AEP OHIO CASE STUDY Ohio School District Utilizes Incentive Program to Save Money and Energy Adams County/Ohio Valley School District Project summary Industry K-12 school Building type High Schools and Elementary Measures implemented Lighting HVAC Total project cost $55,367 Projected annual energy savings 117,565 kWh Incentives paid $14,950 Payback period without AEP Ohio incentive Approximately 5.9 years Payback period with AEP Ohio incentive Approximately 2.2 years Program Type Prescriptive Lighting Prescriptive HVAC An Ohio school district in need of financial assistance and committed to finding ways to reduce costs finds energy efficiency projects as a way to offset financial burden. Adams County Ohio Valley School District, rated “excellent” by the Ohio Department of Education, replaced 400 watt high intensity discharge, metal halide fixtures throughout the high school and elementary gymnasiums with 4 - foot fluorescent lamps (1” diameter tube and ballasts).They also implemented two HVAC rooftop unit upgrades with the help of incentives through the AEP Ohio gridSMART Prescriptive Program to save money on energy bills. Business challenge The Adams County School District has been challenged with passing of operating levies and layoffs for some time now. Steve Wolfe, LEED AP, facility manager for Adams County School has always had energy efficiency lighting and HVAC upgrades on his “wish list” but had been unable to justify the capital costs to the district. In 2010, he attended an AEP Ohio customer seminar in Piketon to first learn of the gridSMART Business Incentives Program and was very interested in understanding how his district might benefit. Shortly thereafter, his AEP account team, Ken Boldman and Shaun Semran, met with him and informed him of the program details and how his district could take advantage of the incentives while helping reduce operating costs. The AEP Ohio incentives for energy efficiency were the primary drivers to move forward with this project to meet the challenge of offsetting increasing energy bills. “We would have not been able to even consider doing the lighting projects without the AEP Ohio incentives” said Mr. Wolfe. The lighting audit provided by Current Electrical Supply proved the district had ample opportunity to reduce costs and improve the overall lighting quality. The next step was to present detailed information on the project and its return on investment (ROI) to the school board. Mr. Wolfe did his homework before presenting to the board and suggests that any other districts looking to implement something similar do the same. Mr. Wolfe detailed the upfront investment, annual energy savings, AEP Ohio incentives and how long it would take the district to recover the costs and begin saving money. Solution “Staff layoffs and not being able to purchase books and curriculum hurt the students and community”. “Energy efficiency was a way to find money without hurting the district; we didn’t realize all of the non-financial rewards we would also have.” Steve Wolfe Facility Manager Adams County School District The next step was to contact his local supplier, Tim Driscoll from Current Electrical Supply, for assistance with preparing the financial analysis and ROI details the school board would need to see. By understanding the return on investment the district was able to make a confident decision to move forward with the projects. Mr. Driscoll then contacted the gridSMART Business Incentives team with specific questions on the application process for the customer. Adams County School District decided to start by replacing the old lighting in the gymnasiums and an older HVAC unit. All this was completed from start to finish in a couple of months during business hours. The school staff used other gyms for classes and practices while the renovations were taking place to maximize efficiency. The district has already seen significant energy savings on their electricity bills as a result of their projects and will continue to do what they can to be more efficient. Adams County Ohio Valley School district was pleased that AEP Ohio presented them with a ceremonial check to promote the district’s commitment to energy efficiency. Mr. Wolfe is part of a local organization for school facility managers and has presented his solution to many other districts in the area. His recommendation to others is “have all of your ROI calculations completed before presenting the financial benefits to the district and present them with a case they cannot refuse”. Key benefits The community, staff and students were ecstatic with the results. Mr. Wolfe was pleased to say that he received numerous comments and “thank you” letters from teachers, coaches, and the community regarding the increased lighting levels and appearance of the gymnasiums. The indirect benefits of increased lighting levels, anticipated longer life cycles, and overall reduced maintenance costs complement the initial reasons the district implemented the improvements. One staff member commented on how nice it was to not have to hear the buzzing sound of the former lighting fixtures. “At first we were worried about the changes, mainly losing light levels in the gyms; however, the opposite happened and everyone was pleasantly surprised with the results,” said Mr. Wolfe. “Our basketball team is now able to walk out to the spot light introduction ceremony they’ve wanted for so long, because the lights do not take 20 minutes to turn on and off”. The district is committed to sustainability and currently has six “Energy Star” labeled facilities, while keeping their operating costs per square foot significantly below the average for Ohio schools. Future Plans for Efficiency The Adams County Ohio Valley School District’s mission is: “To reach excellence through continuous improvement”. The energy efficiency improvement projects align directly with their mission. The district has recently submitted two additional projects for energy management systems and has plans to continue striving for energy efficiency and excellence for their students and the local community. About AEP Ohio’s energy efficiency programs for businesses AEP Ohio’s Business Incentives program provides cash incentives to help business customers purchase and install energy efficient equipment. Prescriptive incentives are available for common commercial and industrial measures including lighting, HVAC, motors and drives, refrigeration, and food preparation and storage equipment. Custom incentives are available for process improvements and other measures not covered through prescriptive incentives. For more information, visit AEPOhio.com/Incentives or call 1-877-607-0739. AEPOhio.com/Incentives 877-607-0739 Disclaimer: AEP Ohio does not guarantee the energy savings and does not make any warranties associated with the measures eligible for incentives under this program.