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Utility Analysis and Site Selection

Utility Analysis and Site Selection. Are the HUD Incentives My Best Option?. Function of many factors - evaluate: Long-term capital equipment replacement needs Exceed available HUD capital funding? Timeline Level of need Level of resident occupancy, comfort, and cooperation

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Utility Analysis and Site Selection

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  1. Utility Analysis and Site Selection

  2. Are the HUD Incentives My Best Option? • Function of many factors - evaluate: • Long-term capital equipment replacement needs • Exceed available HUD capital funding? • Timeline • Level of need • Level of resident occupancy, comfort, and cooperation • Maintenance staffing and costs • REMEMBER - maintenance savings may be real, but can’t be used to determine cost-effectiveness of the project under HUD rules. • Management staffing • Consistent use of the facility

  3. Are the HUD Incentives My Best Option? • Can an Efficiency Program Self-Fund? • High Consumption? • High Rates? • Can you “buy-down” the project using Modernization Funds for non-energy/water components? • Investigating these questions can save you from going down dead end path • REMEMBER - You must be able to re-pay a loan from savings!

  4. Utility Analysis • Do this before issuing RFP! • Tracking consumption makes this easier • Software to help • Reports to help with HUD reporting requirements • Graphics to visualize information • Units of consumption, not just dollars • By apartment, building, meter • ESCo will want this data • Aids in management and maintenance as well

  5. Utility Analysis • Use your currently available data • Work with your utility to fill in gaps • Need tenant releases to get data on actual bills that are tenant paid • PUT THIS IN YOUR LEASE! • Provides means of ensuring allowances make tenant whole and conservation program savings aren’t borne on the back of the residents. • Directs measures and sites for consideration

  6. Utility Analysis • Resources for crunching the numbers • Consultants • Past audits • In-House staff • Tracking software • ESCOs??? • You want this determination before issuing RFP • Much of the work on HAs end - gathering data • Beware of obligating yourself at this stage of the game - fee-for-service only?

  7. Benchmarking • How do your Sites Compare to Others? • Rough estimate • Weather Normalize • Heating Degree Days • Takes out climate as factor • Normalize for Square Footage

  8. Benchmarking • Common Measures • $/square foot • Btu/square foot/heating degree day • Gallons/day/resident • Btu/s.f./HDD normalizes for weather and for size of building • Still need to account for rates • 6 cents/kwh vs. 12 cents/kwh -> two times the pot of savings for a given amount of consumption.

  9. Benchmarking • Can help you ID best candidates within your portfolio • Phased RFP • May leave some out altogether • Don’t waste your time and the ESCo’s by pursuing sites that won’t yield a cost-effective, self-funding conservation program

  10. Evolution of Selected Sites through Performance Contracts • Developments are identified by the PHA in the RFP • Phased, with option to expand • Based on utility analysis, building use and capital needs • Measures are screened and proposed by ESCOs in the audit • 2 phase audit report • Proposed measures are evaluated by the PHA • Measure design & installation is performed by ESCO under an ESA

  11. Site Selection for RFP • ID your desires and needs • Look at the realities of: • level of consumption • level of rates • cost of capital • occupancy rate • long-range plans for the site • other available funds • BE FLEXIBLE - Be open to the ESCOs suggestions during the bidding and audit processes

  12. Where to Look for Savings • In the Midwest, New England, and other heating climates, typical PHA Candidate Developments for Energy Performance Contracts have high historic utility consumption or cost patterns for • Heating • Domestic hot water production • Common area lighting & electric loads • Domestic water use

  13. Where to Look for Savings • In the cooling climates, typical PHA Candidate Developments for Energy Performance Contracts have high historic utility consumption or cost patterns for • Domestic hot water production • Common area lighting & electric loads • Domestic water use • Cooling Savings • Normalizing for Cooling Degree Days not allowed by HUD • Issue - who pays the bill? Can HA recover cooling savings? • 24 CFR 965.506(e)

  14. Information to Provide in an RFP • See “Sample Technical Section for RFP” in “Resource Guide” • Include, by building, meter or complex: • Utility monthly use and cost over three years • Name of facility • Number of dwelling units • Occupancy levels • Family or elderly residence • Rough description of construction and systems

  15. Best Candidate Types • Master metered for all utilities, multiple buildings • Can do tenant paid, with waiver • Adds complications to savings calculations • Has not received modernization in over 10 years

  16. Basic Site Types to Include • 1940s vintage with central space heating/domestic hot water plants • All-electric high/mid-rises in climates with annual 5000+ HDDs and $0.08+ kWh • Newer vintage townhouse style, individual heat and DHW can be done • “1 year old buildings with 100 year old problems” • Base choice on results of utility analysis and rough estimate of cost of measure!

  17. Basic Site Types NOT to Include • Scattered sites – single detached houses or duplexes in clusters of one to one dozen • Challenge is in getting consistent performance and documented savings at all houses

  18. Other Factors to Consider • Scheduled heating/cooling/DHW/distribution system replacement • Mechanical systems with high maintenance, operational costs • Necessary window replacements • Virtually never are cost-effective from energy-savings standpoint alone! • Equipment measures and/or appliances scheduled for replacement in PHA's Five Year CGP Plan

  19. Other Factors to Consider • Developments expected to remain under PHA management for at least the next decade • Developments and measures with a rich savings stream supported by relatively low cost investments • “Bundling” opportunities for maximum leverage of capital improvements • Developments with central laundries: • Other criteria articulated by PHA personnel

  20. Audit Phase • Monthly utility use histories and account numbers; actual copies of bills important • Previously implemented energy-related modernization plans and dates of implementation • Previously completed energy audits and surveys • Capital needs assessment reports

  21. Audit Phase Require ESCO to: 1. Develop baseline for each utility, per HUD requirements 2. Perform end use disaggregation of utilties 3. Normalize data 4. Establish savings projections in relation to base years 5. Evaluate “in-pocket” savings vs. HUD savings

  22. Before Any Measures May Be Formally Screened by the ESCO, the ESCO Must: • Evaluate the quality of the data • “Clean” it • Analyze it by “End Use” “End Use Disaggregation” must be performed by an energy engineer or conservation professional.

  23. Energy and/or Water Baseline Consumption • The “Baseline” is the ESCO’s assessment of the pre-retrofit utility consumption and cost. • It must be approved by HUD. • Based on Rolling Base, and/or • Reviewed Utility Allowances • It provides the basis for: • ESCO savings projections and measure screening • Calculation and payment for actual savings achieved

  24. Water Data for A Client Housing Authority Four developments 1. Riverview – family development, 180 dwelling units in 45 quads, walk-ups 2. O’Brien Towers – elderly development, 275 dwelling units in one mid-rise building (six stories) 3. Pagnano Towers – elderly development, 156 dwelling units in one high-rise building (15 stories) 4. Drohan Apartments – elderly development, 40 units in one low-rise building (three stories)

  25. Utility Data in PHA’s RFP included Energy Consumption and Costs, by Site, per Month In Audit Phase, ESCo retrieved data directly from the utilities • Computer printouts containing monthly use and cost information • Paid data entry clerks to put utility information in Excel files • They were able to analyze the utility data and form the BASELINE

  26. Quincy Water Measures • Riverview – none • O’Brien – New water closets, new faucet aerators, & showerheads • Pagnano – New water closets, repair leaks, new faucet aerators, & showerheads • Drohan – New water closets, new faucet aerators, & showerheads

  27. Re-Cap of Steps for Utility Analysis • Gather readilyavailable utility data on consumption and cost on site-by-site basis • 3 years is best, and will be needed for the ESCo to establish baseline for HUD • Determine if gaps exist and impacts of these gaps • Work to gather remaining data if appropriate • Look at changes in occupancy, use or equipment during the period you’re evaluating

  28. Re-Cap of Steps for Utility Analysis • Understand how your PHA is processing the utility bills and reporting the usage to HUD • make changes in tracking procedures if needed • Tabulate your gatheredutility data in total and on site-by-site basis: • Calculate portfolio-wide average • Calculate averages for each development • Compare the developments with the portfolio average and other benchmarks This will help you to identify the outliers: family sites, elderly sites, high-rise vs. walk-ups

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