MCES Energy Program Update - Achieving Sustainable Energy Goals

1. Metropolitan Council Environmental Services Energy Program Update Presented to the Environment CommitteeJanuary 27, 2009 Jason Willett, Chair, MCES Energy Team A Clean Water Agency

2. Background: 2006 • Energy team created by MCES General Manager Bill Moore • Goal: 15 percent energy reduction of purchased fossil fuel (2010 compared to 2006)

3. Status of Initiatives • Energy Conservation • Renewable Energy • Energy and Carbon Measurement • Energy Cost Savings and Financial Issues • Energy Collaborations

4. 1. Energy Conservation The cheapest energy is the energy you don’t use.

5. Energy Conservation and Efficiency • Overview • Process efficiency, lighting redesign, and facility re-commissioning • Completed 26 energy-related studies identifying: • 40 energy saving opportunities totaling 46 million kWh ($3 million/year); of those, MCES implemented 16 measures to date = 23 million kWh ($1.4 million/year) • 24 more studies planned in 2009

6. Energy Conservation and Efficiency • Completed work • Metro: Aeration study • Annual kWh savings = 6,700,000 • Metro: Enhanced maintenance in aeration process • Annual kWh savings = 4,000,000

7. Energy Conservation and Efficiency • Completed work • Metro: Odor control energy improvement • Annual kWh savings = 688,000 • Metro: Instrument air compressor modifications • Annual kWh savings = 340,000

8. Energy Conservation and Efficiency • Completed work • Blue Lake: Refurbished secondary aeration system • Annual kWh savings = 3,000,000 • Seneca: Refurbished secondary aeration system • kWh savings = 899,000 • Facility re-commissioning on eight facilities • Annual kWh savings = 250,000

9. Energy Conservation and Efficiency • In process work • Metro: Tunnel lighting redesign • 2008 design; 2009 construction

10. Energy Conservation and Efficiency • In process work • Metro Liquids Business Unit Operating Changes • 50 percent reduction sludge pump run hours • 8,000 annual hour reduction in grit collector drives • Less double pumping of sludge • Annual kWh savings = 3,000,000 • Metro: Steam Trap Program • 15% completed in 2008; remainder scheduled for 2009

11. Energy Conservation and Efficiency • In process work • Rosemount: Decommissioning • Annual kWh savings = 1,500,000 (net) Rosemount Plant, 2008

12. Energy Conservation and Efficiency • In process work • Energy design standards for capital projects • Employee energy campaign • 1,800 computers reconfigured to go into low energy state after inactivity • Printer default is two-sided copies • Employees to shut down computers and electronics when not in use

13. Energy Conservation and Efficiency • Identified additional energy efficient improvements • Seneca: New energy efficient HVAC system • Blue Lake: New energy efficient HVAC system • Lift Station L-35: Energy efficient lighting • Lift Stations L-74, L-75: Efficient motors

14. 2. Renewable Energy Renewable energy can make us energy-independent and energy-secure.

15. R&D and Renewable Energy • Completed RE • Fluidized Bed Incinerators/ cogeneration of heat and electricity

16. R&D and Renewable Energy • Completed RE • Eagles Point: Thermal energy recovery from effluent

17. R&D and Renewable Energy • In process RE • Empire: Micro-turbine demo project

18. R&D and Renewable Energy • In process RE • Blue Lake: Design of liquids process change to anerobic digestion and substitution of produced biogas for purchased natural gas • Metro: Heat Pump • 2008: Study on energy savings opportunities from heat pump and heat recovery technologies • 2009: Initiating installation of non-condensing turbine/generator • Seneca: New scrubber heat exchanger

19. R&D and Renewable Energy • Identified RE possibilities • Algae R&D • Bio-diesel from brown grease

20. R&D and Renewable Energy • Identified RE possibilities • Metropolitan CountiesEnergy Coalition(MCEC) Wind Initiative • Xcel Energy and MCES Renewable Collaboration, possible solar farm at Blue Lake

21. 3. Energy and Carbon Measurement You can’t manage what you can’t measure.

22. Energy and Carbon Management • In process work • Energy database • EPA and Energy Star Program • GHG Emissions Research • The Climate Registry (TCR) reporting

23. 4. Energy Cost Savings and Financial Issues MCES spent $17 million on energy in 2008.

24. Energy Cost Savings and Financial Issues • Completed work • Carbon costing for alternatives analysis • Solar facilities economic analysis • Rebates earned in 2008: $225,000 • Peak Control Agreement savings in 2008 ≈ $350,000

25. Energy Cost Savings and Financial Issues • In process work • Lift station tariff analysis and charges • Xcel Energy rate case • Monetization of emission reduction projects • FBI turbine accreditation and penalties • Peak Control Agreements—review

26. 5. Energy Collaborations

27. Energy Collaborations • University of Minnesota (Institute for Renewable Energy & Environment) • Xcel Energy (Process Efficiency Program & RE) • Metro Energy Policy Coalition (Counties) • Inter-agency Energy & Environment Team • Chamber of Commerce

28. Summary • Conservation: • 66% of goal complete • Over 100% of opportunities identified • More studies underway • Renewable energy: • Additional possibilities being investigated • Financial impact: $1.4 million/year conserved .3 rebates received (2008) .3 peak control savings (2008) $2.0 million