strategic energy management: a three tiered approach randy gaines, c.e.o.e. white lodging services...
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Strategic Energy Management: A Three Tiered Approach
Randy Gaines, C.E.O.E.
White Lodging Services
AH&MA Annual Conference and Lodging Expo
April 5, 2001
Portfolio
• 69 Hotels in eight states (IN, IL, TX, FL, CO, MI, UT, KY)
• 8,000+ Rooms
• Full Service and Limited Service brands
Energy Management Mission Statement
To increase profits, prevent pollution, and enhance the indoor environment for guests and employees through cost-effective strategic energy management.
Growth Since First Opening
0
20
40
60
80
100
120
1985 1990 1995 2000 2005
Total Properties
Increase of 4.5 MSF to date
Nu
mb
er o
f H
otel
s
Energy Management Strategy
Tier I Utility Data Management
Tier II Commodity Purchasing
Tier III Asset Optimization
Energy Management Strategy
Tier I Utility Data Management
Utility Data Management
TEG Process
BillsElectric
Bills
GasBills
TEGDatabase
Enter Usage & Cost Information
Audit & Validate Bill
Resolve BillingDiscrepancies
PerformanceReports
Utility Data Management
• Perform Detailed Analysis of Each Utility Account– Analyze utility rate, implement most inexpensive option
– Investigate all findings • faulty meters
• missing water meters
• late fees
• double billing
Utility Data Management
• Utility Errors and Faulty Equipment
– Faulty natural gas meter identified - recovered overpayment of $15,482!
– Faulty water meter identified - recovered overpayment of $32,540!
– Hotel billed for two water accounts, one of which was neighboring hotel-
recovered overpayment of $28,230!
Utility Data Management• Utility Errors and Faulty Equipment
– Identified oversized water meter - downsized water meter and implemented lower rate resulting in annual savings of $5,600!
– Identified gradual upward trend in water consumption and leak in irrigation system camouflaged by clay soil - secured utility refund of $5,200 due to sewer exemption
These savings alone total over $100,000!
Energy Management Strategy
Tier II Commodity Purchasing
Commodity Purchasing
TEG
Suppliers
•Monitor State Utility Commissions•Monitor Federal Legislation•Interact With Utilities To Keep Abreast of Pilot Programs•Interact with Suppliers To Keep Abreast of Pilot Programs
ElectricUtility
Natural GasUtility
FederalRegulators
State UtilityCommission
Commodity Purchasing
• Leverage Purchasing Power of White Lodging and TEG
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• Monitor Energy Futures Market
Contract
• Negotiate Contract Terms & Conditions•Process All Required Utility Forms & Contracts
Energy Management Strategy
Tier III Asset Optimization
Asset Optimization
Prioritize
Validate
Data management enables the effective prioritization and validation of asset optimization activities
Utility Data Management
• Quarterly Reports• Property Rankings• PAR and POR Analysis• Cost per Unit of Commodity
Asset OptimizationActivities
• High Impact Items• Daily Meter Readings• Peak Control• Equipment / Technology Changes
– Occupancy Sensors– Ozone Laundry– Lighting– Energy-efficient Electronics– Energy-efficient Appliances
2001 Performance Metrics
Electric
Utility Comparison
Hotel X
Hotel Y
2001 Performance Metrics
Electric Natural Gas
Utility Comparison
Hotel X
Hotel Y
Hotel X
Hotel Y
2001 Performance MetricsUsage and cost will be analyzed on a per available
room, per occupied room, and per square foot basis.
Usage
2001 Performance MetricsUsage and cost will be analyzed on a per available
room, per occupied room, and per square foot basis.
Usage Cost
High Impact Items• Lighting
– All lights off when unoccupied– TCP 30 watt Bulb with 36 watt Ballast– Exterior lighting, profiler system or photocell properly placed– Sport courts and storage rooms, equipped with timers for auto-shutoff
• PTAC– Units off when 55 - 85 F outside – Settings for unoccupied rooms determined by
Maintenance Manager daily– Filters cleaned quarterly– Power wash coils every two years– Associates do not pre-cool or pre-heat rooms
High Impact Items
• Water Heater– Remove all deposits from tank
– Burner maintained with bright blue flame
– Ensure no airflow is restricted
– Verify water temperature is 110 degrees at the furthest room
• Laundry– Only full loads
– Done in off peak hours
– Keep drier lint screens clean - check after every load
High Impact Items
• In Room Water Equipment– 2.5 gallon per minute shower heads installed
– Faucet arreators installed, 1.5 gallon per minute
– 1.6 gallon per flush toilets installed when replacement occurs
– Dye test toilets annually to ensure no water leaks
• Evening Energy Walks– Night Auditor
• Self Audit
• Energy Absolutes
Daily Meter Readings
• Daily meter reading log– Maintenance manager to complete each day
– Readings to be taken at same time each day
• Computerized monthly meter reading spreadsheet– GM will have daily information transferred to spreadsheet
– Daily occupancy column will also be updated
• Monthly reporting– Monthly spread sheets forwarded to Regional Directors of
Housekeeping and Maintenance
– Copies will be kept at each property in the Life Safety Manual under new “Energy Usage” tab
Energy Committees
• Line item on accountability meetings, once a month
Discuss:
• Findings of investigations and reports
• Successes, Projections
• Opportunities for employee involvement
Peak Control Strategies
• Peak usage is 7:00 to 9:00 a.m., 6:00 to 10:00 p.m.• Key areas to control peak
– No laundry before 9:00 am
– Ensure PTACS for all unoccupied rooms are shut off during peak times
– Common area thermostats are set back, upgrade to electronic thermostats for auto set back capability
– In kitchen area, shut off any unneeded electrical equipment during peak hours
• Educate staff and get them involved in peak control
Demand Curve October, FFI
Peak Day, Thursday October 5, 2000 determines bill for the entire month
Average Weekday
Average Weekend
Usage and Demand, FFI
October 00 November 00 December 00
January 01 February 01
Accomplishments
• Implemented strategic energy management plan across portfolio
• Achieved annual savings of $100,000+ while increasing portfolio by 31%
• Leveraged energy performance efforts through energy alliances
• Involved staff in education, training, and implementation
Challenges
• Maintaining energy savings during growth
• Ensuring communication between housekeeping and engineering staff
• Receiving buy-in from general manager and staff