REBUILD AMERICA

Why look at the bills?

Bills are the bottom line –they prove the savings!

Why look at the bills?

Bills are the bottom line –they prove the savings!

Bills are already available – no extra cost!

Why look at the bills?

Bills are the bottom line –they prove the savings!

Bills are already available – no extra cost!

Track on-going operations and find out if measures are really working, verify performance contracts or shared savings

Why look at the bills?

Bills are the bottom line –they prove the savings!

Bills are already available – no extra cost!

Track on-going operations and find out if measures are really working, verify performance contracts or shared savings

Assure fiscal managers that investment was well spent.

First Step

What is the Baseline?

The baseline is what the old facility would have used.

First Step

What is the Baseline?

The baseline is what the old facility would have used.

Savings are computed relative to the baseline.

First Step

What is the Baseline?

The baseline is what the old facility would have used.

Savings are computed relative to the baseline.

But the baseline is the path not taken. How do we know what would have happened?

Baseline Issues

What were the most typical bills?

Baseline Issues

What were the most typical bills? Were certain events unusual and

should be corrected?

Baseline Issues

What were the most typical bills? Were certain events unusual and

should be corrected? How do we adjust for weather

changes?

Baseline Issues

What were the most typical bills? Were certain events unusual and

should be corrected? How do we adjust for weather

changes? What if usage changes – say by

extending operating hours?

What Tools are Needed?

Energy Accounting– Combine utility bills into one database– Establish weather-corrected baseline– Set up comparisons and tracking

What Tools are Needed?

Energy Accounting– Combine utility bills into one database– Establish weather-corrected baseline– Set up comparisons and tracking

Energy Simulation and Audits– Tie energy consumption to physical

characteristics and operations– Adjust for baseline changes– Conduct “what if” scenarios– Set performance targets for verification

Energy Accounting

Database program that helps to

Combine multiple meters or sites

Energy Accounting

Database program that helps to

Combine multiple meters Make simple corrections for weather

Energy Accounting

Database program that helps to

Combine multiple meters Make simple corrections for weather Define the “baseline” for savings

Energy Accounting

Database program that helps to

Combine multiple meters Make simple corrections for weather Define the “baseline” for savings Perform on-going tracking of bills

Energy Accounting

Database program that helps to

Combine multiple meters Make simple corrections for weather Define the “baseline” for savings Perform on-going tracking of bills Compare a group of facilities with each

other

Using the Database

Mike Meinecke is the energy manager for the Tigard School District in Oregon.

Let’s ask him how he uses energy accounting.

Using the Database

“I can look at the bills to track how we are using energy.

If it comes up high, I go to the site to find out why.”

Using the Database

“I look for the peaks and valleys. If a building is performing well, I see it here.“

Daily Consumption Savings

-20,000

0

20,000

40,000

60,000

80,000

100,000

120,000

kW

h/D

ay

Using the Database

“I can show the program reports to others and explain how they are doing.

The reports provide a way to communicate and be objective.”

What it Doesn’t Do

Energy Accounting cannot deal with changes in facilities or operations.

For example, Mike wants to change an electrically-heated school to gas. What savings can he expect?

To answer this question, we need a physical or engineering model of the facility.

The Billing Simulation Model

Ties energy use to physical characteristics and operations of the facility– Update information later, as you collect it.– Calibrate the model to match the bills.

The Billing Simulation Model

Ties energy use to physical characteristics and operations of the facility– Update information later, as you collect it.– Calibrate the model to match the bills.

Displays results as graphics– Easy to explain and understand

The Billing Simulation Model

Ties energy use to physical characteristics and operations of the facility– Update information later, as you collect it.– Calibrate the model to match the bills.

Displays results as graphics– Easy to explain and understand

Computes “what if” scenarios– Identify problems and opportunities

The Billing Simulation Model

Ties energy use to physical characteristics and operations of the facility– Update information later, as you collect it.– Calibrate the model to match the bills.

Displays results as graphics– Easy to explain and understand

Computes “what if” scenarios– Identify problems and opportunities

Sets performance targets– Track the effect of changes

Simulation Example

Here’s a graph showing electric end-uses in Mike’s school. The red block is space heating.

Weather-Normalized Electricity by End Use

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

Ave

rage

Ener

gy,

kW

h/da

y

Cooling

Heating

Fan

Lights

Plugs

Hot Water

Exterior

Base Case

Simulation Example

Here’s the electric end-uses after we change space heating to gas. Most of the red block disappears.

Weather-Normalized Electricity by End Use

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

Ave

rage E

nerg

y,

kW

h/d

ay

Cooling

Heating

Fan

Lights

Plugs

Hot Water

Exterior

Base Case

Other Examples

Use a simulation when you need to adjust the baseline to a different set of conditions.

Adding portable classroom buildings Extending operating hours

Verifying Savings

Measurement and Verification (M&V) is used to

Verify performance-based contracts

Verifying Savings

Measurement and Verification (M&V) is used to

Verify performance-based contracts Define “shared savings”

Verifying Savings

Measurement and Verification (M&V) is used to

Verify performance-based contracts Define “shared savings” Prove the measures are working

(commissioning)

Performance Requirement

All parties agree on:

Baseline for estimating savings

Performance Requirement

All parties agree on:

Baseline for estimating savings How to estimate partial savings during

installation

Performance Requirement

All parties agree on:

Baseline for estimating savings How to estimate partial savings during

installation Interactive effects between measures

Performance Requirement

All parties agree on:

Baseline for estimating savings How to estimate partial savings during

installation Interactive effects between measures Adjustments for weather, occupancy

changes, or other changes that interfere with simply comparing the pre- and post-retrofit utility bills

M&V Methodology

Simulation Model is a good way to define the baseline and adjustment methods – all done together.

M&V Methodology

Simulation Model is a good way to define the baseline and adjustment methods – all done together.

Government has guidelines (IPMVP Protocol) for verification– These require that savings estimates also

state the certainty of the estimate.– Certainty can be accomplished within the

simulation model.

M&V Methodology

Simulation Model is a good way to define the baseline and adjustment methods – all done together.

Government has guidelines (IPMVP Protocol) for verification– These require that savings estimates also

state the certainty of the estimate.– Certainty can be accomplished within the

simulation model. Cost to use billing simulation is not

high.

Other Benefits

Using billing analysis creates confidence.

Facility staff are better able to select ESCO contractors and evaluate proposals.

Other Benefits

Using billing analysis creates confidence.

Facility staff are better able to select ESCO contractors and evaluate proposals.

Managers are more comfortable with performance contracts (shared savings).

Resources

Energy Accounting Software– Utility Manager

www.eqnetwork.com– Faser www.eeis.ees.enron.com– Metrix www.siliconenergy.com– Z-Power www.z-power.com

Billing Simulation Software– EZ Sim www.ezsim.com

Consulting Services– Energy Service Companies www.rebuild.org

Prepared by Stellar Processeswww.ezsim.com