Doing More With Less PA Act 39 Guaranteed Energy Savings Act 1 - PowerPoint PPT Presentation

Doing More With Less PA Act 39 – Guaranteed Energy Savings Act 1 Johnson Controls, Inc. Pg 1 Pg 1

Agenda  Introductions  Performance Contracting Definition  Key Issues  Process steps to date  Proposed Project  Project Cost & Savings  Project Benefits  Question & Answer 2 Pg 2 Pg 2

Energy Performance Contracting  Bundle of Infrastructure upgrades – MEP, HVAC, IT  Reduced energy usage & increased revenue (PJMDR)  Reduced operating and maintenance costs  Reduced emissions & environmental impact  Infrastructure upgrades costs are offset by the annual savings and revenue that is produced  Fund deferred maintenance & capital improvements  Solve HVAC related problems in buildings In short, Performance Contracting is a procurement tool that allows the district to use energy savings to offset the cost of infrastructure improvements. In the enabling legislation is PA Act 39, 2010. 3 Pg 3 Pg 3

Key issues  Continue to drive operational efficiencies  Address the obsolete Energy Management Systems at Great Valley Middle School and General Wayne Elementary School  Expand the revenue generation opportunities through the PJM Demand Response Program  Address the HVAC issues at Great Valley Middle School & KD Markley Elementary School  Address the intermittent power outage problems at General Wayne Elementary School  Improve the classroom teaching & learning environment while saving energy 4 Pg 4 Pg 4

Process Steps to date  District released RFP for GESA project  Comprehensive field survey of existing energy consuming systems within the district  Uncovered all financially viable energy savings measures  Detailed proposed projects in RFP response  Presented findings and project options to administration selection committee 5 Pg 5 Pg 5

Proposed Project – Energy Efficiency  Interior and Exterior Lighting Upgrades (district-wide)  High Efficiency 25W T-8 Technology  Lighting Occupancy Sensors  LED Exterior Wall-packs and Pole Lighting  Gym lighting upgrade  Energy Management System replacements at General Wayne ES, Great Valley MS & Bus Garage  Replace failing and obsolete systems  Improved troubleshooting and productivity  Demand Response revenue optimization  Connected to SchoolDude platform for additional functionality 6 Pg 6 Pg 6

Proposed Project – Energy Efficiency  Redesign and re-commission SEMCO Outdoor air units for proper outdoor air control and humidity control  Apply Panoptix continuous commissioning software district wide to drive energy efficiency through analytics and HVAC continuous optimization  Building management energy strategy optimization  Infiltration reduction measures at KD Markley ES & Great Valley High School  Convert the heating plant at Charlestown ES from oil to natural gas  Act 129 Rebates 7 Pg 7 Pg 7

Financial Detail – 100% financed project Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services): $4,664,811 Project Savings: $4,778,739 Net Savings to district: $133,928  Financing cost projected at 3% for 15 year term  Project Payback is 14.9 years, The ROI is 2.9%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO. 8 Pg 8 Pg 8

Financial Detail – $1.55M Capital Reserve Contribution with the remainder financed Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services): $4,010,083 Project Savings: $4,778,739 Net Savings to district: $768,658  Financed project cost shown using $1.55M of district capital reserves, remainder borrowing cost at 3%  Project Payback is 12.5 years, The ROI is 19.2%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO. 9 Pg 9 Pg 9

Financial Detail – 100% funded by capital reserves Project modeled using a 15 year term Project Construction Cost: $3,451,634 Total costs (financing & services):$3,753,574 Project Savings: $4,778,739 Net Savings to district: $1,025,165  Project payback is 12 years, The ROI is 27.3%  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO. 10 Pg 10 Pg 10

Proposed Project Add Alternate 100% Back Up Generator  Intermittent electrical power at General Wayne ES  Current back up generator only serves emergency circuits  JCI developed a strategy to replace back up generators with whole building generators  Building then has complete operation during power outage  Allows district to completely remove building from grid which increases Demand Response revenue  Revenue helps to offset upgrade costs 11 Pg 11 Pg 11

Project with 100% Back Up Generator Project modeled using a 20 year term Project Construction Cost: $4,290,726 Total costs (financing & services): $6,218,154 Project Savings: $6,993,325 Net Savings to district: $775,171  Financing cost projected at 3% for 20 year term  Project Payback is 18.0 years, ROI 12.5% (20 year term)  PECO gas line costs have been estimated at $50,000. This cost would be funded by the savings but paid directly to PECO. 12 Pg 12 Pg 12

Implementation Plan  Dedicated project manager  Project meetings to coordinate all work with district staff and ensure no disruption to school operations  Team primarily works with K-12 clients  Scope items that can be completed during school year  Infiltration reduction  Exterior lighting  SEMCO HVAC unit redesign  Natural Gas fuel conversion (PECO dependent)  Building management energy strategy optimization  All other scope items to be completed in summer of 2014 13 Pg 13 Pg 13

Environmental Benefits  Energy efficiency is inherently green  CO2 reduction from this project is equivalent to removing 4,573 cars from the road.  Equivalent to the power usage of 2,035 homes  Source: US EPA Greenhouse Gas Equivalencies Calculator 14 Pg 14 Pg 14

Project Benefits  Complete lighting upgrade for energy savings and lighting quality improvement  Replaces the obsolete and failing control systems at Great Valley Middle School and General Wayne Elementary School  Standardized Building Management System (Metasys) throughout district will improve productivity of maintenance staff and improve energy efficiency  Addresses the HVAC issues at Great Valley Middle School and KD Markley Elementary School  Significant environmental benefits  Project is completely funded through energy savings 15 Pg 15 Pg 15

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