LDD Workshop
Energy 101
2008
We help the best buildings in the world get that way.
Special thanks
to our workshop sponsors
We help the best buildings in the world get that way.
Workshop Objective
• Introduce the global perspective on energy
economics.
• Identify what this means for your organization.
• Begin to understand your energy bills.
• Understand the impact of your energy use.
• Consider a plan to manage your energy use.
Energy 101
A Global Perspective
• Global energy demand
• Hubbert theory of fossil fuel supply
• How will this affect future costs?
Past history is the best predictor
of future performance.
Energy 101
Energy 101
Energy 101
Energy 101
Energy 101
What Does This Mean?
• Energy demand is growing
• Increased reliance on fossil fuels
• New discoveries fuel production
• Production must meet growing demand
Energy 101
Individual Oil Well Production
 One oil well acts with a long, fairly stable plateau
-Source: diagrammatic
Energy 101
Hubbert Curve: Four Oil Wells
 Four wells begin to create a smooth curve
-Source: diagrammatic
Energy 101
Hubbert Curve: Eight Oil Wells
 Eight wells smoothes the curve more
-Source: diagrammatic
Energy 101
The Hubbert Model
Amount
Idealized Hubbert Curve
Time 
 Hundreds or thousands of oil wells would ideally
look like a bell curve
Energy 101
The Hubbert Curve
Fossil fuel discoveries
• Exponential growth
• Peak numbers reached
• Discoveries begin declining
Fossil fuel production
•
•
•
•
Wells are drilled – technology improves
Production increases
Peak output is reached
Production begins declining
Energy 101
The Hubbert Model
Amount
Idealized Discovery and Production
Curves
Discovery
Production
Time
Discovery fuels the production
Energy 101
US Oil Production
Thousand Barrels Per Day
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1946
Energy 101
Oil Crisis
1970s oil production began to
fall…what happened?
1956
1966
1976
1986
Source: Energy Information Administration –
www.eia.doe.gov
1996
2006
Pennsylvania Coal Production
A need for alternate sources!
Energy 101
US Natural Gas Production
Thousand CF per Day
500
450
400
350
300
250
200
150
100
Similar trend in natural gas
50
0
1946
Energy 101
1956
1966
1976
1986
1996
Source: Energy Information Administration –
www.eia.doe.gov
2006
Energy: Important to Our Economy
Don’t see electric – It is a by-product of other fuels!
Energy 101
Fuel Price Escalations are Real
Price Summary
Per
Year
2004
58.96
2005
70.37
2006
78.41
2007
92.89
47.09
47.1
46.23
85.95
c
Diesel ($/gal)
1.81
2.41
2.81
2.78
Electric
5.87
5.81
5.97
6.02
b
Gasoline ($/gal)
1.85
2.27
2.65
2.66
d
Heating Oil ($/gal)
1.54
2.04
2.42
2.46
d
Natural Gas ($/mcf)
10.75
12.82
13.88
13.39
Propane
60.11
73.51
92.12
101.87
a
WTI Crude ($/barrel)
41.44
56.49
69.75
70.38
Coal Anthracite
Coal Bituminous
a
West Texas Intermediate.
c
On-highway retail.
Energy 101
b
d
Average regular pump price.
Residential average.
W
Annual
17%
Increase
19.35%
19.2%
0.02%
27.5%
36.5% 33
-1.02%
0.9%
22.7
22.3%
37.0%
32.5
14.9%
19.3
23.2%
22.29%
23.3%
36.3
Real Budget Implications
Current Condition
Facility Fuels
Electric
Natural Gas
Coal
Propane
Fuel Oil
Water Sewer
Garbage
Facility Maintenance
Service Contracts
Material & Parts
Other
Vehicle Fuels
Deisel
Gasoline
Other
Vehicle Maintenance
Service Contracts
Material & Parts
Other
Annual Use
Increase
Annual Cost
Escalation
2008
Cost
2009
2010
2011
2012
2013
2014
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
3.2%
18.7%
0.0%
0.0%
0.0%
1.1%
8.2%
$
$
$
$
$
$
$
215,000
140,000
16,000
8,500
$
$
$
$
$
$
$
221,880
166,180
16,176
9,197
$
$
$
$
$
$
$
228,980
197,256
16,354
9,951
$
$
$
$
$
$
$
236,308
234,142
16,534
10,767
$
$
$
$
$
$
$
243,869
277,927
16,716
11,650
$
$
$
$
$
$
$
251,673
329,899
16,900
12,605
$
$
$
$
$
$
$
259,727
391,591
17,085
13,639
0.0%
0.0%
0.0%
7.5%
0.0%
0.0%
$
$
$
85,100
-
$
$
$
91,483
-
$
$
$
98,344
-
$
$
$
105,719
-
$
$
$
113,648
-
$
$
$
122,172
-
$
$
$
131,335
-
0.0%
0.0%
0.0%
0.0%
20.6%
0.0%
$
$
$
3,800
-
$
$
$
4,583
-
$
$
$
5,527
-
$
$
$
6,665
-
$
$
$
8,038
-
$
$
$
9,694
-
$
$
$
11,691
-
0.0%
0.0%
0.0%
3.0%
3.0%
0.0%
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
Energy Budget
$
383,300
$
418,016
$
458,068
$
504,416
$
558,201
$
620,772
$
693,733
Maintenance Budget
$
85,100
$
91,483
$
98,344
$
105,719
$
113,648
$
122,172
$
131,335
$
468,400
$
509,498
$
556,411
$
610,136
$
671,849
$
742,944
$
825,068
Facility & Vehicle Budget
Total Budget
Millage Value
Facility & Vehicles
% of Budget
Millage Required
Energy 101
Typical Escalation
4.6%
2.0%
$ 5,634,962
$ 2,997,310
$ 5,894,170
$ 3,057,256
$ 6,165,302
$ 3,118,401
$ 6,448,906
$ 3,180,769
$ 6,745,556
$ 3,244,385
$ 7,055,851
$ 3,309,272
$ 7,380,420
$ 3,375,458
8.3%
0.16
8.6%
0.17
9.0%
0.18
9.5%
0.19
10.0%
0.21
10.5%
0.22
11.2%
0.24
Return to Energy Costs of Five Years Ago
How do you make it happen?
Facility & Vehicle Budgeting
$1,400,000
$1,200,000
Reactive Condition
Annual Expenditure
Proactive Reduced Expense
$1,000,000
$800,000
$600,000
$400,000
$200,000
$2006
2008
2010
2012
2014
Fiscal Year
Energy 101
2016
2018
2020
Implications??
What can be done to prepare for the reality of higher
fuel costs?
• Reduce consumption? How much?
• Raise budgeted allocation? Increase taxes?
• Develop a strategic plan!!!!
Energy 101
What Energy Sources Come from Pennsylvania?
Any Guesses?
• Coal
• Oil
• Natural Gas
• Wind generated electricity
Can these be leveraged in your plan?
Energy 101
Starting a Process to Take Control
• Understand what is HYPE vs. REALITY.
• You need to be able to communicate your situation.
• Work towards developing a Strategic Energy Plan.
• Need to gain an understanding of what we are going
to manage!!!!
Energy 101
How Well Can You Define Your Situation?
Better Question:
How well can you
communicate your
situation?
Energy 101
Rate Caps Going Away
Beginning in 2010, the five electric companies that serve
85 percent of the state’s electric customers have all but
guaranteed they will increase customers’ bills by as
much as 50 percent …
The impending 2010 expiration of rate caps, projected to
cause electric bills to jump by at least 30 percent, is
getting attention in Harrisburg and has local political
hopefuls talking.
This week, state Rep. Camille “Bud” George, DClearfield, and state Sen. Lisa M. Boscola, D-Bethlehem,
met with Gov. Ed Rendell to persuade him to consider
extending the rate caps. Boscola and George have bills
targeted toward that end.
Is electricity rate caps extension possible?
By MIKE REUTHER mreuther@sungazette.com
February 7, 2008
Energy 101
Energy – What do you pay for?
ELECTRICITY
•
•
•
•
•
•
•
Generation (*)
Transmission (*)
Distribution
Consumption
Maximum Rate of Use
Inefficient Use
Stranded Costs (*)
* Partial Regulation until
2010.
Energy 101
NATURAL GAS
•
•
•
•
•
Commodity Purchase
Transportation
Distribution
Consumption
Seasonal Use
Tariff Terminology
Tariff
• The document that the PUC must approve that establishes the
method and pricing of a regulated commodity.
Rate
• A specific pricing class within the tariff.
Demand
• The billed rate at which electricity has been used over the billing
period.
On-peak
• A term used to represent the energy used during normal
business hours. The time period varies by utility.
Off-peak
• A term used to represent the energy used during non-business
hours, typically evenings, holidays and weekends.
Block
• A grouping of energy to be billed at a specific rate, i.e. a block of
kWh.
200 hours use of demand
• Language found in many rates that refer to a block of kWh that
is equivalent to 200 kWh per kW demand, or 200 hr x billed kW
Energy 101
Electric Account – Demand (KW)
Fifteen Minute Interval Data
Demand KW (KWh per hr)
800
700
Monthly Peak Demand
695 KW
600
500
400
300
200
100
0
Time of Day
Energy 101
Electrical Distribution System
Transmission
Generation
Energy 101
Distribution
Examples of an Electric Rate Tariff
Rate information from the Tariff
Distrib
Dmd Fee
PPL
GS-3
$4.42500
CTC
$0.00000
ITC
$0.00000
Capy &
Energy
Xmission
$4.46100
$0.00000
Marginal Dmd Fee (Includes effect of modifying the Block KWh)
Blk 1 (200 KWh / KW)
$0.00091
$0.00209
$0.01183
$0.04844
$0.00610
Monthly Fee: $0.00 Blk 2 (200 KWh / KW)
Balance
$0.00072
$0.00165
$0.00925
$0.03684
$0.00610
$0.00060
$0.00160
$0.00888
$0.03519
$0.00610
Dmd Fee (0-20 KW)
$3.59000
$0.00000
$0.00000
$7.01000
$0.19000
CTC
UGI
GS 4
$0.00000
Monthly Fee: $9.94
Capy
$1.30000&
$0.00000
$0.00000
$2.75000
ITC Dmd Fee (IncludesEnergy
Xmission
Marginal
effect of modifying the Block
KWh)
Distrib Total
CTC
Blk 1 (200 KWh / KW)
$0.00162
Dmd Fee (>20 KW)
$0.00000
Blk 2 (300 KWh / KW)
ng the Block
KWh)
Summarized
Balance
$0.00209for Analysis
$0.01183
$0.03033
$0.00000
$0.00000
$0.07321
$0.19000
$4.46100
$8.88600
Dmd Fee $0.00000 $4.42500
$0.00000
$0.02303
$0.00000
$0.00000
$0.05968
$0.00162
PPL
$12.72400
Marginal
(Includes effect
of modifying
the Bloc
$0.02031
$0.00000Dmd Fee
$0.00000
$0.05462
$0.00162
GS-3
Blk 1 (200 KWh
/ KW)
$0.04844
$0.00610
$0.06937
$0.00091
$0.00209
$0.05456
$0.00072
$0.00165
$0.00160
/ KW)
$0.00925Monthly Fee:
$0.03684
$0.00610
$0.00 Blk 2 (200 KWh
$0.00888
$0.03519
$0.00610
Balance
$0.00000
$0.00000
$10.79000
$3.59000
$0.00000
$0.00000
$0.00000
$0.00165
101KWh)
ng theEnergy
Block
$7.01000
$0.19000
Dmd Fee (0-20
KW)
$0.05237
$0.00060
$0.00160
$0.19000
$4.24000
Dmd Fee (>20
KW)
$1.30000
$0.00000
UGI$2.75000
Marginal Dmd Fee (Includes effect$12.29600
of modifying the Bloc
GS 4
Exercise #1 – Rate Interpretation
UGI GS-4 Rate
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Distrib
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
UGI
GS 4
Monthly Fee: $9.94
Blk 1
Blk 2
Balance
Energy 101
CTC
ITC
Capy &
Energy
Xmission
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Distrib
CTC
ITC
Capy &
Energy
Xmission
Dmd Fee (0-20 KW)
$3.59
$5.68
$0.19
Dmd Fee (>20 KW)
$1.30
$2.23
$0.19
UGI
GS 4
Monthly Fee: $9.94
Blk 1
200 KWh / KW
$0.03033
$0.08287
$0.00162
Blk 2
300 KWh / KW
$0.02303
$0.07272
$0.00162
$0.02031
$0.06892
$0.00162
Balance
Energy 101
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Dmd Fee (>20 KW)
UGI
GS 4
Monthly Fee: $9.94
Blk 1
200 KWh / KW
Blk 2
300 KWh / KW
Balance
Energy 101
Total
Exercise #1 – Rate Interpretation
Fill in the table with the correct values:
Dmd Fee (0-20 KW)
Total
Dmd Fee (>20 KW)
$9.46
UGI
GS 4
Monthly Fee: $9.94
Energy 101
$3.72
$0.11482
Blk 1
Blk 2
200 KWh / KW
$0.09737
Balance
300 KWh / KW
$0.09085
Exercise #2 – Calculate an Electric Bill
April Usage information
Meter Constant = 300
Meter Reads:
Present = 3462
Previous = 3112
Peak Demand = 150 kW
TC
ITC
$0.00000
$0.00000
Summary
g the Block
KWh) of
$0.00209
Charges
$0.01183
Capy &
Energy
Xmission
Distrib Total
CTC
Dmd Fee $0.00000 $4.42500
$0.00000
$4.46100
$8.88600
PPL
Marginal Dmd Fee (Includes effect$12.72400
of modifying the Block
GS-3
Blk 1 (200 KWh
/ KW)
$0.00091
$0.00209
$0.04844
$0.00610
$0.06937
$0.00072
$0.00165
$0.05456
$0.00160
/ KW)
$0.00925Monthly Fee:
$0.03684
$0.00610
$0.00 Blk 2 (200 KWh
Balance
$0.00888
$0.03519
$0.00610
$0.00000
$0.00000
Dmd Fee (0-20
KW)
$7.01000
$0.19000
$3.59000
$0.00000
$10.79000
$0.00000
$0.00000
$0.00165
g the Block KWh)
Energy 101
$0.00000
$0.00000
$0.00060
$0.00160
$0.05237
Dmd Fee (>20
KW)
$1.30000
$0.00000
$0.19000
$4.24000
UGI$2.75000
Marginal Dmd Fee (Includes effect$12.29600
of modifying the Block
GS 4
Blk 1 (200 KWh
/ KW)
$0.07321
$0.00162
$0.03033
$0.00000
$0.10516
Exercise #2 – Calculate an Electric Bill
April Usage information
Meter Constant = 300
Meter Reads:
Present = 3462
Previous = 3112
350 x 300 = 105,000 kWh
Peak Demand = 150 KW
ITC
$0.00000
KWh)
$0.01183
Capy of
&
Summary
Energy
Charges
150 KW x 200
Xmission
$0.00000
KWh)
Energy 101
$0.00000
Distrib Total
= 30,000 kWh
CTC
ITC
Dmd Fee 150
$4.42500
$0.00000
$4.46100
$0.00000
$8.88600
KW
$1,332.90 $0
PPL
Marginal Dmd Fee (Includes effect$12.72400
of modifying the Block KWh)
GS-3
Blk 1 (200
KWh
/ KW)
30,000
KWh
$0.00091
$0.00209
$0.04844
$0.00610
$0.06937
$2,081.10 $0
30,000
KWh
KWh
/ KW)
$0.00925Monthly Fee:
$0.03684
$0.00610
$0.00 Blk 2 (200
KWh
Balance 45,000
$0.00888
$0.03519
$0.00610
$0.00000
kWh/KW
Dmd Fee (0-20
KW)
$7.01000
$0.19000
$0.00072
$0.00165
$1,636.80 $0
$0.05456
$2,356.65 $0
$0.00060
$0.00160
$0.05237
$3.59000
$0.00000
$10.79000
$0
Dmd Fee (>20
KW)
$1.30000
$0.00000
$0
$0.19000
$4.24000
UGI$2.75000
Marginal Dmd Fee (Includes effect$12.29600
of modifying the Block KWh)
GS 4
Blk 1 (200 KWh
/ KW)
$0.07321
$0.00162
$0.03033
$0.00000
$0.10516
$0
Use Profile - Monthly
Energy 101
Use Profile - Hourly
Energy 101
Demand Costs: Rate of Use
How much do you use at any given time?
• The rate at which electricity is used is measured as
“kilowatts” or kW.
• The utility needs to provide enough wire and transformer
size to satisfy your largest “demand” of electricity. The
utility meter can keep track of your largest 15-minute
consumption every month.
Energy 101
Reactive Costs: Result of Inefficient Use
Not all electrons are created equal!
• Some electrons require more “room” in the wire than
others. Electric loads that have a high amount of motors
and fans require more wire capacity! – some utilities
charge for this inefficiency.
 Reactive Costs:
Power Factor < 1.0 (pf% < 100%)
KVAR > 0
KVARh > 0
KVA (instead of KW)
Energy 101
Stranded Costs
How will utilities collect on previous investments?
Need to pay for upgrades that
are still being depreciated and
divestiture of generating
plants!
Energy 101
Natural Gas – Distribution System
Generation
Transmission
Distribution
Energy 101
Natural Gas Tariff Terminology
Transportation
• This refers to the pipeline movement of natural gas from a wellhead to your local distribution company (LDC).
Distribution
• Refers to the underground pipes that your local LDC maintains to
deliver natural gas to your buildings.
Well-head
• The originating location where processed natural gas is available
to the pipeline.
City Gate
• The delivery point at which the LDC receives natural gas from
the pipeline and transitions it to their own distribution pipes.
Burner-Tip
• The delivery point at which the end user receives natural gas
from the LDC.
Energy 101
Natural Gas Tariff Terminology
CF, CCF, or MCF
• A common measure of volume of natural gas at a given pressure
provided by the LDC at your local meter. Measured as cubic feet
(CF), 100 cubic feet (CCF), or 1000 cubic feet (MCF).
DT, or dekatherm
• The energy content of natural gas. This is the typical
measurement used in the transportation pipeline.
Shrinkage and Loss
• Refers to the natural gas lost to the atmosphere.
Energy 101
Sample Natural Gas Bill
Energy 101
Other Energy Consuming Areas
• Outdoor Lighting
• Street Lighting and Traffic Control
• Vehicles
• Water & Waste water treatment
• Specific process needs (steam, chilled water)
• Water consumption
• Others???
Energy 101
Taking Control of Energy Bills
• Learn to understand how YOUR energy is billed.
• Utility Bill Analysis!
.




Local LDD
Local DEP
3rd Party
Utility representative
• Look for opportunities to save energy and $$.
• Learn to communicate what you uncover.
• Determine why it is important to YOUR
Administration.
Energy 101
Knowledgeable Understanding
Energy 101
EUI by Activity
Energy Intensity for
Sum of Major Fuels
(thousand Btu/
square foot)
Northeast
Principal Building Activity
Education ........................................
Food Sales ......................................
Food Service ...................................
Health Care .....................................
Inpatient ........................................
Outpatient .....................................
Lodging ...........................................
Retail (Other Than Mall)...................
Office ..............................................
Public Assembly ..............................
Public Order and Safety ..................
Religious Worship ...........................
Service ............................................
Warehouse and Storage .................
Energy 101
101.6
248.1
272.8
212.2
275.3
84.7
92.3
65.0
101.2
89.2
132.5
52.1
79.8
41.6
Midwest
86.3
219.1
218.8
205.6
272.2
124.4
109.0
102.7
108.8
101.7
105.9
52.8
85.0
74.7
South
75.5
187.7
283.4
169.8
226.7
60.9
96.9
68.7
87.0
93.2
113.1
38.3
66.3
26.7
West
77.6
Q
243.8
179.6
246.8
115.3
103.7
63.2
72.1
91.2
Q
27.6
80.0
39.0
Exercise #3 – Simple Analysis
Use the “Annual Energy Management Report – Buildings”.
For the Terminal Building (14,000 sq ft), do the following:
1. Calculate the operating cost per sq ft ($ / sq ft), and
2. Analyze the EUI.
Sum of kwh on
Account Name
County Garage
Entrance Sign
Fire Building
Hanger #1
Hanger #2
Hanger #3
Hanger #4
Hanger #5
Maintenance Building
Obstruction Light
Street Light
Terminal
Vault Building
White Building
Grand Total
Energy 101
Electric
mmBtu
Ttl kwh
cost
Misc Fee
Natural Gas
mmBtu
cost
ccf
843
3
$
187.71
$
1.09
-
-
$
-
6,639
23
$
651.79
$
4.94
-
-
$
-
40,667
139
$
3,642.71
$
27.89
$
635.86
28
0
$
94.36
$
0.72
-
-
$
-
5,023
17
$
513.13
$
4.31
-
-
$
-
46
0
$
95.91
$
0.61
-
-
$
-
32
0
$
94.76
$
0.63
-
-
$
-
523
2
$
136.79
$
0.80
-
-
$
-
48,685
166
$
4,227.02
$
32.41
4,023
414
$
670
2
$
146.59
$
0.79
-
-
$
-
1,958
7
$
264.76
$
11.28
-
-
$
-
277,680
948
$
22,322.09
$
156.52
16,839
1,731
$
96,139
328
$
8,762.10
$
64.92
-
-
$
-
1,770
6
$
304.23
$
2.45
-
-
$
-
480,703
1,641
$
41,443.95
$
309.36
21,140
2,173
$
278
29
5,466.20
21,571.18
27,673.24
Knowledgeable Understanding
Vehicles and Traffic Lighting
Energy 101
KPI – Key Performance Indicators
Current Condition
Facility Fuels
Electric
Natural Gas
Coal
Propane
Fuel Oil
Water Sewer
Garbage
Facility Maintenance
Service Contracts
Material & Parts
Other
Vehicle Fuels
Deisel
Gasoline
Other
Vehicle Maintenance
Service Contracts
Material & Parts
Other
Annual Use
Increase
Annual Cost
Escalation
2008
Cost
2009
2010
2011
2012
2013
2014
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
3.2%
18.7%
0.0%
0.0%
0.0%
1.1%
8.2%
$
$
$
$
$
$
$
215,000
140,000
16,000
8,500
$
$
$
$
$
$
$
221,880
166,180
16,176
9,197
$
$
$
$
$
$
$
228,980
197,256
16,354
9,951
$
$
$
$
$
$
$
236,308
234,142
16,534
10,767
$
$
$
$
$
$
$
243,869
277,927
16,716
11,650
$
$
$
$
$
$
$
251,673
329,899
16,900
12,605
$
$
$
$
$
$
$
259,727
391,591
17,085
13,639
0.0%
0.0%
0.0%
7.5%
0.0%
0.0%
$
$
$
85,100
-
$
$
$
91,483
-
$
$
$
98,344
-
$
$
$
105,719
-
$
$
$
113,648
-
$
$
$
122,172
-
$
$
$
131,335
-
0.0%
0.0%
0.0%
0.0%
20.6%
0.0%
$
$
$
3,800
-
$
$
$
4,583
-
$
$
$
5,527
-
$
$
$
6,665
-
$
$
$
8,038
-
$
$
$
9,694
-
$
$
$
11,691
-
0.0%
0.0%
0.0%
3.0%
3.0%
0.0%
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
-
Energy Budget
$
383,300
$
418,016
$
458,068
$
504,416
$
558,201
$
620,772
$
693,733
Maintenance Budget
$
85,100
$
91,483
$
98,344
$
105,719
$
113,648
$
122,172
$
131,335
$
468,400
$
509,498
$
556,411
$
610,136
$
671,849
$
742,944
$
825,068
Facility & Vehicle Budget
Total Budget
Millage Value
Facility & Vehicles
% of Budget
Millage Required
Energy 101
Typical Escalation
4.6%
2.0%
$ 5,634,962
$ 2,997,310
$ 5,894,170
$ 3,057,256
$ 6,165,302
$ 3,118,401
$ 6,448,906
$ 3,180,769
$ 6,745,556
$ 3,244,385
$ 7,055,851
$ 3,309,272
$ 7,380,420
$ 3,375,458
8.3%
0.16
8.6%
0.17
9.0%
0.18
9.5%
0.19
10.0%
0.21
10.5%
0.22
11.2%
0.24
KPI – Key Performance Indicators
Performance Measures – monthly, quarterly, annually
• Financial Measures




$ energy / $ Annual Budget
$ energy / $ Tax Contribution
$ energy / $ sales
or
Btu / $ sales
or
$ energy / $ Earnings
Btu / $ Earnings
• Energy Utilization Index (Buildings)
 Btu / sq ft
• Energy Cost Index (Buildings)
 $ energy / sq ft
or
$ energy / Btu consumed
or
or
or
or
$ energy / unit of production
$ energy / direct labor hour
$ energy / Degree-day
Btu / unit-degree day-sq ft
• Productivity Measures





Energy 101
Btu / unit of production
Btu / direct labor hour
Btu / Degree-day
Btu / unit-degree day
$ energy / Btu consumed
Scoring Your Energy Strategy
Processes
Data
Supply
Use
Equipment
Organizational
Integration
Programs
Accessible
100%
0%
Load Profiles
100%
0%
Monthly Bills
0%
100%
Interval Data
0%
100%
Benchmark & KPI
Reporting
0%
100%
0%
100%
Error Resolution
100%
0%
Supplier Choice
Sub-Metering
100%
0%
100%
0%
Demand - Supply Optimize
100%
0%
Reliability & Quality
0%
100%
Risk Management
0%
100%
Rate Optimize
0%
100%
Account Management
0%
100%
Walk Through
100%
0%
Diagnostic Audit
100%
0%
DE Audit
100%
0%
Benchmark & Rank Facilities
0%
100%
Operating Procedures
0%
100%
Commissioning
0%
100%
On-going
On-going Monitoring
Monitoring
0%
100%
Corrective Maint
100%
0%
Preventive Maint
100%
0%
System Upgrades
100%
0%
Systems Control
0%
100%
Lighting Upgrades
0%
100%
Standards
0%
100%
Alternate
Alternate Fuels
Fuels
0%
100%
New
New Technology
Technology
System
System M&V
M&V
0%
100%
0%
100%
Project Approval
0%
100%
Awareness & Participation
0%
100%
Energy Planning
0%
100%
Defined Energy Manager Role
0%
100%
Performance & Training
0%
100%
Results Auditing
0%
100%
Resource
Resource Mgmt
Mgmt
0%
100%
0%
100%
Financial
& Incentives
Incentives
Financial Impact
Impact &
0%
100%
0%
100%
Budget
Budget Preperation
Preperation
Energy 101
Projects
Accountability
Accountability
Motivating Factors - Choices
Energy 101
Infrastructure
Financial
Performance
Partnership
Choices: Infrastructure
Low Hanging Fruit
Energy Efficiency
Partial Upgrades
Code Compliance
Comprehensive Renewal
LEED EB
Phasing
Energy 101
Choices: Financial
Net Savings
Quick Paybacks
Financing
Equity Contributions
Multiple Funding Streams
ROI
Priorities
Energy 101
Choices: Partnership
Choices
Dependence / Independence
Training
Risk Allocation
Measurement & Verification
Reporting
Energy 101
Choices: Performance
Choices
Utility Expenses
O&M Expenses
Energy Usage & Demand
Occupant Comfort
Complaint Reduction
Carbon Emissions
Energy 101
Emission Considerations
Issue >>
Greenhouse
Gas Global
Warming
Ozone
Sulphur Dioxides
Acid Rain
Mercury
Particulates
Breathing
Asthma
Energy Source

Units
CO2
NOx
SO2
Hg
PM10
Coal
lb/ton
5680.000
9.000
91.433
0.0001300
0.800000
Electric
lb/kwh
1.234
0.003
0.010
0.0000001
0.000125
Fuel Oil No 2
lb/mmBtu
159.290
0.129
1.014
0.0000000
0.002860
Fuel Oil No 6
lb/mmBtu
178.570
0.393
1.121
0.0000000
0.010000
Natural Gas
lb/mmBtu
117.080
0.150
0.001
0.0000000
0.001860
Propane
Butane
lb/mmBtu
lb/mmBtu
139.180
152.130
0.149
0.160
0.000
0.000
0.0000000
0.0000000
0.004260
0.006380
Carbon Neutral Footprint?
Energy 101
Emissions – Carbon Footprint
Carbon Footprint
Vehicular
Purchased
On site
120
Amount of CO2
100
80
60
40
20
0
2005
Energy 101
2006
2007
2008
2009
Closing Thoughts
Knowledge is the first step to understanding
•
•
•
•
Know
Know
Know
Know
what energy you are buying
where the largest dollars are spent
what is using the most energy
what is important to your Administration
Next steps…
•
•
•
•
Determine your baseline
Determine possible improvements
Communicate what can be done to manage energy
Develop the plan to TRANSFORM your organization
Energy 101