Jerry Eaton, P.E., CEM, CPE

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Jerry Eaton, P.E., CEM, CPE

• Principal,
• Masters Academy, LLC
• President,
• Wisconsin Chapter of the AEE

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Discussion Topics

• Industrial Best Practices
• Wisconsin Chapter of the Association of Energy
  Engineers (WAEE)
• Upcoming Energy Management Training
• Focus on Energy Scholarship

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Definition of Energy Management

• The judicious and effective use of energy to
  maximize profits (minimize cost) and enhance
  competitive positions.
• Source Association of Energy Engineers (AEE)
• An effective energy management program must be
  given the same emphasis as the management of any
  other cost/profit/operating center.

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Electric Rates - Residential
Electric rates are increasing at 8/year year
after year
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Natural Gas Prices
NG price continues to go up an average 10/year
after year
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Energy Intensity The amount of energy to produce
1 of goods
Energy/GNP (MJ/)
DOE-EIA 2004
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Energy Use by Sector
Industrial Sector Uses 37 of U.S NG demand 29
of U.S. electricity demand Produces 30 of U.S.
greenhouse gas emissions The industrial sector
consumes more energy than any other G8 nation.
2004 Energy Use 100.3 Quads Quad 1015 BTUs
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Staying Competitive
According the U.S. Department of Energy the
industry sector can achieve practical energy
reductions of over 20. About 30 of these
savings can be achieved with little or no capital
investment by procedural and behavioral changes.
Recovering wasted industrial energy is an
opportunity for U.S. manufacturers to improve
financial performance in a globally competitive
marketplace.
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A Typical Energy Management Program
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Industries Perception of Energy Management

• Energy is just another cost of doing business -
  OVERHEAD
• We have an energy management program because
• We have a (part-time) energy manager.
• We have an energy policy.
• We have completed energy projects.
• We purchase our energy through an energy
  marketer.
• We know it is important, but right now it is
  all about production!

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The Typical Energy Manager A Person of
Many Hats

• Facilities
• Security
• Janitorial
• Buildings and Grounds
• Maintenance
• Utilities
• Environmental
• Safety
• and oh yeah, ENERGY

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Traditional vs. Systematic Approach
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Case Study Mercury Marine

• A 2.3 billion division of Brunswick Corporation,
  headquartered in Fond du Lac Wisconsin Mercury
  Marine provides engines, boats, services and
  parts for recreational, commercial and government
  marine applications.
• Case study articles
• Where Savings Float the Boat (2005,
  DOE-Alliance to Save Energy)
• Efficiency and Innovation in U.S. Manufacturing
  Energy Use (2005, National Association of
  Manufacturers)
• Navigating Energy Management (2005, Conference
  Board)
• A Team Based Approach to Energy Management (2007,
  Focus on Energy, Masters Academy, SAIC)

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Case Study Mercury Marine

• From 1999 to 2005
• Central Facilities Manager was assigned the
  collateral duty of energy management
• Energy management was just a project-by-project
  program
• Results
• Saved 23 million kWh and reduced demand by 2.5
  MW
• 2003 Benchmarked using Envinta program (1.8
  stars)
• - No culture, No plant-wide accountability
• 2005 Back-charged actual cost electric, gas,
  compressed air to the facilities Benchmark score
  improved (2.4 stars)

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Benchmarking Your Energy Management Culture

• EnVINTA provides powerful tools that have been
  developed for energy utilities and energy
  efficiency government agencies to use with their
  commercial and industrial customers.
• One-2-Five Energy program incorporates a
  comprehensive international benchmarking service
  which compares your One-2-Five Energy results
  with similar organizations around the world.
• One-2-Five demonstrates where opportunity exists
  to improve your energy management program.

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EnVINTA Provides Useful Benchmarking Tools
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Case Study Mercury Marine

• Transitioning to a Strategic Energy Management
  Program
• October 2005 - Formed the Energy Department
• Full-time Director of Energy and Utilities
• Two project managers, controls manager, and
  electrician
• Goal of reducing energy consumption by 10 million
  kWh (equivalent)
• Goal of 3 stars for 2006 Envinta benchmark

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Case Study Mercury Marine

• 2006 Results
• Trained all Plant Managers and Energy Champions
• Energy Management policy signed by CEO, Chief of
  Staff, and Director of Corporate Facilities
• Plant Managers and Energy Champions implemented
  energy awareness programs and SOPs supporting the
  policy.
• Established Key Performance Indicators with the
  use of LSS tools for each facility.
• Procedure and performance metrics drives
  improvement.
• Plant Managers held accountable for achieving
  energy goals.

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Case Study Mercury Marine

• 2006 Results cont.
• Plants and senior staff has energy as an agenda
  item at their staff meetings.
• The floor conducts tool box meeting with energy
  topics.
• SOPs were reviewed and updated with regard to
  energy efficiency.
• Energy ideas were now being submitted from all
  areas.
• 5 major in-house energy audits were completed.
• Equipment standardization guidebooks were
  developed .
• Saved 10.6 million kWh and reduced demand by 1.3
  MW
• The energy culture started taking shape!

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Case Study Mercury Marine

• 2006 Results cont.
• Awards and recognition
• Governors Award for Energy Efficiency
• Various articles
• Compressed Air Leak Challenge winners
• Envinta benchmark resulted in 4.1 stars (Dec06).
  Top 3 of 1300 companies completing this
  program.
• Current status Energy Management Program
  extended to all North America Facilities.

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Final Thoughts
Mercury Marine made a commitment to establishing
a strategic energy management program. What took
7 years to accomplish could now be achieved in 2
years or less with this strategic energy
management approach. With the culture in place,
the reductions are accelerating.
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Association of Energy Engineers (AEE)

• Founded in 1976 by Al Thumann
• The mission of AEE is to promote the scientific
  and educational interests of those engaged in the
  energy industry and to foster action for
  Sustainable Development.
• AEE is a nonprofit professional society of 8,500
  members, 67 chapters in 77 countries.

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Wisconsin Chapter of the Association of Energy
Engineers - WAEE

• Founded in February 2007 by Jerry Eaton and
  Richard Feustel
• WAEE was chartered in May 2007, with over 75
  members.
• WAEE seeks topics of mutual interest to it's
  members addressing specific areas of energy
  engineering, efficiency and management.

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WAEE - Discussion Topics

• Geothermal systems Toured FDL High School
• Zero-Emission Homes, Solar panels, Solar Hot
  Water, Blower Door Test, Residential energy
  efficiency components Toured Zero-Emission Home
• Compressed Air Best Practices Toured Mercury
  Marines Central Compressed Air System
• Industrial Manufacturing Toured Mercury
  Marines Lost Foam Casting and Propeller
  Facilities
• Focus on Energy Grant programs and PSC Toured
  Alliant Energys Maintenance Facilities
• Utility Reliability and Generation Toured
  Alliant Energys 100MW generator facility

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WAEE - Meeting Dates and Topics

• Normally the 4th Wednesday of the month
• 11am 1pm (meet over lunch)
• Future Meetings
• Aug 29 Motor and VFDs (Werner Electric, Neenah)
• Sep 26 (Brewer Game-Dew Deck)
• Oct 24 (Tentative Waukesha Hospital)
• Nov 28 Energy Technology (University of
  Wisconsin, Madison)
• Jan 23 (MSOE-Milwaukee School of Engineering)

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Wisconsin Chapter of the Association of Energy
Engineers
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Energy Management Training Course

• Learn to find and how to act on energy saving
  opportunities in your business
• Comprehensive 5-day course
• Optional Certified Energy
• Manager (CEM) Exam provided
• Focus on Energy is offering a 200 scholarship to
  employees of Wisconsin manufacturers in eligible
  utility service areas for completing the course.
• BONUS
• Receive the remainder of your tuition expense
  when you implement an energy efficiency project
  that saves enough energy to pay for the tuition
  cost.

FREE Training!
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Its Your Business Master it!

• Providing innovative solutions for transforming
• Costs into Profits
• Concepts into Reality

• Specializing in
• Energy Engineering
• Project Management
• Facility Services
• Professional Training

www.mastersacademy.biz
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Its Your Business, Master it!

• Jerry Eaton, PE, CEM, CPE
• www.MastersAcademy.biz
• 800-390-4366

Service-Disabled Veteran-Owned Business (SDVOB)