Advisory Board Quarterly Meeting First Quarter FY10 Presented to - - PowerPoint PPT Presentation

Metro Nashville

DISTRICT ENERGY SYSTEM

Advisory Board Quarterly Meeting First Quarter FY10

Presented to District Energy Advisory Board November 19, 2009

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Metro Nashville

DISTRICT ENERGY SYSTEM

Agenda

1. Call to Order 2. Review & Approval of Previous Meeting Minutes 3. Review of DES Contractor Performance 4. Natural Gas Purchasing Status 5. Financial Reports – 1st Qtr FY10 6. FY09-10 Budget Status Report 7. Capital Projects Review and Status Report 8. DES Emergency Response Plan 9. Adjourn

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Metro Nashville

DISTRICT ENERGY SYSTEM

• 1. Call to Order
• 2. Review and Approval of Previous

Meeting Minutes

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Metro Nashville

DISTRICT ENERGY SYSTEM

Excellent Performance – No Improvement Necessary Satisfactory Performance – Some Improvement Could Be Made Poor Performance – Much Improvement Necessary

• 3. Review of DES Contractor

Performance

Contractor (CNDE) is in compliance with their contractual

• bligations for FY10.

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Summary Table 3: Customer Cost Comparison for the Previous 12 Months

Steam ($ millions) Chilled Water ($ millions) 10/07 –9/08 10/08- 9/09 % Diff. 10/07 –9/08 10/08- 9/09 % Diff. Private $2.350 $2.197

• 6.5%

$3.884 $3.564

• 8.2%

State $2.898 $2.805

• 3.2%

$3.224 $3.213 <1% Metro $2.701 $2.636

• 2.4%

$3.055 $3.053 <1% Aggregate $7.950 $7.638

• 3.9%

$10.163 $9.830

• 3.3%

*FY08 MFA = $2,193,075; FY09 MFA = $3,217,986 post-True-up; MFA not included in values shown

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Metro Nashville

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FY10 Operations: Steam

100 200 300 400 500 600 700 800 900 1,000 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 HDD P

• u

n d s

• f

S t e a m

Sales Sendout Losses HDD

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Metro Nashville

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FY10 Operations: Chilled Water

50 100 150 200 250 300 350 400 450 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 CDD T

• n

h r s

Sales Sendout Losses CDD

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Metro Nashville

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Performance Measurement FY10: Steam

Electric Conversion

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 k W h r / M l b

GMQ Elec to Steam FY09-FY10 Actual Elec to Steam FY09-FY10

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Metro Nashville

DISTRICT ENERGY SYSTEM

Performance Measurement FY10: Steam

Plant Efficiency

0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 D k t h e r m / M l b

GMQ Fuel to Steam FY09-FY10 Actual Fuel to Steam FY09-FY10

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Metro Nashville

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Water Conversion

Performance Measurement FY10: Steam

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 G a l l

• n

s

• f

W a t e r

GMQ Water to Steam FY09-FY10 Actual Water to Steam FY09-FY10

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Metro Nashville

DISTRICT ENERGY SYSTEM

Performance Measurement FY10: Chilled Water

Electric Conversion

0.00 0.20 0.40 0.60 0.80 1.00 1.20 k W h r / t

• n

h r

GMQ Elec to CHW FY09-FY10 Actual Elec to CHW FY09-FY10

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DISTRICT ENERGY SYSTEM

Performance Measurement FY10: Chilled Water

Water Conversion

1 2 3 4 5 6 g a l / t

• n

h r

GMQ W ater to CHW FY09

• FY10

Actual W ater to CHW FY09

• FY10

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Metro Nashville

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Water Treatment

• Steam/Condensate

– Corrosion – Iron – Hardness – Chlorine/Sulfite

• Condensing Water

– Conductivity – Biologicals

• Chilled Water

– Hardness – Corrosion – Biologicals

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Metro Nashville

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EGF Walkthrough Quarterly Inspection Process

• Equipment Maintenance
• Operations
• Electrical
• Housekeeping
• Building Structure
• Building Exterior and Grounds

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Metro Nashville

DISTRICT ENERGY SYSTEM

EDS Walkthrough Quarterly Inspection Process

• Manhole/Tunnel Housekeeping
• Maintenance Items

– Insulation Repair/Replacement – Water Infiltration – Corrosion of Structural Metal Components

• Safety Items

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Metro Nashville

DISTRICT ENERGY SYSTEM

• 4. Natural Gas Purchasing

Natural Gas Purchasing Review

Table 4: FY10 Gas Spending & Budget Comparison Figure 4: Actual and Projected Gas Cost Comparison for FY10

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DISTRICT ENERGY SYSTEM

Table 4: FY10 Gas Spending & Budget Comparison

Actual FY10 To date (Sept 30) Budget FY10 Steam Sendout (Mlbs) 40,821 39,655 Fuel Use (Dth) 57,844 57,500 Plant Eff (Dth/Mlb) 1.413 1.450 Total Gas Cost $356,454 $564,995 Unit Cost of Fuel ($/Dth) $6.162 $9.826

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Actual and Projected Gas Cost Comparison for FY10

$ - $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 Actual & Projected Unit Costs Budgeted Unit Costs Market Unit Price

FY07 FY08 FY09 FY10 FY08 FY09

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• 5. Financial Reports: 1st Qtr FY10

Item F Y10 Total E xpens es Percent of Budget to Date F Y10 Budget FOC: Bas i c 3,976,200 $ 963,043 $ 24.22% FOC: 9th Chi l l er 37,200 $ 9,024 $ 24.26% FOC: Change Order 6A 73,400 $ 17,816 $ 24.27% FOC: Change Order 6B 64,300 $ 15,597 $ 24.26% Chem i cal s 161,200 $ 37,896 $ 23.51% E ngi neeri ng 26,200 $ 3,801 $ 14.51% Ins urance 43,700 $

• $

0.00% M arketi ng: CE PS Sal es A cti vi ty 9,800 $

• $

0.00% M etro M arketi ng 35,000 $ 5,212 $ 14.89% Incenti ve Paym ents

• $
• $

n.a. Proj ect A dm i ni s trati

• n

24,000 $

• $

0.00% M etro Increm ental Cos t 526,400 $ 94,387 $ 17.93% FE A : Steam

• $

14,041 $ n.a. FE A : Chi l l ed Water

• $

113,028 $ n.a. A RFA

• $

13,987 $ n.a. M etro Credi t

• $

(140,933) $ n.a. Water/Sewer 689,600 $ 127,546 $ 18.50% Natural Gas /Propane 4,692,900 $ 355,953 $ 7.58% E l ectri ci ty 5,034,100 $ 1,264,600 $ 25.12% E DS Repai r & Im provem ent 176,500 $ 35,648 $ 20.20% E DS Surcharge 70,600 $

• $

0.00% S ub-total Operations 15,641,100 $ 2,930,645 $ 18.74% 2002 Bonds 4,362,900 $ 1,090,698 $ 25.00% 2005 Bonds 627,600 $

• $

0.00% FY07 Proj ects 227,800 $

• $

0.00% FY08 Proj ects 220,500 $

• $

0.00% Debt Servi ce Interes t Revenue (123,700) $ (154) $ 0.12%

• Oper. Res erve Fundi

ng Depos i t

• $
• $

n.a. S ub-total Debt S erv ice 5,315,100 $ 1,090,544 $ 20.52% Total E xpens es 20,956,200 $ 4,021,189 $ 19.19% Cus tomer Rev enues 18,512,100 $ 3,543,483 $ 19.14% Total M etro F unding Amount 2,444,100 $ 477,706 $ 19.55%

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• 6. FY2009-2010 Budget Status Review

Spent to End of FY09 FY10 Spending Balance to Date (09/30/09) R&I Projects $764,130 $35,648 $485,062 2005B Bond $7,920,090 $5,604 $260,807 2007 Bond $2,620,771 $0 $237,729 2008 Bond $1,846,622 $1,023,574 $8,304 2010 Bond $0 $6,088 $2,403,912 Total $10,530,842 $1,070,914 $3,395,814

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• 7. Capital Projects Review

Active Capital Projects

• DES 041/054: Symphony CND – closed
• DES 044: STM Repair & CND Replacement MH 5 to MH 9 – closed
• DES 0441: Modification of Manhole 9 - closed
• DES 046: Ryman CND – closed
• DES 050: MH Insulation – in construction/ongoing (DES 060 in FY 2010)
• DES 051: Replacement of 4th Avenue Tunnel Condensate Slip Joint - closed
• DES 055: Rebuild of MH “C” – closed
• DES 056: STM Repair & CND Replacement to Citizen’s Plaza – closed
• DES 057: STM & CND Valve Replacement: Phase I & II – closed

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Metro Nashville

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FY 2010 Proposed Projects

• DES 048: Tunnel Lighting Replacement Phase III
• DES 059: CJC Steam & Condensate Line Replacement – in design
• DES 060: MH Insulation – in construction/ongoing
• DES 061: Manhole & Tunnel Steel Corrosion Repair & Prevention
• DES 062: Wildhorse Stm & Cnd Line Replacement – in construction
• DES 063: Sump Pump Installation in MH A, B & M – currently bidding
• DES 067: Tunnel Rock Repair – in design
• DES 068: St Mary’s Condensate Tempering
• DES 069: Municipal Auditorium Condensate Tempering
• DES 070: MH 6 to 23 Condensate Line Replacement – in design
• DES 071: Hermitage Hotel Service Modifications
• DES 072: Sheraton Hotel Steam and Condensate Replacement

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Metro Nashville

DISTRICT ENERGY SYSTEM

Music City Center & New Hotel DES Location

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Metro Nashville

DISTRICT ENERGY SYSTEM

Proposed Music City Center & New Hotel

• Music City Center

– 3,500 tons – 35,000 pph

• New Hotel

– 1,500 tons – 18,000 pph

• Est $1,500,000 (~55% ) Reduction in MFA
• No Impact on Existing Customers
• New Load Approaches EGF Capacity Limit

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• 8. DES Emergency Response Plan
• Metro Business Continuity and

Disaster Recovery Plan

• Constellation Energy Emergency

Response Plan

• Customer Response Plans

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Metro Nashville

DISTRICT ENERGY SYSTEM

Metro Disaster Recovery Plan

• Communications Between

– Metro – CEPS – TEG – Customers

• EGF/EDS Functionality
• Relocation of Command
• Continuity of Services
• Priority Customers

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CEPS Emergency Response Plan

• Emergency Response

– Localized and Minor – Affecting Service from EGF – City-wide

• Communication (CEPS/Metro/TEG/Vendors)
• Damage Assessment
• Temporary Service
• Priority Customers

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Metro Nashville

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Customer Response Plans

• Customer HVAC Requirements in an Emergency
• Temporary Service Connections

– Localized Service Only – EGF/EDS Non-functional

• Priority Customers

– Criminal Justice Center – Metro Library – AA Birch/Courthouse – Hotels and Convention Center – State Buildings

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• 9. Adjourn