FACILITIES DESIGN & CONSTRUCTION OFFICE OF ENERGY MANAGEMENT UTILITY SERVICES, REPORT ON LONG-RANGE PLAN 2014
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1 FACILITIES DESIGN & CONSTRUCTION OFFICE OF ENERGY MANAGEMENT UTILITY SERVICES, REPORT ON LONG-RANGE PLAN 2014
2 TABLE OF CONTENTS Intrductin Descriptins f Current Cntract Gals and Strategies fr Lng Term Prcurement f Utilities.1 Cnclusin..2
3 INTRODUCTION The bjective f the Office f Energy Management (OEM) prgram is t identify and implement strategies fr state-wned building inventry t reduce utility cnsumptin and by ding s, achieve energy and ther utility savings while maintaining a healthy, cmfrtable wrking envirnment. OEM is als respnsible fr prcurement f utilities and their reliability t supprt state wned facilities. The purpse f this reprt is t utline the lng range utility services plan t ensure reliability and cst effectiveness f these services. DESCRIPTIONS OF CURRENT CONTRACT GOALS AND STRATEGIES FOR LONG TERM PROCUREMENT OF UTILITIES The pwer reliability is an imprtant cnsideratin fr TFC Office f Energy Management. TFC manages and prvides utilities fr Capitl f Texas gvernmental ffice buildings plus several ther gvernmental agencies that rely n TFC fr their facility management supprt. In additin t ffice buildings, TFC als directly manages several labratries, HVAC central plants, and data centers that have critical peratinal needs as well as a small number f miscellaneus facilities such as a childcare center, cemetery buildings and warehuses. The gal fr TFC is t prvide state emplyees with cmfrtable space t wrk and prevent wrk disruptin, therefre utility reliability and quality is critical in achieving this gal. All facilities needed t prvide utilities t State Capitl and supprting ffices arund the capitl (Capitl Cmplex) are managed by TFC. In additin t Capitl Cmplex, there are several ther facilities in central and nrth Austin that are als managed by TFC, namely; Department f Health, Deaf Schl, Blind Schl, and TCEQ. Outside f Austin, TFC manages and purchases utilities fr several state buildings as well. These buildings are lcated in varius majr Texas cities. Utility services fr all ther facilities, leased by TFC fr the state, are purchased and prvided by the building wner as part f the lease agreement and are nt prcured by TFC directly. prcurement f electricity including time frame, surces(s), type(s) f cntracts: All facilities lcated in greater Austin area are serviced by Austin Energy and are inside the regulated areas. TFC des nt have the ptin f selecting the electrical utility prvider. Current cntracts with Austin Energy are relegated t paying standard cmmercial electric utility rates n the majrity f the accunts. The exceptin t this is a lng term cntract n the accunts fr which the electric demand is 500 kilwatts r larger. The rates n this cntract are favrable and cmpetitive, but this cntract will expire at the end f May Current indicatins are that the lng term cntract accunts will transitin ver t standard cmmercial rates upn expiratin f the cntract. This will have a significant ecnmic impact t the State s utility budget. In additin t regular inquiries and cnversatins with Austin Energy, TFC has cmmunicated this issue t the Senate Cmmittee n Gvernmental Organizatin. We are hpeful that the current discunted rate will be extended by Austin Energy but in case the rate will increase, TFC has requested additinal funds as an exceptinal item in the next biennium. In the summer mnths, TFC participates in a nnbinding lad cperative cntract with Austin Energy that encurages implementatin f energy curtailment measures during peak demand perids upn ntificatin frm Austin Energy. This prgram has multiple benefits fr the State: Perfrmance based rebates measured accrding t the degree f energy reductin achieved as cmpared t a baseline cnsumptin Reductin in energy cnsumptin and crrespnding csts The higher frequency f Austin Energy curtailment requests allws fr a rehearsed and mre effective respnse 1
4 t ERCOT curtailment ntices that will cincide with Austin Energy requests and cincidentally reap the benefits frm the rebates Prmtes n-ging diagnstics f HVAC, electrical and cntrls systems Cntributes t the verall reliability f the electrical grid Facilities lcated utside f greater Austin are in the deregulated area and TFC uses the existing utility distributin system but purchases the electricity n the pen market. These cntracts are nrmally renewed every calendar year with input and help frm State Energy Cnservatin Office (SECO) and the state utility prcurement and bill prcessing vendr, ECOVA Inc. All Critical facilities have electrical backup generatrs that are maintained by TFC staff and tested by utside vendr every calendar year. The vendrs are selected using sate prcurement guidelines. prcurement f natural gas including time frame, surce(s), type(s) f cntract(s): TFC has a cntract with GLO (General Land Office) t purchase natural gas and uses the lcal distributin cmpany t deliver gas t the facilities (in Austin the lcal distributin cmpany is Texas Gas Service). In the past, TFC has cllabrated with GLO n decisins t lck in gas rates fr varius perids f time r t ride the market. These strategies are mst ften emplyed ver the winter mnths when demand drives the market price up. Currently, the abundance f natural gas extractin has cnsistently driven the market price dwn thus influencing TFC s existing strategy t nt lck in n lng term rates. TFC s current agreement with GLO is t purchase natural gas based n the market price at the time f the use. Recent histry prves this strategy results in less expensive natural gas cmmdity cst in the lng run. prcurement f water and sanitary sewer including time frame, surce(s), type(s) f cntract(s): TFC uses the lcal municipal water/waste water utility cmpany t purchase water and sewer services. There are n ther cst effective alternatives. There is, hwever, pprtunity in the near future t utilize City f Austin s (COA) emerging reclaimed water utility t reduce csts f secndary water uses such as irrigatin and tilets. TFC has had multiple meetings with COA s water utility n the installatin f reclaimed water mains cming t the edge f the capitl cmplex. While differentiated piping within buildings is currently cnsidered t be cst prhibitive, cnversin t reclaimed water fr irrigatin is a much mre feasible apprach. As the plans fr the utility mains cntinue t develp, TFC cntinues t cnsider the prudent use f this secndary water surce. Current cntract and future plans fr selfgeneratin r self-distributin: There are n current plans fr self-generatin r self-distributin in any f the TFC managed facilities. Histrically self-generatin and selfdistributin f utilities fund t be cst prhibitive. This was cnfirmed thrugh a study TFC cnducted n the cst analysis fr a cmbined heating and pwer generatin plant fr the capitl cmplex in The study revealed that while self-generatin culd nt be ecnmically ratinalized, self-distributin did prvide marginal benefits and a lng term return n investment. TFC s Exceptinal Item Apprpriatin Request fr centralizing thermal and electric utilities n the capitl cmplex was nt apprved. TFC will cntinue t prmte the centralized utility cncept fr the capitl cmplex and cnsider self-generatin fr all majr renvatins and new cnstructin as an alternative. CONCLUSION TFC is cmmitted t cntinue identifying and implementing practical ways f managing resurces with a fcus n cntinuus imprvement. TFC strives t prvide the highest quality facilities and utility services t state agencies with a cmmitment t fiscal respnsibility and stewardship f resurces. 2
5 TFC Office Energy Management is respnsible fr managing utility cntracts and future utility prcurement, reliability and cst effectiveness. Mst f the facilities under management f TFC are lcated in the regulated electricity area (city f Austin) and mst ther utilities are prvided by lcal municipality s there is little pprtunity t pick and chse prviders. TFC nly has a chice f prviders in the deregulated electric market utside f Austin which represents small prtin f TFC prtfli. Fr these facilities TFC uses the state prcurement guidelines t find the mst cst effective electric prviders. Unfrtunately utility self-generatin and distributin are currently nt a cst effective ptin but TFC will cnsider this alternative fr its future majr prjects. 3
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