2014 ohio energy management conf aep ohio cei initiative slides final draft

AEP Ohio’s Continuous Energy

Improvement Initiative

Saving Energy Without Investing Capital Dollars Through No/Low

Cost Opportunities18th Annual Ohio Energy Management Conference

February 18, 2014

2© 2013 Triple Point Energy

• Michelle Cross : Overview and Background

– AEP Ohio Energy Efficiency Business Programs Coordinator

• Richard Miller: How it Works

– CEI Program Manager, Triple Point Energy

• Samuel Day : Putting into Practice

– Energy Coordinator, Columbus Castings

Today’s Presenters


Overview and Background

AEP Ohio is helping customers Save Energy and MoneySave Energy and Money

Through Energy efficiency incentives


Incentive Program Highlights

Actual Energy and Money SavingsActual Energy and Money Savings

* Numbers assume the average household energy consumption of 12,000 kwh per yr and a 10 year measure life

Enough to power 48,600 homes for 10 years*

2013 Annual Energy Savings Achieved- 587 Million kWh587 Million kWh

Paid $46 Million $46 Million in incentives

Since 2009 AEP Ohio customers have saved 2,280 Million kWh2,280 Million kWh

Enough to power 190,000 homes

for 10 years*

Enough to power 190,000 homes

for 10 years*


Overview and Background

Why Energy Efficiency?

Lowest cost alternative to new generationReduces wasteful use of electricity and frees up customer resourcesProvides sustainable green jobs in OhioSupports the achievement of SB 221 benchmark requirements


What is different about CEI?CEI is a Strategic Management Approach to Achieving Low/No-Cost Energy Savings at Industrial Sites


37 Industrial Participants

2013 Energy Savings Results


2013 Energy Savings Results

• Shut down 1 of 2 chemical wash blowers saving – 770,000 kWh and ~ $38,000 per year

• Shut down 1 of 2 dilution pumps savings – 513,000 kWh and ~ $26,000 per year

Identified Immediate Savings during on-site Energy Scans


Catalyst for Capital Projects

The CEI Program has influenced Energy Efficiency Capital Projects

CEI Participants have applied for an additional 11 Million kWh’s in Capital Projects


Building Better Relationships

Monthly Customer Meetings

Positive feedback from Customer Surveys – score of 4.4 out of 5

– Written Materials– Presentations– Workshop Usefulness


Customer Testimonials

“CEI has also given us metrics we have not had before. In past all we had is our bills and now we have a model to predict our usage.”

“ A great process for developing our Energy Management Program.”

“Looking forward to working with AEP on engaging management & staff to realize additional energy savings.”

“I appreciate the discussion from different companies. Very open, and we all realize we are on the same journey.”


Closing

AEP Ohio’s CEI Program is helping customers Save Energy and MoneySave Energy and Money

Thank you to our customers and partners

for supporting our Energy Efficiency

programs!


How it Works


Keys to No/Low Cost Savings

• Recognize the opportunity• Set the foundation for change• Track progress• Engage the organization• Utilize CEI program resources


What are No/Low Cost Activities?

• Typically referred to as “Behaviors”• Cost less than $5,000 (generally much less)• Process and equipment operation• Maintenance activities• Process and equipment setup and optimization• Process scheduling and throughput improvement• Productivity and quality improvement


• VOC Stripping Towers

• Used to outgas well water before bringing into the process

No/Low Cost Examples #1


No/Low Cost Example #2

• Electric Heated Curing Oven

• Ran 24x7

• Capable of higherthrough put


How Much Opportunity is There?

No/Low Cost Savings•5%•10%•20% +


Foundation for Change

• Recruit an Executive Sponsor• Deploy a charter for action• Identify an

Energy Championand provide a team


Track Progress – Establish Baseline

Create a baseline of past performance based on the drivers that determine energy performance.

Linear Regression Model


Track Progress - Through Comparison

• Actual minus predicted energy usage• Sum the differences over time


Engage the Organization

• Generate ideas– Internal resources – Combined with external resources

• Support and implement changes– Resolve fear and concerns– Ownership

• Integrate saving energy into existing organization initiatives


Utilize Program Resources

CEI provides the following– Structured network group– Tools and resources

• Identify and opportunities • measure savings

– Positive reinforcement• Incentives ($)• Recognition

– A call to action


Putting Into Practice

CONTINUOUS ENERGY IMPROVEMENTCOLUMBUS OHIO COHORT 2013

Energy Team

Goal: Develop cross-sectional energy team with members from varying facility backgrounds

Energy Champion – Samuel Day: Energy Coordination and Engineering

Executive Sponsor – Randy Parish: VP of OperationsTeam Members

Curtis Battrell: Manufacturing Engineering/Maintenance

John Ice: Operations Supervisor Troy Justice: Melting Operations Supervisor Don Strong: Facilities Engineering

Energy Focus

Energy Policy Committing to a more focused approach toward

managing energy resources and have an overall goal to reduce energy usage by 10% annually.

Energy Awareness Activities Company Newsletters Employee Engagement Events Employee Interactions

Energy Audits Energy usage audits during shutdown periods Leak detection audits Running operation audits

Energy Tracking/Monitoring System

“If you cannot measure it, you cannot improve it.”

-Lord KelvinDevelop baseline model

2 years of baseline data Regression used to predict energy usage from baseline data Difference between actual and predicted used to determine

savings

Create graphical representation of the effect of savings projects Cumulative sum of savings implemented Savings percentages

Savings Opportunities

Utilized CEI program technical resources to generate no/low cost opportunities Over 5 million kWh/year savings identified

Leak detection and repair – Continuous process of leak detection and repair Compressed Air, Natural Gas, Compressed Gasses Team to detect and repair leaks

Standardized shutdown procedures Department shutdown checklists Department shutdown audits Optimize dust collection system runtime

Savings Opportunities (continued)

Systems operation standardization Reduce over heating Maximize quantity of parts heated per batch

Efficiency upgrades Improved insulation Gas burner tuning Calibrate and adjust temperature set-points

Utilities misuse reduction Employee awareness of poor or improper tooling usage Reduce misuse or overuse of tooling that requires

compressed air, compressed gases, or natural gas

Successes and Challenges

Successes Employees willingness to adapt to policy/process

changes Management support Production scheduling to minimize partial shift

operations Minimized runtime promotes equipment longevity

Challenges Changing the mid-set of veteran employees Continuation of leak detection/repairs Changes in production volumes and scheduling Upkeep of implemented programs Resource acquisition (man power and/or funding)

CUSUM - No/Low Cost Savings Tracking

Future Projects – No/Low Cost

Pressure set-point reduction – 600,000 kWh/year savings estimate

Continuation of leak tag/repair programContinuation of department shutdown and

scheduling efficiencies

Also Pursuing Capital Projects

Replace 1000 watt sodium lighting with high efficiency LED lighting with motion detection – 7,000,000 kWh/year savings estimate

Replace old compressors with new high efficiency compressors – 4,000,000 kWh/year savings estimate

Variable staging compressor automation to efficiently trim air production – 300,000 kWh/year savings estimate

Thank You

Columbus Castings would like to thank AEP Ohio for the opportunity to participate in the Continuous Energy Improvement Program. This program has resulted in significant savings through the first year of application and is projected to provide even greater savings in the years to come.

Advice to future participants: Utilize the resources you have at your disposal as soon as you can. It is never to early to start saving money on utilities costs.


Wrap Up

Thanks for Attending!

2014 ohio energy management conf aep ohio cei initiative slides final draft

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