Energy Conservation & Performance Contracting

Energy Conservation & Performance ContractingDos Palos – Oro Loma Joint Unified School District

November 19, 2009

Justin Surratt

Energy Solutions – Buildings Business

[email protected]

916.425.9586

mailto:[email protected]

Schneider Electric 2- Buildings Business – Justin Surratt – November 19, 2009

Agenda

●Schneider Electric: Who we are…

●Performance Contracting

●Preliminary Energy Audit Results

●Suggested Energy Conservation Measures

●Investment Grade Audit and Risk Evaluation

●Questions/Comments


Schneider Electric: Who we are…

●Key Markets for Our Company● Our Buildings Business Division Works Primarily in the K-12 Market

●Energy Solutions Provider● We provide Facility and Energy Conservation solutions that maximize

building performance but most importantly, maximizing the school district’s return on investment

●Performance Contracting Specialization ● Utilize Energy Savings Dollars, as a result of the project, to offset the cost of

the facility improvements


History with District & Current Central Valley Customers

●History with Dos Palos – Oro Loma Joint Unified School District● History with CASBO - Central Section

●Delhi Unified School District● Completed Investment Grade Audit Development

●Construction Vote: December 2009

●Clovis Unified School District● Exploration and Discovery Phase


$ Annual Bill

Utilities

Performance Contracting


Utilities

Imp

rovem

ents

$ Annual Bill

“CM at Risk” plus…+ Design+ Energy Focus+ Energy Savings Guarantee



Utilities

Up-Front Cost

Imp

rovem

ents

$ Annual Bill

Third party funding-Secured against Savings -Paid on Schedule of Values



$ New Bill

$Diff

.= $Paym

ent

Utilities

Up-Front Cost

Imp

rovem

ents

$Historical

PC

Revie

w $Savings $Savings >= >=

PaymentPayment

Guara

nte

e Guarantee:Guarantee:



Performance Contracting: What?

LightingLighting

Water Cons.Water Cons.

Energy ManagementEnergy Management

Major MechanicalMajor Mechanical

Building EnvelopeBuilding Envelope

Power SystemsPower Systems

Solar (PV)Solar (PV)


Performance Contracting: What?



●The goal of PC is to implement a project that will be offset by the energy savings as a result of the project

Example:

$100,0000 Annual Energy Savings x 15 Years =

$1,500,000 Break-Even Facility Project Opportunity


Performance Contracting: How?

Stage 1:Determine if PC is right for you

Stage 2:Develop Project: Investment Grade Audit

Stage 3:Implementation, measurement and verification


Step 1: Determine if PC is right for you

●Feasibility Assessment● Completed: November 2008

● Reported to Tim Zearley

●Workshop● Completed: March 2009

● Reported to “Energy Committee”

●Board Member Joe Castillo

●Board Member Dewayne Weagel

●Dr. Brian Walker

●Tim Zearley

●Select DPOLJUSD Maintenance Staff


Step 1: Determine if PC is right for you

●Preliminary Energy Audit● Completed: July 2009

● Reported to “Energy Committee”

●Next Steps: ● Investment Grade Audit – TBD

● Construction & Implementation

● Measurement and Verification of Performance


Preliminary Energy Audit Results

●$92,865 Savings Opportunities (15% Savings)

Building Savings Impact

Dos Palos HS 59%

Bryant MS 15%

Dos Palos

ES

12%

Marks ES

10%

Oro Loma 4% Baseline Annual Utility Cost: $606,197

Potential Annual Energy Savings: $92,865

Savings Percentage: 15.3%


Total Energy Cost/Savings by SiteAnnual Energy Cost

Dos Palos-Oro Loma USD

$267,698

$98,113

$75,272$67,230

$97,883

$60,820$55,233

$84,701$86,078

$226,499

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Dos Palos High

School

Bryant Middle

School

Dos Palos

Elementary School

Oro Loma Marks Elementary

School

Baseline Proposed


Total Energy Cost/Savings per sq. ft.Annual Energy Cost ($/sf)

Dos Palos-Oro Loma USD

$1.88$1.81

$1.99

$1.59 $1.58

$1.50

$1.59 $1.61

$1.94

$1.73

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

Dos Palos High

School

Bryant Middle School Dos Palos

Elementary School

Oro Loma Marks Elementary

School

Baseline Proposed


Suggested Energy Conservation Measures

●District-wide Lighting Modernization● Satisfies Facility Master Plan

● EPAct 2005 Compliance

●Comprehensive Energy Management System (EMS)● Future State Energy Mandate Compliance (e.g. AB32)

●Heating Ventilation and Air Conditioning (HVAC) Upgrades● Satisfies Facility Master Plan


Lighting Modernization

●Classrooms and Workspaces● T12 Fixtures T8

●Federal Mandates require phasing out of T12 Magnetic Lighting Ballasts by 2010 (EPAct 2005)

●The energy efficiency AND light quality will be improved as a result of these upgrades.

●Gym Lighting Upgrades● Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures

will allow for instant ON/OFF control while reducing electricity demand.

●Exterior Lighting Upgrades●Campus Security Enhancement


Lighting Modernization

●Opportunity● Retrofitting the T12 lamps to T8 lamps and electronic ballast will save

energy while maintaining proper light levels. Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures will allow for instant ON/OFF control while reducing electricity demand.

● Occupancy sensors can be installed in some areas where occupancy varies to reduce operation when spaces are unoccupied.

●Benefits● Installation of the new lighting systems and controls will reduce the electrical

demand and energy use. The light quality will be improved as a result of these upgrades.


Energy Management System

●Opportunity● A district-wide Energy Management System (EMS) upgrade will provide

tighter control of schedules and setpoints for HVAC equipment.

●Benefits● An EMS provides significant energy savings by running equipment only

when it is needed while providing comfort for the occupants in the facilities.

●Relevant Considerations● Expansion and modernization of existing Alerton EMS. Also note that no

controls exist at Dos Palos High School, which is an opportunity for excellent operational and energy savings.


HVAC Upgrades

●Opportunity● Replacing units that have reached the end of their economic useful life with

new, high efficiency units will decrease electricity and gas use and provide better temperature control.

●Benefits● Capital Cost Avoidance strategies

● Operational Savings can be realized as soon as possible

● Opportunity to choose brand/type

of equipment

● Planning for best operating

system structure


Performance Contracting: How?

Stage 1:Determine if PC is right for you

Stage 2:Develop Project: Investment Grade Audit

Stage 3:Implementation, measurement and verification


Next Step: Investment Grade Audit

Schneider Electric will provide Customer with the following:● A list of energy conservation measures planned for each facility;

● A description of how the energy conservation measures would interact with the existing equipment in the facilities;

● Financial analysis;

● Guaranteed energy services contract for the facilities;

● Utility analysis;

● Project pricing for a turnkey installation


Investment Grade Audit

Preliminary AuditPreliminary Auditdefines the target defines the target

savingssavings. .

Investment Grade Investment Grade Audit AgreementAudit Agreement

10¢ / square foot10¢ / square foot

Owner pays if Schneider Owner pays if Schneider Electric hits target, but Electric hits target, but Owner decides to back out.Owner decides to back out.

Otherwise, costs rolled Otherwise, costs rolled into project financing.into project financing.



●Proposed Cost:● $33,317

●If project is selected following IGA: ● No up-front cost; Cost is rolled into Construction Contract

●If no project is selected following IGA:● the district would be responsible for the IGA cost

Proposed School Board Vote on IGADecember 17, 2009


Cost of Doing Nothing…

●Lost Savings in Energy Consumption● $92,865/year x 15 years = $1,392,975

●Lost Facility Improvements (Capital Avoidance)● Break-Even Project Opportunity: $1,392,975

●Total Opportunity Cost of NOT leveraging energy savings for facility improvements….

● Lost Energy Savings + Lost Facility Improvements =

$2,785,950


Financial Risk Evaluation

●District Risk● Cost of Investment Grade Audit (note no up-front cost if project moves

forward to construction)

●$33,317

●Opportunity Cost = Guaranteed Opportunity Lost● Cost of Doing Nothing (Lost Energy Savings + Lost Improvements)

●$2,785,950


Financial Risk Evaluation

$33,317 Potential Loss (IGA Cost if NO Project is Selected)

vs.

$2,785,950 Guaranteed Opportunity Lost



Proposed School Board Vote on IGA

December 17, 2009

Questions/Comments?

Justin Surratt

[email protected]

916.425.9586

Tim ZearleyChief Business Officer

Dos Palos – Oro Loma Joint Unified School District

mailto:[email protected]

Energy Conservation & Performance Contracting

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