Save Mart

Energy Efficiency Leadership and BeyondRay Agah, Vice President of Engineering & Construction

Agenda

• Who We Are• The BIG Picture• The Save Mart Energy Management Program• Successes To Date• Current Projects & Pilots• Future Opportunities• The Bottom Line

Who We Are

SAVE MART SUPERMARKETS is a Modesto-based privately held company, which operates 220+ stores in the Central Valley, East Bay, Northern California and Northern Nevada under the Save Mart, FoodMaxx , S-Mart, and Maxx Value names. The company owns and operates SMART Refrigerated Transport, Yosemite Warehouse in Merced, Yosemite Advertising in Modesto and distribution centers in Vacaville and Roseville. The company is a partner in Super Store Industries, which operates a distribution center in Lathrop, Mid Valley Dairy in Fairfield and Sunnyside Farms ice cream plant in Turlock.

The BIG Picture

• Managing Energy– Reduces Costs– Increases Profitability– Reduces Risk

• Grocery Energy Use– Refrigeration– HVAC– Lighting

Save Mart’s Energy Mgmt. Plan

• Since 1999• Quick and sure savings• All possible Rebates• Store Efficiency Audits• General Energy

Management Plan• Reinvesting Savings =

Exponential Improvements

•Collaborated with EnergySmart Jobs

•High-efficiency LED retrofit with motion sensors

•Estimated annual energy savings of 83,701 kWh

•Rebates from EnergySmart Jobs totaled $8,149.60, approximately 34 percent of the project cost, with utility rebates covering another 50 percent

•The program created more than 200 new surveyor jobs in California, and provide energy efficiency skills training for approximately 400 people.

•Collaborated with MID, Modesto Irrigation District

• Awarded a $46,000 rebate for green store prototype

•In the first 12 moths the Riverbank, CA store lowered it electric cost by and estimated $51,500

•That’s a savings of more than 672,000 kilowatt-hours annually, enough to power 66 average homes

Successes to Date…

• Keeping Cold Air In• A chain wide program was implemented in 2007 and

completed in 2009 to retrofit all walk-in coolers and freezers with strip curtain door covers & new gaskets to reduce refrigeration losses while doors were open for stocking. Additionally, door gaskets and door auto closing devices were replaced on all reach-in cooler and freezer doors on the sales floor.

• TOTAL SAVINGS: $7.7MM+• TOTAL REBATES ACQUIRED: $900K+

Successes to Date…

• Updating Energy Management• In 2009 a chain wide effort was begun to update

control systems on refrigeration, lighting and HVAC equipment and implement cost savings energy reduction strategies. Savings were gained through better lighting control, the installation of variable speed drives on HVAC equipment & advanced set point control on refrigeration equipment.

• TOTAL SAVINGS: $14.5MM+• TOTAL REBATES ACQUIRED: $2.25MM+

Successes to Date…

• Efficient Motors & LED Case Lighting• Through utilizing zero percent financing with the utilities, Save

Mart has begun a program to replace all old and inefficient refrigeration fan motors with new efficient motors. In conjunction, we are beginning the roll-out of a program to replace freezer case lighting with advanced LED’s with motion sensors. Currently, 25 stores have been retrofitted and another 35 are on the books for early 2013. We have yet to realize the actual savings which will be in excess of 2 million dollars.

• TOTAL SAVINGS (to date): $860K+• TOTAL REBATES ACQUIRED (to date): $325K+

Current Projects

• Bright Idea!

– LED Freezer Case Lighting with Motion Detectors

– Leveraging On-Bill ‘Zero Interest’ Bill Neutral Financing

Current Pilots

• LED Lighting in Medium Temp Cases

• Retrofitting Open Dairy Cases with Doors

Current Projects

• Motors 2.0:

– Electronic Fan Motor Retrofits

– Leveraging On-Bill ‘Zero Interest’ Bill Neutral Financing

EC Motors (Retrofit)

Efficiency = 66%

13.6 watts consumed9 watts drive power4.6 watts wasted heat to case

SP Motors (Existing)

Efficiency = 26%

34.6 watts consumed9 watts drive power25.6 watts wasted heat to case

EC Motors are more efficientECMs are required by code in new construction and are expected to be baseline in future – consequently, most new case products are ECM as standard

Required for all new construction since 2009 by CA Title 20

“Fan-powered evaporators used in coolers and freezers shall conform to the following: Single phase fan motors less than 1 hp and less than 460 volts shall be electronically commutated motors.”

ECM Verification Case Study Strong support from Save Mart engineering allowed proof of method and technology at Save Mart #208

• Data collected for 2 weeks before and after installation

• Five Case circuits monitored– Verified 285 kWh direct savings per motor– $6,344 in energy savings each year

• Three Walk-In circuits monitored– Verified 1,507 kWh direct savings per motor– $6,254 in energy savings each year

Cost Incentive Final Cost Savings, kWh

Savings, kW

Annual Cost Savings

Simple Payback

$25,621 $13,310 $12,311 124,451 14.2 $12,598 0.98

Looking Ahead…

• Future Potential

– Door Retrofits– LED Directional Lighting– Additional Controls– Demand Response

The Bottom Line

• $1 of energy savings = the profit of $67 sales• An average store uses 2 million kWh/year of

electricity at an average cost of $200,000 per year.

• A 15% energy savings would reduce energy expenses by $30,000 per year, the equivalent to increasing annual store sales by $2million.

167 million kWhSince 1999, Save Mart has committed to reduce energy use and environmental

impact with continued investments in energy efficiency projects.That’s Good Value, Good Service, and a Good for the Community.

That’s equal to

96,194 tons of CO2 or the emissions from

The carbon removed by 828 acres of forest preserved from deforestation-an area about the same size as Modesto

The carbon removed annually by 33,018,480 square feet of pine tree forests…

…equivalent to the area of about 721 Save Mart, Lucky, and Food Maxx stores

8,580,793 gallons of gasoline consumed

What We Encourage At The Store

• Be An Energy Steward• Close Doors• Turn Off Lights• Report Maintenance Issues• Use Ovens and Fryers To Their Optimum– Recovery time on an oven is less than 1 hour– Recovery time on a fryer is less than 1 hour

QUESTIONS?