This document discusses several ways that Innovative Logical Controls can help clients reduce utility costs through energy management services. These include utility analysis to identify high usage buildings and billing errors, benchmarking against past usage, weather normalization to account for temperature variations, and implementing water conservation programs. The company also provides energy management system installation and replacements using programmable logic controllers. Mechanical equipment upgrades like installing high efficiency water heaters or downsizing boilers can achieve substantial fuel savings. Future projects like piping replacements and lighting upgrades are also recommended to reduce energy consumption and costs.

1. Utilities Management, Operations & Maintenance John Castoro Innovative Logical Controls, LLC www.innovativelogicalcontrols.com Call: 800-208-5461 Fax: 800-208-5471 [email_address] Utility Cost Savings EMS Installation or Replacement Mechanical Equipment Capital Improvements Future Projects Innovative Logical Controls, LLC

6. Mechanical Equipment Capital Improvements May Be Needed to Implement Cost Savings “ Fractional Fuel Savings” through equipment separation at large sites saves thousands of dollars!!! Main boilers are too large to produce DHW efficiently during May – October! Boiler cycling losses are compounded during this low load condition! Fractional Fuel Savings Calculation: E1 = efficiency of boiler #1 / E2 = efficiency of boiler #2 %Savings = 1-(E1/E2) %Savings = 1-(70%/96%) = 27% SAVINGS

7. Mechanical Equipment Capital Improvements May – October Seasonal Fuel Cost Savings (Example): Main Boiler Seasonal Usage = 22586 Dekatherms Cost per Dekatherm = $13.00 (February 2008) Total Utility Cost Using Large Boiler for DHW = $293,618.00 Installed High Efficiency DHW Heater Fuel Cost = 73% of $293,618.00 Calculated Cost of Fuel After Utility Reduction = $214,341.00 Calculated Savings First year = $79,277.00 Conservative Savings Based Other Losses = $60,000.00

8. Shut down large boilers During May - October Save 20% - 25% of Large boiler fuel costs Guaranteed!!!!! Cycling Losses A boiler cycle consists of a firing interval, a post-purge, an idle period, a pre-purge, and a return to firing. Boiler efficiency is the useful heat provided by the boiler divided by the energy input (useful heat plus losses) over the cycle duration. This efficiency decreases when short cycling occurs or when multiple boilers are operated at low firing rates. This decrease in efficiency occurs, in part, because fixed losses are magnified under lightly loaded conditions. For example, if the radiation loss from the boiler enclosure is 1% of the total heat input at full-load, at half-load the losses increase to 2%, while at one-quarter load the loss is 4%. In addition to radiation losses, pre- and post-purge losses occur. In the pre-purge, the fan operates to force air through the boiler to flush out any combustible gas mixture that may have accumulated. The post-purge performs a similar function. During purging, heat is removed from the boiler as the purged air is exhausted. Boiler Downsizing Fuel savings can be achieved by adding a smaller boiler sized to meet average loads at your facility, or by re-engineering the power plant to consist of multiple small boilers. Multiple small boilers offer reliability and flexibility to operators to follow load swings without over-firing and short cycling. Facilities with large seasonal variations in steam use operate small boilers when demand drops rather than operating their large boilers year-round.

9. Don’t Put Future Projects On HOLD Go for the GOLD!!!! Water Conservation Piping Replacements Electrical Panel Replacements, Lighting Upgrades Co-Generation, Solar Power Energy Management DSM Building Automation