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Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
Funding Infrastructure  Investments with  Guaranteed Performance
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Funding Infrastructure Investments with Guaranteed Performance

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Municipalities are dealing with numerous financial constraints, and trying to improve or expand systems is often trumped by maintaining deteriorating assets. Discover the potential benefits of …

Municipalities are dealing with numerous financial constraints, and trying to improve or expand systems is often trumped by maintaining deteriorating assets. Discover the potential benefits of Performance Contracting (PC). PC is an alternate delivery method to the traditional CIP process for the implementation of operational cost saving and energy saving projects. While the PC process has been used extensively in municipal buildings for decades -- primarily for HVAC and lighting improvements -- it has only recently begun to be used by water and wastewater utilities for process-centric improvements to treatment plants, pump/lift stations and other assets.

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  • Focuses on life cycle costs of operation – not first costsLeverages guaranteed savings over the life of project – usually 10-15 yearsIs a Procurement and alternative delivery model Almost all states have specific legislation for using an ESPC
  • Goal – leverage all savings possible to get the most work done – use what you’re already spending to buy what you need (remove excess items from facility study wishlist and free up money for more improvements)Blend, combine quick payback w/ long payback, goal is a comprehensive solution, quick payback items spin out cash to pay for the long payback items – long payback items are what is needed – short payback items aren’t necessarily on your improvement plan list
  • Topic: Wastewater Rules of Thumb Note to Facilitator: Review the bullets on the slide.
  • Topic: Wastewater Rules of Thumb Note to Facilitator: Review the bullets on the slide.
  • Topic: Wastewater Rules of Thumb Note to Facilitator: Review the bullets on the slide.
  • GraphicSolutions Portfolio
  • how does this all apply to the city of Denison, Tx?Denison is a fairly small town of 25K people in TX.We had a relationship with the city manager and knew they had more needs than capital. They had a plant that had a fair amount of deferred maintenance and through careful planning may have had just enough money to fix their most pressing needs. They had 1 6 MGD plant, but it was operating between 2 and 3 MGD. The biggest problem was that they had a 5-section aeration basin with failed gates, so that had to aerate the entire basin all of the time. They could not close any of the gates. In addition, they had some broekn diffusion pipin so that instead of having ¾’ holes or so in their pipes, they had whole 4” pipes blowing air into one portion of the basin and thus was not aerating well. We developed the project to include fine bubble diffusion throughout the aeration basin and replaced 500 Hp of of blower running full bore to 300 HP installed, added VFD and actually they run about 150HP most of the time. We were able to reduce the plant’s energy spend by 50%.We worked carefully with the city’s preferred Consulting Engineering (Allen Plummer) partner. The relationship was rocky at first as they were not convinced in our approach, but soon engaged and helped us design the improvements.In addition to almost $3.5M in energy savings over 15 years, we were able to secure a $200K rebate from the local electrical utility.We took the capital they had set aside and leveraged this to 2X investment which allowed them to spend $$ on non-payback items such as electrical switchgear, stainless steel automated bar screens and improvements to other city buildings.
  • So, how does this all apply to the city of Denison, Tx?Denison is a fairly small town of 25K people in TX.We had a relationship with the city manager and knew they had more needs than capital. They had a plant that had a fair amount of deferred maintenance and through careful planning may have had just enough money to fix their most pressing needs. They had 1 6 MGD plant, but it was operating between 2 and 3 MGD. The biggest problem was that they had a 5-section aeration basin with failed gates, so that had to aerate the entire basin all of the time. They could not close any of the gates. In addition, they had some broekn diffusion pipin so that instead of having ¾’ holes or so in their pipes, they had whole 4” pipes blowing air into one portion of the basin and thus was not aerating well. We developed the project to include fine bubble diffusion throughout the aeration basin and replaced 500 Hp of of blower running full bore to 300 HP installed, added VFD and actually they run about 150HP most of the time. We were able to reduce the plant’s energy spend by 50%.We worked carefully with the city’s preferred Consulting Engineering (Allen Plummer) partner. The relationship was rocky at first as they were not convinced in our approach, but soon engaged and helped us design the improvements.In addition to almost $3.5M in energy savings over 15 years, we were able to secure a $200K rebate from the local electrical utility.We took the capital they had set aside and leveraged this to 2X investment which allowed them to spend $$ on non-payback items such as electrical switchgear, stainless steel automated bar screens and improvements to other city buildings.
  • Transcript

    • 1. Funding Infrastructure Investments with Guaranteed Performance Kevin Bell Kimberly Albertson Schneider Electric August 21, 2013
    • 2. Water & Wastewater Alternative Project Delivery Option (PC) Leverage Guaranteed Savings with Risk Transfer
    • 3. Schneider Electric – Buildings Business 3 4 The challenge is to sustain water quality and cut operating costs… Energy consumption is the single largest variable expenditure item in water and wastewater treatment It is also the largest opportunity to scale down operating costs by scaling up energy efficiency EPA Challenges, Consent Decrees, Energy Neutrality Goals 25% Just making real-time energy intelligence available to operators and managers can help to cut operating costs by as much 25%. 30% On average, energy consumption accounts for up to 30% of a water plant’s operating costs. 3 87% Pumping can account for up to 87% of a water system’s total energy costs.
    • 4. Schneider Electric – Buildings Business 4 Challenges Capital Dollar Competition - Internal Property values down, sales tax revenue down, etc Escalating Energy Costs Increasing over the next 20 year horizon Staff Attrition – Voluntary or Directed Less personnel required to accomplish more Regulatory Impacts Unfunded mandates, consent decrees, complex technologies Operational Efficiencies & Performance Enhancement Do more with less with aged infrastructure
    • 5. Schneider Electric – Buildings Business 5 Our Solutions Capital Dollar Competition – Internal on - Internal Tax revenue receipts are down – Systems must operate and provide service PC offers opportunity to generate savings to offset capital needs Staff Attrition – Voluntary or Directed Do more with less Solutions that employ technology and automation to achieve results Escalating Energy Costs Absence of long term power purchase agreements Solutions reduce energy costs – 20 – 40% over status quo Regulatory Impacts Unfunded mandates and system corrections Solutions mitigate regulatory impacts Operational Efficiencies & Performance Enhancement Systems aged – inability to extract operational efficiency and performance enhancement Implementation of technology and automation
    • 6. Schneider Electric – Buildings Business 6 How to Overcome Challenges? • Alternative Project Delivery Mode – Performance Contracting • Legislatively Approved and Regulated • Significant National Precedence in Water Sector • 15 to 30% Efficient ($) in Contrast to Traditional Procurement • 20 to 40% Operational Cost Savings through Solutions • Owner Protected through Solution Risk Transfer • Guaranteed Savings Supported by ESCO Balance Sheet
    • 7. Schneider Electric – Buildings Business 7 Definitions: •ESPC – Energy Savings Performance Contract A partnership between a Municipality or Water Wastewater (W/WW) District and an ESCO to accomplish energy savings projects without up-front capital costs. •ESCO – Energy Services Company A company that develops, installs and arranges financing for projects to improve energy efficiency and reduce operation and maintenance costs at a Municipality or W/WW facilities with guaranteed results.
    • 8. Schneider Electric – Buildings Business 8 Facility / Plant improvement & infrastructure renewal program Energy savings created by: Energy Conservation Measures (ECM’s) = installing efficient pumps, motors, blowers, drives, process optimization, automation, energy monitoring, self generation of power including renewables and CHP, aeration & oxygen transfer, solids stream management, etc. Savings are guaranteed by Energy Services Company What is Energy Savings Performance Contracting? Reductions From: •Less Electricity •Less Chemicals •Less Maintenance •Biogas Reuse •Less Natural Gas
    • 9. Schneider Electric – Buildings Business 9 Long Payback Cost Savings Quick Payback Cost Savings A comprehensive approach •Fine Bubble Diffusers •SCADA System •VFDs •Aeration System Optimization •Biogas for CHP •Optimize Digester Performance
    • 10. Schneider Electric – Buildings Business 10 Energy Bill Energy Efficiency Improvements Reliability Improvements Equipment Replacements / Repairs Goal = Budget Neutrality After performance contracting, the budget remains the same or less, and energy savings pay for the facility improvements. Example of Annual Energy Budget:
    • 11. Schneider Electric – Buildings Business 11 • Develop, design and arrange financing for projects • Install and maintain the energy efficient equipment • Typically works with preferred consulting engineers • Measure, monitor and verify the project’s energy savings • Guarantees both the maximum project cost and the projected energy savings What does the ESCO provide?
    • 12. Schneider Electric – Buildings Business 12 Capital Investment – Leveraging Financial Options General Obligation Bonds Capital Lease Purchase Agreement Revenue Pledge – Enterprise Fund Pledge Performance Contracting allows for attractive financing options – Customer’s investment back into the Customer’s water enterprise Turnkey energy efficiency solutions Performance Risk assumed by ESCO Fixed price contract Payment and Performance Bonds Savings Guarantee by ESCO ● ESCO provides flexibility for Customer to choose budget neutral results OR Customer to focus on much –needed improvements that could not previously been paid for except for the blend of measures that provide net savings available.
    • 13. Schneider Electric – Buildings Business 13 Water Distribution Energy Conservation Measures (ECMs) 1  The primary ECM is for improving the efficiency of water booster or high service pumps  SCADA  Leak Detection & Repair  Water Meters – AMR/AMI
    • 14. Schneider Electric – Buildings Business 14 Water Treatment ECMs  Pump Optimization and Control  Power Conditioning, Power Factor Correction  Lighting, HVAC, Solar Power  Water Conservation, Smart Irrigation, Reclaimed Water  Demand Monitoring and Control Improvements  Motor Efficiency Upgrades  VFDs and Motor Controls 1
    • 15. Schneider Electric – Buildings Business 1515 Water ECM Metrics – Save 10-20% Water Treatment Plants Energy Saving Increase Pumping Efficiency (Optimization) 5-10% Replace Inefficient Motors and Install VFDs 5-10% Optimize Pump Efficiency 5-10% Demand Monitoring and Control Optimization 3-5% Power Factor, Harmonics, Power Quality 3-5% Water Distribution System Reduce Water Loss (AMI/AMR/ Leak Management) 10-15% Reduce water flow resistance in pipes 10% Increase Pumping Efficiency at High Services Pumps 5-10% Replace Inefficient Motors and Install VFDs 5-10% Optimize Pump Efficiency 5-10% Demand Monitoring and Control Optimization 3-5%
    • 16. Schneider Electric – Buildings Business 16 Wastewater Collections ECMs  Wastewater collection systems primarily lift water, therefore, VFDs have limited application for energy efficiency.  Lift Station optimization is under development  SCADA, MCCs and pumps controls can be evaluated on a case by case basis.  Pump and Motor efficiency 1
    • 17. Schneider Electric – Buildings Business 17 Potential ECMs – Wastewater Treatment  Aeration Improvements (Blowers, DO, Diffusers)  Digester Improvements (Mixing, FOG, HS Waste)  Cogeneration (CHP)  Demand Monitoring and Control Improvements  Power Conditioning, Power Factor Correction  Motor, Pump Efficiency, VFDs and Controls  Lighting, HVAC, Solar Power  Low Energy Mixing, CEPT  Water Conservation, Smart Irrigation, Reclaimed Water 1
    • 18. Schneider Electric – Buildings Business 1818 Wastewater ECM Metrics – Save 30-50% Wastewater Treatment Plants Energy Savings Optimize Pump Efficiency 5-10% Replace Inefficient Motors and Install VFDs 5-10% Aerobic (HE Blowers, Fine Bubble, DO Control, Mixing) 25-35% Demand Monitoring and Control 3-5% Power Factor, Harmonics, Power Quaility 3-5% Anaerobic (Cogeneration, HSW, FOG, LE Mixing) 30-70% Wastewater Collection System Replace inefficient motors and Install VFDs 5-10% Optimize Pump Efficiency 5-10% Optimize Operating Schedule 5-10%
    • 19. Schneider Electric – Buildings Business 191 Johnson Controls Aeration  Diffuser Upgrade  Aeration Blower Upgrade  Dissolved Oxygen Control & Aeration Blower Control
    • 20. Schneider Electric – Buildings Business 202 Johnson Controls DIGESTER GAS TO ENERGY
    • 21. Schneider Electric – Buildings Business 21 Solar PV  Solar PV mounted on carport, roofs, available acreage 21
    • 22. Schneider Electric – Buildings Business 22 Wind Turbines  Wind has a real impact on power generation at a site and reduction in amount of power to be purchased 22
    • 23. Schneider Electric – Buildings Business 23 Denison, TX population 25K, MGD plant operating at 3 MGD Project Cost 7,943,747 Guaranteed Annual Savings $217,727 Projected One-Time Rebate $195,000 • Lighting, EMS, HVAC • Improvements to their Aeration Basin & Aerobic Digester including new fine bubble diffusion grids • Replacement of 750 hp of blowers and 400 hp of pumps • Replacement of 3 old switchgear/MCC’s Project Scope Project Enablers • Existing relationship with City Manager • Proposed improvements were already known issues • Budget $ already set aside for some improvements City of Denison Case Study
    • 24. Schneider Electric – Buildings Business 24 Slow Water and sewer rate increases Redirect funds already being spent on utilities A solution with multiple benefits Guarantee performance and financials so that you are assured this is a good decision Legislative mandates Reach energy requirements and defer mandates Facility improvement & infrastructure renewal Tackle deferred maintenance Issues with no capital funding source Energy Performance Contracts have helped Cities & Special Districts Reach sustainability goals Reduce carbon footprint and provide GHG reporting
    • 25. Schneider Electric – Buildings Business 25 Thank you! Contact Information: Kevin Bell Program Manager Schneider Electric – Professional Services Phone: 916-508-0535 Email: kevin.bell@schneider-electric.com Meet Our Specialists at WEFTEC 2013 October 7 – 9, 2013 McCormick Place South Chicago, IL Booth 3019

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