CCM Energy Efficiency Program

Transcription

1 CCM Energy Efficiency Program Town of Willington Andy Merola, BEP CCM Energy & Program Development Manager Jerry Drummond, CEM, CEP Sales Team Leader Energy Solutions, Siemens

2 Why now? You re spending these dollars now in your operating budget and will spend these dollars in FY The money needed for energy investments is already in the budget and being spent on wasted energy. The financing source for the Energy Efficiencyi investment t is right there in avoided d utility costs. Financing Energy Projects through Performance Contracting, Shirley J. Hansen, Ph.D. The decision isn t if to spend, but how Government agencies spend more than $10 billion a year on energy while grappling with tightening budgets. Yet nearly one-third of the energy used to run typical government buildings goes to waste. Energy Star for Government, US EPA website 7/11/2013 2

3 What is Energy Savings Performance Contracting? ESPC is a Partnership: No-upfront-cost contracting method Siemens (ESCo selected by CCM member towns) installs improvements known as Energy Conservation Measures (ECMs) Siemens is paid during construction from an escrow account funded via municipal lease purchase agreement Lender is paid over time from the energy, water, operations and maintenance savings resulting from the ECMs Siemens guarantees savings program costs; if not, Siemens pays Willington the difference 7/11/2013 CCM Energy Efficiency Program 3

4 What is a Municipal Lease Purchase Agreement? Market alternative to a cash purchase or tax-exempt municipal bond issue Interest is exempt from federal taxation, allowing rates to be set lower than for bonds, providing the municipality with significant cost savings Non-appropriation clause: municipal payment obligation terminates if it fails to appropriate funds to make lease payments Municipality holds title to the leased equipment Advantages include: Fast, simple approval process (as compared to issuing a bond referendum) Reduced transaction costs (most costs associated with bond financing are eliminated) Lower interest rates (the interest income is tax exempt; the lessor passes these savings to the municipality in the form of a lower interest rate) Full financing (covers all project costs; no down payment required; funding into an escrow account ensures the municipality has deepest vendor discounts) No large capital outlay (project costs paid for as they are incurred; helps local governments and school districts manage their capital reserve fund balances) (Information from US EPA Energy Star website: 7/11/2013 CCM Energy Efficiency Program 4

5 Where do we find savings? Out of Each Energy Budget Dollar 75% 80% is typically used as intended for heating, cooling, ventilating, etc. 20% 25% is wasted by less efficient equipment and funds our program The budgeted dollars do not change; we simply use dollars that otherwise would be spent on electricity and fuel oil to fund installation of new, moreefficient efficient equipment; the resulting savings pays for the equipment 7/11/2013 CCM Energy Efficiency Program 5

6 How do we budget for this? (You already have) Current Energy Budget $231,329 Current Energy Budget $231,329 Budget impact of No $231,329 Budget impact of No $231,329 Budget impact of Yes $231,329* *Willington receives $757,500 in energy efficiency improvements with $0 capital cost in a 17-year program entirely funded by $47,700 or 20.62% annual energy savings from the existing energy budget. 7/11/2013 CCM Energy Efficiency Program 6

7 ECM Overview Energy Management System (EMS) Control strategies Add ability to current control system Programmable Thermostats Quick payback; will drive other measures Ensures no energy is wasted when buildings are unoccupied Increases occupant control Cooler Controls 7/11/2013 CCM Energy Efficiency Program 7

8 ECM Overview Network Controller Network based PC control system to power down machines when not in use Applies to every building Helps with IT department s current initiative to reduce energy usage and waste Lighting Incentives available from CL&P Good paybacks + O&M savings from longer life lamps Mix of LEDs, de-lamping, new lamps, new ballasts, and newer lighting technologies 7/11/2013 CCM Energy Efficiency Program 8

9 ECM Overview Building Envelope Doors, Windows, and Air Sealing for buildings New Insulation in FD Ceiling School Boilers financed and guaranteed School contracts directly with Hartford Steam Boiler Rebuild three boilers New burners 7/11/2013 CCM Energy Efficiency Program 9

10 Completed & Next Steps Completed: Preliminary Energy Audit Presentation ti of findings Recommendation to proceed to Detailed Energy Audit Approval to proceed Detailed Energy Audit completed Presentation of findings Multiple meetings with Willington staff to finalize scope of work Next Steps: Approval to proceed with project Town counsel review of CCM-approved ESPC agreement Construction (complete heating system improvements by 10/15/13) 7/11/2013 CCM Energy Efficiency Program 10

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12 Financial Proforma: All Program Costs funded by Energy Savings only. Additional Operation & Maintenance Savings are not included. Years: Construction - 9 Construction PROGRAM SAVINGS Energy Savings $ 17,538 $ 47,359 $ 49,253 $ 51,223 $ 53,272 $ 55,403 $ 57,619 $ 59,924 $ 62,321 $ 64,814 Annual Gross Savings $ 17,538 $ 47,359 $ 49,253 $ 51,223 $ 53,272 $ 55,403 $ 57,619 $ 59,924 $ 62,321 $ 64,814 Cumulative Savings $ 17,538 $ 64,897 $ 114,150 $ 165,374 $ 218,646 $ 274,050 $ 331,669 $ 391,593 $ 453,915 $ 518,729 PROGRAM COSTS Principal & Interest $ 17,538 $ 43,113 $ 44,888 $ 46,735 $ 48,658 $ 50,660 $ 52,743 $ 54,911 $ 57,168 $ 59,517 Performance Assurance $ - $ 4,246 $ 4,365 $ 4,486 $ 4,611 $ 4,739 $ 4,871 $ 5,006 $ 5,145 $ 5,288 Annual Gross Costs $ 17,538 $ 47,359 $ 49,253 $ 51,221 $ 53,269 $ 55,399 $ 57,614 $ 59,917 $ 62,313 $ 64,805 Cumulative Costs $ 17,538 $ 64,897 $ 114,149 $ 165,371 $ 218,640 $ 274,038 $ 331,652 $ 391,569 $ 453,882 $ 518,687 CASH FLOW Annual Net Cash Flow $ - $ 0 $ 1 $ 2 $ 3 $ 5 $ 6 $ 7 $ 8 $ 9 Cumulative Net Cash Flow $ - $ 0 $ 1 $ 3 $ 7 $ 11 $ 17 $ 24 $ 33 $ 42 Years: 10 through Total PROGRAM SAVINGS Energy Savings $ 67,407 $ 70,103 $ 72,907 $ 75,823 $ 78,856 $ 82,010 $ 85,291 $ 88,703 $ 1,139,828 Annual Gross Savings $ 67,407 $ 70,103 $ 72,907 $ 75,823 $ 78,856 $ 82,010 $ 85,291 $ 88,703 $ 1,139,828 Cumulative Savings $ 586,135 $ 656,238 $ 729,145 $ 804,968 $ 883,825 $ 965,835 $ 1,051,126 $ 1,139,828 PROGRAM COSTS Principal & Interest $ 61,961 $ 64,506 $ 67,154 $ 69,910 $ 72,778 $ 75,764 $ 78,871 $ 82,104 $ 1,048,979 Performance Assurance $ 5,435 $ 5,586 $ 5,742 $ 5,902 $ 6,066 $ 6,235 $ 6,407 $ 6,586 $ 90,714 Annual Gross Costs $ 67,397 $ 70,092 $ 72,896 $ 75,811 $ 78,844 $ 81,998 $ 85,278 $ 88,690 $ 1,139,694 Cumulative Costs $ 586,084 $ 656,176 $ 729,072 $ 804,883 $ 883,727 $ 965,726 $ 1,051,003 $ 1,139,694 CASH FLOW Annual Net Cash Flow $ 10 $ 11 $ 11 $ 12 $ 12 $ 12 $ 13 $ 13 $ 135 Cumulative Net Cash Flow $ 52 $ 62 $ 74 $ 85 $ 97 $ 110 $ 123 $ 135 Program Cost $699,611 Annual Interest Rate 3.40% Schools $ 498,758 $ 31,273 Grants and Rebates $63,290 Lease Term 17 Years Town $ 264,143 $ 16,086 Boiler work financing $57,900 Actual Finance Period 17 Years Total $ 762,901 $47,359 Capital Contribution $0 Payments per Year 1 Amount Financed $757,511 Total Interest Payments $292,041 Annual Savings Simple Payback $47,694 Energy Escalation 4.0% Years Operational Escalation 2.8% Service Escalation 2.0%

13 Town Buildings Town Offices Library Senior Center Fire Station DPW All Cost Savings Payback Cost Savings Payback Cost Savings Payback Cost Savings Payback Cost Savings Payback Cost Savings Payback Energy Conservation Measure ($) ($) (Years) ($) ($) (Years) ($) ($) (Years) ($) ($) (Years) ($) ($) (Years) ($) ($) (Years) Lighting Retrofit and Controls $ 49,876 $ 3, $ 38,879 $ 2, $ 23,879 $ 1, $ 16,805 $ 1, $ 16,742 $ 2, $ 146,181 $ 10, Building Envelope $ 8,456 $ 1, $ - $ - - $ 11,233 $ 1, $ 19,412 $ $ - $ - - $ 39,101 $ 3, Weatherization/Building Envelope $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - Steam Improvements $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - Programmable Thermostats $ 1,800 $ $ - $ - - $ 1,800 $ $ 4,951 $ $ - $ - - $ 8,552 $ 1, Vending Machine Controls $ - $ - - $ - $ - - $ - $ - - $ - $ $ - $ - - $ - $ Network Controller for PCs $ 642 $ $ 381 $ $ 100 $ $ - $ - - $ 60 $ $ 1,183 $ CoolTrol Controls for Walk-in Freezers and Refrigerators $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - Development, Engineering, M&V Set-up $ 8,112 $ - $ 8,112 $ - $ 8,112 $ - $ 8,112 $ - $ 8,112 $ - $ 40,561 $ - Boiler Rebuild/Burner Replacement (done with sub directly by school) $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - Totals $ 68,886 $ 5, $ 47,372 $ 2, $ 45,125 $ 2, $ 49,280 $ 2, $ 24,914 $ 2, $ 235,579 $ 16, School Buildings Center School Hall Memorial School All Cost Savings Payback Cost Savings Payback Cost Savings Payback Energy Conservation Measure ($) ($) (Years) ($) ($) (Years) ($) ($) (Years) Lighting Retrofit and Controls $ 78,097 $ 4, $ 139,208 $ 7, $ 217,305 $ 12, Building Envelope $ 31,769 $ 2, $ 41,693 $ 3, $ 73,462 $ 5, Weatherization/Building Envelope $ 46,779 $ 2, $ 49,528 $ 2, $ 96,307 $ 5, Steam Improvements $ 46,387 $ 3, $ - $ - - $ 46,387 $ 3, Programmable Thermostats $ - $ - - $ - $ - - $ - $ - - Vending Machine Controls $ - $ $ - $ $ - $ Network Controller for PCs $ 1,845 $ $ 4,252 $ 2, $ 6,097 $ 3, CoolTrol Controls for Walk-in Freezers and Refrigerators $ - $ - - $ 8,250 $ $ 8,250 $ Development, Engineering, M&V Set-up $ 8,112 $ - $ 8,112 $ - $ 16,225 $ - Boiler Rebuild/Burner Replacement (done with sub - directly by school) $ - $ $ - $ $ - $ 968 Totals $ 212,990 $ 13, $ 251,043 $ 17, $ 464,033 $ 31,