS FORMAT 59 Attachment 9—VENDING MACHINE CONSUMPTION DATA 61 AFI32-1061 23 FEBRUARY 2011 5 Chapter 1 RESPONSIBILITIES 1.1. The Air Force Civil Engineer, Headquarters US Air Force (HQ USAF/A7C). Develops policy, monitors progress, and advocates for resources for utility services. 1.2. Headquarters Air Force Civil Engineer Support Agency, Energy Division (AFCESA/CEN): 1.2.1. Serves as the Air Force point of contact (POC) for utility service rates, contracts, and reimbursements. 1.2.2. Provides technical experts that assist with utility rate negotiation and coordinate intervention activities. 1.2.3. Develops utility service procedures and guidance. 1.2.4. Administers an Air Force-wide service contract for utility rate expert consulting services. Utility rate expert services are available to bases for rate intervention support, special studies, and negotiation support. 1.2.5. Works with Secretary of the Air Force, Acquisition Contracting Operations Division (SAF/AQCK), and Air Force Legal Operations Agency, Utility Litigation Team (AFLOA/ULT), helping MAJCOMs and bases keep utility rates at the lowest overall cost commensurate with requirements. 1.3. Headquarters Air Force Civil Engineer Support Agency, Operations Division (AFCESA/CEO). Develops policy for energy security and implementation in utility service agreements. 1.4. Air Force Real Property Agency (AFRPA). Determines utility sales rate for customers on bases scheduled for closure or realignment according to the Base Realignment and Closure (BRAC) Commission 1.5. Major Command (MAJCOM): 1.5.1. Assists installations in managing, supplying, purchasing, or selling utility services. Energy security should be considered in all utility service agreements. 1.5.2. Reports proposed rate changes to HQ AFCESA/CEN with recommendations concerning rate intervention. 1.5.3. Ensure compliance with the Status of Forces Agreement (SOFA) of the applicable host nation for outside the continental United States (OCONUS) bases. 1.5.4. Facilitates utility related discussions between installation and HQ AFCESA/CEN. 1.5.5. Funds special studies and analyses for utility issues. 1.5.6. Approves utility sales agreements for off base customers and for military housing privatization customers receiving utilities from the Air Force. 1.6. Installation Commander: 6 AFI32-1061 23 FEBRUARY 2011 1.6.1. Responsible for the oversight of the acquisition and sale of utility services. Considers energy security and assured mission readiness in utility service agreements. 1.6.2. Ensures coordination between the contracting officer, staff judge advocate, and civil engineer in all phases of utility acquisition. 1.7. Base Civil Engineer: 1.7.1. Acquires utilities at the lowest overall total cost to the Air Force, consistent with proper standards for reliability of service, mission requirements, efficiency of operations, and health and sanitation. Considers energy security and mission continuity in utility service agreements. 1.7.2. Designates an energy manager as the focal point for coordinating engineering, operations, real property, financial management, contracting and legal activities required to manage, supply, purchase, and sell utility services. 1.7.3. Ensures energy manager coordinates with contracting and legal functions for utility contract issues. 1.7.4. Budgets for purchased utility services and manages funds. 1.7.5. Notifies MAJCOM of purchased utility rate increases and when utility rate intervention is necessary. 1.7.6. Explores private sector development possibilities for meeting utility requirements. 1.7.7. Ensures utility and facility systems conform to energy conservation policies and ensures occupants follow energy conservation measures. 1.7.8. Ensures the resource advisor administers the sale (reimbursement) of utilities. 1.7.9. Ensures monthly utility bills are paid in a timely manner and mitigates cause for late fees. 1.7.10. Ensures utility system repair, operations, and maintenance labor, materials, and equipment costs are accurately tracked, documented and reported monthly to the energy manager. 1.7.11. Ensures real property costs are accurately capitalized in a timely manner. 1.7.12. Ensures meter readings are reported monthly to the energy manager. 1.7.13. Approves utility sales agreements. 1.7.14. Ensures the MAJCOM/A7 approves utility sales agreements for off-base customers and military housing privatization customers receiving utilities from the Air Force. 1.8. Base Contracting Officer: 1.8.1. Negotiates utility service contracts and serves as the installation’s primary spokesperson with the utility supplier. 1.8.2. Approves acquisition and modification of utility services contracts. 1.8.3. Asks the Defense Contract Audit Agency (DCAA) to audit the books of utility suppliers not subject to a regulatory body when assistance is required to determine the cost of service. AFI32-1061 23 FEBRUARY 2011 7 1.8.4. Requests, if needed, utility contract guidance from MAJCOM/Contracting and SAF/AQCK. 1.8.5. Ensures compliance with unique procedures of the Federal Acquisition Regulation (FAR) system pertaining to the acquisition of utility services. 1.9. Base Staff Judge Advocate: 1.9.1. Reviews utility services solicitations and proposed contracts to determine if they are legally sufficient. 1.9.2. Ensures utility service contracts comply with Federal, state, and local laws, including ordinances, commission rulings, court decisions, and Comptroller General opinions. 1.10. Civil Engineer Energy Manager (One per installation required by Energy Independence and Security Act (EISA) of 2007): 1.10.1. Prepares and administers all service agreements and rate calculations for providing and selling utility services. 1.10.2. Monitors base energy loads using available resources from the Operations Flight; recommends shifting loads from on-peak to more economical off-peak periods, if feasible. 1.10.3. Develops and implements a load management plan that optimizes economics. Consider energy security in service agreements and load management plan. 1.10.4. Estimates utility requirements and prepares utility service specifications. 1.10.5. Coordinates with contracting and legal functions for all utility service contract issues. 1.10.6. Makes recommendations on the technical sufficiency and acceptability of proposed rates, connection charges, termination liability provisions, and technical provisions, and provides technical support to the contracting officer at all utility service contract negotiations. 1.10.7. Manages technical aspects of utility service contracts and assists the contracting officer with administration by providing technical input and recommendations (verifies that services have been received and reviews all utility service contracts annually). 1.10.8. Reports monthly and annual utility consumption and cost data to MAJCOM and in DUERS (Defense Utility Energy Reporting System). Data must be reported into DUERS no later than 45 days after the end of the utility billing cycle. NOTE: Effective January 2011, the Air Force Energy Reporting System (AFERS) will replace DUERS. 1.10.9. Maintains a utility service folder for each utility purchased and produced on base (see Attachment 3). 1.10.10. Implements EISA Section 432, Management of Energy and Water Efficiency in Federal Buildings. 1.11. Civil Engineer Resource Manager/Advisor: 1.11.1. Ensures monthly utility bills are approved for payment. 1.11.2. Ensures funds availability for utility payments. 1.11.3. Ensures utility payments are made to avoid late fees. 8 AFI32-1061 23 FEBRUARY 2011 1.11.4. Identifies and categorizes reimbursable customers. 1.11.5. Prepares invoices and billing statements for reimbursable customers. 1.11.6. Coordinates with the Energy Manager to ensure reimbursable customers are notified of rate changes 1.12. Facility Managers: 1.12.1. Ensure assigned facility occupants follow energy conservation goals and guidance. 1.12.2. Enforce energy conservation measures. 1.12.3. Report wasteful energy use to Energy Manager. 1.12.4. Submit AF Forms 332 (in conjunction with the Energy Manager) for potential energy work identified for facilities. AFI32-1061 23 FEBRUARY 2011 9 Chapter 2 PURCHASING UTILITIES 2.1. Utility Acquisition Authority. The Federal Property and Administrative Services Act (FPASA) [40 U.S.C 501(a)] authorizes the General Services Administration (GSA) to manage, procure and supply public utility services to the government. The FPASA also authorizes DoD to procure utility service, accomplished in accordance with a DoD-GSA agreement. 2.2. Determining Utility Service Requirements. 2.2.1. Validate that a utility requirement exists. 2.2.2. Survey the utility requirement site for special problems or conditions. 2.2.3. Evaluate alternative ways of acquiring utility service for large loads and decide which is the most economical and feasible. 2.2.4. Use utilities supplied by other government agencies when feasible. 2.2.5. Explore privatization initiatives before requesting military construction appropriations to construct or expand a government-owned plant or system. 2.2.6. Do not construct or expand government-owned facilities when economical utilities are available from commercial sources and the reliability of the purchased utility service is consistent with mission requirements. 2.2.7. Increase the reliability of purchased utilities using priority restoration of service agreements with the utility suppliers. Energy security should be considered and supported in utility agreements. 2.2.8. Prepare utility service contract specifications, making sure that consumption and demand estimates are realistic. Attachments 4, 5, 6, 7, and 8 contain utility service contract specification formats for potable water, sewage, steam, electricity, and natural gas. 2.2.9. Check applicable published rate schedules to decide the most favorable rate schedule. If no published rate schedule is compatible with government demand and consumption requirements, assist base contracting in negotiating a favorable special rate. 2.3. Types of Purchased Utilities. Conversion charts for energy units may be found at: http://www.think-energy.net/energy_units.htm. 2.3.1. Electricity – Measured in kilowatt-hours (kWh) (energy) and kilowatts (kW) (demand). 2.3.2. Natural Gas – Measured in thousands of cubic feet (Mcf or kcf) and in million British thermal units (MBtu). The therm (thm) is a unit of heat energy equal to 100,000 British thermal units (Btu). 2.3.3. Water – Measured in thousands of gallons (KGAL) or thousands of cubic feet (kcf). 2.3.4. Wastewater (also called Sewage) – Measured in thousands of gallons (KGAL) or thousands of cubic feet (kcf). 2.3.5. Steam – Measured in pounds (lbs) and in million British thermal units (MBtu). 10 AFI32-1061 23 FEBRUARY 2011 2.3.6. Stormwater is not a purchased utility. Stormwater charges are environmental impact fees or assessments and are not paid with utility funds. 2.4. Types of Utility Contracts. 2.4.1. Support Agreements. Support agreements are used when acquiring utilities from another federal agency. 2.4.1.1. When acquiring utilities from another Air Force organization or DOD agency, use a written support agreement to record the type and conditions of service (DOD Instruction [DODI] 4000.19, Interservice and Intragovernmental Support, August 9, 1995). 2.4.1.2. When acquiring utilities from another Federal agency, use a written interagency support agreement to record the type and conditions of service (FAR, Part 17.5). 2.4.2. GSA Area-Wide Contracts. GSA area-wide contracts are master contracts entered into between the government and a utility service supplier to cover the utility service acquisitions of all Federal agencies in the franchised certified service territory for a period not to exceed 10 years. (See FAR, Part 41.) The Air Force should use the GSA area-wide contract if available in the region in which the base is located. A listing of the areawide public utility contracts is located online at the following address: http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_DOCUMENT&c ontentId=12395&noc=T. The GSA area-wide contract has a specific contract number for each public utility, a signature page, and the required FAR clauses. 2.4.2.1. Select the proper published rate or negotiate a special rate through GSA. 2.4.2.2. Negotiate and add special provisions as needed. 2.4.2.3. Add the installation's utility service specifications. 2.4.2.4. Pay the bills/invoices in a timely manner, avoiding late fees. 2.4.3. Direct Supply Natural Gas Program (DSNGP). The DoD policy is to competitively acquire natural gas via the DSNGP. DSNGP is managed by the Defense Energy Support Center (DESC). DESC awards a contract to a natural gas supplier and an installation may request to be a part of that contract via task order. Defense Logistics Agency (DLA) arranges for transportation of the natural gas commodity via interstate pipelines to local distribution companies. The base arranges for transportation of the commodity from the interstate or intrastate pipeline through the local distribution company (LDC) system to the base distribution system as required. DLA evaluates the installation’s requirements. 2.4.4. Separate Utility Service Contracts (See FAR, Parts 41.103(a)(2) and 41.305, and Defense FAR Supplement (DFARS), Part 241). A separate utility service contract is used when the GSA area-wide contract is not available or separate contract is found to be more advantageous to the government. Ensure utility service contracts, agreements, and modifications are acceptable before sending to base contracting officer for execution. 2.4.4.1. Negotiate the lowest overall cost commensurate with the installation’s requirements. 2.4.4.2. Negotiate and add special provisions. AFI32-1061 23 FEBRUARY 2011 11 2.4.4.3. Add the installation’s utility service specifications. 2.4.4.4. Ensure the negotiated payment date is no earlier than 30 days from the date of billing. If the payment date must be earlier than 30 days from the date of billing, work with the utility provider on alternative charges in lieu of the earlier payment date. The Air Force and DFAS validation and routing processes make it difficult to meet a payment date earlier than 30 days, thus making the Air Force susceptible to late fees. 2.4.4.5. Pay the bills in a timely manner avoiding late fees. 2.5. Acquiring Electric Service. Use the following options, in the preferred order of preference, when determining best value for acquiring new electric service for the main base 2.5.1. Supplier's (public or municipal utility) transmission voltage to supplier-owned substation, with distribution through a supplier- or privately owned distribution system. 2.5.2. Supplier's transmission voltage to a government-owned substation, with the delivery point on the supplier’s side of the substation transformer (AFI 32-1063, Electric Power Systems) to a government-owned distribution system. 2.5.3. Supplier’s transmission voltage to a supplier-owned substation (with a separate charge to the government for use of the facilities), with the delivery point on the government side of the substation transformer to a government-owned distribution system. 2.5.4. Supplier’s transmission voltage directly to a government-owned distribution system when government system primary voltage is the same as the supplier’s transmission voltage. 2.5.5. Supplier’s secondary voltage directly to a building load for small, localized loads. 2.5.6. Government-owned central plant to a government-owned substation with distribution through a government-owned distribution system. 2.6. Acquiring Natural Gas Service. Use natural gas when it is the most economical fuel available. The Defense Logistics Agency/Defense Energy Support Center (DLA/DESC), Installation Energy Branch awards contracts for directly purchasing natural gas from producers, thus the Air Force would be purchasing the commodity directly from the producer. DESC arranges transportation of the natural gas via interstate pipelines to LDC and bases manage the transportation of the commodity through the LDC system to the base distribution system. Transportation may be acquired under a separate contract. Use the following options, in the preferred order of preference, when determining best value for acquiring natural gas service: 2.6.1. Local utility supplier’s (public or municipal utility) natural gas distributed using on-base distribution through a supplier or privately owned system. 2.6.2. Local utility supplier’s (public or municipal utility) natural gas distributed using on-base distribution through a government-owned system. 2.6.3. Competitively procured natural gas using on-base distribution through a supplier or privately owned system. 2.6.4. Competitively procured natural gas using on-base distribution through a government-owned system. 12 AFI32-1061 23 FEBRUARY 2011 2.7. Acquiring Water and Sewage Service. Use the following options when determining best value for acquiring water and sewage service: 2.7.1. For water for the main base, use in order of preference: 2.7.1.1. Supplier’s (public or municipal utility) water with distribution through a supplier or privately owned distribution system. 2.7.1.2. Supplier’s water with distribution through a government-owned distribution system. 2.7.1.3. Government-owned water supply facilities through a government-owned distribution system. 2.7.2. For sewage service for the main base, use in order of preference: 2.7.2.1. Supplier’s (public municipal utility) treatment facilities with collection through a supplier- or privately owned collection system. 2.7.2.2. Supplier’s treatment facilities with collection through a government-owned collection system. 2.7.2.3. Government-owned treatment facilities through a government-owned collection system. 2.8. Connection and Termination Charges or Liability. 2.8.1. Acquire utility service without a FAR, Part 41, termination liability or connection charge if possible. When a utility supplier builds electric generating capacity or transmission lines specifically for the installation, the termination liability amount or the connection charge can be substantial. If possible, negotiate a termination liability charge before offering a connection charge. 2.8.2. Funds for termination charges are obligated when the actual termination of the contract occurs (31 U.S.C. 1501; and DOD 7000.14-R, DOD Financial Management Regulation, Volume 3, Budget Execution - Availability and Use of Budgetary Resources). 2.8.3. Pay special attention to the minimum charge provision when using a definite-term utility service contract or any utility service contract with a termination liability. "Minimum monthly charge" means any minimum charges of the supplier's rate schedule that become payable if the government reduces its usage below the minimum or terminates the service. These charges occur in: 2.8.3.1. Utility service contracts with a termination liability provision. 2.8.3.2. Definite-term utility service contracts. 2.8.4. Negotiate a refundable connection charge, if possible. 2.8.5. Do not base a connection charge or termination liability on the utility supplier's entire construction cost. The connection charge shall never be more than the installation cost less net salvage value. Labor only installation costs do not have a salvage value. The supplier recovers some of the construction costs in the rate schedules. In arriving at fair and reasonable construction costs, consider the following: 2.8.5.1. Permanency of load, annual load factor, and potential growth. AFI32-1061 23 FEBRUARY 2011 13 2.8.5.2. Proposed construction cost applicable to Air Force and to other customers. 2.8.5.3. Utility supplier's line extension policy and the amount of expansion cost included in rate schedules. 2.8.5.4. Special considerations that the utility supplier accords to other large industrial customers. 2.8.5.5. Added tax cost to the utility supplier if there is a contribution in aid of construction tax 2.9. Rate Schedules. Some utility suppliers offer several rate schedules for the same conditions of service. Review the utility supplier’s rate schedules to determine which rate schedule applies to the base and results in the lowest cost to the government. Some utility suppliers offer a choice of energy and demand charges to large customers. One rate schedule includes high-energy charges with low-demand charges and another rate schedule may include low-energy charges with high-demand charges. Using the previous 12 months of billing data, analyze which rate schedule offers the lowest cost based on historical data. 2.9.1. Time-of-Day Rates. Determine whether to take service on a time-of-day rate. Some utility suppliers require large consumers to take such service, and some offer it as an alternative to other rates. 2.9.1.1. Time-of-day rate schedules specify on-peak, off-peak, and a partial (or shoulder) peak period. The rates for energy and demand used during the peak period are higher than the rates for energy and demand during the off-peak period. The start, end, and duration of the peak period differ greatly among suppliers. When the installation shifts usage from the on-peak period to the off-peak period, utility bills can be reduced using time-of-day rates. 2.9.1.2. Calculate the potential savings under a time-of-day rate schedule, using 12month historical and 12-month projected billings for the installation. 2.9.2. Interruptible Rates. Some utility suppliers offer interruptible service at a substantial savings over firm (non-interruptible) service. Interruptible service permits the utility supplier to temporarily discontinue service during peak demand hours. The utility supplier will give advance notice, ranging from a few minutes to several hours. The cost savings is proportional to the amount of advance notice the Air Force receives before the utility interruption. 2.9.3. Demand Ratchets. Some rate schedules contain a demand ratchet provision, which is a means of applying a minimum billing to a customer who may have inconsistent or seasonal energy requirements. The utility supplier incurs costs by making the utility available to the Air Force when it needs it. 2.9.3.1. If the existing rate schedule contains a demand ratchet and the base energy manager expects 1 month of abnormally high demand (caused by a construction project, equipment testing, or other factors), ask the contracting officer to negotiate with the utility supplier to avoid unnecessary demand charges for the next 12 months. The factor causing unusual demand must be estimated in advance for successful negotiations with the utility supplier. 14 AFI32-1061 23 FEBRUARY 2011 2.9.3.2. If the existing rate schedule contains a demand ratchet and the BCE expects the installation's load to decline (caused by demolition of buildings, installation of renewable energy source, or other factors), ask the contracting officer to negotiate with the utility supplier to delete the demand ratchet from the rate schedule. 2.9.4. Standby Rates. Standby rates require the utility supplier to stand ready to serve the government’s load when the Air Force’s utility production facilities do not operate. The utility supplier provides a connection for use by the Air Force, and this connection is used when the Air Force is unable to produce enough energy from their own resources. 2.9.5. Franchise Fee. Most utility suppliers obtain franchises from incorporated cities and towns within their service territory and may pay a fee based on the dollar amount of the utility bill for the use of the municipality's alleys, streets, and rights-of-way where distribution lines are located. Sometimes the supplier lists the franchise fee separately on the bill. Franchise fee issues are highly dependent on local and state tax law, and questions regarding whether an installation should pay such amounts should be referred to the installation legal office or the Utility Litigation Team. 2.10. Rate Changes. Requests for rate changes are processed differently for utility suppliers not subject to an independent regulatory body than for suppliers subject to an independent regulatory body. 2.10.1. Power Marketing Administrations. Power Marketing Administrations request rate changes through a public participation process. They publish proposed rate changes in the Federal Register for public comments, and then hold public meetings to receive and discuss all oral and written comments. After considering all comments, they decide, approve, and publish the new rate. 2.10.2. Utility Suppliers Not Subject to a Regulatory Body (Non-regulated Utility). Use the FAR 52.241-8 clause, "Change in Rates or Terms and Conditions of Service for Unregulated Suppliers," in utility service contracts. This clause allows either party to request a change in rates or terms and conditions of service, with both parties agreeing to enter into good faith negotiations concerning such changes. When the utility service contract provides for rate negotiation, the installation: 2.10.2.1. Does not recognize rate changes for any amount until the parties agree to a mutually satisfactory rate and a date for the new rate to take effect, and then modifies the utility service contract to add the new rate. 2.10.2.2. Makes payment at the old rate until the contracting officer modifies the utility service contract to add the new rate; during this period, ensures the financial manager commits enough funds to cover the possibility of retroactive payment based on the utility supplier's initially proposed rate increase (DOD 7000.14-R, Volume 3). 2.10.2.3. Provides notification of a rate increase request in accordance with the guidelines in paragraph 2.10.3 below. 2.10.3. Utility Suppliers Subject to an Independent Regulatory Body (Regulated Utility). Use the FAR 52.241-7 clause, "Change in Rates or Terms and Conditions of Service for Regulated Suppliers," in utility service contracts. This clause requires the Air Force to pay AFI32-1061 23 FEBRUARY 2011 15 for utility service at the regulated rate. Promptly process a regulated supplier's request for change in rates. 2.10.3.1. The BCE gives all known details to the base legal office, base contracting, and the MAJCOM within 24 hours of change notification. 2.10.3.2. Installations located outside the continental United States (OCONUS) shall have the MAJCOM requests HQ AFCESA/CENR assistance, if needed. 2.10.3.3. Installations in the United States shall have the MAJCOM inform HQ AFCESA/CENR within 24 hours if the potential increase to an installation is: 2.10.3.3.1. More than $300,000 a year for electric or gas service. The MAJCOM notifies HQ AFCESA/CENR of fuel adjustment or purchased gas adjustment when circumstances warrant intervention. 2.10.3.3.2. More than $200,000 a year for water or sewage service. The MAJCOM notifies HQ AFCESA/CENR of fuel adjustment or purchased gas adjustment when circumstances warrant intervention. 2.10.3.3.3. Unreasonable, unjustified, or discriminatory. 2.10.3.4. The base legal office informs AFLOA/ULT of the request for intervention. 2.10.3.5. Within 1 week of the date that the MAJCOM informs HQ AFCESA/CENR of a proposed rate increase, the BCE provides to the MAJCOM (with information copies to base legal, base contracting, and HQ AFCESA/CENR): 2.10.3.5.1. A list of all DoD activities being serviced by the utility company. 2.10.3.5.2. The date the supplier filed the request for a change in rates with the regulatory body, the assigned docket number, the amount and the percent requested for total company revenue, and the amount and the percent of potential annual impact on the installation. 2.10.3.5.3. A copy of the supplier's request for a change in rates (obtain from either the supplier or the regulatory body). 2.10.3.5.4. The date, amount, and percent in total revenue of the supplier's last approved rate increase. 2.10.3.5.5. A copy of the present and the proposed rate schedule. 2.10.3.5.6. A comparison of the installation's costs under the present rate schedule versus the proposed rate schedule. (Calculate hypothetical monthly bills for each rate schedule, using 12-month historical and 12-month projected billings for the installation.) 2.10.3.5.7. A copy of other rate schedules applicable to the installation that are more economical than the proposed rate schedule, along with a month-by-month comparison. If no other rate schedule is more economical, make a statement to that effect. 2.10.3.5.8. A list of other Federal agencies and large industrial or commercial consumers receiving service under the same or similar rate schedules. 16 AFI32-1061 23 FEBRUARY 2011 2.10.3.5.9. A recommendation as to whether the proposed rate increase is unjustified, unreasonable, or discriminatory to the Air Force. Specify whether you recommend intervening or not intervening, and explain why. 2.10.3.6. The MAJCOM promptly informs HQ AFCESA/CENR of its recommendation for AFCESA to intervene and provides TDY funding for utility rate intervention support and technical expertise. 2.10.3.7. HQ AFCESA/CENR evaluates data received; coordinates with concerned MAJCOMs, branches of the Armed Forces, and other federal executive agencies; and decides whether intervention before a regulatory body is appropriate. 2.10.3.8. If the decision is made to intervene, the federal executive agency constituting the largest energy user affected by the requested rate change will request intervention. Where the Air Force is the largest energy user, AFLOA/ULT will intervene on behalf of all federal executive agencies. Typically, AFLOA/ULT will draft and direct the base legal office to file the Notice of Intent to Intervene. The AFLOA/ULT attorney is the federal executive agency's spokesperson before the regulatory body. 2.10.3.9. When the independent regulatory body approves and puts a new rate into effect, notify the financial manager of the financial impact and effective date of the new rate. 2.11. Utility Bills and Payment. The Asset Management Flight and the Resources Flight shall coordinate to ensure utility bills are validated and processed for payment to avoid late fees (see Figure 2.1. Model Utility Bill Payment Process). Faster processing is possible using electronic mediums for billing and payment. If a utility provider does not have automatic electronic billing services, ask the provider to fax or e-mail a scanned copy of the bill before mailing it. 2.11.1. The Funds Manager (or Resource Advisor) in the Resource Flight may validate utility bills for payment if the energy manager or representative confirms the bill is correct. An e-mail from the energy manager or his representative is adequate for this confirmation. Utility bills shall be validated with the statement "The services covered by this invoice have been received and the amount of $<insert amount> is proper for payment. Errors in the invoice have / have not been identified and the utility company has been notified of these errors." 2.11.2. A utility payment shall not be delayed due to billing errors. Ensure billing elements and rates comply with the most current contract rate. If any elements of the bill are incorrect, pay the amount that would be owed if the elements were correct. Notify the utility company of the discrepancy immediately and follow up with the utility company until the issues are resolved. 2.11.3. Ensure the invoice contains applicable discounts. 2.11.4. Ensure demand charges for periods immediately following power failures do not unfairly penalize the Air Force. AFI32-1061 23 FEBRUARY 2011 17 Figure 2.1. Model Utility Bill Payment Process. 2.11.5. Analyze bills to determine whether: 2.11.5.1. Power factor corrective measures should be taken. 2.11.5.2. Demand should be rescheduled to off-peak periods. 2.11.5.3. Demand is increasing. 2.11.5.4. Demand controls are necessary. 2.11.5.5. Load factors are changing. 2.11.5.6. Utility conservation measures are not effective. 2.11.5.7. Budgets should be modified. 2.11.5.8. Contract demand is too low. 2.11.5.9. Another rate schedule would be more economical. 2.11.6. There are several methods of metering and billing from a utility provider. The most advantageous to the Air Force is one master meter and one monthly bill per utility provider. This is not always possible when Air Force facilities are geographically separated by large land masses. The preferred order of metering and billing for any utility services is as follows: 18 AFI32-1061 23 FEBRUARY 2011 2.11.6.1. One master meter and one monthly bill. 2.11.6.2. Multiple meters with conjunctive (combined) billing. 2.11.6.3. Multiple meters with separate billing for each meter. 2.12. Utility Purchase Contract Review. Review utility contracts annually and when a contract is modified to ensure the Air Force is acquiring utilities at the most favorable rate available and costs are minimized. Document this review using AF Form 3550, Annual Utility Contract Review for Electric Service, AF Form 3551, Annual Utility Contract Review for Gas Service, and AF Form 3552, Annual Utility Contract Review for Water and Sewage Service. 2.12.1. Compare current cost trends to historical trends and analyze unusual or unexpected change. 2.12.2. Determine whether current utility service requirements, including quality and quantity of service, are within the estimated demand, consumption, and other contract provisions. Do not reduce estimated maximum demand and consumption in existing contracts to coincide with current actual reduced demand and consumption unless such reduction results in a benefit to the government. Such reductions result in the loss of demand or consumption rights in connecting facilities. 2.12.3. Review the utility supplier's applicable rates for the installation's actual usage, conditions, and characteristics of service. Make sure that the installation buys utilities at the most advantageous rate schedule. 2.12.4. Make sure that metering and billing procedures are the most advantageous to the government. 2.12.5. Maintain the review documentation. Make corrective actions for each discrepancy in the utility service folder. 2.12.6. Provide the base contracting officer a copy of the updated information and a letter with recommended utility contract changes. When the review shows actual consumption or demand exceeds contract quantities, prepare a new service specification (see Attachments 4, 5, 6, 7, and 8) to be added to the contract. 2.13. Utility Service Folders. Installations shall keep a utility service folder for each supplier providing utilities to the installation. The folder is a tool for managing purchased utilities. See Attachment 3 for a list of folder contents. This folder is not required at installations where another agency purchases the utilities for the Air Force. AFI32-1061 23 FEBRUARY 2011 19 Chapter 3 PRODUCING AND MANAGING UTILITIES 3.1. Ownership of On-Base Utility Systems. On-base utility distribution and production systems are owned, operated, and maintained either by the government, a local municipality, public or private utility provider, a utilities privatization contractor-owner, or a housing privatization contractor-owner. 3.2. Government Owned. Government owned systems normally indicate the Air Force is responsible for construction, operations, maintenance, and repair for the utility production and distribution system from the base fence or real estate boundary to the point of utility delivery to the customer. If the government does not produce the utility, the government purchases the utility from an off-base provider. Costs to provide utilities to the end user include the purchased utility and the operations, maintenance, repair, and construction to the distribution system. 3.2.1. Limit the off-base utility supplier’s ownership to that part of the system needed to connect the utility supplier's service delivery to the base. This delivery point is normally at or near the base real estate boundary. 3.2.2. The Air National Guard (ANG) and Air Force Reserve Command (AFRC) will follow the policy on ownership and operation of ANG and AFRC on-base utility distribution systems as set forth in Deputy Assistant Secretary of the Air Force, Installations (SAF/IEI) memorandums. 3.3. Public or Private Utility Provider Owned. These utility systems are wholly owned and operated by the provider that also produces the utility for the local area. The point of utility delivery is directly to the facility consuming the utility. The government is not responsible for the maintenance or operations of any part of the distribution system including metering the consumption. 3.4. Utility Privatization (UP) Owned. If the on-base utility system has been privatized, it will be owned, operated, and maintained by a UP contractor-owner. The privatized utility system may include production, distribution, collection, generation and treatment facilities. The UP contractor- owner may be a private company or a local utility company. UP contracts are utility service contracts with a maximum term of 50 years (10 U.S.C 2688, Utility Systems, Conveyance Authority). 3.4.1. If the UP contractor-owner is not the local or current utility provider, the UP contractor-owner charges will be a separate charge and additional to the commodity or utility company billing. 3.4.2. If the UP contractor-owner is also the local utility provider, then the UP costs may be included in the utility bill, depending on the structure of the utility contract. 3.5. Housing Privatization (HP) Owned. If HP results in the utility system associated with the housing area transferred to the HP contractor-owner and Air Force facilities are located within the housing area, utility service for these facilities will be acquired according to the following options: 20 AFI32-1061 23 FEBRUARY 2011 3.5.1. HP Distribution System Owned by Local Utility. If the local utility company becomes the provider of utility service to the privatized housing area, then the installation shall procure utility service from the local utility company for the Air Force facilities within the HP owned area in accordance with this instruction. 3.5.2. HP Distribution System Owned by HP Contractor-Owner. If the HP contractor-owner operates the utility distribution system in the privatized housing area, the government (installation) may provide utility service on a reimbursable basis to the HP contractor-owner. If the government (installation) provides the commodity to the HP contractor-owner, the HP contractor-owner will provide wheeling service without charge to the Air Force facilities located on the housing utility distribution system. Meters will be installed to measure the quantity delivered exclusively to the Air Force facilities. These meters will be read monthly, and this usage deducted from the metered quantities delivered by the government (installation) to the HP contractor-owner. 3.6. Operations, Maintenance, and Repair Costs. The operations, repair, and maintenance costs associated with government owned production and distribution utility systems comes from work orders, maintenance service contracts, and projects. Coordinate with the Operations Flight for work order and maintenance service contract data and the Programs Flight for project data. 3.6.1. The Operations Support element in the Operations Flight shall provide a monthly and annual work order report showing all work completed on utility systems. This could include a variety of account codes depending on the Operations Flight and Resource Flight procedures. The Operations Flight shall ensure the work associated with the utility systems is properly and accurately documented into the IWIMs database and that labor, materials, equipment, vehicles, and supplies are included in work accountability. 3.6.2. Work associated with utility systems includes (but not limited to) work on piping, lift stations, transformers, valves, lines, conduit, overhead electrical poles, electrical vaults, water wells, water hydrants, sewer manholes, primary power electrical generators, waste water treatment and collection plants, etc. Work on utility systems normally begins on five feet away from the exterior wall of a building. Work performed on and in buildings or facilities is not normally a utility cost unless the building is for the exclusive production or distribution of a utility. Street lighting and traffic controls are not considered utility costs so ensure work order information does not include costs for work on these systems. 3.6.3. Sample civil engineer utility account codes and real property category codes useful in analyzing utility costs are in Attachment 2. 3.6.4. A work report will include all costs associated with operations, repair, and maintenance. These costs include: 3.6.4.1. Military labor. 3.6.4.2. Civilian labor. 3.6.4.3. Materials. 3.6.4.4. Chemicals. 3.6.4.5. Equipment. 3.6.4.6. Government owned laboratory. AFI32-1061 23 FEBRUARY 2011 21 3.6.4.7. Sludge disposal. 3.6.4.8. Permit fees. 3.6.4.9. Service maintenance contract costs. 3.7. Project and Capital Investment Costs. Major repair, large maintenance work, minor construction and new construction costs associated with government owned production and distribution utility systems normally comes from projects. Coordinate with the Programs Flight for project data. 22 AFI32-1061 23 FEBRUARY 2011 Chapter 4 PROVIDING UTILITIES 4.1. Utility Service Agreements. Title 10 U.S.C. 2686 authorizes the Secretary of the Air Force or his or her designee to sell utilities and related services to purchasers within or in the immediate vicinity of an Air Force installation. Title 10 U.S.C. 2872a authorizes the Secretary of the Air Force to furnish certain utilities and services on a reimbursable basis in connection with military family housing (MFH) privatization that is located on a military installation. Proceeds collected for utility service sales are credited to the appropriated account used for the utility or related service. Utility service agreements must be in writing and signed by the purchaser, the BCE (or MAJCOM Civil Engineer as listed below), and the installation commander (or his or her designee) and attached to a valid support agreement or lease (see Figure 4.1. for appropriate forms and corresponding customer classifications). Keep the original agreements and send copies to the purchaser, base accounting and finance office, and the base CE resource advisor. 4.1.1. Use AF Form 3553, Utility Sales Agreement for Non-Federal Organizations, for nonFederal organizations. In addition to the BCE approval, the MAJCOM Civil Engineer must also approve the AF Form 3553 for any sales occurring off the installation property. 4.1.2. Use AF Form 3554, Utility Service Agreement for DOD Agencies and Non-DOD Federal Agencies, for DOD and non-DOD Federal agencies. A purchaser with activities in several facilities, such as the Morale, Welfare, and Recreation (MWR), shall have only one AF Form 3554. When additional space is needed, add in paragraph 5 of the form, "See attached memorandum which lists each activity, facility, and address to be served". 4.1.3. Use AF Form 4386, Utility Service Agreement for Privatized Military Family Housing, to provide service to privatized housing contractors. The MAJCOM civil engineer approves the AF Form 4386, Utility Service Agreement for Privatized Military Family Housing, to provide service to military housing privatization projects. 4.1.3.1. Installations receiving Western Area Power Administration (WAPA) electricity should contact AFCESA/CENR to ensure that privatization will not result in the loss of the WAPA power allocation. 4.1.4. Use AF Form 3555, Utility Sales Rates Exhibit ___, attached as Exhibit A in AF Form 3554 service agreements and Exhibit B in AF Form 3553 sales agreements for documenting resale or reimbursable utility rates. This form may be updated as often as necessary to reflect rate changes. This form is signed and approved by the Base Civil Engineer. The purchaser does not sign this form. (See paragraph 4.7.1.4.) 4.1.5. Ensure the purchaser complies with energy conservation procedures. Inspect modifications and additions the purchaser makes to their facilities for energy efficiency and conservation. 4.1.6. When adding, deleting, or changing addresses for activities listed in AF Form 3554 and AF Form 3553, attach a memorandum signed by the BCE to the existing AF Form rather than creating a new sales agreement. It is not necessary to supersede, rewrite, or issue a new AF Form 3553 or AF Form 3554 when making minor changes or additions. AFI32-1061 23 FEBRUARY 2011 23 Table 4.1. Reimbursable Customer Service Agreement Form Matrix. SERVICE AGREEMENTS (items shall be attached to corresponding support agreements) Medical & MFH No Agreement AF Form 3553 AF Form 3554 AF Form 3555 AF Form 4386 DD 1144 DoD & Golf Course (except MFH & Medical) MWR Cat C& AAFES (except Golf Courses DoD Non-Federal & Federal & Commercial Non-DoD Non-Privatized MFH & Medical Privatized MFH 4.2. Restrictions. The installation commander may sell utilities and related services to a nonFederal organization on or in the immediate vicinity of an Air Force installation only if all the following apply: 4.2.1. The sale serves the interest of national defense or the public interest. 4.2.2. The service is not available from local private or public suppliers (the person responsible for utilities management makes this determination annually; if there is a local source, the BCE will discontinue service as soon as possible). An exception to this requirement is that service to privatized MFH can be provided even if available locally. (10 U.S.C. 2872[a]). 4.2.3. The sale does not disrupt present or planned service to the Air Force. 4.2.4. Any minor expansion or extension of Air Force utility distribution systems or facilities needed to make the sale does not hinder the construction of similar public or private facilities. 4.2.5. The service is sold to the purchaser for their consumption, not for resale. 4.3. Provided Without Reimbursement. 4.3.1. Provide utilities without reimbursement to approved organizations as listed in a DOD or Air Force Directive, Regulation, or Instruction. These publications permit approved organizations to operate on the installation and receive utilities without reimbursement. Examples are: 4.3.1.1. Organizations operating in buildings, structures, and facilities located on Air Force-owned or -leased real property and funded with Air Force-appropriated money. See AFI 65-601 Volume 1, Budget Guidance and Procedures, for additional information, Para 7.4 and Figure 7.1 for additional information.. 4.3.1.2. The Federal Aviation Administration (FAA) providing air traffic control primarily for Air Force aircraft. 24 AFI32-1061 23 FEBRUARY 2011 4.3.1.3. Occupants in government quarters, military family housing, transient billeting facilities, and unaccompanied personnel housing when occupying without charge or when the rental charge is a percentage of the basic allowance for quarters (AFI 32-6001, Family Housing Management). 4.3.1.4. MWR Category A and B activities, regardless of location. 4.3.1.5. MWR Category C and AAFES activities located outside the continental United States (OCONUS) or in remote and isolated locations as listed in AFI 65-106, Appropriated Fund Support of Morale, Welfare, and Recreation (MWR) and Non appropriated Fund Instrumentalities. 4.3.1.6. MWR Category C and AAFES activities occupying CONUS bases when appropriated O & M funding is available. Not authorized for golf courses or golf course structures other than golf club houses inside the United States except those designated by the Secretary of Defense as a remote and isolated location. Not authorized for cart storage buildings, maintenance sheds, and pro shops inside the United States even if part of golf club house. The Installation Commander determines if appropriated funding is available. 4.3.1.7. Credit unions occupying government furnished facilities. (AFI 32-9003). 4.3.1.8. Red Cross activities (AFI 36-3105, Red Cross Activities Within the Air Force). 4.3.1.9. Air Force Aid Society (AFI 36-3109, Air Force Aid Society [AFAS]). 4.3.1.10. United Services Organization (USO) incorporated on-base activities (AFI 34223, Private Organizations [PO] Program). 4.3.1.11. Labor organizations subject to Executive Order 11491 and authorized by the installation commander to use on-base facilities without cost (AFI 34-223 and AFI 36701, Labor-Management Relations). 4.3.1.12. Other private organizations, described in AFI 34-223, when use of an on-base facility is occasional and only a minor part of the facility's use. 4.3.1.13. Contractors (individual, firm, or corporation performing work on an installation), when their contract authorizes them government furnished utilities without reimbursement. 4.3.1.14. Thrift shops operated by wives/spouses clubs on Air Force installations (AFI 65-601V1). 4.3.1.15. Air Force Museums and Air Force Heritage Centers are provided utilities without charge (AFI 84-103, US Air Force Heritage Program). 4.4. Provided With Reimbursement. Provide utilities with reimbursement to organizations required by a DOD or Air Force Directive, Regulation, or Instruction to reimburse appropriated funds for utilities. The Air Force pays for the utility service from its own funds and is later reimbursed by the customer. A written utility service agreement is required (except for medical, housing, and other organizations that are members of the same wing as the BCE where a fund cite is adequate for reimbursement). See Table 4.1. The customer shall reimburse the Air Force within 30 days after the Air Force bills the customer. Review the base telephone directory and AFI32-1061 23 FEBRUARY 2011 25 real property records to identify new customers. Possible customers purchasing utility services from the Air Force include: 4.4.1. DOD Agencies. The customer may pay in advance for an estimated utility consumption or may reimburse the Air Force within 30 days after the invoice date. Specify payment terms in the support agreement. The following are common DOD federal agencies reimbursing the Air Force for utilities: 4.4.1.1. Category C MWR and AAFES occupying CONUS bases reimburse the Air Force for all utilities when appropriated funding is not available. The Installation Commander determines if funding is available. Remote and isolated CONUS locations listed in AFI 65-106 are exempt from paying for utilities. 4.4.1.2. Medical Units and Organizations. 4.4.1.3. Government-Owned MFH. 4.4.1.4. Defense Working Capital Fund (DWCF) Activities described in AFI 65-601V1. DeCA facilities used solely for retail sales pay for utilities for all areas used to store, warehouse, and sell merchandise. If a DeCA facility is used jointly for retail sales and other military or mission uses, do not charge for the consumption or use of utilities for military or mission essential areas. 4.4.1.5. Air National Guard. 4.4.1.6. Army National Guard. 4.4.1.7. Department of the Army. 4.4.1.8. Department of the Navy. 4.4.1.9. Occupants of leased property according to 10 U.S.C. 2667, Leases: Non-excess Property of Military Departments. 4.4.2. Non-DoD Federal Agencies. The customer may pay in advance for an estimated utility consumption or may reimburse the Air Force within 30 days after the invoice date. Specify payment terms in the support agreement. The following are common non-DoD federal agencies reimbursing the Air Force for utilities: 4.4.2.1. US Post Office. 4.4.2.2. Federal Emergency Management Agency (FEMA). 4.4.2.3. Homeland Security. 4.4.2.4. Drug Enforcement Agency (DEA). 4.4.2.5. Department of Energy (DOE). 4.4.3. Non-Federal/Commercial Organizations. Non-federal and commercial organizations not exempted by separate instructions and using facility space on other than an occasional basis must reimburse the Air Force for utilities (AFI 34-223). Many private organizations are exempted from reimbursing utilities under separate instructions that are specific to the organization, therefore, before charging for utilities, research the Air Force Instructions applicable to the organization. The following are common non-federal customers reimbursing the Air Force for utilities: 26 AFI32-1061 23 FEBRUARY 2011 4.4.3.1. Public elementary and secondary schools. 4.4.3.2. Private schools. 4.4.3.3. Occupants of privately owned mobile homes (AFI 32-6001). 4.4.3.4. Government civilian employees renting government quarters (AFI 32-9003). 4.4.3.5. Occupants of military housing projects insured by the government under 12 U.S.C. Section 1701, National Housing Act, and Section 810, Projects (Wherry Housing). 4.4.3.6. Credit unions and banks (AFI 32-9003) unless exempted in separate instructions. 4.4.3.7. Civil Air Patrol (AFI 10-2701, Organization and Function of the Civil Air Patrol). 4.4.3.8. Any person or organization that connects equipment, devices, or appliances operated for private gain to the installation's utility system. 4.4.3.9. Contractors working on an installation and their contract does not provide government furnished utilities. 4.4.3.10. Housing privatization contractor. 4.5. Selling Water to Non-Federal Customers. The regulatory status under the Federal and state Safe Drinking Water Act (SDWA) may be negatively impacted when water is sold to nonFederal customers. Coordinate with the base bioenvironmental engineer and the environmental manager to determine regulatory controls of selling safe drinking water. 4.6. Base Closure Locations. AFRPA determines the utility rates for local redevelopment authorities at bases undergoing closure. 4.6.1. AFRPA establishes a sales utility rate that maximizes reimbursement to the Air Force yet is economical for local redevelopment. AFRPA updates the sales rate if there is a significant change in conditions (such as an increase in reuse). 4.6.2. The utility sales rate shall be no less than the local prevailing rate for similar services. 4.7. Calculating Utility Reimbursement Rates. 4.7.1. Use AF Form 3556, Utility Sales Rates Computation Worksheet, to compute utility rates. An approved electronic worksheet is available on the Air Force Facility Energy/Utility Program Community of Practice website at: https://wwwd.my.af.mil/afknprod/ASPs/docman/DOCMain.asp?Tab=0&FolderID=OO -EN-CE-A4-27&Filter=OO-EN-CE-A4. 4.7.1.1. Monitor the impact of utility provider rate changes using AF Form 3556, Utility Sales Rates Computation Worksheet. 4.7.1.2. Rate increases/decreases from utility companies shall be passed along to base customers as they occur. 4.7.1.3. Annual updates of AF Form 3555 are mandatory and include the previous 12 months of actual costs to computed sale rates. Annual updates shall be effective 1 Jan of each year. AFI32-1061 23 FEBRUARY 2011 27 4.7.1.4. Provide the finance office with a copy of updated AF Form 3555. Ensure the form shows the date of rate change and the first billing month of the new rate. If utility rates change during the year before 1 Jan, notify the customer with a memo in their monthly utility bill. 4.7.2. Computing Utility Reimbursement Rates. The most efficient method to calculate utility rates is to use AF Form 3556 utilizing the link in paragraph 4.7.1. The information below is intended to be used with the form. The form also includes comments in each area that explains the information that is required for each cell. Data is entered into the yellow shaded cells. Formulas are automatic and cannot be changed without written approval from AFCESA/CENR. Utility reimbursement rates are calculated by adding cost factors shown in Table 4.2. and explained in the following paragraphs: 4.7.2.1. Capitalized Investment Cost of Facilities. Capitalized costs are directly related to the maximum capacity of the utility system. The total capital investment of the system is found in the Real Property Inventory Record, AF Form 7115. The real property manager provides this information to the energy manager. Figure 4.1. Capitalized Investment Cost of Facilities. Capitalized Investment Costs ($) = (Original Cost to Construct + Cost of All MILCON + Cost of All Repairs by Replacement) – Cost of Any Component Removed 4.7.2.2. Total Annual Maximum Capacity of Utility System. The total annual maximum capacity is the maximum amount of the utility that a system can carry at a particular moment (in kilowatts, gallons, or millions of BTUs) multiplied by the total units of time in a year (525,600 minutes or 8,760 hours). Generating capacity denotes the maximum amount of power or commodity that can be produced by a given facility. Load capacity or transmission capacity denotes the maximum amount of energy that can be transmitted through a system or maximum amount of capacity that a utility provider will deliver. Flow capacity is measured in tons, cubic feet or cubic meters, and indicates the maximum amount of gas or liquid that can be transported through a pipeline. Capacity can vary depending on the current state of the system or its capabilities at a given moment, so it is not a fixed or absolute value. For example, a generator's capacity may increase or decrease depending on the type or mixture of fuel used, and a gas pipeline's capacity will vary with changes in the ambient air temperature. For example, the total annual maximum capacity for electricity is multiplied by 8760 hours in a year. kWh = MW*1000*8760 as follows: Figure 4.2. Total Annual Maximum Capacity for Electricity (kWh). Total Annual Maximum Capacity for Electricity (kWh) = Contracted Maximum for Purchased Electricity + Maximum Capacity for Generated Electricity 8760 4.7.2.3. Basic Cost. The basic cost is the total annual cost of a utility purchased and produced divided by the annual total consumption. The basic cost includes ESPC, UESC, and UP costs as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. 28 AFI32-1061 23 FEBRUARY 2011 4.7.2.3.1. When purchasing utility service, divide the total annual purchased cost by the annual consumption. 4.7.2.3.2. If an Air Force-owned plant generates the utility commodity, divide the cost of production/generation by the total consumption (or estimated consumption if consumption not metered). 4.7.2.3.3. When using a combination of Air Force produced and purchased services, total both the purchases and the produced costs and divide by the total consumption. 4.7.2.3.4. UP Charges. When utility systems on the installation are owned by a UP contractor/owner, the Air Force pays for the UP owner to operate and maintain these systems in one of two ways: 4.7.2.3.4.1. Incremental UP Charges. If the base utility system has been privatized and there are incremental UP charges, the UP cost is calculated by dividing the total annual UP charges by the annual utility system consumption. 4.7.2.3.4.2. Bundled Commodity UP Charges. If all delivery charges (including charges for on-base distribution) are bundled with the commodity charges, no calculation is necessary; there is no incremental UP charge. 4.7.2.3.5. Energy Savings Performance Contract (ESPC) or Utility Energy Services Contract (UESC) are used for energy conservation measures. The UESC charges may be included in the monthly utility purchased utility bill as a bundled cost to the Air Force. Ensure the ESPC and UESC costs are not added twice to the AF Form 3556 if they are billed as a bundled charge. Figure 4.3. Basic Cost. Basic Cost ($/unit) = (Total Cost Purchased Utility +/- (ESPC Charges + UESC Charges + UP Charges) *as applicable + Total Cost Produced Utility) ÷ Total Consumption 4.7.2.4. Connection Fee Charges. Connection fees are billed with the monthly purchased utility bill. The MWR and AAFES reimbursable rate is reduced by any connection fees paid by the Air Force, therefore, subtract the connection fees from the MWR and AAFES utility reimbursement rate as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. Figure 4.4. Connection Fee Charges. Less Connection Fee Charge ($/unit) = Total Connection Fee Charges ÷ Total Consumption 4.7.2.5. Distribution Line Losses or Gains. The energy loss in the Air Force transmission and distribution system (or gains in the Air Force collection system) refers to the difference in the amount of energy delivered to a distribution system and amount of energy delivered to the customer. Line loss may be estimated or may be calculated by a qualified engineer. The Air Force normally uses an estimated 10 percent energy loss if the amount of loss is unknown. AFI32-1061 23 FEBRUARY 2011 29 4.7.2.5.1. When estimating wastewater services, if the user's flow is metered or estimated from its facilities, increase the commodity cost by 10 percent or determine the actual infiltration and use that number to increase the commodity cost. 4.7.2.5.2. When estimating industrial wastewater, if the user's flow is estimated from the metered flow through the industrial wastewater treatment plant, the meter readings already include line inflow or infiltration. Figure 4.5. Distribution Line Losses or Gains. Line Loss (Gain) ($/unit) = (Basic Cost +Other Utility Cost) Percentage Line Loss 4.7.2.6. System O&M Cost. Determine the Air Force transmission, distribution, and collection system annual O&M costs per unit of service from work order and project information. When the Air Force owns, operates, and maintains a utility distribution system, the base pays for these expenses with BCE appropriated funds. O&M costs are tracked by the Operations Flight and the Programs Flight depending on who performs the work and how the work is performed (contract or in-house). Customers receiving utilities from the Air Force share the burden of these costs depending on the customer’s classification as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. 4.7.2.6.1. System operations and maintenance costs include all routine maintenance and repair. If the repair does not add value or capacity, does not change the type of system (such as removing an overhead utility line and replacing it with an underground line), or upgrades the system (such as replacing an old distribution system with the same size but new system), consider the repair to be routine maintenance and repair, and include the repair in system operations and maintenance cost. 4.7.2.6.2. Work on the system is performed by work order, service contract, and construction contract. Expenses included in this work include labor, equipment, materials, chemicals, supplies, tools, and vehicles. Collect the data applicable to all possible sources of work on the system and include all items of expenses. 4.7.2.6.3. Projects are normally programmed a year or more in advance of execution and the energy manager should let customers know of future rate increases. Customers can plan for the increased expenses by budgeting for the increased costs. This can be accomplished by preparing a draft future AF Form 3556 with the proposed large project costs included and notifying the customer of the estimated future costs of their utilities. 4.7.2.6.4. The real property capitalized costs definitions are used to determine work that is considered O&M and work that is considered a capitalized investment. Military construction projects (MILCON) are usually capital investment costs but Sustainment, Restoration, and Modernization (SR&M) projects are normally O&M costs. Exceptions may exist so coordinate with Resources Flight to determine what costs apply to the O&M category and what costs apply to the capitalization charges. 30 AFI32-1061 23 FEBRUARY 2011 sole benefit test‖ (see Figure 4.6. Sole Benefit Test for 4.7.2.6.5. Complete a ― Determining O&M Costs) to determine what portion of the system and its associated charges apply to DOD, MFH, MHPI, and Federal customers as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. These customers are charged O&M costs for the portion of the system provided solely for their benefit (DODI 4000.19). Figure 4.6. Sole Benefit Test for Determining O&M Costs. Figure 4.7. System O&M Cost. O&M Costs ($/unit) = Total Cost Operations, Maintenance, and Repair ÷ Total Consumption 4.7.2.7. Other Utility Costs. Determine the cost of ancillary utility service required to provide the utility service, such as heat for a water treatment plant, the cost of electric power used to pump water, the cost of chilled water or potable water to pump and treat wastewater, and the cost of electricity to operate lift stations and wastewater treatment plants. Use the ― Other Utilities‖ section of AF Form 3556 to compute other utility costs associated with producing and distributing a utility service as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. Figure 4.8. Other Utility Costs. Other Utility Costs ($/unit) = (Total Cost Purchased Other Utility + Total Cost Produced Other Utility + Total Cost O&M Other Utility) ÷ Total Consumption Other Utility 4.7.2.8. Military Labor Costs. Military labor cost will be included as a separate item in the IWIMs reports from the Operations Flight. Military labor is deducted from rates for DoD federal agencies as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. AFI32-1061 23 FEBRUARY 2011 31 Civilian and contract labor costs are included in reimbursable rates to all customers, thus a higher resale rate results when using civilian or contract labor for work performed on on-base utility systems. Figure 4.9. Military Labor Costs. Less Military Labor Cost ($/unit) = ((Total Cost Produced Utility + Total Cost O&M Utility) – Total Military Labor Cost) ÷ Total Consumption 4.7.2.9. Capitalized Investment Charges. The capitalized investment charges are passed on to the customer. They are the total capital investment cost divided by the total annual maximum capacity (not output) of the plant as shown in Table 4.2. Utility Rate Chart Utility Rate Factors. Capitalized charges do not include all project costs. They include only those projects that meet real property capitalization investment costs. Repair and maintenance project costs are part of the operations and maintenance costs described in 4.7.2.6. System O&M Costs. Figure 4.10. Capitalized Investment Charges. Capitalized Charges ($/unit) = (Total Capitalized Cost ÷ Total Annual Maximum Capacity) 10% 4.7.2.10. Administrative Overhead. The Administrative Overhead charge is equal to 3 percent of the total unit costs for all other charges as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. Figure 4.11. Administrative Overhead. Administrative Overhead Charges ($/unit) = (Total Basic Cost + Line Loss + O&M Costs + Other Utility Costs + Capitalized Charges) 3% 4.7.2.11. Local Prevailing Rate. The local prevailing rate is the rate the purchaser would pay for a particular class of service if the customer were provided the utility directly by the nearest off-base utility supplier as shown in Table 4.2. Utility Rate Chart - Utility Rate Factors. Local prevailing rates are normally published through the local utility company’s online website and they include categories for various residential types, commercial, industrial, and other special rated categories. Analyze the customer’s service requirements to determine which local rate schedule would apply if the customer purchased the utility directly from a local utility provider. If an applicable rate equals or exceeds the cost to the government for supplying the service, use the local utility provider’s rate. If two or more rates apply equally but exceed the cost to the government for supplying the service, use the lower of the two applicable rates. Do not charge the local prevailing rate when a Department of Energy Power Marketing Administration is one of the installation's utility suppliers or when the use of the local prevailing rate directly conflicts with a utility supplier's regulation. 32 AFI32-1061 23 FEBRUARY 2011 4.8. Wheeling Charge. A wheeling charge is applicable when an on-base tenant or privatized contractor purchases utility service directly from the local utility service provider. The government may allow utility suppliers to use government-owned, distribution systems to transport utilities to on-base organizations with extremely large utility consumption if adequate capacity is available. The contracting officer adds a wheeling charge provision to the utility contract. Most utility suppliers will not agree to wheel due to the expense of installing and reading meters, obtaining security to get on base, and processing monthly utility bills. It is usually more advantageous to the government for suppliers to wheel to non-Federal customers with extremely large utility consumption such as a privately owned industrial plant or large privately owned hotel. It is not advantageous to wheel to small users such as banks and credit unions. The base energy manager verifies proper wheeling amounts are deducted on the monthly invoice, and annually recalculates the wheeling charge. The contracting officer modifies the utility service contract no later than 1 January each year to update the wheeling charge. 4.8.1. The wheeling charge is the total of the line loss, operations, maintenance, and repair costs, other utility costs, capitalized charges, and administrative overhead. Figure 4.12. Wheeling Charge. Wheeling Charge ($/unit) = Total Line Loss Unit Rate + O&M Cost Unit Rate + Other Utility Cost Unit Rate + Capitalized Charge Unit Rate + Administrative Overhead Unit Rate 4.8.2. Use the following sample wheeling charge provision in a utility service contract: “In consideration for the use of government-owned, on-base distribution systems to transport utilities to (show the name and address of the non-Federal organizations), the utility supplier agrees to include on the monthly invoice to the installation a deduction for the amount of utilities consumed by the non-Federal organizations and a deduction to cover the wheeling charge of (show the amount) per (show the unit of measurement [kWh, Mcf, Btu or kgal]). Annually, the base energy manager recalculates the wheeling charge according to AFI 32-1061, using prior fiscal year cost data, and gives the utility supplier the updated wheeling charge, which takes effect on 1 January. The government may revoke this provision with a 30-day written notice to the utility supplier.” 4.9. Utility Invoices and Payment. The Resources Flight processes invoices for reimbursement. The energy manager provides the funds manager a monthly spreadsheet showing the customer, consumption, and reimbursement rate no later than 10 days after the utility provider billing date. The CER funds manager prepares the invoices. Depending on the base billing process, CER or DFAS mails the invoices to the reimbursable customer. CER shall ensure customers are reimbursing for utilities and paying late fees if applicable. 4.10. Billing Waivers. The energy manager may waive billings for Air Force, DOD and Federal customers when the accumulated charges for a reimbursable customer are less than $125 for any calendar quarter. EXCEPTION: This waiver does not apply and billing may not be waived for DWCF or non-Federal customers. (AFI 65-601V1, Sections 7.10 and 7.23.) 4.11. Utility Reimbursable Rate Review. Complete AF Form 3557, Utility Service Annual Review, no later than 1 January of each year, to record the annual review and changes in utility AFI32-1061 23 FEBRUARY 2011 33 agreements and rates. Keep a copy of the latest annual review and a record of the action taken to resolve any problems or recommendations resulting from the annual review. Customer Classification Table 4.2. Utility Rate Chart - Utility Rate Factors. Basic Cost Utility Privatization/E SPC/UESC Connection Fees Distribution Line Loss O&M Other Utilities Military Labor Capitalized Charges Admin/ Overhead Local Prevailing Rate Customer Para 4.7.2.3. Para 4.7.2.3. Para 4.7.2.4. Para 4.7.2.5. Para 4.7.2.6. Para 4.7.2.7. Para 4.7.2.8. Para 4.7.2.9. Para 4.7.2.10. Para 4.7.2.11. A Government-Owned MFH C N C P N P N N N N A Privatized MFH (HP Contractor owns MFH distribution system) C (1) N (1) C (1) C (1) SB (1) C (1) C (1) C (1) C (1) N (1) A Privatized MFH (UP Contractor or Government owns MFH distribution system) C N C P SB (3) C N SB (3) N N B Non-Federal/ Commercial C C C C C C C C C C (2) C Non-DOD Federal C C C C SB C C N N N D DOD (including golf courses) C C C C SB C N N N N E MWR Cat. C (except golf courses) C C N N N N N N N N C = Charge N = Not charged P = Charge only if service is provided through (passes through) the main base distribution or collection system. SB = Sole Benefit Test. Charge operations, maintenance, and repair for the portion of the system infrastructure provided solely for the benefit of the customer. Do not charge for operations, maintenance, and repair if Air Force facilities are located within the HP area. (1) If HP contractor purchases directly from the utility company, the base is not the utility provider and no agreement or charges are necessary. Wheeling charges may apply (See paragraph 4.8. Wheeling Charge) (2) Charge the local prevailing rate for similar customer category rate class if higher than the calculated non-Federal rate. (3) HP contractor pays directly for O&M and capitalization lines provided for sole benefit of HP Chapter 5 MEASURING UTILITY CONSUMPTION 5.1. Meters. A vital component of the Air Force’s energy program is measuring utility usage by installing meters (electric, natural gas, steam, and water) where appropriate, thus allowing for informed decisions and improved energy efficiency. 5.1.1. Utility purchase contracts have provisions specifying meter calibration and refunds due the government when meters are not calibrated correctly. The base energy manager keeps a copy of the latest meter calibration test for each meter in the utility service folder. Calibration for meters owned by the utility provider is the responsibility of the utility provider. 5.2. Funding Meter Installation. Use construction funds to install meters on new and renovated facilities. Advanced meters shall be installed on all utility systems renovations exceeding $200K, new MILCON, major renovations, Energy Conservation Investment Program projects and Energy Savings Performance Contract projects. 5.2.1. Meters are required at all existing facilities when cost effective. (Cost-effectiveness criteria is defined in the latest Air Force Facility Metering Policy guidance available on the Air Force Facility Energy/Utility Program Community of Practice website at: https://wwwd.my.af.mil/afknprod/ASPs/docman/DOCMain.asp?Tab=0&FolderID=OO -EN-CE-A4-27&Filter=OO-EN-CE-A4. 5.2.2. Water meters shall be located at all installation potable water entry/service points, on base well water facilities and at all location where the annual usage exceeds 2 million gallons. Steam shall be measured at central steam plants in accordance with Air Force Instruction 32-1068, Heating Systems and Unfired Pressure Vessels (1 Oct 1998). 5.2.3. Meter government-owned family housing using a master metering system according to Military Handbook (MIL-HDBK) 1190, Facility Planning and Design Guide, Chapter 13, paragraph 12. 5.2.4. Meter privately owned (privatized) military family housing areas. As a minimum, there shall be a master meter located at the line of demarcation between the base utility consumption and the line that feeds directly to the housing area. These privatized housing area meters shall be purchased and installed using the privatized contractor’s funds but meters shall meet Unified Facility Guide Specifications requirements and the BCE shall approve installation of the meter. Meters shall be installed within 30 days after contract award for the privatized housing. 5.2.5. Meter government-owned facilities located within a privatized military housing area. These meters shall be purchased and installed with government funds. 5.3. Meter Consumption Data and Reading. Until advanced meters are fully operational and providing daily consumption data, meter consumption data shall be collected monthly on the same day as the local utility provider reads the base master delivery point meter. The energy manager uses the meter data to verify utility bill information is correct and to determine reimbursable customer consumption for utility resale billing. Normally, shop personnel from the 36 AFI32-1061 23 FEBRUARY 2011 Operations Flight perform meter reading when automatic reading capability does not exist. The energy manager will also use AMR consumption data for energy conservation monitoring and reporting as these advanced meters become fully operational. 5.3.1. Meter readings shall include type meter, meter identification number, meter location; multiplier and unit of measurement; prior and present month's reading and date; number of days between readings; consumption; and signature and phone number of the meter reader. Use the daily average consumption of any representative period in the event a meter fails. 5.3.2. Keep meter data and billing information for the last 24 months easily accessible. All meter information will be stored electronically for 7 years. Annually check the information to determine if consumption is nearing the utility system capacity. If actual consumption is nearing capacity, coordinate with the Programs Flight to analyze the infrastructure for possible capital improvements. Coordinate with the community planning function and the programming function to determine future requirements. 5.4. Utility Consumption Estimating. Estimate present and future requirements (consumption) as realistically as possible. Consider temporary meters for estimating facilities that consume large quantities of energy and water. 5.4.1. Overestimating requirements (consumption) will result in excessive connection charges and unreasonable minimum charges. When actual demand is below the contract minimum demand, the installation pays for more service than it actually uses. 5.4.2. Underestimating requirements (consumption) will result in inadequate plant and system capacity, additional connection charges, and a higher unit cost for service based on a low consumption rate schedule. 5.4.3. Prepare a detailed engineering estimate for utility consumption for each facility (or customer) without a functioning meter. Consumption estimates will include the parking lot lighting that belongs to the facility but will not include street lighting. Use temporary meters to estimate utility consumption when feasible. Consumption estimates shall be effective 1 Jan of each year. 5.5. Electricity and Natural Gas Estimating. 5.5.1. Use the Energy Use Intensity (EUI) (kWh/sq ft-year or kBtu/sq ft-yr) information, if available. If not available, consider using similar EUIs on similar facilities. Account for weather, occupancy, and scheduling effects. Estimating includes: 5.5.1.1. Inspecting motor nameplates. 5.5.1.2. Determining what periods and loads the motors operate. 5.5.1.3. Determining the amount and duration of electricity used for heating, air conditioning, lighting, and other loads. 5.5.1.4. Estimates for heating and air conditioning may be made by using the methods specified in the American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) Handbook. 5.6. Water and Wastewater Estimating. If possible, use temporary meters to estimate water consumption; otherwise, use the best estimate possible based on the guidelines in the Federal Water Use Indices (see the Air Force Water Conservation Guidebook, AFI32-1061 23 FEBRUARY 2011 37 https://wwwd.my.af.mil/afknprod/ASPs/docman/DOCMain.asp?Tab=0&FolderID=OOEN-CE-A4-26&Filter=OO-EN-CE-A4 , and the following: 5.6.1. 75 gallons per day per person residing in a mobile home. 5.6.2. 150 gallons per day per person for facilities occupied on a 24-hour-per-day basis. 5.6.3. 50 gallons per day per person for administrative or industrial facilities occupied on an 8-hour-shift-per-day basis, plus any water needed for industrial or irrigation purposes. 5.6.4. Estimate domestic sewage consumption by using 70 to 90 percent of the water consumption, depending on the amount of water needed for industrial or irrigation purposes. 5.6.5. Estimate industrial wastewater flow for small users according to operational records, facility visits, and the observed flow during normal workload periods. Account for holiday, seasonal, and other unusual impacts in estimating the average flow for a small user. 5.6.6. Estimate industrial wastewater flow for depot maintenance activity by subtracting the estimated flow for all non-depot maintenance contributors from the total flow measured at the industrial wastewater treatment plant. (Depot maintenance activities normally account for 80 percent to 98 percent of the flow.) 5.6.6.1. Estimate average flows for all non-depot maintenance contributors, including activities required to reimburse and those not required to reimburse. 5.6.6.2. Calculate the depot maintenance flow by subtracting the non-depot maintenance flows from the total flow measured at the industrial wastewater treatment plant. 5.6.6.3. When enough data on total flows and depot maintenance's flows is available, calculate the average percentage of total flow attributed to depot maintenance. Use this total with monthly or quarterly total industrial wastewater treatment plant flows to determine the depot maintenance's flows for billing purposes. 5.7. Vending Machine Estimating. Estimate electrical utility consumption for vending machines by using the consumption table Attachment 9. 5.8. Defense Utility Energy Reporting System (DUERS). DUERS is the information data system that accounts for the costs and consumption of purchased utilities used by Department of Defense (DoD) activities and is used for the annual energy reporting to Congress. DUERS data shall be accurate. Data input is required no later than 45 days after the end of a billing period. 5.8.1. DUERS data is used by the Air Staff to budget for future energy costs, to track energy goal progress, to validate energy efficiency projects, to analyze Air Force consumption trends, and most important, to develop long-term policy that ensures adequate and deliverable energy resources are available in support of the Air Force mission. 5.8.2. DUERS includes utility consumption and building square footage data for all Air Force owned and leased facilities. This includes remote bases or sites assigned to, or supported by, the reporting (host) Air Force base. 5.8.3. The host base and federal reimbursable customers may mutually agree to report utility consumption through their own command channels. However, data shall be coordinated between hosts and tenants to ensure that consumption, cost, and square footage data is reported under one agency and that duplicate reporting of data does not occur. 38 AFI32-1061 23 FEBRUARY 2011 5.8.4. Utility information for non-Air Force reimbursable customers shall not be included in DUERS. Please ensure the cost and consumption data for these customers is subtracted or excluded from the information added to DUERS. 5.8.5. Effective January 2011, the Air Force Energy Reporting System (AFERS) will replace DUERS. 5.8.6. Prescribed and Adopted Forms. 5.8.6.1. Prescribed Forms. AF Form 3550, Annual Utility Contract Review for Electric Service AF Form 3551, Annual Utility Contract Review for Gas Service AF Form 3552, Annual Utility Contract Review for Water and Sewage Service AF Form 3553, Utility Sales Agreement for Non-Federal Organizations AF Form 3554, Utility Service Agreement for DOD Agencies and Non-DOD Federal Agencies AF Form 3555, Utility Service Rates Exhibit ___ AF Form 3556, Utility Sales Rates Computation Worksheet AF Form 3557, Utility Service Annual Review AF Form 4386, Utility Service Agreement for Privatized Military Family Housing 5.8.6.2. Adopted Forms. DD Form 1149, Military Interdepartmental Purchase Request (MIPR) AF Form 847, Recommendation for Change of Publication LOREN M. RENO, Lt General, USAF DCS/Logistics, Installations & Mission Support AFI32-1061 23 FEBRUARY 2011 39 Attachment 1 GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION References Title 10 U.S.C., Subchapter II – Energy Related Procurement Title 10 U.S.C., Section 2484, Commissary Stores: merchandise that may be sold; uniform surcharges and pricing Title 10 U.S.C, Section 2491, Uniform funding and management of morale, welfare, and recreation programs Title 10 U.S.C, Section 2491a, Department of Defense golf courses; limitation on use of appropriated funds Title 10 U.S.C, Section 2491b, Use of appropriated funds for operation of Armed Forces Recreation Center, Europe; limitation Title 10 U.S.C., Section 2686, Utilities and Services: Sale; Expansion And Extension Of Systems And Facilities Title 10 U.S.C., Section 2667, Leases: Non-excess Property of Military Departments Title 10 U.S.C. Section 2688, Utility Systems: Conveyance Authority Title 10 U.S.C., Section 2809, Long Term Facilities Contract for Certain Activities and Services Title 10 U.S.C., Section 2812, Lease-Purchase of Facilities Title 10 U.S.C., Section 2872a, Alternative Authority for Acquisition and Improvement of Military Housing, Utilities and Services Title 12 U.S.C. Section 1701, National Housing Act Title 26 U.S.C., Section 118, Contributions to the Capital of a Corporation Title 31 U.S.C., Section 1501, Appropriation Accounting (Documentary Evidence Requirement for Government Obligations) Title 31 U.S.C., Section 1535, Economy Act – Agency Agreements 1932 Title 31 U.S.C., Section 9701, Fees and charges for government services Title 40 U.S.C. Section 591, Purchase of Electricity Title 42 U.S.C., Section 6961, Application of federal, state and local law to federal facilities Executive Order 11491, Labor-Management Relations in the Federal Service Executive Order 13423, Strengthening Federal Environmental, Energy, and Transportation Management Energy Independence and Security Act of 2007 (Pub.L. 110-140, originally named the CLEAN Energy Act of 2007) Energy Policy Act of 2005 (Pub.L. 109-58) National Defense Authorization Act (NDAA) of 2007 (P.L. 109-364, 17 Oct 06), 10 USC 2911 40 AFI32-1061 23 FEBRUARY 2011 DoE, Guidance for Electric Metering in Federal Buildings (6 Feb 06) DoE, Supplemental Guidance to the Instructions for Implementing Executive Order 13423, “Strengthening Federal Environmental, Energy, and Transportation Management”: Establishing Baseline and Mtg Water Conservation Goals of Executive Order 13423 (Jan 08) DoE, 2007 Federal Energy Management Program (FEMP) Renewable Energy Requirement Guidance for EPACT 2005 and Executive Order 13423 (28 Jan 08) DoE Metering Best Practices, A Guide to Achieving Utility Resource Efficiency (Oct 07) DoD Energy Management Handbook 2005 DoD Directive 4140.25, DoD Management Policy for Energy Commodities and Related Services (Apr 04) DOD 7000.14-R, DOD Financial Management Regulation, Volume 1, General Financial Management Information, Systems and Requirements DOD 7000.14-R, DOD Financial Management Regulation, Volume 3, Budget Execution Availability and Use of Budgetary Resources DOD 7000.14-R, DOD Financial Management Regulation, Volume 4, Accounting Policy and Procedures DOD 7000.14-R, DOD Financial Management Regulation, Volume 10, Contract Payment Policy and Procedures DODI 1000.15, Private Organizations on DOD Installations (24 Oct 08) DODI 4000.19, Interservice and Intragovernmental Support, (9 Aug 95) DODI 4170.11, Installation Energy Management, (22 Nov 05) FAR Part 17.5, Interagency Acquisitions Under the Economy Act FAR Part 36-514, Availability and Use of Utility Services FAR Part 41, Acquisition of Utility Services DFARS Part 241, Acquisition of Utility Services AAFES Energy Management EOP 36-1, Figure 3-1, "Vending Machine Electrical Consumption" AFPD 23-3, Energy Management, (7 Sep 93) AFI 25-201, Support Agreements Procedures, (1 May 05) AFPD 32-10, Installations and Facilities, (27 Mar 95) AFPD 33-3, Information Management, (28 Mar 06) AFI 10-2701, Organization and Function of the Civil Air Patrol, (29 Jul 05) AFI 32-1063, Electric Power Systems, (10 Jun 05) AFI 32-1067, Water Systems, (25 Mar 94) AFI 34-223, Private Organization (PO) Program,(8 Mar 07) AFI 36-2306, The Education Services Program, (16 Oct 00) AFI32-1061 23 FEBRUARY 2011 41 AFI 36-3105, Red Cross Activities Within the Air Force, (2 May 94) AFI 36-3109, Air Force Aid Society (AFAS), (5 Mar 04) AFI 36-701, Labor-Management Relations, (27 Jul 94) AFI 65-106, Appropriated Fund Support of Morale, Welfare, and Recreation and Nonappropriated Fund Instrumentalities, (11 Apr 06) AFI 65-601, Volume 1, Budget Guidance and Procedures, (3 Mar 05) AFMAN 65-604, Appropriation Symbols and Budget Codes, (1 Oct 08) AFI 84-103, US Air Force Heritage Program, (27 Oct 04) AFI 32-9003, Granting Temporary Use of Air Force Real Property, (19 Aug 97) AFI 33-363, Management of Records, (1 Mar 08) Air Force [water conservation] Guidance (28 Mar 08) Air Force Sustainable Design and Development Policy (31 Jul 07) United States Air Force Infrastructure Energy Strategic Plan – 2008 Federal Water Use Indices, http://www1.eere.energy.gov/femp/water/water_useindices.html Abbreviations and Acronyms AAFES—Army & Air Force Exchange Service AFCSM—Air Force Computer Systems Manual AFI—Air Force Instruction AFJMAN—Air Force Joint Manual AFLOA/ULT—Air Force Legal Service Agency, Utility Litigation Team AFMAN—Air Force Manual AFPAM—Air Force Pamphlet AFPD—Air Force Policy Directive AFRC—Air Force Reserve Command AFRPA—Air Force Real Property Agency ANG—Air National Guard BCE—Base Civil Engineer BRAC—Base Realignment and Closure Btu—British thermal unit ccf—One Hundred Cubic Feet CONUS—Continental United States DBOF—Defense Base Operating Fund 42 AFI32-1061 23 FEBRUARY 2011 DCAA—Defense Contract Audit Agency DESC—Defense Energy Support Center DFARS—Defense Federal Acquisition Regulation Supplement DLA/DFSC—Defense Logistics Agency, Defense Fuels Supply Center DOD—Department of Defense DODI—Department of Defense Instruction DSNGP—Direct Supply Natural Gas Program DUERS—Defense Utility Energy Reporting System DWCF—Defense Working Capital Fund EPA—Environmental Protection Agency ESPC—Energy Savings Performance Contract EUI—Energy Use Intensity EUL— Enhanced Use Lease FAA—Federal Aviation Administration FAR—Federal Acquisition Regulation FPASA—Federal Property and Administrative Services Act GSA—General Services Administration HP—Housing Privatization HQ AFCESA/CEN—Headquarters Air Force Civil Engineer Support Agency, Energy Division ISSA—Interservice Support Agreement Kcf—Thousand cubic feet kgal—One Thousand Gallons kW—Kilowatt kWh—Kilowatt Hour LDC—Local Distribution Company MAJCOM—Major Command MBtu—One million British Thermal Units Mcf—One Thousand Cubic Feet MFH—Military Family Housing MHPI—Military Housing Privatization Initiative MOA—Memorandum of Agreement MOU—Memorandum of Understanding AFI32-1061 23 FEBRUARY 2011 43 MW—Megawatt MWR—Morale, Welfare, and Recreation O&M—Operations and Maintenance OCONUS—Outside the Continental United States POC—Point of Contact SAF/AQCK—Secretary of the Air Force, Acquisition Contracting Operations Division SAF/GCA—Air Force Deputy General Counsel for Fiscal and Administrative Law SAF/IEI (formerly SAF/MII)—Deputy Assistant Secretary of the Air Force (Installations) SDWA—Safe Drinking Water Act sq ft—Square Foot U.S.C.—United States Code UESC—Utility Energy Services Contract UP—Utilities Privatization USO—United Services Organization Terms Annual Maximum Capacity—The annual maximum load capacity or transmission capacity denotes the maximum amount of energy that can be transmitted through a system in a year. It is the maximum capacity (kW, MW, BTU, gallons, cubic feet) multiplied by 525,600 minutes/year or by 8,760 hours per year. For purchased utilities, it is the maximum demand specified in the utility contract. Base Rate—Non-industry-specific term referring to a fixed rate for a service or commodity. Depending on the context, it can mean a fixed rate to which other charges may be added or discounts applied, or a rate which remains fixed and unchangeable until the parties responsible for setting the rate choose to change it. Bundled Charges—When the utility contractor provides both the utility commodity and the transmission/distribution service and the cost for the transmission/distribution service is embedded in the commodity rate and not separately identified on the invoice. Capital Investment, Capital Cost—Capital costs can include costs for land, taxes, surveying, construction, inspection, materials, labor. The total capital costs are the original costs to the government to construct/install the plant, distribution system, or collection system; any additional upgrade, alteration or addition costs; and repair by replacement costs. The net repair by replacement costs are reduced by the original construction costs of the portion replaced. Connection Charge—A fee paid by a utility customer to cover the costs of connecting household or commercial service to utility service lines. Cost Of Service—Means the cost of providing a service. Cost-of-service pricing is the setting of a price for a service based on the costs incurred in providing it. COS pricing can be applied to an individual customer based on the costs of serving that customer (usually this is done only with 44 AFI32-1061 23 FEBRUARY 2011 large-scale customers or customers who are costly to serve), or as an average cost of service for a group of similar customers (also called a customer class or category). Delivery Charge—A fee levied by an electric utility for the actual delivery of electricity to a customer. The charge is applied to cover system reliability, emergency response and outage recovery costs. Delivery Service Charge—A charge included in an energy bill which is intended to cover the cost of carrying energy from the transmission network or grid to the customer's location. Distribution charges are usually based on energy use. Distribution charges are occasionally broken up into separate charges, such as a charge for access to distribution systems and an additional charge to cover customer service costs. Demand Costs—Expenses that vary with the demand for energy. These include fixed costs for production and transmission and some distribution costs. Demand Ratchet—Demand ratchet is a means of applying a minimum charge to a customer who may have inconsistent or seasonal energy requirements. For example, a ski resort may have significant energy requirements for only six months of the year, but the utility may have to maintain extra staff or equipment to make that energy available when the resort needs it. In order to bill this customer fairly, a demand ratchet must be applied. The minimum monthly demand charge will be calculated based on a given percentage of their peak use, for example 60% of their January billing, and the resort will be billed at least this much for every month of the year, even if they use little or no energy during that month. This insures that the utility is properly compensated for the year-round expenses it incurs to serve this customer. Distribution System—Usually refers to the combination of the physical hardware required to deliver the commodity to end-use customers and the procedures and processes used to perform the actual delivery. Energy Security—Air Force installation energy security is an assured, sustainable, and sufficient energy supply. The defining characteristics are surety, sustainability, sufficiency, and supply. Surety is reliable, available, and secure energy delivery. Sustainability is a survivable, safe, operable, and maintainable infrastructure. Sufficiency provides the right level of energy surety for the mission. Supply is an efficient, affordable, and diverse source of energy. (Note: Draft definition in Air Force review as of 9/30/10, current valid definition applies when adopted) Firm Service—The utility service/commodity is provided without interruption except in force majeure situations such as war, strike, riot, force of nature, or other circumstance beyond the control of parties. Fixed Cost—A fixed cost is a production- or transmission-related expense which must be paid regardless of whether the energy is produced or sold. Fixed costs can include capital costs, labor and maintenance charges, taxes and demand charges among others. Host—Tenant Support Agreement (HTSA)—A contract between the host unit and the tenant, or other military service, that lists areas of support the host will provide to the tenant. AFPD 252, Support Agreements, which outlines the Support Agreements Management System (SAMS), will be used Air Force-wide to formally identify recurring support agreements based on specific support functions, related responsibilities, and reimbursement cost. If you are a host unit with a tenant unit on base, or a tenant unit yourself, you need to get familiar with this requirement AFI32-1061 23 FEBRUARY 2011 45 Housing Privatization—The act of selling or the result of a sale of an on-base military family housing area. The purchaser is a private contractor. Incentive Rate—A discounted energy rate offered by utilities usually to encourage customers to change usage patterns. The most common type of incentive rate offers discounts to customers who reduce consumption during peak demand periods. Incremental Cost—The cost of the next kilowatt-hour of generated energy, also referred to in the industry as the next unit. Incremental costs change as production increases or decreases, but these changes don’t always occur in a predictable pattern. As an example, incremental costs typically decrease as production rises to comfortable capacity. But as that limit is reached, incremental costs increase because additional costs (construction of new facilities, costs of stressing production facilities, etc.) need to be factored into the cost of the next unit. Interruptible Service—Service that can be reduced or completely stopped with little or no notice. When interruptible energy is purchased, the purchaser voluntarily assumes the risk of loss of access to that energy, which usually occurs only during peak demand periods or during periods when market prices rise above the agreed-upon rate. Interservice Support Agreements (ISSA)—Used to establish what material or services one government agency has agreed to provide another government agency, and any remuneration, if required, agreed upon between the government agencies. A DD-1149 and/or a Military Interdepartmental Purchase Request (MIPR) are the most common ways of placing an obligation against the ISSA. Governed by DoDI 4000.19, Inter Service and Intergovernmental Support Kilowatt—Hour (kWh)—A quantitative measure of electric current flow equivalent to one thousand watts being used continuously for a period on one hour; the unit most commonly used to measure electrical energy, as opposed to kilowatt, which is simply a measure of available power or demand. Line Loss (Also Transmission Loss)—Energy lost or wasted in the transmission of energy from the generator to the eventual customer. Marginal Cost—The cost of providing an additional kilowatt-hour of energy output over and above any energy currently being produced. The energy industry refers to the next kilowatt-hour or next unit as the basis for determining this cost. Marginal costs only include immediate expenses required to produce more energy. Long run marginal cost includes capital costs and embedded costs which are not included in marginal costs. Master Metering—A method of metering the use of a utility in which multiple buildings or customers are all metered cumulatively on the same meter. For example, a condominium on master metering would receive one energy bill for all condo owners measured through that meter. Maximum Capacity—The maximum power capacity (annual maximum capacity), normally expressed in megawatts, that a given system or subsystem can carry or produce at a particular moment, is typically used to represent the real production capability rating of a generation or transmission system. The maximum flow capacity is measured in tons, gallons, cubic feet or cubic meters, and indicates the maximum amount of gas or liquid that can be transported through a pipeline at any particular moment. Megawatt—Hour (MWh)—One thousand kilowatt-hours. 46 AFI32-1061 23 FEBRUARY 2011 Memorandum of Agreement (MOA)—Memorandums that define general areas of conditional agreement between two or more parties – what one party does depends on what the other party does (e.g., one party agrees to provide support if the other party provides the materials). Memorandum of Understanding (MOU)—Memorandums that define general areas of understanding between two or more parties – explains what each party plans to do; however, what each party does is not dependent on what the other party does (e.g., requires reimbursement or other support from receiver). Minimum Monthly Charge—Any minimum charges of the supplier's rate schedule that become payable if the government reduces its usage below the minimum or terminates the service. Municipal Utility—When the utility provider for a given city or municipal region is owned by the city or region itself, it is referred to as a municipal utility. Many municipal utilities are selfregulating and not subject to independent state regulatory bodies. They can raise capital for construction and maintenance using tax-exempt bond issues, set their own rate schedules and policies provided they fall within state and federal regulations, and optionally choose how and when they wish to regulate themselves. Municipal utilities can be directly owned by a municipality or function as self-governing bodies organized as separate public corporations with a degree of independence from the municipality. Net Metering—An energy use metering scheme that can measure both energy consumed from a utility and energy fed back to the utility by a customer capable of generating electricity. Net metering regulations were intended to encourage the installation of solar generators, wind turbines and other renewable energy and green power sources. Peak Load, Peak Demand—These two terms are used interchangeably to denote the maximum power requirement of a system at a given time, or the amount of power required to supply customers at times when need is greatest. They can refer either to the load at a given moment (e.g., a specific time of day) or to averaged load over a given period of time (e.g., a specific day or hour of the day). Ratchet Demand Clause—A term in a customer's contract or rate schedule (tariff) which dictates that the customer's billings for each billing period must be based at least in part on the maximum billing received by that customer over a given period, usually the preceding year. Reimbursable Utilities—Transaction by which the Air Force receives funds from tenants or onbase organizations for a utility service. Tariff—A tax or levy system, or a document which outlines the conditions under which taxes and levies can be charged. Tariffs are normally filed with governments or regulatory bodies and approved by these same bodies. Tariffs typically list schedules for rates, contracts, and contract and rate eligibility. When provided in printed or digital document Form, tariff documents may include terms and conditions, sample forms, copies related legislation or regulations and other related information. Tariffs are used in virtually all service industries. Tariff is widely misinterpreted as referring to a tax or other Form of levied charge. A tariff merely sets out the conditions for those charges; it does not represent the charge itself. Thus a tariff rate is a charged rate as it is outlined in a tariff schedule. Unbundled Services—Prior to deregulation of the US energy industry, energy customers were provided with electrical service as an integrated package. After re-regulation, separate charges AFI32-1061 23 FEBRUARY 2011 47 for each facet of electrical supply and service are billed as a distinct line item charge on a customer's invoice. Customers no longer pay for a group of services provided as a single service. Instead they pay for a multitude of services (energy generation, transmission, distribution, and perhaps many more depending on how energy is billed in a given region), all of which are required for electrical service. When services are charged in this way they are referred to as unbundled. Utility Privatization (UP)—The act of selling or the result of a sale of an on-base utility distribution system. The purchaser may be a private contractor or the local providing utility company. UP Incremental Rates—When the contractor’s charges for UP services are separate from and in addition to the utility commodity charges. Wheeling—When a utility or energy distribution company delivers, or wheels, energy from the transmission system to an end-use customer, it is referred to as retail wheeling. When a customer who also generates energy produces energy at one site, transports it across someone else's facilities and consumes it at another site, it is referred to as self-service wheeling. 48 AFI32-1061 23 FEBRUARY 2011 Attachment 2 COST ACCOUNTING CODES The accounting codes below are the primary recommended codes for utility distribution systems. This list was provided by AFCESA/CEO. Table A2.1. Cost Accounting Codes. O&M IWIMS Code Description R&M Real Property Cat Code 811XXX 53010 Elect Production 56010 811144 53010 Elect Production 56010 811145 53010 Elect Production 56010 811147 53010 Elect Production 56010 811149 812XXX Category of Real Property PRODUCTION AND GENERATION Total Energy Plant Building and nomenclature (Total ENG Plt Bldg). (The unit of measure for area amount is - SF). (The cost account is 51070). Prime/Standby Electric Power Generation Plant (UNIT OF MEASURE - KW) (Nomenclature - ELEC PWR GEN PLT). Emergency Electric Power Generation Plant (UNIT OF MEASURE - KW) (Nomenclature - ELEC E/PWR GEN PLT). Electric Power Station Building (UNIT OF MEASURE - SF) (Nomenclature - ELEC PWR STN BLDG). DISTRIBUTION AND TRANSMISSION LINES. Primary Distribution Line Overhead (OTHER UNIT OF MEASURE - LF) (Nomenclature - PRIM DISTR LNE OH). Secondary Distribution Line Overhead (OTHER UNIT OF MEASURE - LF) (Nomenclature - SEC DISTR LINE OH). Primary Distribution Line Underground (OTHER UNIT OF MEASURE - LF) (Nomenclature - PRIM DISTR LNE UG). Secondary Distribution Line Underground (OTHER UNIT OF MEASURE - LF) (Nomenclature - SEC DISTR LINE UG). 53015 Elect Dist Lines 56015 812223 53015 Elect Dist Lines 56015 812224 53015 Elect Dist Lines 56015 812225 53015 Elect Dist Lines 56015 812226 56015 812921 Electrification Aircraft Outlets (OTHER UNIT OF MEASURE - EA) (Nomenclature - ELEC ACFT OUTLETS). 56015 812926 Exterior Area Lighting (OTHER UNIT OF MEASURE - EA) (Nomenclature - EXTERIOR AREA LTG). 56015 812928 Traffic Lights (OTHER UNIT OF MEASURE - EA) (Nomenclature - TRAFFIC LIGHTS). 51070 52080 52080 NOT Elect Dist Lines; Reimbursable ONLY if stated in Lease, Support Agreement, or similar agreement NOT Elect Dist Lines; Reimbursable ONLY if stated in Lease, Support Agreement, or similar agreement NOT Elect Dist Lines; Reimbursable ONLY if stated in Lease, Support Agreement, or similar agreement 813XXX 53015 Elect Dist Lines 56015 813228 53015 Elect Dist Lines 56015 813231 821XXX 53020 Heat Production 56020 821111 53020 Heat Production 56020 821112 SUBSTATIONS AND SWITCHING STATIONS. Electric Switching Station (UNIT OF MEASURE - SF; OTHER UNIT OF MEASURE - EA) (Nomenclature - ELEC SWITCH STN). Electric Substation (OTHER UNIT OF MEASURE - KV) (Nomenclature - ELEC SUBSTATION). HEAT STEAM - SOURCE. Coal Yard (UNIT OF MEASURE - SY) (Nomenclature COAL YARD). Heating Fuel Oil Storage (UNIT OF MEASURE - GA) AFI32-1061 23 FEBRUARY 2011 O&M IWIMS Code Description R&M 49 Real Property Cat Code 53020 Heat Production 56020 821113 53020 Heat Production 56020 821115 53020 Heat Production 56020 821116 51070 Heat Production 56020 821117 53020 Heat Production 56020 821155 53020 Heat Production 56020 821156 822XXX 53030 Steam Dist Lines 56030 822245 53030 Steam Generation 56030 822248 53030 Steam Generation 56030 822265 53030 Steam Generation 56030 822268 823XXX 53035 Gas Dist Sys 56035 823243 53035 Gas Dist Sys 56035 823244 53035 Gas Dist Sys 56035 823248 824XXX 53035 Gas Dist Sys 56035 824462 53035 Gas Dist Sys 56035 824464 53035 Gas Dist Sys 56035 824466 53035 Gas Dist Sys 56035 824468 831XXX 53050 Ind WW Sys Sys 56050 831155 53050 Ind WW Sys Dist 56050 831157 53040 Sew & Waste Sys Dist 56040 831165 53040 Sew & Waste Plant 56040 831168 53040 Sew & Waste Plant 56040 831169 832XXX 53050 Sew & Waste Sys Dist 56050 832255 53040 Sew & Waste Sys Dist 56040 832266 53040 Sew & Waste Sys Dist 56040 832267 Category of Real Property (Nomenclature - HGT FL OIL STOR). Heating from Central Plant (UNIT OF MEASURE - SF) (Nomenclature - HTG FR CEN PLT). Heating Plant 750/3500 MB (UNIT OF MEASURE - MB) (Nomenclature - HTG PLT 750/3500 MB). Heating Plant 3500 MB and Over (UNIT OF MEASURE MB (Nomenclature - HGT PLT OV 3500 MB). Heating Facility Building (UNIT OF MEASURE - SF) (Nomenclature - HTG FCLTY BLDG). Steam Plant Industrial (OTHER UNIT OF MEASURE - MB (Nomenclature - STEAM PLT IND). Steam Facility Building (UNIT OF MEASURE - SF) (Nomenclature - STEAM FCLTY BLDG). HEAT STEAM - TRANSMISSION. Hot Water Mains (UNIT OF MEASURE - LF (Nomenclature - HOT WTR MAINS). Hot Water Pump Station (UNIT OF MEASURE - SF) (Nomenclature - HOT WTR PMP STN). Steam Heating Main (UNIT OF MEASURE - LF (Nomenclature - STEAM HTG MAINS). Condensate Return Pump Station (UNIT OF MEASURE SF) (Nomenclature - CONDEN PMP STN). HEAT GAS - SOURCE. Gas Compressor (UNIT OF MEASURE - SF) (Nomenclature - GAS COMPRESSOR). Gas Storage (UNIT OF MEASURE - SF) (Nomenclature GAS STOR). Gas Vaporizor (UNIT OF MEASURE - SF) (Nomenclature GAS VAPORIZOR). HEAT GAS - TRANSMISSION. Gas Meter Facility (UNIT OF MEASURE - SF) (Nomenclature - GAS METER FCLTY). Gas Mains (OTHER UNIT OF MEASURE - LF) (Nomenclature - GAS MAINS). Gas Odorizer Facility (UNIT OF MEASURE - SF) (Nomenclature - GAS ODORIZER FCLTY). Gas Valve Facility (UNIT OF MEASURE - SF) (Nomenclature - GAS VALVE FCLTY). TREATMENT AND DISPOSAL. Industrial Waste Treatment and Disposal (UNIT OF MEASURE - KG (Nomenclature - IND WST TRMTandDSPL). Industrial Fuel Spill Collection (UNIT OF MEASURE - KG) (Nomenclature - IND WST FL-SP COLL). Sewage Treatment and Disposal (UNIT OF MEASURE KG) (Nomenclature - SEWAGE TRMT and DSPL). Waste Treatment Facility Building (UNIT OF MEASURE SF) (Nomenclature - WST TRMT BLDG). Sewage Septic Tank (UNIT OF MEASURE - KG) (Nomenclature - SEWAGE SEPTIC TANK). COLLECTION. Main Industrial Waste (OTHER UNIT OF MEASURE - LF) (Nomenclature - IND WST MAIN). Main Sanitary Sewage (OTHER UNIT OF MEASURE - LF) (Nomenclature - SAN SEWAGE MAIN). Pump Station Sanitary Sewage (UNIT OF MEASURE - SF) (Nomenclature - SAN SEWAGE PMP STN). 50 O&M IWIMS Code AFI32-1061 23 FEBRUARY 2011 Description R&M Real Property Cat Code 841XXX 53060 Water Supply Dist 56060 841161 53060 Water Supply Dist 56060 841162 53060 Water Production 56060 841165 53060 Water Production 56060 841166 53060 Water Production 56060 841169 53060 Water Production 56060 841423 53060 Water Production 56060 841425 53060 Water Supply Dist 56060 841427 842XXX 53060 Water Supply Dist 56060 842245 53060 Water Supply Dist 56060 842249 Not Currently Reimbursable Not Currently Reimbursable Not Currently Reimbursable Not Currently Reimbursable 843XXX 843314 843315 843316 Not Currently Reimbursable 843319 844XXX 53060 Non-Potable Dist Sys 56060 844367 53060 Non-Potable Dist Sys 56060 844368 845XXX 53060 Non-Potable Dist Sys 56060 845362 53060 Non-Potable Dist Sys 56060 845363 826XXX 53070 Central A/C Plants & Sys 56070 826122 53070 Central A/C Plants & Sys 56070 826123 827XXX 53070 Central A/C Plants & Sys 56070 827111 890XXX 53070 Central A/C Plants & Sys 56070 890111 Category of Real Property WATER SUPPLY TREATMENT AND STORAGE. Water Supply Main (OTHER UNIT OF MEASURE - LF) (Nomenclature - WTR SUP MAINS). Commercial Water Supply (OTHER UNIT OF MEASURE KG) (Nomenclature - WTR COML SUP). Water Supply Treatment (OTHER UNIT OF MEASURE KG) (Nomenclature - WTR SUP TRMT). Water Well (OTHER UNIT OF MEASURE - KG) (Nomenclature - WTR WELL). Water Supply Building (UNIT OF MEASURE - SF) (Nomenclature - BLDG WTR SUP). Water Storage Dam (OTHER UNIT OF MEASURE - FA) (Nomenclature - WTR STOR DAM). Water Storage Reservoir (OTHER UNIT OF MEASURE KG) (Nomenclature - WTR STOR RESERVOIR). Water Tank Storage (OTHER UNIT OF MEASURE - KG) (Nomenclature - WTR TANK STOR). DISTRIBUTION SYSTEM POTABLE. Water Distribution Mains (OTHER UNIT OF MEASURE LF) (Nomenclature - WTR DISTR MAINS). Water Pumping Station (UNIT OF MEASURE - SF) (Nomenclature - WTR PMP STN). FIRE PROTECTION NON-POTABLE. Fire Protection Water Storage (UNIT OF MEASURE - KG (Nomenclature - FR PROTEC WTR STOR). Fire Hydrants (OTHER UNIT OF MEASURE - FA) (Nomenclature - FR HYDR). Fire Protection Water Mains (OTHER UNIT OF MEASURE - LF) (Nomenclature - FR PROTEC WTR MAIN). Water Fire Pumping Station (UNIT OF MEASURE - SF; OTHER UNIT OF MEASURE - GM) (Nomenclature - WTR FR PMP STN). SUPPLY STORAGE NON-POTABLE. Water Supply Storage (Non-Potable) (UNIT OF MEASURE - KG) (Nomenclature - WTR SUP STOR N/POT). Water Supply (Non-Potable) (UNIT OF MEASURE - KG) (Nomenclature - WTR SUP N/ POT). DISTRIBUTION SYSTEM NON-POTABLE. Water Supply (Non-Potable) (UNIT OF MEASURE - SF) (Nomenclature - WTR SUP N/ POT BLDG). Water Supply Mains (Non-Potable) (OTHER UNIT OF MEASURE - LF) (Nomenclature - WTR SUP MAIN N/POT). REFRIGERATION (AIR CONDITIONING) - SOURCE. Air Conditioning Plants 25 to 100 Tons (OTHER UNIT OF MEASURE - TN) (Nomenclature - A/C PLT 25-100 TN). Air Conditioning Plant Over 100 Tons (OTHER UNIT OF MEASURE - TN) (Nomenclature - A/C PLT OV 100 TN). CHILLED WATER - (AIR CONDITIONING) - EXTERIOR. Chilled Water Exterior Distribution Lines (OTHER UNIT OF MEASURE - LF) (Nomenclature - C/WTR EX/DISTR LINE). MISCELLANEOUS UTILITIES. Storage and Plant Refrigeration Equipment (OTHER UNIT OF MEASURE - HP) (Nomenclature - STORandPLT REG EQUIP). AFI32-1061 23 FEBRUARY 2011 51 O&M IWIMS Code Description R&M Real Property Cat Code 53070 Central A/C Plants & Sys 56070 890121 53070 Central A/C Plants & Sys 56070 890123 53070 Central A/C Plants & Sys Not Currently Reimbursable Not Currently Reimbursable 56070 890124 Air Conditioning Plant 5 to 25 Tons (OTHER UNIT OF MEASURE - TN) (Nomenclature - A/C PLT 5 TO 25 TN). Air Conditioning Plant Building (UNIT OF MEASURE - SF) (Nomenclature - AIR COND PLT BLDG). Air Conditioning from Central Plant. 890125 Air Conditioning Plant Less than 5 Tons. 890126 Air Conditioning Window Units. Elect Production 56010 890127 Solar Energy Collector System (OTHER UNIT OF MEASURE - EA) (Nomenclature - SOL N-R-G COLL SYS). 53010 Category of Real Property 52 AFI32-1061 23 FEBRUARY 2011 Attachment 3 CONTENTS OF UTILITY SERVICE FOLDER A3.1. Installations shall keep a utility service folder for each supplier providing utilities to the installation. An organized folder for each purchased utility is necessary for quick access to utility information. If there are multiple providers of similar utilities, keep a separate folder for each provider but ensure the tracking and reporting of a utility type is reported as a single utility. A 4-part folder works best for maintaining quick access. The folder has 6 sections that correspond to each area listed below. Excess and older documents will be digitized (scanned, faxed, or converted to PDF) where possible and stored and organized for similar easy access. When data is electronic, provide information in the folder on the location or how to access electronic files. Each utility service folder shall contain: A3.1.1. General Data A3.1.1.1. Customer account number(s). A3.1.1.2. A map showing the point(s) of delivery and master meter(s) to the installation. A3.1.2. Billing Data A3.1.2.1. Billings for the last 24 months. A3.1.2.2. Method of computing penalties, late fees, benefits, deductions, tariffs, fuel cost adjustments, standby charges, and other additional under the current rate schedule. A3.1.2.3. A calculated analysis of the latest proposed rates and charges to the installation, including the date, amount, and percent requested for supplier revenue. Include narrative description of impact of new rates on the installation. A3.1.3. Contract and Utility Provider Data A3.1.3.1. Memorandum documenting most recent annual utility contract review and a record of the action(s) taken to resolve problems or issues resulting from the annual review. Include recommendations for resolving these issues. A3.1.3.2. A copy of each the utility contract, including all contract modifications. A3.1.3.3. A copy of the current bylaws, if the utility supplier is a cooperative. A3.1.3.4. The utility supplier's curtailment plan. A3.1.3.5. The utility supplier's financial and operating annual report for each of the past five years, if available. A3.1.3.6. A copy of all applicable published rate schedules the utility supplier offers. A3.1.4. Utility Customer Data A3.1.4.1. A list of large industrial or commercial customers, in the same rate class as the installation buying utilities from the supplier. A3.1.4.2. List of all Federal agencies buying utilities from the supplier. A3.1.5. Service Delivery and Meter Data A3.1.5.1. Copy of the latest meter calibration for each meter used for billing purposes. AFI32-1061 23 FEBRUARY 2011 53 A3.1.5.2. Copy of meter data for the last 24 months A3.1.5.3. An annual summary chart or graph showing monthly consumption and other billing data (power factor, load factor, minimum charges). Keep a chart or graph for the past 5 years. A3.1.5.4. Date, duration, impact on the mission, and amount of financial loss (if any) for utility outage (of any duration) for each of the past three years. A3.1.5.5. Drops in voltage, quantity, and pressure during peak loads. A3.1.5.6. Pressure, quantity, and voltage actually delivered. A3.1.5.7. Pressure, quantity, and voltage guaranteed by the contract. A3.1.6. Correspondence and News Articles A3.1.6.1. Copies of letters, e-mails, and other correspondence. A3.1.6.2. Articles on proposed rate changes. A3.1.6.3. Articles on utility provider initiatives such as renewable energy, energy conservation, and new technology. 54 AFI32-1061 23 FEBRUARY 2011 Attachment 4 POTABLE WATER SERVICE SPECIFICATIONS FORMAT Use as section C in utility service contracts. Use a separate specification sheet (A-1, A-2, A-3) for each point of delivery. Section C - Description/Specifications/Work Statement POTABLE WATER SERVICE SPECIFICATIONS _____, dated ____________. (a) SPECIFIC PREMISES TO BE SERVED: ____________________________. (b) ESTIMATED SERVICE: Estimated daily maximum demand: __________________ KGAL. (K = 1,000) Estimated annual consumption: _______________________________ KGAL. (The government is neither obligated to use, nor is it restricted to, the above estimate.) (c) POINT OF DELIVERY. The point of delivery of water is_________________________________ ____________________(see attached map or oneline diagram). (d) DESCRIPTION OF WATER SERVICE. The contractor shall have _________ gallons per minute of water continuously available at the point of delivery at a pressure of not less than _________ pounds per square inch gauge. (e) QUALITY OF WATER. The contractor shall supply clear, potable water safe for human consumption in accordance with current Federal, state, and local standards. (f) METERING. Water shall be measured by _____________________________________________ _________________________________ meter(s). (g) SIZE OF CONTRACTOR'S PIPELINE TO POINT OF DELIVERY: _______ inches diameter. (h) ALTERATIONS AND ADDITIONS. (Show the rate schedule that applies to this specification sheet.) AFI32-1061 23 FEBRUARY 2011 55 Attachment 5 SEWAGE SERVICE SPECIFICATIONS FORMAT Use as section C in utility service contracts. Use a separate specification sheet (A-1, A-2, A-3) for each point of delivery. Section C - Description/Specifications/Work Statement SEWAGE SERVICE SPECIFICATIONS _________, dated _____________________. (a) SPECIFIC PREMISES TO BE SERVED: ____________________________. (b) ESTIMATED SERVICE: Estimated annual volume: ________________________ KGAL. (K = 1,000) (The government is neither obligated to use, nor is it restricted to, the above estimate.) (c) POINT OF DELIVERY. The government shall deliver the sewage to the contractor at ______________________________________________________________________________ __________________________________________ (see attached map or one-line diagram). (d) SERVICE TO BE RENDERED. The contractor shall furnish a sanitary sewer connection and sanitary sewage service that shall receive, carry, treat, and dispose of all sanitary sewage originating at the government site. The contractor shall operate the sewage disposal and treatment facilities in conformity with applicable laws, rules, and regulations promulgated by Federal, state, and local authorities. (e) METERING. (Use the applicable provision.) The quantity of sewage received by the contractor will be taken as ____ percent of the metered quantity of water used by the government. (70 percent to 90 percent, depending on amount of water used for industrial or irrigation purposes). The sewage received by the contractor shall be measured by ___________________________ ____________________________________________flow meter(s). (f) SIZE OF SEWER TO POINT OF DELIVERY: ___________ inches diameter. (g) ALTERATIONS AND ADDITIONS. (Show the rate schedule that applies to this specification sheet.) 56 AFI32-1061 23 FEBRUARY 2011 Attachment 6 STEAM SERVICE SPECIFICATIONS FORMAT Use as section C in utility service contracts. Use a separate specification sheet (A-1, A-2, A-3) for each point of delivery. Section C - Description/Specifications/Work Statement STEAM SERVICE SPECIFICATIONS ____, dated _____________________. (a) SPECIFIC PREMISES TO BE SERVED: ____________________________. (b) ESTIMATED SERVICE: Estimated hourly maximum demand: ___________ pounds. (+ 1.340 Btu per pound) Estimated annual consumption: _____________________________ pounds. (The government is neither obligated to use, nor is it restricted to, the above estimate.) (c) POINT OF DELIVERY. The point of delivery of steam is __________________________________ __________________________ (see attached map or one-line diagram). (d) DESCRIPTION OF STEAM SERVICE. The contractor shall have ________ pounds per hour of steam continuously available at the point of delivery at a pressure of not less than _________ nor more than ________ pounds per square inch gauge. (e) QUALITY OF STEAM. The steam furnished shall contain not more than 1 percent moisture and shall be free of condensate at point of delivery. (f) CONDENSATE RETURN (make specification according to supplier's requirements). ________________________________________________________________ ________________________________________________________________ (g) METERING. (Show number and type of meters installed [condensate or flow]). Steam shall be measured by ___________________________________________ _________________________________________________________ meter(s). (h) SIZE OF PIPELINE TO POINT OF DELIVERY: _________ inches diameter. (i) ALTERATIONS AND ADDITIONS. (Show the rate schedule that applies to this specification sheet.) AFI32-1061 23 FEBRUARY 2011 57 Attachment 7 ELECTRIC SERVICE SPECIFICATIONS FORMAT Use as section C in utility service contracts. Use a separate specification sheet (A-1, A-2, A-3) for each point of delivery. Section C - Description/Specifications/Work Statement ELECTRIC SERVICE SPECIFICATIONS _______, dated ________________. (a) SPECIFIC PREMISES TO BE SERVED: ___________________________. (b) ESTIMATED SERVICE: Estimated maximum demand: ________________________________ kW. Estimated annual consumption: ______________________________ kW h. (The government is neither obligated to use, nor is it restricted to, the above estimate). (c) POINT OF DELIVERY. The point of delivery is ______________________________________ _____________________ (see attached map or one-line diagram). (d) DESCRIPTION OF ELECTRIC SERVICE. Contractor shall supply___ phase, ____ wire, ____ hertz, alternating current at ____ volts. The voltage of contractor's high-tension line is ______________. The substation is owned by ______________. The power factor correction capacitors on the substation are owned by _______________. Substation transformers: normal capacity __________________ KVA; overload capacity is _________ KVA for _________ hours; transformer connection (Delta or Wye): high side ____________, low side __________. Lightning arresters: type _________; rating _____________. Switching apparatus: high side, _____________, interrupting capacity __________________ KVA; low side, ____________, interrupting capacity _________________ KVA. (e) METERING. The contractor shall provide access to digital readout signal, when available, at no additional cost. The contractor shall provide daily and monthly integrated load profiles and other meter reading data if the government so requests. Service will be measured at ____________ volts by _____________________________ watt hour meter(s) and _____________ _____________________ demand meter(s) and_______________________________________ reactive-kilovoltampere meter(s). (f) ALTERATIONS AND ADDITIONS. (Show the rate schedule that applies to this specification sheet.) 58 AFI32-1061 23 FEBRUARY 2011 (NOTE: OCB = oil circuit breaker; VAB = vacuum air breaker; ACB = air circuit breaker; DISC = disconnect switch.) AFI32-1061 23 FEBRUARY 2011 59 Attachment 8 NATURAL GAS SERVICE SPECIFICATIONS FORMAT Use as section C in utility service contracts. Use a separate specification sheet (A-1, A-2, A-3) for each point of delivery. Section C - Description/Specifications/Work Statement NATURAL GAS SPECIFICATIONS _________, dated ________________. (a) SPECIFIC PREMISES TO BE SERVED: _________________________. (b) ESTIMATED SERVICE: Firm service is ________ percent of the estimated total annual consumption and interruptible service is the remaining _______ percent. Estimated maximum demand: _________________________ MBtu per hour. Estimated maximum daily quantity: _____________________ MBtu per day. Estimated annual consumption: _____________________________ MBtu. (The government is neither obligated to use, nor is it restricted to, the above estimate.) Estimates, by month, of the gas consumption for a typical year are shown in attachment A of Section J. (c) POINT OF DELIVERY. The point of delivery of gas shall be ____________________________________________ (see attached map or one-line diagram). (d) PRESSURE AT THE POINT OF DELIVERY: The contractor shall maintain independent regulated pressure at the point of delivery within +10 percent of _______ pounds per square inch gauge (psig). (e) METERING AND BILLING. Gas shall be measured at the point of delivery by ____________________________________________________meter(s). (Show number and type of meter installed.) (f) QUALITY OF NATURAL GAS. The contractor shall provide to the government natural gas service in a manner and Form that is consistent with all applicable Federal, state and local laws, rules, permits, regulations, codes (including the National Fuel Gas Code), and natural gas industry and pipeline companies’ standards. The gross heating value of natural gas delivered shall be no lower than ____ British thermal unit (Btu) per cubic foot (ft3). Btu is the amount of heat needed to raise the temperature of 1 pound of water by 1 degree Fahrenheit (1° F) at standard atmospheric pressure. One cubic foot of gas = 1 cubic foot of natural gas at a temperature of 60° F, and a pressure of 14.73 pounds per square inch absolute (psia), and as delivered water vapor content. Gross heating value = the number of Btus produced by the combustion at constant pressure of 1 cubic foot of natural gas at a temperature of 60° F, a pressure of 14.73 psia, and as delivered water vapor content with air at the same temperature and pressure as the gas, when the products of combustion are cooled to the initial temperature of the 60 AFI32-1061 23 FEBRUARY 2011 gas and air, and when the water formed as product of combustion is condensed to the liquid state. The units are Btu/ft3. ALTERATIONS AND ADDITIONS: (Show the rate schedule that applies to the specification sheet for FIRM service.) (Show the rate schedule that applies to the specification sheet for INTERRUPTIBLE service.) (NOTE: Express the unit of measurement in Btu, MBtu, Dth, Mcf. M = one thousand. 1 decatherm (Dth) = 1 MBtu = 1,000,000 Btu. AFI32-1061 23 FEBRUARY 2011 61 Attachment 9 VENDING MACHINE CONSUMPTION DATA http://www.energystar.gov/index.cfm?fuseaction=find_a_product. The kWh used per month may be calculated by using the following formula: Figure A9.1. Monthly Kilowatt-hour (kWh). Wattage × Hours Used Per Day X Number of days used per month 1000= Monthly Kilowatt-hour (kWh) Table A9.1. Vending Machine Consumption Data. Type of Machine ATM Candy Machine Clothes Dryer (electric) Coffee Maker Coin Changer Cold Food Vending Machine Fax Machine Freezer Hot Cup Vending Machine Hot Food Vending Machine Microwave Oven Photo Machine Refrigerator Soda (Manufactured Before 2004) Soda (Energy Star Manufactured After 2004) Soda (Indoors No Lights) Stamp Vending Machine Washing Machine Avg kWh per month Per Mfg Specs 54 70 126 4 276 156 147 198 94 81 223 192 173 99 9 16 Avg gallons of water used per month N/A N/A N/A 160 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 483