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We help the best buildings in the world get that way.

LDD WorkshopStrategic Energy Planning

2008


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Strategic Energy Planning

Workshop Objective

Teach a process that participants can use to manage

their energy expenditures. Be able to describe energy expenditures and describe

how they relate to Key Performance Indicators ofyour organization.

Leave with a template of an Energy Plan.


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Motivating Factors - Choices

Infrastructure Financial

Performance Partnership


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Choices: Infrastructure

Low Hanging Fruit

Energy Efficiency

Partial Upgrades

Code Compliance

Comprehensive Renewal

LEED EB

Phasing


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Choices: Financial

Net Savings

Quick Paybacks

Financing

Equity Contributions

Multiple Funding Streams

ROI

Priorities


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Facility & Vehicle Budgeting

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2006 2008 2010 2012 2014 2016 2018 2020

Fiscal Year

AnnualExpenditure

Reactive Condition

Proactive Reduced Expense

Return To Energy Costs of Five Years AgoHow do you make it happen?


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Dependence / Independence

Training

Risk Allocation

Measurement & Verification

Reporting

ChoicesChoices: Partnership


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Choices: Performance

Utility Expenses

O&M Expenses

Energy Usage & Demand

Occupant Comfort

Complaint Reduction

Carbon Emissions

Choices


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Why Create an Energy Plan?

Sort through the Motivating Factors to develop your

organizations primary objectives and focus. Key to obtaining Buy-in and acceptance by senior

management. Illustrate the Business Case and gain competitive

advantage.

Plan for future volatility Understand current energy spend Define actions for improved energy management Track success & improved business performance


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Integrate energy management into your

Administrations critical planning and managementfunctions.

Identify the impact that changing business needs haveon energy use and cost.

Tie energy performance indicators to key businessmeasures.

Make energy information available to those makingdecisions.


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Identify opportunities to Avoid Cost

Avoided Cost = the savings associated with not havingto purchase additional power at the current rates dueto reduced consumption or taking advantage of low-cost periods of time to consume energy.

Increasing Energy Costs

Electric 3% escalation & 30% one-time rate hikes

Natural Gas 5% to 10% annual escalations

Heating Oil 10% to 20% escalations

Propane 10% to 20% escalations


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Value to an Energy Manager

Focused job responsibilities

Ability to track usage and cost data

Identifies opportunities for significant improvements

Allocate costs to business processes, programs, and

projects Create accountability for departmental actions

Improve the visibility of utility expenditures to theorganization

Get participation from the entire organization


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To produce quick results; not sustainable over the

long-term. Examples: selling off assets, lowering costs, cutting

employees

Turnaround


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Transformation Definition

Trans`for`ma`tion n. The process of motivating

organizational members to alter their patternsofbehaviorin alignment with shifting demands of theexternal environment.


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Strategic Energy PlanningBased on the work of MichaelBeer

Transformation Formula

Tr = f(D, M, P)

Tr = Transformation

D = Dissatisfaction

M = Model of future state

P = Process


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Inventory

What do I have? How old is it? What is its condition? How long was it expected to last? How is it operating?

Assess the impacts Is it wasting energy? Is it causing complaints? Is it costing $$ to maintain?

Will it cause an emergency upon failure?

What is the process for moving forward???

Steps in Energy Planning


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How Well Can You Define Your Situation?

Better Question:How well can youcommunicate yoursituation?


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What is in an Energy Plan?

FIVE FOCUS AREAS

1. Management of energy DATA

2. Management of the energy SUPPLY

3. Energy USE in facilities

4. Efficiency of operating EQUIPMENT5. ORGANIZATIONAL INTEGRATION


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FIVE FOCUS AREAS






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Management of Energy Data

Utility Bill Analysis

1. At least 12 months of bills (24 preferred).

2. Determine usage patterns by account.

3. Determine usage patterns by function.

4. Determine usage patterns by process.5. Identify the critical few.

Sort data by most costly to operate

Sort data by most costly to maintain


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Relate to Key Performance Indicators (KPI)

1. Relate energy use & cost to business performance.

2. Formulates the basis for contrasting to benchmarkdata.

3. Develop agreed upon method of tracking ongoingperformance and outcomes.

4. State the data in the business and financial terms usedby senior management, i.e. a savings of $35,000 = 0.2mils of taxes, etc.


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Performance Measures monthly, quarterly, annually

Financial Measures $ energy / $ Annual Budget

$ energy / $ Tax Contribution

$ energy / $ sales or $ energy / $ Earnings

Btu / $ sales or Btu / $ Earnings

Energy Utilization Index (Buildings)

Btu / sq ft

Energy Cost Index (Buildings)

$ energy / sq ft or $ energy / Btu consumed

Productivity Measures

Btu / unit of production or $ energy / unit of production

Btu / direct labor hour or $ energy / direct labor hour

Btu / Degree-day or $ energy / Degree-day

Btu / unit-degree day or Btu / unit-degree day-sq ft

$ energy / Btu consumed

KPI Key Performance Indicators


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KPI Key Performance Indicators

Current ConditionAnnual Use Annual Cost 2008 2009 2010 2011 2012 2013 2014

Increase Escalation Cost

Facility Fuels

Electric 0.0% 3.2% 215,000$ 221,880$ 228,980$ 236,308$ 243,869$ 251,673$ 259,727$

Natural Gas 0.0% 18.7% 140,000$ 166,180$ 197,256$ 234,142$ 277,927$ 329,899$ 391,591$

Coal 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Propane 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Fuel Oil 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Water Sewer 0.0% 1.1% 16,000$ 16,176$ 16,354$ 16,534$ 16,716$ 16,900$ 17,085$

Garbage 0.0% 8.2% 8,500$ 9,197$ 9,951$ 10,767$ 11,650$ 12,605$ 13,639$

Facility Maintenance

Service Contracts 0.0% 7.5% 85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$

Material & Parts 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$Vehicle Fuels

Deisel 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Gasoline 0.0% 20.6% 3,800$ 4,583$ 5,527$ 6,665$ 8,038$ 9,694$ 11,691$

Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

Vehicle Maintenance

Service Contracts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$

Material & Parts 0.0% 3.0% -$ -$ -$ -$ -$ -$ -$

Other 0.0% 0.0% -$ -$ -$ -$ -$ -$ -$

383,300$ 418,016$ 458,068$ 504,416$ 558,201$ 620,772$ 693,733$

85,100$ 91,483$ 98,344$ 105,719$ 113,648$ 122,172$ 131,335$

Facility & Vehicle Budget 468,400$ 509,498$ 556,411$ 610,136$ 671,849$ 742,944$ 825,068$

Total Budget 5,634,962$ 5,894,170$ 6,165,302$ 6,448,906$ 6,745,556$ 7,055,851$ 7,380,420$

Millage Value 2,997,310$ 3,057,256$ 3,118,401$ 3,180,769$ 3,244,385$ 3,309,272$ 3,375,458$

Facility & Vehicles

% of Budget 8.3% 8.6% 9.0% 9.5% 10.0% 10.5% 11.2%

Millage Required 0.16 0.17 0.18 0.19 0.21 0.22 0.24

Energy Budget

Maintenance Budget

4.6%

2.0%

Typical Escalation


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Report the Data

1. One person must be responsible for developing andmaintaining standardized reports.

2. Energy data must be distributed on a regular, timely,

periodic basis.3. Senior management must periodically review theenergy data.


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Type of Data Available

1. Load Profiles

2. Interval Data

3. Sub-metered Data

4. Energy Allocation by Cost Center5. Energy Use by Process


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Use Profile - Monthly


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Use Profile - Hourly


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Use Profile - Hourly

Consecutive Mondays

0

100

200

300

400

500

600

700

800

900

0 300 600 900 1200 1500 1800 2100 2400

Time of Day

Demand

KW


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FIVE FOCUS AREAS






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Management of Energy Supply

Focus areas regarding energy supply

1. Billing errors

2. Rate structure and applicable riders

3. Rate assignment

4. Deregulated supply of energy commodity5. Reliability and quality of energy supply


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Finding Billing Errors

1. Are you being assessed taxes?

2. Are the kWh, kW & CCF metered accurately?

3. Has a meter been replaced (same constant)?

4. Has a rate change been implemented?5. Are you getting credit for previous payments?

6. Are there inappropriate late fees?

7. Are you being billed for closed buildings?


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Rate Structure, Riders, and Assignment

1. Identify abnormally high unit prices for a particularmonth ($ / kWh, or $ / MCF).

2. Ask your utility to provide a best rate analysis at leastonce per year.

3. Identify changes in operations that may warrant adifferent rate.

4. Educate yourself, maintenance personnel and seniormanagement on the rate structure.


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Procure Deregulated Energy Commodity

1. Are there any consortiums that are providing buyingpower opportunities?

2. Contrast on-tariff commodity to market-pricedcommodity?

3. Maintain historical usage and load profiles to be readyfor shopping opportunities.4. Can you leverage technology to minimize load

variability to a supplier? Take advantage of supplierpricing options?

5. Keep abreast of future prices of your most costly

energy commodities.


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Quality and Reliability of Energy Supply

1. Do you have critical loads? Do you maintain anemergency response shelter? Any Homeland Securityconcerns?

2. Do you have a back-up energy supply due tointerruptions to the meter?

3. Do you have a back-up plan due to energyinterruptions to particular pieces of equipment.

4. Document problems, interruptions, sags, harmonics as

to date, time, and duration. Identify the impact on thebusiness.


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FIVE FOCUS AREAS






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Management of Energy Use

Identify how efficiently energy is being used

1. Facility walkthroughs

2. Benchmarking by facility type

3. Focused energy audits

4. Investment grade energy audits5. Commissioning & retro-commissioning

6. Continuous commissioning


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Load Profile - Probability of Demand

0%

20%

40%

60%

80%

100%

0 100 200 300 400 500 600 700 800 900 1000

Demand KW

Amounto

fTime

800 KW has a 3.5% probability of occuring.

That is equivalent to 306 hours per year.


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Facility walkthroughs

1. Find the equipment and processes that utilize the mostenergy.

2. Identify the operating hours for this equipment.

3. Identify the maintenance required by this equipment.4. Interview operators for ideas of more efficient

operation and controls.

5. Rank the equipment and processes by highest overallcost.


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Benchmark facility types

1. Rank the buildings according to your KPIs.

2. Compare the buildings to like facilities and processes.

3. Establish performance goals.

4. Develop action items for improvement.

Excellent source for building comparisons:U.S. DOE Commercial Building Energy Consumption and Characteristicspublic use databases, 1995-2003


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Electric { $0.06 to $0.10 per kWh }

Natural Gas { $9.00 to $12.00 per MCF} Fuel Oil (non-highway) { $3.50 per gal } Coal { $120 per ton } Gasoline { $3.50 per gal } Diesel (highway) { $4.50 per gal }

Average Fuel Economy Auto { 20 to 25 mpg } Average Fuel Economy Sm Truck { 15 to 20 mpg }

Do your costs compare? Per Account Per Building Per Vehicle class

Contrast to Benchmarks


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EUI by Activity

North-

east

Mid-

west South West

Principal Building Activity

Education ........................................ 101.6 86.3 75.5 77.6Food Sales ...................................... 248.1 219.1 187.7 Q

Food Service ................................... 272.8 218.8 283.4 243.8

Health Care ..................................... 212.2 205.6 169.8 179.6

Inpatient ........................................ 275.3 272.2 226.7 246.8

Outpatient ..................................... 84.7 124.4 60.9 115.3

Lodging ........................................... 92.3 109.0 96.9 103.7

Retail (Other Than Mall)................... 65.0 102.7 68.7 63.2

Office .............................................. 101.2 108.8 87.0 72.1Public Assembly .............................. 89.2 101.7 93.2 91.2

Public Order and Safety .................. 132.5 105.9 113.1 Q

Religious Worship ........................... 52.1 52.8 38.3 27.6

Service ............................................ 79.8 85.0 66.3 80.0

Warehouse and Storage ................. 41.6 74.7 26.7 39.0

Energy Intensity for

Sum of Major Fuels(thousand Btu/

square foot)


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Energy Audits

1. Self-performed, Focused Audits Focused on a given opportunity Develop specific improvement opportunities Attempts to identify true cost of operation May consider life-cycle costs Look to external resources for some help

2. Investment Grade Audit Business Case Performed by a third party Comprehensive review of all equipment and processes Will focus on energy consuming items and their control Will review 3 years of maintenance records Will consider age of equipment, operating life expectations,

options for equipment replacement Focused on least life-cycle cost, NOT lowest first-cost


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Interviews Ask the operators, maintenance supervisors,

floor supervisors. Understand the operation and seekinefficiencies, deferred maintenance, and ongoingproblems.

Initial Walk-through Understand the overall operation.

Gather Data Nine major systems

1. Building envelope2. Boiler and steam distribution

3. HVAC equipment

4. Electrical supply system

5. Lights, windows and reflective surfaces

6. Hot water distribution7. Air compressors and air distribution

8. Motors

9. Manufacturing processes

Performing an Energy Audit


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FIVE FOCUS AREAS






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Efficiency of Equipment

Efficiency of Equipment and Processes

1. Impact of Maintenance Procedures

2. Control Systems

3. Use of Upgrades

4. Alternate Fuel Sources5. Procurement of New Equipment

6. Measurement & Verification


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Maintenance Procedures

1. Corrective Maintenance

Must be timely

Must be done correctly the first time

2. Preventative Maintenance Be proactive to avoid problems

Tends to reduce overall maintenance costs

What is the value in this? Contrast to KPI


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Control Systems

1. Are controls in place and working Are controls in Manual? Identify problems with the control system Can the controls be repaired? Too old, needs an

upgrade?

2. What capabilities will new controls provide Can additional systems be monitored and controlled? Allow for more information and trending to make better

control decisions? Provide the ability to part-load various systems?


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System Upgrades

1. Lighting

2. Over-sized Equipment

3. Motors (Fans and Pumps) & VFDs

4. Advanced controls5. Steam trap replacements

6. Condensing boilers

7. Insulation

8. System redesign


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Alternate Fuels and

Procurement of New Equipment

1. Alternate Fuels

Dual fuel capability

Back-up supply with multiple sources

Manage fuel market pricing

2. Procurement of New Equipment

Use life-cycle costs, NOT just first cost

Incorporate operating costs as selection criteria

Specify energy efficient standards in RFPs


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Measurement & Verification

1. Continuously track over time

Utilize reporting capabilities of the control system

Maintain monthly, daily logs of critical equipment

Assign costs to equipment, processes, and functions

2. Provides data to verify claims of outsourced services

3. Provides data to solidify a business case to seniormanagement


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FIVE FOCUS AREAS






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Organizational Integration

Put Energy In Front of Everyone

1. Energy Manager Drive it!2. Awareness by ALL3. Energy is controllable Manage it!4. Employee impact on energy Training

5. Include energy impact in outsourced services6. Have a budget for energy management7. Develop funding options early8. Develop impact goals and communicate results9. CREATE AN ENERGY MANAGEMENT MANDATE!!!


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Processes Programs ProjectsAccessible 0% Load Profiles 0% Sub-Metering 0%

Monthly Bills 0% Interval Data 0%

Benchmark & KPI 0%

Reporting 0%

Error Resolution 0% Supplier Choice 0% Demand - Supply Optimize 0%

Rate Optimize 0% Reliability & Quality 0% Risk Management 0%

Account Management 0%

Walk Through 0% Diagnostic Audit 0% DE Audit 0%

Benchmark & Rank Facilities 0% Operating Procedures 0% Commissioning 0%

On-going Monitoring 0%

Corrective Maint 0% Preventive Maint 0% System Upgrades 0%

Systems Control 0% Lighting Upgrades 0% Standards 0%

Alternate Fuels 0% New Technology 0%

System M&V 0%

Awareness & Participation 0% Energy Planning 0% Project Approval 0%Defined Energy Manager Role 0% Performance & Training 0% Results Auditing 0%

Resource Mgmt 0% Financial Impact & Incentives 0%

Budget Preperation 0% Accountability 0%

Organizational

Integration

Data

Supply

Use

Equipment

Adapted from GEM Management Consultants, Inc.

Scoring Your Energy Strategy


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i


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Processes Programs ProjectsAccessible 0% Load Profiles 0% Sub-Metering 0%


Benchmark & KPI 0%

Reporting 0%





Benchmark & Rank Facilities 0% Operating Procedures 0% Commissioning 0%On-going Monitoring 0%



Alternate Fuels 0% New Technology 0%

System M&V 0%

Awareness & Participation 0% Energy Planning 0% Project Approval 0%Defined Energy Manager Role 0% Performance & Training 0% Results Auditing 0%


Budget Preperation 0% Accountability 0%

Organizational

Integration

Data

Supply

Use

Equipment

Processes Programs Projects

Access ible 100% Load Profiles 100% Sub-Metering 100%


Benchmark & KPI 100%

Reporting 100%





Benchmark & Rank Facilities 100% Operating Procedures 100% Commissioning 100%On-going Monitoring 100%



Alterna te Fuels 100% New Technology 100%

System M&V 100%

Awareness & Participation 100% Energy Planning 100% Project Approval 100%

Defined Energy Manager Role 100% Performance & Training 100% Results Auditing 100%


Budget Preperation 100% Accountabilit y 100%

OrganizationalIntegration

Data

Supply

Use

Equipment


D l i h S i E Pl


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The Strategic Energy Plan is a

work in progress. It is a living document that is

reviewed, and updated on aregular basis.

It offers direction to the EnergyManager on daily basis.

It outlines aggressive, achievable,measurable, time sensitive goals.

Results are reported to seniormanagement on a quarterly basis.

Alternate Appendices can include:

Audit results

Financial Assessments List of past successes and WIP

Developing the Strategic Energy Plan

D l i th St t i E Pl


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Selling The Plan

Be the expert you know moreabout this topic than anyoneelse in the room. Be confidentin your message.

Use visual aids and giveexamples from the information

that you have gathered. Emphasize the importance thateveryone in the organizationcan affect the energy spend.

It is critical that seniormanagement endorses, andlives the mandate.

Be the cheerleader!

Developing the Strategic Energy Plan

I l i h S i E Pl


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What data are needed

How to organize the data How to communicate the information

How to obtain funding for changes

Implementing the Strategic Energy Plan


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P Fl h t


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Process Flowchart

Wh t D t A T B K t


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What Data Are To Be Kept

What is Critical To Success forthe chosen opportunity?

Identify the data thatcommunicates your CTS

What Goals have beenestablished?

Identify the data thatcommunicates and quantifies yourgoals

80% / 20% Rule! Prioritize! Identify the opportunities with most

impact

Dont bite off more than youcan chew!

This is a process!

Eat the elephant one bite at atime A series of continuous

improvements STAY FOCUSED!

Communicate the Data!


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Communicate the Data!

Effect

Cause

1

Cause

3

Cause

5

Cause

4

Cause

2

Team must see the data

Team must own the data Administrators must understand

the data

Illustrate the data in a way tosupport the goals

Communicating Energy Profiles


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Communicating Energy ProfilesCost by Energy Commodity

Communicating Energy Profiles


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Communicating Energy ProfilesCost by Function

Looking For Opportunity Buildings


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Commercial Building - Energy End-Use Consumption

Total Electric Other Fuels

Space Heating 28.2% 2.8% 25.4%

Lighting 19.8% 18.4% 1.4%

Water Heating 12.1% 2.1% 10.0%

Space Cooling 8.6% 7.9% 0.7%Office Equipment 4.6% 4.3% 0.3%

Cooking 4.3% 0.4% 3.9%

Ventilation 4.0% 3.7% 0.3%

Refrigeration 3.1% 2.9% 0.2%

Computers 2.4% 2.2% 0.2%Other 12.8% 4.3% 8.5%

Total 100.0% 49.0% 51.0%




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Rank Buildings by:

Total $ Spent Total kBTU

$ per Sq Ft

Energy Use Index kBTU / Sq Ft

Prioritize Opportunity based on Team Goal Reduce cost focus on highest cost building

Make buildings more efficient focus on EUI

Identify the first building to improvements



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Looking For Opportunity Vehicles


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Looking For Opportunity Vehicles

Looking For Opportunity Lighting


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Looking For Opportunity Lighting

Rank Outdoor Lighting by: Total Energy $ Spent Total Energy $ per Fixture Total Energy $ per Sq Mile or $ per Linear Mile Number of Maintenance Calls per Fixture Average life of lamps & ballasts

Prioritize Opportunity based on Team Goal

Reduce cost focus on highest cost fixture types Energy costs Maintenance costs

Reduce maintenance requirements increase lamp andballast life

Identify the first outdoor lighting system to obtain

improvements


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Looking For Opportunity


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What are the implications to the organization?

Define the improvement opportunity Result in energy savings?

Result in maintenance savings?

Result in improved quality of service?

Result in improved comfort levels?Develop a plan for implementation

What will be done & Who will do it? (Implement)

Determine the data needed to quantify change. (Control)

Determine the frequency of data collection. (Control)

Looking For Opportunity

Funding Improvements


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Funding Improvements

Fund out of Operating Budget Piecemeal approach Cross over two fiscal periods to double the impact

Bond Issue Unallocated bond issue dollars available Need voter approval, and appears as debt

Tax Exempt, Lease-Purchase Funding

Legislation allows for up to 15 year lease-purchase Appears as an expense item, no voter approval needed Guaranteed* savings will cover the lease payment

* A clear understanding of what is guaranteed isrecommended. Ask about calculations, stipulations and

assumptions for energy, operational savings and avoidedcapital.

The Continuing Question is


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The Continuing Question is

Do you have the Time, Money and Expertiseto:

Conduct a thorough energy analysis? Determine necessary improvements from energy and facilities

analysis?

Make the improvements?

Construction Options
http://images.google.com/imgres?imgurl=http://www.ekmillerproductions.com/images/cartoons/hulme_dollar_lg.gif&imgrefurl=http://www.ekmillerproductions.com/hulme_dollar.htm&h=464&w=600&sz=56&hl=en&start=5&tbnid=r0iaJr7IKymjjM:&tbnh=104&tbnw=135&prev=/images%3Fq%3Ddollar,%2Bcartoon%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://www.aha-engineers.com/AHAWeb2004/Projects/Sunmech-1.jpg&imgrefurl=http://www.aha-engineers.com/&h=510&w=377&sz=53&hl=en&start=17&tbnid=sGSE1dC3XFW7UM:&tbnh=131&tbnw=97&prev=/images%3Fq%3Dengineers%26svnum%3D10%26hl%3Den%26lr%3Dhttp://images.google.com/imgres?imgurl=http://myteacher.dvusd.com:81/pictures/Rschulz/CLOCK.jpg&imgrefurl=http://mayorsam.blogspot.com/2005_02_01_mayorsam_archive.html&h=331&w=322&sz=17&hl=en&start=6&tbnid=lpmf-_5IUlimcM:&tbnh=119&tbnw=116&prev=/images%3Fq%3Dclock%26svnum%3D10%26hl%3Den%26lr%3D


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Construction Options

Design-Bid-Build First Cost Driven

Performance Contracting Lifecycle Cost Driven

Traditional Design-Bid-Build


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Budget

Appropriate

Design

Review

Costs

Bid

Reduce Scope

Build

Identify

Need

Classic

Procurement

Cycle

Value = Cheap delivery system

Traditional Design Bid Build



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Budget

Appropriate

Identify

Need

Classic

Procurement

Cycle


Reduction in scope from funding shortfalls



80/95


Budget

Appropriate

Design

Identify

Need

Classic

Procurement

Cycle

Designed to first cost budget; little or no

consideration of long-term performance



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Budget

Appropriate

Design

Review

Costs

Bid

Reduce Scope

Identify

Need

Classic

Procurement

Cycle

g

Contractor not bound to design or operational intent



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Budget

Appropriate

Design

Review

Costs

Bid

Reduce Scope

Build

Identify

Need

Classic

Procurement

Cycle

g

Change orders & claims:Contractor not vested in operations



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Budget

Appropriate

Design

Review

Costs

Bid

Reduce Scope

Build

Identify

Need

Classic

Procurement

Cycle

g

More symptoms, exchange old problemsfor new set of problems

Performance Contracting


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Budget

Appropriate

Campus Audit

Commissioning

Identify

Need

Design /Build

Performance Metrics

The

PCCycle

Change

Course

Value = Outstanding performance per $$ spent

g



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Budget

Appropriate

Identify

Need

The

PCCycle

Change

CourseCampus Audit

g

Energy and facility audit to determine needs andopportunities consistent with Energy Strategy!



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Budget

Appropriate

Campus Audit

Identify

Need

Design /

The

PCCycle

Change

Course

g

Designed for operational and lifecycle performance



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Budget

Appropriate

Campus Audit

Identify

Need

The

PCCycle

Change

Course

Design /Build

g

ESCO is responsible for entire projectsingle source accountability



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Budget

Appropriate

Campus Audit

Commissioning

Identify

Need

Design /Build

The

PCCycle

Change

Course

Commissioning and verificationof project performance after construction



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Budget

Appropriate

Campus Audit

Commissioning

Identify

Need

Design /

Build

Performance Metrics

The

PCCycle

Change

Course

The ESCO is your partner for the long term:15 year performance guarantee

Contrasting The End Result


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Design Bid Build

Increased Project Scope due to Design Criteria Over-sized Equipment, ductwork & Piping Systems

Little Re-use of Existing Systems

Wasted Construction Dollars

Inefficient Systems Selection Based on First Cost not Lifecycle = Higher Lifecycle Cost

High Cost to Operate and Maintain

Multiple Parties of Responsibility

Finger Pointing, no Resolution

Project Cost Control

Driven by Budget, last minute Slash & Burn

Contrasting The End Result


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Performance Contract

Minimum Project Scope to Accomplish Results, noWaste

Maximize use of Construction Dollars = Lower TotalProject Cost

Guaranteed Operational Performance

Low Cost to Install, Operate and Maintain

Single Source of Responsibility, no Finger Pointing,Issues Resolved

Project Cost Control

Driven by Best Value, Savings must Justify Cost

Working the Strategy!


93/95


Organize a team of devoted believers

Realize the teams limitations and develop thenecessary skills

Identify a purpose that can be supported by thedecision makers

Measure the existing conditions audit and interview

Analyze and contrast to benchmarks

There are risks and costs to a program of action,but they are far less than the long-range risks

and costs of comfortable inaction.- John F. Kennedy

Working the Strategy!


94/95


Identify opportunities

Collect data to quantify the impact of change Improve conditions through implemented changes Control the environment and evaluate the outcome Identify the effectiveness of the change

Correct false assumptions

Make adjustments in behaviors and equipment Make corrections for organizational environment Standardize procedures Communicate the results and leverage to others

GO TO TOP! IDENTIFY THE NEXT OPPORTUNITY!

Result of a Successful Strategy


95/95

Reduce the amount of dollars given to utilities, fuel

suppliers, and maintenance contractors Inefficient operation

Ineffective operation

Improved environmental and operating conditions

Improved air quality

Improved sound quality

Healthier work environment

Behavior modification of most stakeholders

Determination to maintain long-term improvements

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