New Technology Improves New Technology Improves Efficiency of University’s Efficiency of University’s

Energy InfrastructureEnergy Infrastructure

Frank BrewerAssociate Vice President for Facilities ManagementUniversity of Maryland

November 3-4, 2005Stamp Student UnionUniversity of Maryland

Smart & Sustainable Campuses Conference

University of Maryland ProfileUniversity of Maryland Profile

Public Research University

35,000 Students 160 Georgian Style

Buildings 13 Million Square Feet Comprehensive

Underground Utility Infrastructure

Public Research University

35,000 Students 160 Georgian Style

Buildings 13 Million Square Feet Comprehensive

Underground Utility Infrastructure

University of Maryland ProfileUniversity of Maryland Profile

Built in 1934

4 Gas/Oil Fired Boilers, all over 30 years old

Converted From Coal in Mid 70s

Normal Winter Load: 240,000 Pounds/Hour at 125 PSI

Provides Heating for all Campus Buildings

Built in 1934

4 Gas/Oil Fired Boilers, all over 30 years old

Converted From Coal in Mid 70s

Normal Winter Load: 240,000 Pounds/Hour at 125 PSI

Provides Heating for all Campus Buildings

Central Heating PlantCentral Heating Plant

University of Maryland ProfileUniversity of Maryland Profile

57 MVA of Underground Electrical Service

Distributed Over 30,000 Tons of Cooling Load

57 MVA of Underground Electrical Service

Distributed Over 30,000 Tons of Cooling Load

Electric and Cooling InfrastructureElectric and Cooling Infrastructure

Problem Statement:Problem Statement:

Campus Facilities Master Plan (FMP) calls for adding 3.4M GSF between 1990-2005

FMP precipitates need to study utility infrastructure; $52M in urgent renewal needs identified

No support for University System or State of Maryland debt issuance Operating budget must amortize debt, and Off-balance sheet financing required

Key Issues:Key Issues: Availability & Cost of capital funding Impact of deal on UM balance sheet Future utility consumption profiles Anticipated impact of utility deregulation Impact of new emissions in non-attainment area Determine options for existing employees Identify technical and legal consultants Prepare performance-oriented RFP; evaluate responses Manage interest of governing board, Governor and State

Agencies

Results Achieved:Results Achieved: New technology doubles efficiency of CHP

from 35% to nearly 70%

Energy consumption (BTU’s) reduced by 32%

NOx, Sox, PM10 emissions 50% – 95% below thresholds established by EPA

$120M in projected savings over 20 year term fund debt service

Low cost, tax exempt, off-balance sheet financing achieved

$73M in utility system improvements completed

New technology doubles efficiency of CHP from 35% to nearly 70%

Energy consumption (BTU’s) reduced by 32%

NOx, Sox, PM10 emissions 50% – 95% below thresholds established by EPA

$120M in projected savings over 20 year term fund debt service

Low cost, tax exempt, off-balance sheet financing achieved

$73M in utility system improvements completed

Energy Savings:Energy Savings:

0102030405060708090

100

Before After

Tri

llio

ns

of B

TU

’s

Equivalent to Energy Consumed by 7,590 HomesEquivalent to Energy Consumed by 7,590 Homes

ChilledWater

How System Works:How System Works:

Heating Steam

BackPressureSteam

Turbine625 PSISteam

2 Heat Recovery

SteamGenerators

ExhaustHeat

6250 F

2 Combustion Turbinesand Generators

Electric Power22 MW

FuelGas or Oil

ElectricPower5MW

70% of Condensate Returns to CHP

125 PSISteam

AuxiliaryBoilers

Make UpWater

Steam DrivenChillers on

Campus

Design Construct Agreement

Management, Operations and Maintenance Agreement

Ground Lease

Energy Services Agreement

Fuel Services Agreement

Transition Agreement

Design Construct Agreement

Management, Operations and Maintenance Agreement

Ground Lease

Energy Services Agreement

Fuel Services Agreement

Transition Agreement

Design Construct

MOMA

Ground

Lease

Transition

FuelSupply

EnergyService

UMCPUMCP

Trigen Trigen EnergyEnergy

MEDCOMEDCO

Contractual Relationships:Contractual Relationships:

Pay

men

ts fo

r E

nerg

y S

ervi

ces

UMCP

BondholdersTRIGEN

· Install New Assets· Provide Utility Services

Parent Guarantees of Performace Trigen

and Cinergy

Ancillary AgreementsFuel Purchasing Agreement

Transition Agreement

LiabilityInsurance

MEDCO· Lease Existing Assets· Issue Bonds· Own New Assets

MO

MA

Des

ign

& C

onst

ruct

ion

Agr.

Trustee(Bank)

M

ED

CO

Gro

und

Leas

e

(Exi

stin

g A

sset

s)

Ene

rgy

Ser

vice

s A

gree

men

t

Indenture

CasualtyInsurance Policies

Insurance Proceeds

P&IPayments

Bond Proceeds

Construction Draws

MOMA Payments

Liquidated Damages

Insurance Proceeds

Financial Structure:Financial Structure: