Jerry Eaton, P.E., CEM, CPE

Principal, Masters’ Academy, LLC

President, Wisconsin Chapter of the AEE

Discussion Topics

Industrial Best PracticesWisconsin Chapter of the

Association of Energy Engineers (WAEE)

Upcoming Energy Management Training Focus on Energy

Scholarship

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.

Electric Rates - Residential

Electric rates are increasing at 8%/year …year after year

Natural Gas Prices

NG price continues to go up an average 10%/year after year

Energy Intensity: The amount of energy to produce $1 of goods

DOE-EIA 2004

Energy Use by Sector

2004 Energy Use: 100.3 Quads

Quad = 1015 BTUs

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.

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.

A Typical – Energy Management Program

Years

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!

The Typical Energy Manager – A Person of Many Hats

• Facilities• Security• Janitorial • Buildings and Grounds• Maintenance• Utilities • Environmental• Safety

…and oh yeah, ENERGY

Traditional vs. Systematic Approach

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)

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)

Case Study – Mercury Marine

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.

EnVINTA Provides Useful Benchmarking Tools

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

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.

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. • SOP’s 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!

Case Study – Mercury Marine

2006 Results cont.• Awards and recognition

• Governor’s 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.

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.

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.

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.

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 Marine’s Central Compressed Air System

Industrial Manufacturing – Toured Mercury Marine’s Lost Foam Casting and Propeller Facilities

Focus on Energy Grant programs and PSC – Toured Alliant Energy’s Maintenance Facilities

Utility Reliability and Generation – Toured Alliant Energy’s 100MW generator facility

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)

Wisconsin Chapter of the Association of Energy Engineers

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.

It’s Your Business…Master it!

www.mastersacademy.biz

Providing innovative solutions for transforming…Costs into ProfitsConcepts into Reality

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

Service-Disabled Veteran-Owned Business (SDVOB)

Jerry Eaton, PE, CEM, CPE

www.MastersAcademy.biz800-390-4366

It’s Your Business,…Master it!