Presented by: Mike Bailey PE Director of Engineering

1. Presented by: Mike Bailey PEDirector of Engineering Lessons Learned: Why data is not Always enough

2. Case Study #1 First Case Study • Oregon based co-op food processor with two plants • Utility provided 15-minute electric data • Multiple products with mix of equipment and processes • Digital process controls with in plant control technicians • Full year operation (little seasonality) • Full year, stable workforce • Capital available for projects

3. Case Study #1 Plant AEnergy Use • Energy Sources • Electricity • Steam (from utility co-gen plant) • Natural Gas • Production and Energy Use • Electricity and Steam • Seasonal Energy Use • Natural Gas

4. Case Study #1 Plant BEnergy Use • Energy Sources • Electricity • Diesel • Production and Energy Use • Operational Changes • Switched from diesel to electric boiler in mid-2009 • Electricity Energy Intensity • ~3 times greater than Plant Aper Vat • Production Cost • ~4 times the production cost of Plant Aper Vat

5. Case Study #1 Rebates and Incentives (at time of study) • BPA Energy Smart Industrial (ESI) Program • Incentive Programs and Pilot Programs • Custom Projects • $0.25/kWh up to 70% of project cost • Energy Project Manager (EPM) • Potential incentive for Plant Ais $100,000 • Potential incentive for Plant Bis $270,000 • Track & Tune (T&T) • High Performance Energy Manager (HPEM) • Northwest Lighting Trade Ally Network (TAN) • Green Motors Initiative • Business Energy Tax Credit (BETC) • Option 1: Credit taken directly by co-op • Up to 35% of project costs (before utility incentives) over a five year period • Option 2: “Pass-through” to a third party • Up to 25.5% of project costs (30.5% for smaller projects)

6. Case Study #1 Example Energy Measures • EEM 1: Lighting • Estimated simple payback: Immediate • EEM 2: Refrigeration • Estimated simple payback: 2.2 years • EEM 3: Compressed Air System • Estimated simple payback: Immediate

7. Case Study #1 Example Energy Measures • EEM 4: Heated Regenerative Dryers • Estimated simple payback: Immediate • EEM 5: Waste Water Treatment Blower Replacement • Estimated simple payback: 2.8 years • EEM 6: Heat Recovery • Estimated simple payback: 2.4 years • EEM 7: Motor Efficiency • Estimated simple payback: Immediate • EEM 8: Boilers • Estimated simple payback: 0.6 years

8. Case Study #1 Results • Very little progress on facility equipment or process optimization – staff focused on capital expansion projects • Lack of upper management attention to utility costs • No owner for utility energy data or utility cost management • Did not use real time utility data - did not allocate energy use between process and products • Implemented some measures such as lighting but did not proceed with energy manager position (funded by BPA)

9. Case Study #2 Second Case Study • NW based co-op food processor with multiple plants • Utility provided 15-minute electric data • Multiple products with mix of equipment and processes • Manual and electric controls – no centralized process control • No in-plant controls staff • Seasonal products • Seasonal work-force with moderate turn-over • Little capital available for projects

10. Case Study #2 Many Different Crops

11. Case Study #2 Seasonal Utility Use

12. Case Study #2 Poor Understanding of Energy Drivers • Refrigeration Issue Example • Staging condensing tower fans and pumps (200 hp total) based on compressor discharge pressure (3,000 hp total) • Boiler Issue Example • 400 BHP 1980’s Boiler used three months per year • 600 BHP late 1990’s Boiler used four months per year • 3 year old audit study recommending controls upgrades and stack heat recovery – unfunded due to 5 year pay-back

13. Case Study #2 Identified Utility Cost Drivers

14. Case Study #2 Estimated Utility Cost by Product “Carrots Don’t Care”

15. Case Study #2 Now for the data… • Plant Energy Manager Team established • Utility real time data owner assigned • Worked with utility to understand tool, work out communication issues • Serve as resource for internal staff to understand data • Each process owner responsible for managing energy drivers • Process owners worked with utility data owner to “break apart utility use” • Team created control charts real time data flagged issues and trends • Regular summary reporting to plant management

16. Case Study #2 Boiler Recommendations • Only use one Boiler • Eliminate “Hot standby” spare • Manage production volume during carrots to avoid needed to operate two boilers • Add Stack Economizer – Boiler Feed-Water pre-heater to one boiler • Payback less than 1 year – if boiler used full season • Add boiler combustion controls • Manage blanchers to reduce boiler demand RESULT: Capital approved to fund ONE boiler upgrade

17. Case Study #2 Refrigeration Recommendations • Do NOT stage condenser tower fans & pumps – run as much as possible to reduce condenser pressure • 200HP total for condenser towers • >3000HP total compressor capacity • Stage Compressor controls • Always have smallest compressor as Trim • Large compressors should be fully loaded if on • Install VFD on ONE compressor and dedicate that to Trim • Track Compressor Log to incremental electrical meter data

18. Lessons Learned Why was #2 Successful but #1 was not? • Upper management Serious about managing utility costs • “Seek First to Understand” what drive energy use • Data is not helpful if it is not converted to information • Begins and ends with people! • Once system and drivers are known, data used to manage • Data without systems knowledge is useless • Decisions makers must be will to ACT on the data – PARTICULARLY when it contradicts old assumptions

19. Data Is Necessary But Not Sufficient…

20. Thank you! Mike Bailey PE mbailey@ecova.com