Case Studies in Energy Independence

1. Case Studies in Energy Independence 2013 TAUD March 14, 2013 David Wrightsman, P.E. Energy Systems Group dwrightsman@energysystemsgroup.com

2. Agenda • So What? • WEF Roadmap • The Path • Examples • Wrap-up

3. So What? Why should I care about this? Why should I do something different? • Economics • Need to control rate increases • Uncertain future electric prices • Communities need environmental leaders • Demonstrate tangible examples • Move thinking from disposal to recovery • Find other sources of revenue • Challenge accepted thoughts

4. WEF Roadmap • Strategic Management • Organizational Culture • Communication and Outreach • Demand Side Management • Energy Generation • Innovating for the Future Roadmap Webcast: http://www.wef.org/Conferences/page_webcasts_details.aspx?id=12884902061 http://www.wef.org/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=12884902042&libID=12884902042

5. The Roadmap

6. The Path Energy sustainability is achieved through a combination of advancements in technical and organizational aspects of a utility.

7. The 3 C’s of Technology Adoption

8. The Challenge of Optimization What we want What is efficient What we have

9. 1 First Steps • Complete energy baseline • Do an energy audit • Develop list of energy conservation measures • Prioritize list • At the end of their useful life • Inefficient as compared to current tech • Expensive maintenance • Implement

10. Benchmark • Benchmark • Compare to other similar plants • Look at: • Kwh/mgd • Kwh/pounds of BOD EPRI CEC Report CR-104300, July, 1994, Figure 3-1

12. How to Prioritize #2 - Complex, fast payback Get Help #4 - Complex, Long payback Do last Complexity #1 - Simple, fast payback Self Perform #3 - Simple, long payback Planned replacement Simple Payback

13. 1 Lo cost/No Cost • Examples: • Timers on light switches, blowers • Why that dose of chemicals? • Rate analysis, other fees • Talk to your electric utility (transformers, multiple meters) • Measure, adjust - repeat • Collaborate Use fresh eyes.

14. 2 Demand Side Management Funding for DSM Projects? • Utility rebates • (insert TVA details?) • Federal grant programs • Annual appropriations • Energy Savings Performance Contracts • Public Private Agreements (PPA)

15. 2 What is it? • Performance contracting is alternative procurement that offers • Capital improvements without rate increases • Collaborative development • Guaranteed results

16. 2 Who does what? • One party providing all engineering and construction including financing • Intent is to improve infrastructure to improve energy efficiency while reducing operating costs • Guaranteed • Savings, Performance, Price. • Savings offset costs • Energy & Operational • Qualification Based Selection

17. 2 Tennessee LegislationEnergy Savings Performance Contracts • Tennessee (no specific legislation) §12-4-115. Energy-related services §12-4-106 Contracts for Professional Services • Treated as a professional service • Use Request for Qualifications (RFQ)

18. Project Scope Development(30% Design) Design60% –> 90% Start Up RFQ Construction Contract - ESCO(Energy Performance Contract) Contract - ESCO(Project Development) Final Price 2 Performance Contract 0 months 48 months 12 months 36 months 24 months

19. 2 City of Winchester, Indiana 2 MGD Wastewater Plant • Fine bubble diffusers • Variable Speed PD Blowers • DO Control • $0.9M project • 12 year payback

20. 2 Washington Suburban Sanitary DistrictPotomoc, MD 285 MGD Water Filtration Plant • Rebuild (6) 50 MGD Raw water pump • Recondition (6) 2000 hp motors • Metering for 25 smaller pumps • $6.3M Project • 8 year payback

21. 2 Energy Baseline Study For Municipal Wastewater Treatment Plants, September 2006 (Base Energy Inc)

22. 3 Energy Generation Energy Generation Decision Tree • Other Considerations: • Regulatory • Interconnection • Utility Rates • Co-digestion • Site Digester Gas? Solar Wind Hydro NO YES Produce Electricity? Remove CO2? Direct Burn Boiler NO NO YES YES Engine Turbine Fuel Cell Sterling Engine Pipeline Injection Vehicle (CNG or LNG)

23. 3 Electrical Generation • What is the relative cost of power?

24. 3 Frederick Winchester Sanitary Agency Winchester, VA 20 MGD Wastewater • Anaerobic Digesters • Turbo Blowers • New Biosolids Dewatering • Co-digestion – Industrial organic waste $35 Million dollar project biosolids HSW Digester

25. 3 New Primary Switchgear New digesters, receiving stations, CHP Plant New Lighting, HVAC, Controls & Water Treatment New sludge storage mixing New aeration & controls New blowers & Dewatering New chemical automation Sludge storage mixing

26. 3 Frederick Winchester Service Authority Combined Heater & Power, Anaerobic Digesters

27. 3 Collaboration

28. Strategic Energy Master Plan

29. Other ideas • Data • Data gathering is labor intensive • How to automate it? • Modeling • What if analysis • Simple spreadsheets • Operator Training • Gap analysis • Energy conservation • Self-perform work • Outsourcing • When to get help?

30. Wrap-up • Economics • Roadmap gives a step by step approach • Change is hard but necessary • Environmental leaders • Collaborate • Change thinking • Start small and build up

31. Reference Info • Energy Information Agency (Eia.gov) • WEF – Energy Conservation MOP • National Association of Energy Service Companies - NAESCO

32. Questions? David Wrightsman, P.E. Energy Systems Group dwrightsman@energysystemsgroup.com 317-849-2015