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Implementing Capital Projects

Through Energy SavingsSection 21 Administrative Workshop for

MDEQ Wastewater Management

Marquette, MI

December 4, 2012

Don Voigt, P.E., CEM

Energy Cost Reduction Engineer

EEI (Engineered Equipment Integration)

www.equipintegration.com

(414) 940-9281

don@equipintegration.com

http://www.equipintegration.com/http://www.equipintegration.com/

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Marquette MI Aeration System

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Michigan UP

Engineering Technology Innovators

SBR/UV systems

Membrane Water Treatment Turbo bearingless blowers for aeration

SCADA/Telemetry Pioneers

VOC Stripping in Water Treatment

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Outline

Why energy savings (efficiency) is coming to yourutilitiessoon.

What are the Energy costs for typicalmunicipality and water/wastewater portion of allenergy costs

Smart operators +smart meters = $$ Financing concepts of 3 year payback are old

ideas. Introduce financial tools available fordemonstrating value of energy savingsinvestments.

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Michigans Governor Snyder ..

Energy Efficiency

November 28, 2012

In a major energy policy speech, Governor Rick

Snyder states. energy efficiency is thebest example of a no-regrets policy

Michigan can havedescribing how hisadministration is prioritizing energy efficiency

initiatives.

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Why no pressure on energy at

municipal W and WWT, today?

W and WWT managers primary focus is to

meet Water Quality and/or discharge permit

(we are not fined if we are not energy

efficient)

Energy efficiency requirements not in State

Codes (yet, but soon).

Most W and WWT managers dont receive

the electric or natural gas bills why bother?

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How to find extra $$ for your

department? Get your energy/consumption bills added to your budget

Begin sub-metering liquid flows and power

Meet with and know your energy supplier acct. manager

Learn your energy rate structure (learn your energy use asyou know liquid flows)

Modify equip. and services purchasing policies go to lifecycle costing incorporate cost of operation and energyconsumption

EE can also be an optimizer in providing for betteroperation of the unit processes on site (reduced aerationresults in more discrete and larger solids leading toimproved dewatering as an example)

Optimize reduce maintenance and wear and tear on

equipment lesser pressure and lower speeds

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Lets get started!

Why Energy savings (efficiency)?..Energy costs are Large in a World

Market Demand

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Energy Efficiency is a Resource we

Own and Control it 100%Eff. Reduces need for new

power plants

New power plant costs> $3,000/kW

Efficiency program costs< $500/kW

Reduces environmental havoc

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Energy Efficiency Least Cost Resource

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Energy Efficiency (green) as a Resource

Grows in Strategic Importance

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Energy Efficiency is

a Funding Focus

Quote in this FL

report: Fund &promote Energy

Efficiency..

with a focus onexisting facilities

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What are the Energy Costs in a

typical community?

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City of 10,000 Pop. Energy ConsumptionGasoline, Diesel & Oil Natural Gas Electricity

All Energy byDept

City Department

Engineering 656.00 656.00

Municipal Bldg 9,032.00 9,032.00 13,438.00 31,502.00

Police 58,244.00 16,995.00 26,731.00 101,970.00

Fire Dept 7,000.00 5,047.00 4,962.00 17,009.00

Ambulance 6,176.00 2,524.00 2,481.00 11,181.00

Street Dept 77,534.00 21,026.00 17,279.00 115,839.00Street Lights & Signals 249,221.00 249,221.00

Library 13,438.00 24,643.00 38,081.00

Museum 1,160.00 295.00 1,455.00

Sr. Center 2,634.00 2,304.00 4,938.00

Pool 8,895.00 9,426.00 18,321.00

Park & Rec 2,048.00 15,863.00 13,452.00 31,363.00

Park Maint 10,897.00 5,253.00 4,465.00 20,615.00

Park Restroom Utilities 8,092.00 8,092.00

Wastewater 2,385.00 22,519.00 145,789.00 170,693.00

Water 25,630.00 120,457.00 146,087.00

Marina 3,743.00 36,312.00 40,055.00

City Energy Totals 173,972.00 153,759.00 679,347.00 1,007,078.00

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$249,221

$170,693

$146,087

$136,702

$130,160

$115,839$40,055 $18,321

Street Lights

and SignalsWastewater

Water

Parks and

Recreation*Police,Fire Dept,

& AmbulancesStreet

DepartmentMarina

Energy costs for a city of 10,000 population will be approx.

10% of the citys total budget or $1,000,000 of $10,000,000

And, Water/Wastewater is 1/3rd of the one million $$!

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$679,347

(68%)

$173,972

(17%)

$153,759

(15%)

City of 10,000 Population Equiv.

Total Energy Cost by Type (2009)

Electricity

Gasoline,

Diesel & Oil

Natural Gas

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Electric Costs are Peak Dominated

..and, thus, the entry of

Smart Metershow does this

concept work?

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Customer demand drives the cost of operation of

your power supplier and you/we will pay!

www.ecw.org

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time of day

KW Baseload Plants

Intermediate Plants

Peaking Plants &

Power Purchases

As customer demand increases, additional power plants mustcome on-line to

maintain a reliable electrical system

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Your costs for I&I are a direct parallel to Energycut

the peaks and you affect sizing/costs..immediately.

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Energy Efficiency (blue) can slash

Power plant demandand your bill!

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Enter conceptSmart Meters

A Smart Meter is an electrical meter thatrecords consumption of electric energy in

intervals of hour or less and communicates

that information at least daily back to theutility for monitoring and billing purposes.

Smart Meters enable two-way communication

between the meter and the central system.

Smart Meters enable power providers to

charge for their costspeak demand charges

D d Ch b ht t h !

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Demand Charge brought to home!

The datum point on the upper right

cost this water/wastewater utility$11,000!

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Demand Charges will be large $

Typical monthly Electric bill is

usually:

1. Energy (kWh) $ = 50 70 %

2. Demand charges $ = 30 50 %

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Demand Charges Are coming!

Typical monthly bill percentages:

Energy (kWh) = 50% 70% Demand charges (kW) = 30% 50%

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Demand Charge To-Dos

Obtain and review 30-minute demands Review variability of flows/pumping

Identify motors normally in operation

Assess your operations schedule (pump leadand lag schedules, for instance)

Assess modifying operations schedule

Sub-meter major operations

Turn off unnecessary loads

Strategize to reduce demand

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What gets measured gets done

Dale Doerr, Manager,

Sheboygan WWTP, Wisconsin

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You cant manage what you dont measure

This is especially true of energy the only thingyou buy that you dont know the cost of until after

youve used it, and have no idea what you used it

for.

Research has shown that real-time monitoring of

energy use can help you reduce your bills by 5-

20%. Thats a pretty wide range totally

dependent on the quality of the information youreceive, and the opportunities you are provided to

do something about your usage.

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Action Plan

To initiate energy efficiency at your utility

Identify an internal energy champion

Receive commitment from management

Write an Energy Efficiency Consultant RFP (seeattached excerpt from Center for Energy Efficiency)

Establish and energy baseline (Level II Energy Audit)

Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities

Implement energy efficiency modifications

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Retain an Energy Engineering Cons.

With Water/WW Knowledge

Specific to Energy Efficiency RFP: Experience Description of recent projects of a similar scope and

scale including date, cost and size of project, energyefficiency measures evaluated; and client contact

information Experience with alternate funding opportunities such

as government incentives and grants, utility rebateprograms, and other options

Sample energy efficiency study which demonstrates lifecycle cost analysis (specify methods used) skills andmethods and familiarity with water and wastewatertreatment processes

From: Consortium for Energy Efficiencywww.cee1.org

Energy Efficiency RFP Guidance booklet Published 2011

http://www.cee1.org/http://www.cee1.org/

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Action Plan

To initiate energy efficiency at your utility

Identify an internal energy champion

Receive commitment from management

Write an Energy Efficiency Consultant RFP (seeattached excerpt from Center for Energy Efficiency)

Establish and energy baseline (Level II Energy Audit)

Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities

Implement energy efficiency modifications

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Measure Watts at All Major Motors

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Measure Watts

The basic retrofit kit

for motor controlcenters

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Measure Watts = $$

Web-based energymonitoring.

Real-time, second bysecond data.

Up to 480v, 3-phase.

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Example real time Energy/Watts

Individual registers. (circuits)

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Facility-wide Management

LAN

LAN

SCADA

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www.ecw.org

Watt metering and submetering

everywhere!

HVAC

Lighting

Aeration Blower

WattNode, Continental Control Systems, www.ccontrolsys.com

Smart Meter

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Action Plan

To initiate energy efficiency at your utility

Identify an internal energy champion

Receive commitment from management

Write an Energy Efficiency Consultant RFP (seeattached excerpt from Center for Energy Efficiency)

Establish and energy baseline (Level II Energy Audit)

Establish an energy benchmark (Energy Star) Identify energy efficiency opportunities

Implement energy efficiency modifications

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Implementing Energy Efficiency

modifications.. Means justifying costsfor energy efficiency improvements

or, getting the money!

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$ l & l f f

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New $ tools Compare & simplify for

Community Boards/Councils

1. Projectselect freeware (CH2MHILL)http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/

2. Green Energy Engineerings Spread sheethttp://www.geeintl.com/financial_studies.aspx

3. EPA Energy Star Cash Flow OpportunityCalculator (CFO)http://www.energystar.gov/index.cfm?c=assess

_value.financial_tools

http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://www.geeintl.com/financial_studies.aspxhttp://www.energystar.gov/index.cfm?c=assess_value.financial_toolshttp://www.energystar.gov/index.cfm?c=assess_value.financial_toolshttp://www.energystar.gov/index.cfm?c=assess_value.financial_toolshttp://www.energystar.gov/index.cfm?c=assess_value.financial_toolshttp://www.energystar.gov/index.cfm?c=assess_value.financial_toolshttp://www.geeintl.com/financial_studies.aspxhttp://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/http://ch2mhillblogs.com/water/2011/01/06/five-degrees-of-financial-analysis/

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ProjectselectEnhanced Decision SupportTools Help Maximize Value

Nate Cullen, Clean Water Services

Lynne Chicoine, CH2M HILL

WBG091611023337PDX

Non Financial Input

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Non-Financial Input

D t il d Fi d T bl P id I i ht

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Detailed Figures and Tables Provide Insights

into Timing of Expenditures and Revenue

G E E i i C

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Green Energy Engineering Company

Eric Coffin, P.E. St Petersburg, FL

AssumptionsLife of project 20Interest Rate 3.00%Discount Rate 4.00%Cost of Electricity $0.10Escalation of Electricity 6.00%Escalation of Maintenance 3.00%Escalation of Operations 2.00%

Existing OperationCapital Cost $0Maintenance Cost per year $4,000Operational Cost per year $6,000Energy Usage kWh/hr 100Annual Operating hours 8,760

Energy Cost $87,600

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Option "A" cheap capital costCapital Cost $75,000

Maintenance Cost per year $3,000

Operational Cost per year $5,000

Energy Usage kWh/hr 75

Annual Operating hours 8,760

Energy Cost $65,700

Option "B" Optimized life cycle cost

Capital Cost $100,000

Maintenance Cost per year $2,000Operational Cost per year $1,000

Energy Usage kWh/hr 50

Annual Operating hours 8,760

Energy Cost $43,800

Equipment Comparison

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Present Value Comparison

-$300,000

-$250,000

-$200,000

-$150,000

-$100,000

-$50,000

$02012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

AnnualDollars

Years

Cash Flow of Existing, "A", and "B"

Existing Operation

Option "A" cheap capital cost

Option "B" Optimized life cycle cost

Copyright August 2012

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Net Present Value

-$2,500,000

-$2,000,000

-$1,500,000

-$1,000,000

-$500,000

$0Existing Option A Option B

20yearsofDollars

Options

Copyright August 2012

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EPA Cash Flow Opportunity Calculator

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Summarizing!

Summary

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Summary

Become Proactive

Get Energy bills and know your Costs Get Management/Council/Mayor on-board Define baseline benchmark your energy usage Meter/Measure/monitor 24/7 and feedback Purchase energy efficient equipment based

upon simple Present Value presentations

Be compensated for cost reductions. Win!

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Thank you!

Don Voigt, P.E., CEM

don@equipintegration.com

414-940-9281

A Florida licensed/founded Consulting firm specializing inwater and wastewater energy management

mailto:don@equipintegration.commailto:don@equipintegration.com

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Michigan Rebate for Capitol Projects

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Michigan Rebate for Capitol Projects