1. AEP Ohio’s
Continuous Energy
Improvement
Initiative
Saving Energy Without Investing
Capital Dollars Through No/Low
Cost Opportunities
18th
Annual Ohio Energy Management Conference
February 18, 2014

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© 2013 Triple Point Energy
• Michelle Cross : Overview and Background
– AEP Ohio Energy Efficiency Business Programs Coordinator
• Richard Miller: How it Works
– CEI Program Manager, Triple Point Energy
• Samuel Day : Putting into Practice
– Energy Coordinator, Columbus Castings
Today’s Presenters

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Overview and Background
AEP Ohio is helping customers
Save Energy and MoneySave Energy and Money
Through Energy efficiency
incentives

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Incentive Program Highlights
Actual Energy and Money SavingsActual Energy and Money Savings
* Numbers assume the average household energy consumption of 12,000 kwh per yr
and a 10 year measure life
Enough to power
48,600 homes for
10 years*
2013 Annual Energy Savings
Achieved- 587 Million kWh587 Million kWh
Paid $46 Million$46 Million in incentives
Since 2009 AEP Ohio
customers have saved
2,280 Million kWh2,280 Million kWh
Enough to power
190,000 homes
for 10 years*
Enough to power
190,000 homes
for 10 years*

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Overview and Background
Why Energy Efficiency?
Lowest cost alternative to new generation
Reduces wasteful use of electricity and frees
up customer resources
Provides sustainable green jobs in Ohio
Supports the achievement of SB 221
benchmark requirements

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What is different about CEI?
CEI is a Strategic Management Approach to
Achieving Low/No-Cost Energy Savings at
Industrial Sites

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37 Industrial Participants
2013 Energy Savings Results

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2013 Energy Savings Results
• Shut down 1 of 2 chemical
wash blowers saving – 770,000
kWh and ~ $38,000 per year
• Shut down 1 of 2 dilution
pumps savings – 513,000 kWh
and ~ $26,000 per year
Identified Immediate Savings during on-site Energy Scans

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Catalyst for Capital Projects
The CEI Program has influenced Energy Efficiency Capital Projects
CEI Participants have
applied for an additional 11
Million kWh’s in Capital
Projects

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Building Better Relationships
Monthly Customer Meetings
Positive feedback from Customer
Surveys – score of 4.4 out of 5
– Written Materials
– Presentations
– Workshop Usefulness

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Customer Testimonials
“CEI has also given us metrics we have not had
before. In past all we had is our bills and now
we have a model to predict our usage.”
“ A great process for developing our
Energy Management Program.”
“Looking forward to working with
AEP on engaging management &
staff to realize additional energy
savings.”
“I appreciate the discussion from
different companies. Very open,
and we all realize we are on the
same journey.”

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Closing
AEP Ohio’s CEI Program is helping customers
Save Energy and MoneySave Energy and Money
Thank you to our customers
and partners for supporting
our Energy Efficiency
programs!

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How it Works

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Keys to No/Low Cost Savings
• Recognize the opportunity
• Set the foundation for change
• Track progress
• Engage the organization
• Utilize CEI program resources

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What are No/Low Cost Activities?
• Typically referred to as “Behaviors”
• Cost less than $5,000 (generally much less)
• Process and equipment operation
• Maintenance activities
• Process and equipment setup and optimization
• Process scheduling and throughput improvement
• Productivity and quality improvement

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• VOC Stripping Towers
• Used to outgas well
water before bringing
into the process
No/Low Cost Examples #1

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No/Low Cost Example #2
• Electric Heated Curing Oven
• Ran 24x7
• Capable of higher
through put

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How Much Opportunity is There?
No/Low Cost Savings
•5%
•10%
•20% +

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Foundation for Change
• Recruit an Executive Sponsor
• Deploy a charter for action
• Identify an
Energy Champion
and provide a team

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Track Progress – Establish Baseline
Create a baseline of past performance based on
the drivers that determine energy performance.
Linear Regression Model

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Track Progress - Through Comparison
• Actual minus predicted energy usage
• Sum the differences over time

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Engage the Organization
• Generate ideas
– Internal resources
– Combined with external resources
• Support and implement changes
– Resolve fear and concerns
– Ownership
• Integrate saving energy into existing
organization initiatives

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Utilize Program Resources
CEI provides the following
– Structured network group
– Tools and resources
• Identify and opportunities
• measure savings
– Positive reinforcement
• Incentives ($)
• Recognition
– A call to action

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Putting Into Practice

25. CONTINUOUS ENERGY IMPROVEMENT
COLUMBUS OHIO COHORT 2013

26. Energy Team
Goal: Develop cross-sectional energy team
with members from varying facility
backgrounds
Energy Champion – Samuel Day: Energy Coordination and
Engineering
Executive Sponsor – Randy Parish: VP of Operations
Team Members
 Curtis Battrell: Manufacturing Engineering/Maintenance
 John Ice: Operations Supervisor
 Troy Justice: Melting Operations Supervisor
 Don Strong: Facilities Engineering

27. Energy Focus
Energy Policy
 Committing to a more focused approach toward managing
energy resources and have an overall goal to reduce energy
usage by 10% annually.
Energy Awareness Activities
 Company Newsletters
 Employee Engagement Events
 Employee Interactions
Energy Audits
 Energy usage audits during shutdown periods
 Leak detection audits
 Running operation audits

28. Energy Tracking/Monitoring System
“If you cannot measure it, you cannot improve it.”
-Lord Kelvin
Develop baseline model
 2 years of baseline data
 Regression used to predict energy usage from baseline data
 Difference between actual and predicted used to determine
savings
Create graphical representation of the effect of
savings projects
 Cumulative sum of savings implemented
 Savings percentages

29. Savings Opportunities
Utilized CEI program technical resources to generate
no/low cost opportunities
 Over 5 million kWh/year savings identified
Leak detection and repair – Continuous process of
leak detection and repair
 Compressed Air, Natural Gas, Compressed Gasses
 Team to detect and repair leaks
Standardized shutdown procedures
 Department shutdown checklists
 Department shutdown audits
 Optimize dust collection system runtime

30. Savings Opportunities (continued)
Systems operation standardization
 Reduce over heating
 Maximize quantity of parts heated per batch
Efficiency upgrades
 Improved insulation
 Gas burner tuning
 Calibrate and adjust temperature set-points
Utilities misuse reduction
 Employee awareness of poor or improper tooling usage
 Reduce misuse or overuse of tooling that requires compressed
air, compressed gases, or natural gas

31. Successes and Challenges
Successes
 Employees willingness to adapt to policy/process changes
 Management support
 Production scheduling to minimize partial shift operations
 Minimized runtime promotes equipment longevity
Challenges
 Changing the mid-set of veteran employees
 Continuation of leak detection/repairs
 Changes in production volumes and scheduling
 Upkeep of implemented programs
 Resource acquisition (man power and/or funding)

32. CUSUM - No/Low Cost Savings Tracking

33. Future Projects – No/Low Cost
Pressure set-point reduction – 600,000 kWh/year
savings estimate
Continuation of leak tag/repair program
Continuation of department shutdown and
scheduling efficiencies

34. Also Pursuing Capital Projects
Replace 1000 watt sodium lighting with high
efficiency LED lighting with motion detection –
7,000,000 kWh/year savings estimate
Replace old compressors with new high efficiency
compressors – 4,000,000 kWh/year savings
estimate
Variable staging compressor automation to
efficiently trim air production – 300,000 kWh/year
savings estimate

35. Thank You
Columbus Castings would like to thank AEP Ohio for
the opportunity to participate in the Continuous
Energy Improvement Program. This program has
resulted in significant savings through the first year
of application and is projected to provide even
greater savings in the years to come.
Advice to future participants: Utilize the resources you
have at your disposal as soon as you can. It is never
to early to start saving money on utilities costs.

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Wrap Up
Thanks for Attending!