JDSU Energy Program - FMA · PDF fileJDSU Energy Program Robert Ule ... Tellabs ; Alcatel-Lucent, AT&T, British Telecom, ... $0.00000 $0.00000 $0 $0.00761 $8,615

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JDSU Energy Program Robert Ule JDSU Global Energy Manager

© 2010 JDSU. All rights reserved. JDSU CONFIDENTIAL & PROPRIETARY INFORMATION 2

Enabling Broadband & Optical Innovation

Business Segments

Communications & Commercial Optical Products

Communications Test & Measurement

Advanced Optical Technologies

Total Market Size (Annual)*

$3.9B $2.8B $1.5B

Annual Growth Rate*

5-15% 6-12% 5-10%

JDSU Market Position*

#1-2 #1-2 #1-2

Markets Telecom, Datacom, Submarine,

Long Haul, Metro, Access, Biotech, Microelec,

Telecom/Cable Access, Metro, Core & Home Networking

Currency, Defense Authentication, Instrumentation

Sample Customers

Alcatel-Lucent, ASML, Becton Dickinson, Ciena, Cisco,

Ericsson, ESI, Fujitsu Huawei, KLA Tencor, Nortel,

NSN, Tellabs

Alcatel-Lucent, AT&T, British Telecom, China Telecom, Comcast, Telmex, Verizon

Abrisa, Bank of China, Dolby Laboratories, ITT, Lockheed

Martin, Pfizer, SICPA

* Sources: Central Banks, Frost & Sullivan, Infonetics Research, Ovum-RHK, PIRA Research, Prime Data, US Chamber of Commerce, and internal analysis.

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A Note on Green Jobs

All US Manufacturing Jobs are Green Jobs Look at the Carbon Emissions by Country

(Metric tons CO2 per Megawatt) USA 0.601 India 0.999 Germany 0.539 China 0.939 Japan 0.417 Singapore 0.731 California 0.275 Indonesia 0.722 France 0.083

Moving work from Asia to California reduces the carbon footprint by at least 2/3’s!


JDSU Goal & Strategy

Team – Work Place Solution Senior Staff – Consultants

Goal – Reduce utility costs by 20% – Reduce carbon footprint by 15%

Strategy – Behavior Change – Projects – Procurement – Financial


Behavior Change


The Message

Lights are less than 10% of our energy use Motors are the major user of energy

– Ask why is this motor running? Every kilowatt of waste heat takes 2 to 3 kilowatts

of air conditioning to remove from a building Summer afternoon electricity is 2.5 times more

expensive than evening or weekends One 500 CFM air exhaust system can cost over

$3,000 per year


Behavior changes

Production equipment cleaning was moved to the afternoons

Low energy standby modes were developed for production equipment

Workforce training resulted in: – Remote controls for the roll-up doors – Timers on exhausts – Product mix rescheduling

The rate dropped from $95 to $90 per MWH The manufacturing line change we didn’t make


Print Free Anti-Reflective Coatings

Our PrintFree coating eliminates this tradeoff by enhancing HEA

performance with a surface that repels fingerprints, water, oil, and chemicals. It is chemically bonded directly to the optical layer of the HEA coating, allowing it to maintain its industry-leading low reflectivity. The result is a smoother, more durable surface that can be cleaned with a simple wipe of a soft cloth.


Projects


Water Recycling

450,000 gallons per month of waste DI rinse water

The costs are $12.45/1000 gallons

City rebate of $200/1000 gallon-month

Saves $60K/year

Recycling Gal/Month Purchase DI Sewer Depreciation $/Month

Current 450,000 4.08 3.64 8.37 $0 $7,240

Proposed 450,000 3.19 $913 $2,347

Opex Savings $4,893

ROI 1.5 years

Monthly DI Water Analysis


Lighting

It took many tries to get a ROI better than 2 years We partnered with Sylvania Lighting for the

installation We used the Small Business Energy Alliance for

their rebate program Project Results

– Cost $354K – Rebate $172K – Annual Savings $182K – ROI is 1.0 years


Clean Rooms and HVAC

Problems found were – Over pumping air – Excessive exhaust air

Solutions – Control air flow to maintain the required particle count – Operate VFD’s using constant pressure control – Adjust make-up air based on exhaust air flow

Savings – Project Cost $806K – PG&E Rebate $349K – Net Cost $457K – Annual Savings $434K – ROI 1.05 years – Carbon Savings 1,500 tons/year CO2


LED Versus T8 Lighting

LED lighting performance No rebates for LED lighting Cost Comparison

LED T8

Capital $226K $134K Rebate - $45K Savings $110K $76K Depreciation $32K $13K OpEx Savings $78K $66K Payback 1.6 years 1.2 years

$78K


Procurement


Charge Description Quantity Unit Both SCE Energy SCE Total DA Energy DA Total

Facilities Rel Dmd 3,742 KW 13.0600 $0.00 $48,871 $0.00000 $48,871

Sum On KW Charge 1,289 KW $0.0000 $14.67 $18,910 $0.00000 $0

Sum Mid KW Charge 1,238 KW $0.0000 $3.49 $4,320 $0.00000 $0

Demand Chg Total $72,101 $48,871

Win Mid KWH Charge 398,463 KWH $0.02052 $0.05676 $30,795 $0.05500 $30,092

Win Off KWH Charge 303,515 KWH $0.02052 $0.04271 $19,192 $0.05500 $22,921

Sum On KWH Charge 114,775 KWH $0.02052 $0.10548 $14,461 $0.05500 $8,668

Sum Mid KWH Charge 143,669 KWH $0.02052 $0.07549 $13,794 $0.05500 $10,850

Sum Off KWH Charge 171,682 KWH $0.02052 $0.05280 $12,588 $0.05500 $12,965

Energy Chg Total $90,830 $85,496

DWR Bond Charge 1,132,104 KWH $0.00515 $0.00000 $5,830 $0.00000 $5,830

Customer Charge 12 Month 469.0000 $0.00000 $5,628 $0.00000 $5,628

Power Factor Adj 1,573 KVAR $0.27000 $0.00000 $425 $0.00000 $425

State Tax 1,132,104 KWH $0.00022 $0.00000 $249 $0.00000 $249

SCE Exit Fee 1,132,104 KWH $0.00000 $0.00000 $0 $0.00761 $8,615

TOTAL CHARGES $175,062.80 $155,114.43

Procurement Contracts

Reverse auctions generate lower bids, typically by 10% or more

Consider both hedge and index buying Review the tariffs to ensure you have chosen

the best eligible one Review tax status of your accounts Review deposit requested versus required Develop a renewable energy strategy Opportunity for diversity spend


Financial


Search for those Rebates & Incentives

Electrical rebates of 40% are typical Cities offer water recycling rebates. Some areas have redevelopment programs. They

often include reduced utility rates. Some local governments offer access to Muni

funding (low interest bonds) Solar credits Renewable Energy Credits


Financing

Power purchase agreements Capital leases Tax partners Green funding ROI versus OpEx

10,000

10,500

11,000

11,500

12,000

12,500

13,000

13,500

14,000

FY08 FY09 FY10 FY11

$ 00

0's/

Year

Global Energy Progam Impact

Project Savings Procurement Savings Forecast

No Energy

After Energy

18% S

avings


Future Projects


Future Projects

Manufacturing process equipment – Using Lockheed Martin under a PG&E grant

Server virtualization – One physical device appears as many

Solar Power – JDSU is introducing a concentrating photo voltaic (CPV)

Fuel Cells – Capital costs too high – Natural gas upside


Questions

Documents

JDSU Energy Program - FMA · PDF fileJDSU Energy Program Robert Ule ... Tellabs ; Alcatel-Lucent, AT&T, British Telecom, ... $0.00000 $0.00000 $0 $0.00761 $8,615