Understanding Utilities

1
Understanding Utilities Darin Nutter, Ph.D.,
P.E.University of Arkansas April 27, 2005
2
Objectives

• Benefits from increased utility awareness
• Difference between energy and power
• Benefit of benchmarking
• Potential levels of cost savings

3
Benefits

• Frees dollars for maintenance and custodial
  services
• Leads to improvements
• Student learning environment
• Building performance
• Decisions related to building operations
• Understanding outside solicitations
• Conservation saves
• Money (s)
• Energy (Btus)
• Environment (land and air)

4
MO Expenditures
American School and University, April, 2004
5
MO Budget Split
American School and University, April, 2004
6
Utility Bill Breakdown

• Water
• usage charge ( per 1000 gallons)
• sewer charge ( per 1000 gallons)
• Natural Gas
• usage charge ( per ft3)
• transportations and adjustments
• Electricity
• usage charge ( per kWh)
• Power (or demand) charges ( per kW)
• other unique clauses

7
Energy Consumption for Educational Buildings
Energy Information Administration, 2003
8
Electric Utilities

• Primary Energy Sources in AR (EIA, 2002)
• Coal (48.5)
• Nuclear (30.6)
• Natural Gas Fuel Oil (10.0)
• Hydroelectric (7.2)
• Other Renewables (3.3)
• Other (0.4)
• Electrical prices and rate schedules vary because
  of primary energy source and utility capacity.
• Each has unique rate (i.e., cost structure)

9
Energy vs. Demand

• Energy is consumption (kWh, Btu, ..)
• Power (demand) is the rate at which energy is
  used.
• Electrical power is analogous to water flow
• garden hose 100 minutes _at_ 2 gpm 200 gal
• fire hose 1 minute _at_ 200 gpm 200 gal

10
Energy vs. Demand (cont.)
11
Limited Electrical Capacity

• How fast you consume the electricity
• Power plants provide most electricity on the
  hottest day and coldest night
• Many power plants have auxiliary equipment for
  extreme days

12
Electrical Demand Charges

• Monthly peak charge
• Separate charge for inconsistent usage

13
Fruitcakes!!
14
Utility Costs for Education Buildings
American School and University, April, 2001
15
Benchmarking Defined

• Process of systematic and continuous measuring
  and comparing ones business processes against
  comparable processes in leading organizations to
  obtain information that will help organizations
  to identify strengths and weaknesses of their
  existing performance.

16
Benchmarking Process

• Identify key variables
• Select good comparable sources
• Collect and measure performance data
• Normalize and adjust to meaningful data
• Analyze data
• Change and improve performance

Yam, R., et al., JQME, 2000, Vol. 6(4), 224-240.
17
Traditional Process
Power Plant School Building
Utility Bill Accounts Payable
18
Process with Feedback
Accounts Payable
Power Plant School Building
Utility Bill
Facilities Manager
Information Feedback Loop
19
Benchmarking/Tracking/Trending

• Understanding your utilities through benchmarking
  can provide
• General condition of building performance
• Immediate focus to key buildings or campus
• Justification for future modifications/upgrades
• Targets for future energy usage
• Confidence in decision making

20
Benchmarking Key Parameters

• /ft2
• energy/ft2 kBtu/ft2 or kWh/ft2
• Power usage
• Load factors
• Efficiencies
• Others

21
Utility Benchmarking

• Immediate savings opportunities
• Water leaks
• Gas leaks
• Billing errors
• Changes in utility rate structure
• On/off scheduling
• Others become obvious

22
Pilot Tracking/Trending Program
23
AR High School Natural Gas Usage
24
Electrical Usage for Two AR Schools
25
Savings Opportunities

• 5-15 little to no-cost, slight effort
• Benchmarking
• Tracking and trending
• Personnel Education
• Personnel Awareness
• Better operational habits
• Improved maintenance
• On/off strategies
• Top-down approach

26
Savings Opportunities (cont.)

• 15-30 moderate cost, moderate effort
• Increased use of technology
• Timers, controls, sensors
• Centralized scheduling
• New lighting types

27
Savings Opportunities (cont.)

• gt30 high cost, significant effort
• High efficiency equipment
• Building automation systems
• Variable-speed systems
• Major retrofits

28
Questions