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LDD WorkshopEnergy 1012008

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Special thanks to our workshop sponsors

Energy 101

Workshop Objective

• Introduce the global perspective on energy economics.

• Identify what this means for your organization.• Begin to understand your energy bills.• Understand the impact of your energy use.• Consider a plan to manage your energy use.

Energy 101

A Global Perspective

• Global energy demand• Hubbert theory of fossil fuel supply• How will this affect future costs?

Past history is the best predictor of future performance.

Energy 101

Energy 101

Energy 101

Energy 101

Energy 101

What Does This Mean?

• Energy demand is growing• Increased reliance on fossil fuels• New discoveries fuel production• Production must meet growing demand

Energy 101

Individual Oil Well Production

One oil well acts with a long, fairly stable plateau -Source: diagrammatic

Energy 101

Hubbert Curve: Four Oil Wells

Four wells begin to create a smooth curve -Source: diagrammatic

Energy 101

Hubbert Curve: Eight Oil Wells

Eight wells smoothes the curve more-Source: diagrammatic

Energy 101

Time

Idealized Hubbert Curve

Am

ount

The Hubbert Model

Hundreds or thousands of oil wells would ideally look like a bell curve

Energy 101

The Hubbert Curve

Fossil fuel discoveries• Exponential growth• Peak numbers reached• Discoveries begin declining

Fossil fuel production• Wells are drilled – technology improves• Production increases• Peak output is reached• Production begins declining

Energy 101

Discovery Production

Time

Idealized Discovery and Production Curves

Am

ount

The Hubbert Model

Discovery fuels the production

Energy 101

US Oil Production

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1946 1956 1966 1976 1986 1996 2006

Thou

sand

Bar

rels

Per D

ay

Source: Energy Information Administration – www.eia.doe.gov

Oil Crisis

1970s oil production began to fall…what happened?

Energy 101

Pennsylvania Coal ProductionA need for alternate sources!

Energy 101

US Natural Gas Production

Source: Energy Information Administration – www.eia.doe.gov

0

50

100

150

200

250

300

350

400

450

500

1946 1956 1966 1976 1986 1996 2006

Thou

sand

CF

per D

ay

Similar trend in natural gas

Energy 101

Don’t see electric – It is a by-product of other fuels!

Energy: Important to Our Economy

Energy 101

Fuel Price Escalations are Real

Price Summary

2004 2005 2006 2007 17% 33% 50%Coal Anthracite 58.96 70.37 78.41 92.89 19.35% 11.43% 18.47% 16.29%Coal Bituminous 47.09 47.1 46.23 85.95 0.02% -1.85% 85.92% 42.35%Dieselc ($/gal) 1.81 2.41 2.81 2.78 33 16.5 -1 10.56%Electric 5.87 5.81 5.97 6.02 -1.02% 2.75% 0.84% 1.15%Gasolineb ($/gal)  1.85 2.27 2.65 2.66 22.7 17 0.3 9.62%Heating Oild ($/gal) 1.54 2.04 2.42 2.46 32.5 18.5 1.8 12.53%Natural Gasd ($/mcf) 10.75 12.82 13.88 13.39 19.3 8.3 -3.5 4.27%Propane 60.11 73.51 92.12 101.87 22.29% 25.32% 10.58% 17.44%WTI Crudea ($/barrel) 41.44 56.49 69.75 70.38 36.3 23.5 0.9 14.38%

c On-highway retail.                d Residential average. 

Year

a West Texas Intermediate.   b Average regular pump price.

AnnualIncrease

19.2%27.5%36.5%

0.9%22.3%37.0%14.9%23.2%23.3%

Energy 101

Real Budget ImplicationsCurrent Condition

Annual Use Annual Cost 2008 2009 2010 2011 2012 2013 2014Increase Escalation Cost

Facility FuelsElectric 0.0% 3.2% 215,000$ 221,880$ 228,980$ 236,308$ 243,869$ 251,673$ 259,727$ Natural Gas 0.0% 18.7% 140,000$ 166,180$ 197,256$ 234,142$ 277,927$ 329,899$ 391,591$ Coal 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Propane 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Fuel Oil 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Water Sewer 0.0% 1.1% 16,000$ 16,176$ 16,354$ 16,534$ 16,716$ 16,900$ 17,085$ Garbage 0.0% 8.2% 8,500$ 9,197$ 9,951$ 10,767$ 11,650$ 12,605$ 13,639$

Facility MaintenanceService Contracts 0.0% 7.5% 85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$ Material & Parts 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Vehicle FuelsDeisel 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Gasoline 0.0% 20.6% 3,800$ 4,583$ 5,527$ 6,665$ 8,038$ 9,694$ 11,691$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Vehicle MaintenanceService Contracts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$ Material & Parts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

383,300$ 418,016$ 458,068$ 504,416$ 558,201$ 620,772$ 693,733$

85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$

Facility & Vehicle Budget 468,400$ 509,498$ 556,411$ 610,136$ 671,849$ 742,944$ 825,068$

Total Budget 5,634,962$ 5,894,170$ 6,165,302$ 6,448,906$ 6,745,556$ 7,055,851$ 7,380,420$ Millage Value 2,997,310$ 3,057,256$ 3,118,401$ 3,180,769$ 3,244,385$ 3,309,272$ 3,375,458$ Facility & Vehicles

% of Budget 8.3% 8.6% 9.0% 9.5% 10.0% 10.5% 11.2%Millage Required 0.16 0.17 0.18 0.19 0.21 0.22 0.24

Energy Budget

Maintenance Budget

4.6%2.0%

Typical Escalation

Energy 101

Facility & Vehicle Budgeting

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2006 2008 2010 2012 2014 2016 2018 2020

Fiscal Year

Ann

ual E

xpen

ditu

re

Reactive ConditionProactive Reduced Expense

Return to Energy Costs of Five Years AgoHow do you make it happen?

Energy 101

What can be done to prepare for the reality of higher fuel costs?

• Reduce consumption? How much?• Raise budgeted allocation? Increase taxes?• Develop a strategic plan!!!!

Implications??

Energy 101

Any Guesses?• Coal• Oil• Natural Gas• Wind generated electricity

Can these be leveraged in your plan?

What Energy Sources Come from Pennsylvania?

Energy 101

• Understand what is HYPE vs. REALITY.• You need to be able to communicate your situation.• Work towards developing a Strategic Energy Plan.• Need to gain an understanding of what we are going

to manage!!!!

Starting a Process to Take Control

Energy 101

How Well Can You Define Your Situation?

Better Question: How well can you communicate your situation?

Energy 101

Beginning in 2010, the five electric companies that serve 85 percent of the state’s electric customers have all but guaranteed they will increase customers’ bills by as much as 50 percent …The impending 2010 expiration of rate caps, projected to cause electric bills to jump by at least 30 percent, is getting attention in Harrisburg and has local political hopefuls talking. This week, state Rep. Camille “Bud” George, D-Clearfield, and state Sen. Lisa M. Boscola, D-Bethlehem, met with Gov. Ed Rendell to persuade him to consider extending the rate caps. Boscola and George have bills targeted toward that end.Is electricity rate caps extension possible? By MIKE REUTHER mreuther@sungazette.com February 7, 2008

Rate Caps Going Away

Energy 101

Energy – What do you pay for?

ELECTRICITY• Generation (*)• Transmission (*)• Distribution• Consumption• Maximum Rate of Use• Inefficient Use• Stranded Costs (*)

* Partial Regulation until 2010.

NATURAL GAS• Commodity Purchase• Transportation• Distribution• Consumption• Seasonal Use

Energy 101

Tariff • The document that the PUC must approve that establishes the

method and pricing of a regulated commodity.Rate

• A specific pricing class within the tariff.Demand

• The billed rate at which electricity has been used over the billing period.

On-peak • A term used to represent the energy used during normal

business hours. The time period varies by utility.Off-peak

• A term used to represent the energy used during non-business hours, typically evenings, holidays and weekends.

Block • A grouping of energy to be billed at a specific rate, i.e. a block of

kWh.200 hours use of demand

• Language found in many rates that refer to a block of kWh that is equivalent to 200 kWh per kW demand, or 200 hr x billed kW

Tariff Terminology

Energy 101

Electric Account – Demand (KW)

Fifteen Minute I nterval Data

0

100

200

300

400

500

600

700

800

Time of Day

Dem

and

KW (

KWh

per

hr)

Monthly Peak Demand695 KW

Energy 101

Electrical Distribution System

GenerationTransmission

Distribution

Energy 101

Examples of an Electric Rate Tariff

Distrib CTC ITCCapy & Energy Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

PPLGS-3

Monthly Fee: $0.00

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

PPLGS-3

Monthly Fee: $0.00

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

Rate information from the Tariff

Summarized for Analysis

Energy 101

Exercise #1 – Rate Interpretation

UGI GS-4 Rate

Energy 101

Exercise #1 – Rate Interpretation

Fill in the table with the correct values:

Dmd Fee (0-20 KW)

Dmd Fee (>20 KW)

Blk 1

Blk 2

Balance

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITCCapy & Energy Xmission

Energy 101

Exercise #1 – Rate Interpretation

Fill in the table with the correct values:

Dmd Fee (0-20 KW)

Dmd Fee (>20 KW)

Blk 1

Blk 2

Balance

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITCCapy & Energy Xmission

$3.59

$1.30

$0.03033

$0.02303

$0.02031

$5.68

$2.23

$0.08287

$0.07272

$0.06892

$0.19

$0.19

$0.00162

$0.00162

$0.00162

200 KWh / KW

300 KWh / KW

Energy 101

Exercise #1 – Rate Interpretation

Fill in the table with the correct values:

Dmd Fee (0-20 KW)

Dmd Fee (>20 KW)

Blk 1

Blk 2

Balance

UGI GS 4

Monthly Fee: $9.94

Total

200 KWh / KW

300 KWh / KW

Energy 101

Exercise #1 – Rate Interpretation

Fill in the table with the correct values:

Dmd Fee (0-20 KW)

Dmd Fee (>20 KW)

Blk 1

Blk 2

Balance

UGI GS 4

Monthly Fee: $9.94

Total$9.46$3.72

$0.11482$0.09737$0.09085

200 KWh / KW

300 KWh / KW

Energy 101

Exercise #2 – Calculate an Electric Bill

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

PPLGS-3

Monthly Fee: $0.00

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

April Usage informationMeter Constant = 300

Meter Reads: Present = 3462Previous = 3112

Peak Demand = 150 kW

Summary of Charges

Energy 101

Exercise #2 – Calculate an Electric Bill

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

PPLGS-3

Monthly Fee: $0.00

UGI GS 4

Monthly Fee: $9.94

Distrib CTC ITC Xmission Total

Dmd Fee $4.42500 $0.00000 $0.00000 $4.46100 $0.00000 $8.88600

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.72400Blk 1 (200 KWh / KW) $0.00091 $0.00209 $0.01183 $0.04844 $0.00610 $0.06937Blk 2 (200 KWh / KW) $0.00072 $0.00165 $0.00925 $0.03684 $0.00610 $0.05456Balance $0.00060 $0.00160 $0.00888 $0.03519 $0.00610 $0.05237

Dmd Fee (0-20 KW) $3.59000 $0.00000 $0.00000 $7.01000 $0.19000 $10.79000

Dmd Fee (>20 KW) $1.30000 $0.00000 $0.00000 $2.75000 $0.19000 $4.24000

Marginal Dmd Fee (Includes effect of modifying the Block KWh) $12.29600

Balance $0.02031 $0.00000 $0.00000 $0.05462 $0.00162 $0.07655

April Usage informationMeter Constant = 300

Meter Reads: Present = 3462Previous = 3112

Peak Demand = 150 KW

Summary of Charges

350 x 300 = 105,000 kWh

30,000 KWh30,000 KWh

150 KW x 200 kWh/KW = 30,000 kWh

45,000 KWh

150 KW $1,332.90

$2,081.10$1,636.80$2,356.65

Energy 101

Use Profile - Monthly

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

20,00025,00030,00035,00040,00045,000

Annual LoadPPL 375,000 MWhGPU 260,000 MWhAPS 115,000 MWh

Energy 101

Use Profile - Hourly

Energy 101

How much do you use at any given time?• The rate at which electricity is used is measured as

“kilowatts” or kW.• The utility needs to provide enough wire and transformer

size to satisfy your largest “demand” of electricity. The utility meter can keep track of your largest 15-minute consumption every month.

Demand Costs: Rate of Use

Energy 101

Not all electrons are created equal!• Some electrons require more “room” in the wire than

others. Electric loads that have a high amount of motors and fans require more wire capacity! – some utilities charge for this inefficiency.

Reactive Costs:Power Factor < 1.0 (pf% < 100%)KVAR > 0KVARh > 0KVA (instead of KW)

Reactive Costs: Result of Inefficient Use

Energy 101

Need to pay for upgrades that are still being depreciated and divestiture of generating plants!

Stranded CostsHow will utilities collect on previous investments?

Energy 101

Natural Gas – Distribution System

Generation

Transmission

Distribution

Energy 101

Transportation • This refers to the pipeline movement of natural gas from a well-

head to your local distribution company (LDC).Distribution

• Refers to the underground pipes that your local LDC maintains to deliver natural gas to your buildings.

Well-head• The originating location where processed natural gas is available

to the pipeline.City Gate

• The delivery point at which the LDC receives natural gas from the pipeline and transitions it to their own distribution pipes.

Burner-Tip • The delivery point at which the end user receives natural gas

from the LDC.

Natural Gas Tariff Terminology

Energy 101

CF, CCF, or MCF• A common measure of volume of natural gas at a given pressure

provided by the LDC at your local meter. Measured as cubic feet (CF), 100 cubic feet (CCF), or 1000 cubic feet (MCF).

DT, or dekatherm • The energy content of natural gas. This is the typical

measurement used in the transportation pipeline.Shrinkage and Loss

• Refers to the natural gas lost to the atmosphere.

Natural Gas Tariff Terminology

Energy 101

Sample Natural Gas Bill

Energy 101

• Outdoor Lighting• Street Lighting and Traffic Control• Vehicles• Water & Waste water treatment• Specific process needs (steam, chilled water)• Water consumption• Others???

Other Energy Consuming Areas

Energy 101

Taking Control of Energy Bills

.

• Learn to understand how YOUR energy is billed.• Utility Bill Analysis!

Local LDD Local DEP 3rd Party Utility representative

• Look for opportunities to save energy and $$.• Learn to communicate what you uncover.• Determine why it is important to YOUR

Administration.

Energy 101

Knowledgeable Understanding

Energy 101

EUI by Activity

North-east

Mid-west South West

Principal Building ActivityEducation ........................................ 101.6 86.3 75.5 77.6Food Sales ...................................... 248.1 219.1 187.7 QFood Service ................................... 272.8 218.8 283.4 243.8Health Care ..................................... 212.2 205.6 169.8 179.6 Inpatient ........................................ 275.3 272.2 226.7 246.8 Outpatient ..................................... 84.7 124.4 60.9 115.3Lodging ........................................... 92.3 109.0 96.9 103.7Retail (Other Than Mall)................... 65.0 102.7 68.7 63.2Office .............................................. 101.2 108.8 87.0 72.1Public Assembly .............................. 89.2 101.7 93.2 91.2Public Order and Safety .................. 132.5 105.9 113.1 QReligious Worship ........................... 52.1 52.8 38.3 27.6Service ............................................ 79.8 85.0 66.3 80.0Warehouse and Storage ................. 41.6 74.7 26.7 39.0

Energy Intensity for Sum of Major Fuels

(thousand Btu/square foot)

Energy 101

Exercise #3 – Simple AnalysisUse the “Annual Energy Management Report – Buildings”.For the Terminal Building (14,000 sq ft), do the following: 1. Calculate the operating cost per sq ft ($ / sq ft), and 2. Analyze the EUI.

Sum of kwh onAccount Name Ttl kwh mmBtu cost Misc Fee ccf mmBtu costCounty Garage 843 3 187.71$ 1.09$ - - -$

Entrance Sign 6,639 23 651.79$ 4.94$ - - -$

Fire Building 40,667 139 3,642.71$ 27.89$ 278 29 635.86$

Hanger #1 28 0 94.36$ 0.72$ - - -$

Hanger #2 5,023 17 513.13$ 4.31$ - - -$

Hanger #3 46 0 95.91$ 0.61$ - - -$

Hanger #4 32 0 94.76$ 0.63$ - - -$

Hanger #5 523 2 136.79$ 0.80$ - - -$

Maintenance Building 48,685 166 4,227.02$ 32.41$ 4,023 414 5,466.20$

Obstruction Light 670 2 146.59$ 0.79$ - - -$

Street Light 1,958 7 264.76$ 11.28$ - - -$

Terminal 277,680 948 22,322.09$ 156.52$ 16,839 1,731 21,571.18$

Vault Building 96,139 328 8,762.10$ 64.92$ - - -$ White Building 1,770 6 304.23$ 2.45$ - - -$

Grand Total 480,703 1,641 41,443.95$ 309.36$ 21,140 2,173 27,673.24$

Electric Natural Gas

Energy 101

Knowledgeable Understanding Vehicles and Traffic Lighting

Energy 101

KPI – Key Performance IndicatorsCurrent Condition

Annual Use Annual Cost 2008 2009 2010 2011 2012 2013 2014Increase Escalation Cost

Facility FuelsElectric 0.0% 3.2% 215,000$ 221,880$ 228,980$ 236,308$ 243,869$ 251,673$ 259,727$ Natural Gas 0.0% 18.7% 140,000$ 166,180$ 197,256$ 234,142$ 277,927$ 329,899$ 391,591$ Coal 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Propane 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Fuel Oil 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Water Sewer 0.0% 1.1% 16,000$ 16,176$ 16,354$ 16,534$ 16,716$ 16,900$ 17,085$ Garbage 0.0% 8.2% 8,500$ 9,197$ 9,951$ 10,767$ 11,650$ 12,605$ 13,639$

Facility MaintenanceService Contracts 0.0% 7.5% 85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$ Material & Parts 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Vehicle FuelsDeisel 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$ Gasoline 0.0% 20.6% 3,800$ 4,583$ 5,527$ 6,665$ 8,038$ 9,694$ 11,691$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Vehicle MaintenanceService Contracts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$ Material & Parts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$ Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

383,300$ 418,016$ 458,068$ 504,416$ 558,201$ 620,772$ 693,733$

85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$

Facility & Vehicle Budget 468,400$ 509,498$ 556,411$ 610,136$ 671,849$ 742,944$ 825,068$

Total Budget 5,634,962$ 5,894,170$ 6,165,302$ 6,448,906$ 6,745,556$ 7,055,851$ 7,380,420$ Millage Value 2,997,310$ 3,057,256$ 3,118,401$ 3,180,769$ 3,244,385$ 3,309,272$ 3,375,458$ Facility & Vehicles

% of Budget 8.3% 8.6% 9.0% 9.5% 10.0% 10.5% 11.2%Millage Required 0.16 0.17 0.18 0.19 0.21 0.22 0.24

Energy Budget

Maintenance Budget

4.6%2.0%

Typical Escalation

Energy 101

KPI – Key Performance Indicators

Performance Measures – monthly, quarterly, annually• Financial Measures

$ energy / $ Annual Budget $ energy / $ Tax Contribution $ energy / $ sales or $ energy / $ Earnings Btu / $ sales or Btu / $ Earnings

• Energy Utilization Index (Buildings) Btu / sq ft

• Energy Cost Index (Buildings) $ energy / sq ft or $ energy / Btu consumed

• Productivity Measures Btu / unit of production or $ energy / unit of production Btu / direct labor hour or $ energy / direct labor hour Btu / Degree-day or $ energy / Degree-day Btu / unit-degree day or Btu / unit-degree day-sq ft $ energy / Btu consumed

Energy 101

Processes Programs ProjectsAccessible 0% Load Profiles 0% Sub-Metering 0%

Monthly Bills 0% Interval Data 0%

Benchmark & KPI 0%Reporting 0%

Error Resolution 0% Supplier Choice 0% Demand - Supply Optimize 0%

Rate Optimize 0% Reliability & Quality 0% Risk Management 0%

Account Management 0%

Walk Through 0% Diagnostic Audit 0% DE Audit 0%

Benchmark & Rank Facilities 0% Operating Procedures 0% Commissioning 0%

On-going Monitoring 0%

Corrective Maint 0% Preventive Maint 0% System Upgrades 0%

Systems Control 0% Lighting Upgrades 0% Standards 0%

Alternate Fuels 0% New Technology 0%System M&V 0%

Awareness & Participation 0% Energy Planning 0% Project Approval 0%

Defined Energy Manager Role 0% Performance & Training 0% Results Auditing 0%

Resource Mgmt 0% Financial Impact & Incentives 0%Budget Preperation 0% Accountability 0%

Organizational Integration

Data

Supply

Use

Equipment

Processes Programs ProjectsAccessible 100% Load Profiles 100% Sub-Metering 100%

Monthly Bills 100% Interval Data 100%

Benchmark & KPI 100%Reporting 100%

Error Resolution 100% Supplier Choice 100% Demand - Supply Optimize 100%

Rate Optimize 100% Reliability & Quality 100% Risk Management 100%

Account Management 100%

Walk Through 100% Diagnostic Audit 100% DE Audit 100%

Benchmark & Rank Facilities 100% Operating Procedures 100% Commissioning 100%

On-going Monitoring 100%

Corrective Maint 100% Preventive Maint 100% System Upgrades 100%

Systems Control 100% Lighting Upgrades 100% Standards 100%

Alternate Fuels 100% New Technology 100%System M&V 100%

Awareness & Participation 100% Energy Planning 100% Project Approval 100%

Defined Energy Manager Role 100% Performance & Training 100% Results Auditing 100%

Resource Mgmt 100% Financial Impact & Incentives 100%Budget Preperation 100% Accountability 100%

Organizational Integration

Data

Supply

Use

Equipment

Scoring Your Energy Strategy

Energy 101

Motivating Factors - Choices

Infrastructure Financial

Performance Partnership

Energy 101

Choices: Infrastructure

Low Hanging FruitEnergy EfficiencyPartial UpgradesCode ComplianceComprehensive RenewalLEED EBPhasing

Energy 101

Choices: Financial

Net SavingsQuick PaybacksFinancingEquity ContributionsMultiple Funding StreamsROIPriorities

Energy 101

Dependence / IndependenceTrainingRisk AllocationMeasurement & VerificationReporting

ChoicesChoices: Partnership

Energy 101

Choices: Performance

Utility ExpensesO&M ExpensesEnergy Usage & DemandOccupant ComfortComplaint ReductionCarbon Emissions

Choices

Energy 101

Emission Considerations

Issue >>GreenhouseGas Global Warming

Ozone Sulphur DioxidesAcid Rain Mercury

ParticulatesBreathing Asthma

Energy Source Units CO2 NOx SO2 Hg PM10

Coal lb/ton 5680.000 9.000 91.433 0.0001300 0.800000Electric lb/kwh 1.234 0.003 0.010 0.0000001 0.000125

Fuel Oil No 2 lb/mmBtu 159.290 0.129 1.014 0.0000000 0.002860Fuel Oil No 6 lb/mmBtu 178.570 0.393 1.121 0.0000000 0.010000Natural Gas lb/mmBtu 117.080 0.150 0.001 0.0000000 0.001860

Propane lb/mmBtu 139.180 0.149 0.000 0.0000000 0.004260Butane lb/mmBtu 152.130 0.160 0.000 0.0000000 0.006380

Carbon Neutral Footprint?

Energy 101

Emissions – Carbon Footprint

0

20

40

60

80

100

120

Am

ount

of C

O2

2005 2006 2007 2008 2009

Carbon Footprint

VehicularPurchasedOn site

Energy 101

Closing Thoughts

Knowledge is the first step to understanding• Know what energy you are buying• Know where the largest dollars are spent• Know what is using the most energy• Know what is important to your Administration

Next steps…• Determine your baseline• Determine possible improvements• Communicate what can be done to manage energy• Develop the plan to TRANSFORM your organization