discovering low-cost/no-cost strategies for reducing energy costs

“Helping Customers Discover Energy Solutions”

DISCOVERING LOW-COST/NO-COST STRATEGIES FOR REDUCING ENERGY

COSTS

Ralph W. Russell, II, CEMPresident – eDiscoveri

Presented to IEEE Richmond Section2 October 2014

Energy Cost Issues

www.eDiscoveri.com 2

Keys to Energy Management Who is in charge of managing energy usage &

cost? What is the cost of energy & what are the

available rate tariffs? When is energy is used? Where is energy used? Why is energy used? How much energy is used? Practice simple energy management techniques

Reduce equipment run time Use more efficient equipment Shift load to off-peak period


Electricity Fundamentals

Ohms Law Volts = Current x

Resistance V = A x R Units Volts is in volts Current is in amps Resistance is in ohms

Power P (watts) = A (amps) x V

(volts) A (amps) = P (watts) / V

(volts)

KW W (watt) x 1,000 = KW

(kilowatt) Demand Rate at which energy is

used

KWH KW (kilowatt) x Time

(hours) = KWH (kilowatt – hour)

Energy consumed over a period of time

4

Terminology

Cooling Degree Days (CDD) Cooling degree

days indicate how summer weather affects building cooling energy use.

Heating Degree Days (HDD) Heating degree

days indicate how winter weather affects building heating energy use.

5

Definitions

kW (kilowatt) kWh (kilowatt-hour) On-Peak CMD (Contract Minimum Demand) Riders


Demand


Electric Bill Components

Billing Determinants

Rate Schedule Billing Period Dates Billing Days Off-Peak Usage (kWh) On-Peak Usage (kWh) Distribution Demand

(kW) Off-Peak Demand (kW) On-Peak Demand (kW) rKVA



Bill Details Bill Details

Distribution Service Basic Customer Charge Distribution Demand rKVA Demand

Electricity Supply Service On-Peak Demand Charge Off-Peak Demand Charge Adjustment Charge

Meter Behind Transformer

On-Peak Energy Charge Off-Peak Energy Charge Fuel Rider B Rider BW Rider C1A and C2A Rider R Rider S Rider T1 Rider W



Bill Details

Sales and Use Surcharge

Distribution Facilities Charge

Transmission Facilities Charge

State/Local Consumption Tax

Local Utility Tax


Low-Cost/No-Cost Strategies for Reducing Energy Costs


Rate Schedule Change

Tax Deductions & Exemptions

Utility Rebates Utility Contract Metering

Billing Errors Demand

Response Operational

Changes Networking Walk-Through

Energy Audit

10 – Operational Changes

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Operational Changes

Turn it off Shift production to off-peak periods Use start time and stop time

optimization to minimize consumption Review daily demand graphs for

opportunities to peak shave or shift load

Determine cost benefit of installing more efficient lighting and motors


9 – Billing Errors


Billing Errors

Common causes of billing errors: Metering errors Calculation errors Out of date rate schedules Miscommunications between internal

departments


8 – Rate Changes

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Rate Schedule Changes

Explore & understand available rate schedules from local utility company (electricity, natural gas, fuel oil, propane, water/sewer).

Request rate comparison from utility or energy consultant such as eDiscoveri.


GS-1, 2, 2T, 3 & 4

GS-1 – 30 kW or less GS-2 – 30 kW – 500 kW GS-2T – 30 kW – 500 kW Time of

Usage GS-3 – 500 kW or greater.

Secondary Voltage GS-4 – 500 kW or greater. Primary

Voltage


Dominion Virginia Power Special Tariffs Schedule 6TS – Thermal Storage Schedule 10 – Large General Service

Variable Pricing Calendar year divided into “A”, “B” and “C”

days “A” days most expensive. Maximum of 28

“A” days in any calendar year “B” days mid range “C” days least expensive. Minimum of 60

“C” days in any calendar year Day classification found at +1 800 446 4877


Dominion Virginia Power Riders Rider A – Fuel Charge Rider Rider B – Biomass Conversion Rider C1A – Peak-Shaving Increment Rider Rider C2 – Energy Efficiency Increment

Rider Rider R – Bear Garden Generating Station Rider S – Virginia City Hybrid Energy Center Rider T1 – Transmission Rider W – Warren County Power Station Sales and Use Surcharge


7 – Tax Exemptions & Deductions

7TAXES


Tax Deductions & Exemptions Tax Deductions & Incentives

The U.S. Department of Energy DSIRETM (Database of State Incentives for Renewables & Efficiency) www.dsireusa.org

Tax Exemptions Sales tax exemptions available in some

areas for state and municipal sales tax on energy.

Sales tax refund ranging from 12 to 48 months available in some areas.


http://www.dsireusa.org/

6 – Utility Rebates


Utility Rebates

Start your investigation into utility rebates at www.dsireusa.org.

After locating a rebate, check the utility’s website to confirm its availability.

Current programs from one utility for commercial and industrial accounts include: Energy Audit Duct Testing & Sealing

Distributed Generation Lighting Window Film


http://www.dsireusa.org/

5 – Utility Contract


Utility Contract

Review Agreement for Electric Service (Contract) that most commercial, industrial and governmental customers have with the local electric utility.

Review Contract for adjustment of rate schedule, Contract Minimum Demand and extra charges such as facilities charges.


MeteringPrimary Metering & Totalized Metering Combining all of the meters into one

monthly invoice. Reduction of the demand and demand

cost since most accounts don’t hit their daily peak demands at the same time.

Sub-metering Customer owned metering to measure

energy consumption of specific equipment or business areas.

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4 – Demand Response


Demand Response

Demand Response (also known as load response) is end-use customers reducing their use of electricity in response to power grid needs in return for a payment.

End-use customers participate through curtailment service providers.


3 – Alternative Financing


Alternative Financing Terms Power Purchase Agreement (PPA)

Contract between two parties, one who generates electricity for the purpose (the seller) and one who is looking to purchase electricity (the buyer).

Utility Energy Service Contract (UESC) Contracting vehicle that allows utilities to

provide to their Federal customers comprehensive energy and water efficiency improvements and Demand-reduction services.

Energy Saving Performance Contract (ESPC) Allows Federal agencies to complete energy

savings projects without up-front capital costs and special Congressional appropriations.

32

http://www.nrel.gov/docs/fy11osti/51662.pdf

http://www1.eere.energy.gov/femp/financing/uescs.html

http://www1.eere.energy.gov/femp/pdfs/espc_faqs.pdf

http://www1.eere.energy.gov/femp/pdfs/espc_faqs.pdf

2 – Walk Through Energy Audit


Walk-Through Energy Audit Identifies energy cost, consumption,

use, location and timing. Involves touring the facility and

collecting data that includes information on customer’s site, operations, HVAC, processes, lighting, envelope, refrigeration, and office equipment.

Establishes baseline of energy consumption and cost to measure success of future energy projects.


1 - Networking


Networking

Talk to your peers inside and outside of your company.

Attend professional society meetings such as IEEE, ASHRAE, and AEE.

Participate in LinkedIn on-line communities such as Association of Energy Engineers.

Attend conferences. Develop a personal energy training

plan.www.eDiscoveri.com 36

Low-Cost/No-Cost Strategies for Reducing Energy Costs


Rate Schedule Change

Tax Deductions & Exemptions

Utility Rebates Utility Contract Metering

Billing Errors Demand

Response Operational

Changes Networking Walk-Through

Energy Audit

Natural Gas

Rebates Customer Incentive Programs

Heat Recovery Solar Hot-Water Retro-Commissioning Control Systems

Rate Choice Rate Comparisons Tax Exemptions


Fuel Oil

Daily Prices Fixed Contracts Fill-Up during Summer and before

Hurricane Season Tax Exemptions


Water/Sewer

Deduct/Exclusion Meter for applications such as landscaping, manufacturing, etc.

Reduce Strong Waste Water Surcharge Jet out lines that may be contaminated Replace grease traps

Impervious Area Charge Incentive Programs Rain gardens Rain barrels Pervious paving Green Roofs Storm water reuse


Propane

Fixed Negotiated Contract Compare Suppliers Tax Exemptions


About eDiscoveri

eDiscoveri's mission is to help customers:

Manage relationships with electric utilities

Increase operational uptime through improved electric supply reliability

Reduce energy costs


Electric Utility Liaison

eDiscoveri can help customersreduce the amount of their staff

timeassociated with electric utilityinteractions by: Assisting customers with

managing their relationships with electric utilities

Managing periodic meetings with various utility departments

Maintaining up to date utility contact information

Developing, maintaining and implementing communications channels to be used during emergencies


Electric Supply ReliabilityeDiscoveri can help customers

improvetheir electric supply reliability by: Maintaining a log of electric

utility disturbances and outages Reporting disturbances and

outages to utility on behalf of customers

Managing communications between utility and customer during electric supply outage emergencies to ensure minimal customer outage time

Preparing report outlining root cause of outage and recommending preventive and mitigation measures


Contact Us

Contact us for a free consultation on how we can help you discover low-cost/no-cost strategies for energy cost reduction.

eDiscoveriP. O. Box 29254Henrico, VA 23242+1 804 291 7667 [email protected]


mailto:[email protected]

mailto:[email protected]

http://www.ediscoveri.com/

discovering low-cost/no-cost strategies for reducing energy costs

Leadership & Management

energy cost

cost of energy

energy solutions

energy usage cost

buildingheating energy

buildingcooling energy

kwh kilowatt hour energy

kwkilowatt demand rate