Retro-Commissioning June 21, 2010 Ed Tinsley, PE TME, Inc

1. Retro-Commissioning June 21, 2010 Ed Tinsley, PE TME, Inc

2. Agenda • Today’s Problem • Today’s Opportunity • Retro-Commissioning Process • Retro-Commissioning Case Studies • Recommendations

3. Today’s Problem • A Legislator’s Quandary • LEED is not Enough • Performance Contracting is not the Answer • Act 1494 and Executive Order 09-07 are a Good Start

4. A Legislator’s Quandary • Moral Obligation as a Human Being to Conserve Natural Resources • Fiduciary Responsible as a Legislator to Conserve Taxpayer Funds • Is there a Conflict?

5. LEED is not Enough • 25% of LEED Certified Buildings do not Achieve their Predicted Energy Savings • In the Real World, LEED Certified Buildings are not more Energy Efficient than other Buildings • 53% of LEED Certified Buildings do not Qualify for the Energy Star Label • 15% of LEED Certified Buildings have Energy Star Ratings less than 30 “Some Buildings Not Living Up to Green Label” August 31, 2009

6. Performance Contracting is not the Answer • Complex Legal Issues • 35 to 70% Cost Premium • “Fuzzy” Guarantees • Weather • Rates • Utilization • Not a Good Track Record • May be Better than Doing Nothing At least this is better than my last job managing Performance Contracts

7. Act 1494 and Executive Order 09-07 are a Good Start • Act 1494 • Mandates Energy Efficient Design, Energy Modeling, Commissioning, and M&V • 20% Reduction by 2014 and 30% Reduction by 2017 • Executive Order 09-07 • Strategic Energy Plans • Promotes Operational Changes to Reduce Environmental Impact

8. Today’s Opportunity • Natural Gas Rates • Electricity Rates • Projected 2010/2011 Surplus • Spending our Gift Wisely

9. Natural Gas Rates

10. Entergy Rate Increase (Docket 090-084-U) • UA System Intervened • Other Participants (AEEC, FEA, Kroger, Hino, Audubon, Attorney General and Staff) • 12.86% Increase in Base Rates (Large Commercial Class) • Loss of CA Rider • Indemnification Language Issue Referred to ATU Complaint • Pilot Real Time Pricing (“RTP”) Program • Securitization of Storm Damage Costs Referred to Separate Docket • Formula Rate Plan Referred to Separate Docket

11. Electricity Rates

12. Projected 2010/2011 Utility Budget Surplus • Electricity - $9.75 Million • Natural Gas - $4.50 Million • Total - $14.25 Million

13. Spending the Gift Wisely • Largely Due to Lower Natural Gas Costs • The Surplus is Short Term • Surplus can be Absorbed into General Funds or • Surplus can be Converted to Recurring Savings by Investing in Energy Conservation

14. Retro-Commissioning Retro-commissioning (RCx) is a systematic, documented process that identifies and implements low-cost operational and maintenance improvements in existing buildings intended to improve energy efficiency, indoor air quality, and thermal comfort. RCx focuses on the major energy consuming systems (HVAC and lighting) and optimizes existing system performance, rather than relying on major equipment replacement or other items requiring large capital expenditures.

15. Retro-Commissioning Process • Obtaining Data • Benchmarking • Supply-Side Audit • Develop the Plan • Execute the Plan • Measure and Verify Results

16. Obtaining Data • Utility Bills • Record Drawings • Site Inspections • Equipment Testing • Equipment Submittals • Control Diagrams • EMS Review • TAB Report • Maintenance Staff • Data Harvesting Tool

17. Utility Bills • Alternative Service Arrangements • Master Metering • Combined Billing • Alternative Rates • Time of Use • Real Time Pricing (RTP) Rates • Interruptible Rates • Alternative Riders • Transformation Credit • Demand Side Management Programs • Grants • Rebates

18. Review Energy Management System • Graphic Displays • Trend Data • Alarm Log • Control Programs • Setpoints • Schedules

19. Maintenance Staff • Chronic Operating and Maintenance Problems • Actual Equipment Operation • Actual Setpoints • Desired Outcome/Goals • Potential Energy Cost Reduction Measures • The Maintenance Staff must be Stakeholders in the Process

20. Using a Commissioning Tool to Harvest Data and Find Opportunities • Find all Air Terminals with Air Flow < 100 CFM and Damper Positions > 90% • Air Terminals with Defective Air Flow Measurement Devices

21. Benchmarking Energy Consumption and Costs • IFMA Handbooks • ASHRAE Standard 90.1 • Leadership in Energy and Environmental Design (LEED) • Performance Metrics • EPA Energy Star • ASHE E2C • ASHE Benchmarking Program

22. Supply-Side Utility Audit • Locate all Utility Meters (electricity, gas, & water) on a Site Plan • Identify the Buildings Served by each Meter • Check for Billing Errors • Identify and Evaluate all Potential Metering Arrangements, Utility Rates, and Riders • Implement the Procurement Strategy (Metering Arrangements, Rates, and Riders) that Yields the Lowest Unit Cost • Update the Supply-Side Audit on an Annual Basis

23. Alternative Rates and Riders Ratchet Clauses Delivery Voltage Meter Location Power Factor Penalties Combined Billing Master Metering Electricity Rate Analysis

24. Unbundled or Transportation Service Purchasing Groups MDQ vs. Contract Demand Physical Hedging Strategy LDC, Pipeline, and Commodity Rate Structures Index plus Basis plus Margin Fuel and LUFG Cost Recovery Nominations, Imbalance Penalties, and Cash-In/Out Requirements Natural Gas Rate Analysis

25. Developing the Retro-Cx Plan • Set a Primary Objective • Identifying Available Resources • Identifying and Evaluating Potential Energy Cost Reduction Measures • Prioritize and Select Potential Energy Cost Reduction Measures • Obtain Capital Funding • Set Intermediate Goals

26. Developing the Retro-Commissioning Plan (continued) • Establish a Timetable • Implement Energy Cost Reduction Measures • Measure and Verify Progress • Mid-Course Corrections • Acknowledge and Celebrate Success • Update and Extend the Plan

28. Identifying and Evaluating Potential Energy Cost Reduction Measures • Comprehensive Review of Entire Facility • Consider all Available Data • Consider New and Proven Technology • Computer Simulation Programs • Conceptual Designs • Conceptual Cost Estimates • ECRM Interdependencies • Simple Payback (cost to benefit ratio)

29. ECRM Summary

30. Obtain Capital Funding • Promote Energy Conservation within Department and Organization • Capture Savings from Gas Hedging Activities and Electricity Rate Savings in Same Budget Year • Participate in Utility Energy Efficiency Programs • Participate in Revolving Loan Fund • Capture Savings from Prior Energy Conservation Projects and Reinvest in new Projects

31. Set Intermediate Goals E2C E2C E2C Energy Star Current Baseline

32. Reinvesting Energy Savings

33. Executing the Retro-Commissioning Plan • Lighting • Air Terminals • Fan Coil Units • Chilled Water System • Heating Water System • Steam System • Operating Rooms • Cath Labs • AII Rooms • Exhaust Fans • Kitchen Hoods • DHW System • Air Handling Units

34. Occupied Air Flow Setpoints Cooling Minimum and Maximum Heating Minimum and Maximum Unoccupied Air Flow Setpoints Cooling Minimum and Maximum Heating Minimum and Maximum Temperature Setpoints Occupied Minimum and Maximum (68 to 75 deg. F) Unoccupied Cooling and Heating Setpoints Occupancy Sensors and/or Weekly Schedule Reheat Valve opens before Air Flow is Increased Most Significant Energy Conservation Opportunity in a Healthcare Facility! Air Terminals

35. VAV Air Terminal with Minimal Reheat Best Practice: Modulate HW Valve to a Discharge Setpoint and Reset the Setpoint from Minimum up to Maximum before Increasing Air Flow.

36. Measuring and Verifying Retro-Commissioning Results

37. Case Study Results

38. Case Study Retro-Cx Costs

39. Triple Duty Valves at Pump Discharge Nearly Closed VFD’s Operating at Full Speed Bulk of Motor Energy Wasted at Balancing Valve Case Study Pump Balancing Triple Duty Valve 100% VFD

40. Recommendations • Do not Stop with LEED • Performance Contracting should be a Last Resort • Develop an Act 1494 Compliance Handbook for State Agencies (stress LCC based decision making) • Spend Your Gift Wisely • Develop a State Facility Energy Consumption and Cost Reporting System • Benchmark all State Facilities

41. Recommendations • Open the Revolving Loan Fund to Higher Education • Increase Participation in Utility Energy Efficiency Programs • Implement Supply-Side Audits • Increase Participation in Utility Purchasing Group • Implement Lighting Audits and Lighting Retrofits • Implement Retro-Commissioning

42. Recommendations • Reinvest Energy Savings • Increase State Facility Participation in the Utility Rate Making Process • Entergy System Agreement • Real Time Pricing Program • Indemnification Clauses • Combined Billing and Master Metering • Cost of Service Based Cost Allocation and Rate Designs