How to Fund & Implement

Energy Efficiency Improvements

at Your Water & Wastewater

Treatment Facilities

September 15, 2015

Presented By:

Bob Lonergan, P.E.

Overview

• What is Performance Contracting?

• Water Treatment and Energy Facts

• Baseline Development

• Case Study

What is Performance

Contracting?

• Energy Service Companies (ESCOs)

• Leveraging Energy/Operational Savings to Pay

Capital Costs

• Annual Energy/Operational Savings Pay

Consultant/Contractor Fees and Loan Payments

• Typical Project Life Cycle: 10 – 20 Years

• Guaranteed Savings and Guaranteed Maximum

Pricing

• Is Performance Contracting an Option for My

Utility?

What is Performance

Contracting?

Leveraging Savings to Fund

Projects

$

Current Utility Costs

Electric, Gas, WaterCosts during

Capital

Repayment

$

Net Savings

Costs after

Capital

Repayment

$

Savings

to

Repay Capital

Net Savings

Discount Model – Example

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

Total Cost Net Cost

$970k Savings 51% Discount

Award• Execute Investment

Grade Audit (IGA) contract

Preliminary IGA

• Develop Measures –Est. Cost & Savings

Final IGA

• Subcontractor Bids

• Savings Calculations

• Develop M&V Plan

• Pro formaEPC Contract &

Financing

EPC Implementation

Performance Assurance

Energy Performance Contracting

• Single Point of Accountability

• Accelerated Timeline for Benefits

• Best Value Subcontractors

• Captured Savings Benefits Utility

• Guaranteed Outcomes (Savings,

Pricing, Performance)

• Support and Third-Party Review by

State Energy Office

Benefits of EPC

Fun Facts

Water/Wastewater Treatment

and Energy Facts

• Annual Energy Usage For Water and

Wastewater Treatment in the US :107 billion

kWh or approximately 3% of total energy

usage

• Annual Energy Cost for Providing Safe

Drinking Water and Wastewater in the US:

$7.5 billion

• In over most cities, the WWTP is the largest

single consumer of electricity

Performance Contracting Facts

• Governments in the US have saved $45B in

energy costs through Performance

Contracting

• Total of water projects only represents 3% of

this

Water Loss Facts

• Water Loss

– 460,000 acre-feet of water annually is

being missed by meters in CO basin

– Enough to supply water for more than one

million homes

– Water providers in the CO Watershed

could capture $590M in new revenues by

better tracking their water

Biological

nutrient removal,

clarifiers,

disinfection =

50%

Pumping = 31%

Energy Costs and Opportunity

Baseline Development

• Trend historic influent flow with energy

usage

• Generate graphs showing the trending

results

• Estimate and trend future baseline based

on population projections

Develop Current and Future

Energy Baselines

Actual 2010 vs. Baseline Electrical Usage

(kWh) Example – Rifle WWRF

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

Baseline kWh Usage Actual Facility Usage (kWh)

Energy Conservation Measure

Evaluation

• Evaluation of significant opportunities

– Feasibility

– Impacts to maintenance, lifespan, other

processes

– Anticipated payback period

– Impacts to regulatory compliance

– Applicability of local utility rebates and other

funding sources

• Lighting and Electrical Control Systems

Upgrades

• HVAC and Control Systems Upgrades

• Water Conservation Measures

• Replace Inefficient Motors with Premium

Efficiency Motors

• Install VFDs on Existing Motors

• Renewable Energy (Solar, Wind)

Conventional (Non-Process)

ECMs

• Modify how the process is controlled

• Turn large motors on/off (such as pump

or aerator motors)

• Add VFDs to blowers and aerators to

more precisely match the actual oxygen

demand

• Recover heat from effluent stream and

cogeneration engines

Process (Non-Traditional) ECMs

Case Study – Colorado Town WWTP

Investment Grade Audit

Goals of Colorado Town WWTP

ESCO Project

• Optimize Energy Usage at Existing Facilities

• Increase Use of Renewable Energy Sources

• Improve Operations

• Strengthen Regulatory Compliance

• Leverage Operational Savings to Fund Capital

Improvements

Colorado Town WWTP –

Energy Conservation Measures

Energy Conservation Measure

ECM 1: Digester Mixing/Blower Upgrades

ECM 2: Tertiary Treatment

ECM 3: New 100 kW Solar Array

Process ECM 1 – Digester

Mixing/Aeration Upgrades

• De-couple aeration and mixing

• More efficiently meet low end air demands

• Minimize aeration costs

• Integrate operational targets, instrumentation,

and blower controls

• Energy savings can be leveraged elsewhere

• 15 year financing term paid with savings

• 3.0 % interest rate

• 3.5 % escalation

• Utility Provider Incentives = $10k

• Tier II DOLA Grant = $1.05M

Assumptions

Financial Model

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Total Cost Net Cost

Town in Colorado – Maximum Scope

1.06M Savings 38% Discount

• Obtain GMP for Selected ECMs

• Execute EPC Contract

• Finalize Design

• Construct Facilities

• Measurement & Verification Phase

Next Steps

Questions

Contact Information

Bob Lonergan, P.E.

FEI Engineers, Inc.

email: bob.lonergan@feiengineers.com