nICE Way
2 Close Business
Roger Hubert,
Sales Leader, West Territory, Trane
© 2015 Trane | 1
“nICE Way
2 Close Business”
• Why the name of our workshop?
• Because, helping close business is
•
one of the most important goals of
the Partner Program…agree?
Well, “ICE” has closure rates of
nearly 100%...for both our Partners
and Trane so this is a “nICE
Way 2 Close Business.”
© 2015 Trane | 2
Introductions:
•
•
•
•
•
Paul Valenta, V.P. Sales and Marketing,
Calmac
Evan Berger, Director of Energy Solutions,
Calmac
Raynor Smith, Comprehensive Solutions
Account Executive, Brady Trane
Sam Van Riper, Director, North America
Pricing, Trane
Smitty, Director Systems and Solutions,
Trane
© 2015 Trane | 3
This workshop is like a three legged
stool with each of the three legs
focusing on one key aspect of selling
ICE:
The legs are:
1. Operating Cost
2. Installed Cost
3. Making ICE Easy
© 2015 Trane | 4
Operating Cost:
Operating Cost
The first leg of our stool, “operating
cost”, has three segments:
1. Understanding how to read your utility
bill.
2. An easy way to call up your local
utility’s rate structure.
3. A simple way to estimate ICE’s impact
on the job’s operation cost.
Presenters: Evan Berger, Director of Energy Solutions, Calmac
Paul Valenta, VP Sales and Marketing, Calmac
© 2015 Trane | 5
Understanding
The Electricity Bill
Evan Berger
Director of Energy Solutions
Paul Valenta
Vice President of Sales & Marketing
CALMAC Manufacturing Corp.
Fair Lawn, NJ
eberger@calmac.com
© 2015 Trane | 6
Conclusions
1. There are three ways
to lower electric costs:
a) Buy fewer units of
energy.
b) Purchase it when it’s
cheaper, at night.
c) Negotiate a better rate.
© 2015 Trane | 7
Conclusions
2. Commercial Rates are Different than
Residential Rates:
a) Residential Rates are based solely on Usage
(kWh)
b) Commercial Rates are typically based
on a mixture of Usage (kWh) and
Demand (peak kW)
© 2015 Trane | 8
Conclusions
3. Rates and tariffs are complicated.
Why? A few possible* reasons come to mind—
a) Lawyers write them
b) Regulators dislike plain English
c) The less customers know about their
electricity bills, the more utilities and ThirdParty Suppliers can possibly* earn more
money at their expense
*Note: pure speculation
© 2015 Trane | 9
Demand Charges
Definition: any electricity charge that is
assessed on a per-kW basis
There are two types of Demand Charges:
1. Utility Demand Charges
2. Grid Demand Charges (from PJM, ERCOT, NYISO,
etc.)
Note: more often than not, Grid Demand Charges are “blended” in Third
Party Supplier bills and thus not visible to the customer; we’ll discuss this
issue at great length later in the presentation
© 2015 Trane | 10
The Demand Charge Effect
“Typical” General Rate Structure, Anytown USA
Energy (usage):
Day: $0.060/kWh
Night: $0.060/kWh
$0.145/kWh
$0.060/kWh
Demand: $14.00/kW/Month
How big an effect is the Demand Charge??
Energy is 60% less expensive at night
© 2015 Trane | 11
Demand Charge Effect…..
Do the Math (Back of the Envelope)
Conventional Chiller System
Demand Cost /month
1000 tons x 0.8 kW/ton = 800kW
800 kW x $14.00 = $11,200/month
Energy Usage for Chiller for Month
1000 tons x 10 Hrs x 75% x 0.8 kW/ton x 22 days/month =
132,000 kWh
Approximate Cost for Demand / kWh
$11,200/132,000 kWh/month = $0.085/kWh
Therefore Daytime Energy = $0.06 + $0.085 = $0.145/kWh
© 2015 Trane | 12
Sample Office Building
Anytown, U.S.A.
Electricity: $0.06/kWh; Demand: $14.00/kW monthly
Peak Demand of 1000kW, 35% load factor
Typical Office Building Weekly Sumer Load Curve
1000 kW
800 kW
600 kW
400 kW
200 kW
Saturday
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Monthly Electricity Costs:
Usage: $15,120 (52%)
Demand: $14,000 (48%)
Total: $29,120
© 2015 Trane | 13
Ratchets
With ratchets, the peaks you hit in the
summer are carried through all year long
50%
75%
© 2015 Trane | 14
Ratchets
With ratchets, the peaks you hit in the
summer are carried through all year long
Month
August
September
…January
…March
Base Peak
600kW
400kW 450kW
300kW 450kW
250kW 450kW
Max/Inter. Peak
600kW
400kW
225kW 300kW
250kW 300kW
Cost per kW of ratchets: $4/kW each
month for Base, $10.62/kW for the Max +
Intermediate
© 2015 Trane | 15
Hidden Charges
Indiana
High load factor
hospital;
Demand makes
up 50% of total
energy spend.
With riders, Duke
Indiana
customers pay
$23.47/kW in
Demand.
Usage is
3.9 cents/kWh.
© 2015 Trane | 17
Sample ComEd Bill
$5.89/kW utility demand – seems inconsequential
Ice
customer:
Demand
makes up
32% of this
customer’s
bill.
Without ice,
Demand
would
make up
40% or
more.
© 2015 Trane | 18
Utilities with Demand above $14
Representative List – a small fraction
•
•
•
•
•
•
•
•
•
ConEd (NY)
SCE (CA)
PG&E (CA)
SDG&E (CA)
LIPA (NY)
Nstar (MA)
HECO (HI)
O&R (NY)
Santee Cooper
(SC)
• Austin Energy (TX)
• United Illuminating
• PSEG (NJ)
• Dominion (VA)
•
• Appalachian Power •
(WV)
•
• Forked Deer (TN) •
• Delmarva (DE)
• City of Batavia (IL) •
• Mon Power (WV) •
• Potomac Edison
• Duke (SC, NC)
•
• Tucson Electric
LG&E (KY)
Hydro One (Qu.)
NV Energy (NV)
Toledo Edison
(OH)
Duke (IN)
Consumers Energy
(MI)
Rocky Mountain
Power (UT)
Power (AZ)
• Lincoln Electric
Service (NE)
© 2015 Trane | 21
Ice Index
Awesome Ice Rates
Great Ice Rates
Good Ice Rates
Moderate Ice Rates
© 2015 Trane | 22
Places with High Ice Potential
Alaska
Hawaii
Awesome Ice Rates
Great Ice Rates
Good Ice Rates
Moderate Ice Rates
© 2015 Trane | 23
Places with High Ice Potential
Alaska
Hawaii
Awesome Ice Rates
Great Ice Rates
Good Ice Rates
Moderate Ice Rates
© 2015 Trane | 24
Action Items
1. Be sure to include Demand
calculations into all life cycle
analysis scenarios – chillers,
lighting, etc.
2. Let your Trane rep and CALMAC
review your electricity bill for
opportunities to save significant
operating expenses.
© 2015 Trane | 25
Final Thought
Daytime
Nighttime
$ 2.49/gallon
$ 0.99/gallon
When Would you Fill-up?
© 2015 Trane | 26
Questions?
Evan Berger, Director of Energy Solutions
CALMAC Manufacturing Corp.
eberger@calmac.com
© 2015 Trane | 27
Installed Cost:
Installed Cost
This second leg of our stool, “Installed Cost”, will focus on
one premise: Partial ICE can be cheaper than a Traditional
AC/Chiller-VAV system for many jobs:
1.
2.
3.
Trane does not have creditability on this subject. But you,
our partners, do. That’s why we have asked David Engel,
CCI Mechanical, to review an installed cost comparison
between a Traditional AC/Chiller-VAV system and a Partial
ICE system.
Background, the definition of a Traditional AC Chiller-VAV
System is: 10F Delta Tee, 55F SAT VAV, and Rectangular
ductwork.
Key to David’s comparison is taking advantage of :

16F vs. 10F delta tee

50F vs. 55F SAT VAV

Round vs. Rectangular ductwork
© 2015 Trane | 28
Yea But, what if it’s an
existing building:
Two Existing Building Scenarios:
1. Change out of same tonnage
2. Situation where the load has grown
Change out to Same Tonnage (300 tons)
1. One choice is to go with a 300 ton AC Chiller
2. A second choice is to go with a Smaller
Chiller (160) + ICE tanks (6 tanks) + ICE
Completion Module. This would cost about
30% to 50% more than the cost the 300 ton
chiller.
3. On a 300 ton job that’s roughly $45,000 to
$70,000.
4. In areas that have ICE Friendly Utility Rates,
a typical payback on a job like this would be
in the range of 2.5 to 3 years.
© 2015 Trane | 37
Two Existing Building Scenarios:
1. Change out of same tonnage
2. Situation where the load has grown
What if, instead of 300 tons, the building
has grown to 350 tons?
1. Two 180 ton Chillers+
• Upgrade the electrical power
infrastructure.
• Replace the piping
• Replace the pumping
2. Or…go with one 180 ton chiller and
9 ICE tanks
• Use the existing electrical power
infrastructure
• Use the existing piping
• Use the existing pumping
© 2015 Trane | 38
Situation where the load has grown
Existing Conventional Chilled Water System with 100 Delta T
with Two Air Cooled RTAE 180 Chillers (350 Ton Load)
Item
Cost
New Ice System with One Air Cooled RTAE 180 (350 Ton Load)
and Nine Calmac 1190C Ice Tanks
Item
Cost
Chillers & Pumps Installed
$388,104
Chillers, Ice Tanks & Pumps Installed
$348,104
100F T Chilled Water Piping
$433,625
No piping
$0
Electrical Connections Chillers & Pumps
$27,602
No pumping
$0
Total
$849,331
Difference
Less Piping
Difference
$348,104
- $501,227
$415,706
$348,104
- $67,602
Upsizing a project with Thermal Storage
Existing Conventional Chilled Water System with 100 Delta T
with One Air Cooled 225 (200 Ton Load)
Item
Cost
Chillers & Pumps Installed
New Ice System with 160 Delta T with Two Air Cooled RTAE 180
(350 Ton Load) and Nine Calmac 1190C Ice Tanks
Item
Cost
Chillers, Ice Tanks & Pumps Installed
$219,825
100F
$472,104
160F
Delta T Chilled Water Piping
Delta T Chilled Water Piping
$374,930
550
$392,602
480
F VAV AHU (76,000 CFM)
F VAV AHU (92,000 CFM)
$172,410
Rectangular Ductwork with Insulation & 65
VAV Boxes at 550 F DA
Electrical Connections Chillers & Pumps
$608,650
$208,432
Spiral Ductwork with Insulation & 80 VAV
Boxes at 480 F DA
Electrical Connections Chillers & Pumps
$27,602
Total $1,403,417
Difference with 150 tons more
$533,743
$31,950
Total $1,638,831
$235,414
Installed Cost Summary:
1. New Construction – Win with ICE
2. Existing Building with an Increase
in Tonnage – Win with ICE
3. Existing Building Same Tonnage –
Win with ICE Friendly Rates or if
not, it simply may not be a good
candidate for ICE
© 2015 Trane | 41
Making ICE Easy:
Making ICE Easy
Let me introduce our third and
final leg of our workshop entitled
“Making ICE Easy”.
© 2015 Trane | 42
Making ICE Easy!
ICE Completion
Module
© 2015 Trane | 43
Making ICE Easy:
Making ICE Easy
To talk about his experience with the ICE
Completion Module let me introduce Raynor
Smith, Comprehensive Solutions Account
Executive, Brady Trane.
© 2015 Trane | 44
Summary:
1) What did you hear?
2) Is there a specific job you should
target?
3) How can we help you succeed?
4) Announcing one BIG way we will help!!
© 2015 Trane | 45
Workshop Survey
Tell Us How We Did!
Please go online now and fill out the survey. You will
complete a survey for each workshop you attend.
Link to survey
http://irco.az1.qualtrics.com/SE/?SID=SV_9LauROO2dnkarPL
Reminder
Email Photos from event to:
avsgroupevents@gmail.com
© 2015 Trane | 46
nICE Way
2 Close Business
© 2015 Trane | 47