We shall provide and conduct a comprehensive study to determine the feasibility of constructing and installing various energy savings alternatives at your Facility. The following tasks are to be included in the feasibility study. Please consider the following:

Electrical and Thermal Consumption

Analyzing past utility consumption data is a vital task in determining the feasibility of any project. We are proposing to obtain the last 12 months of utility bills consumption rate and demand to build a profile of energy usage, and if possible, assemble that data on an hourly basis. Electrical data is usually readily available on demand-metered buildings so that reconstructing an hourly profile of demand and usage is relatively simple. However, reconstructing thermal usage and demand is normally impossible unless the site has been monitored either by an energy management system or by prudent manual data collection. If actual thermal data were unavailable, we would recommend gathering this data by installing BTU meters and recording devices at important thermal sites. There is a chance that complete thermal usage may be available directly from the natural gas utility bill. The completion of the feasibility study significantly rests upon the availability of this data. If thermal data collection is required, the schedule will need to be extended to permit sufficient time to install the metering and collect a meaningful amount of data.

Each main electrical panel and main thermal point of use will be identified, located and evaluated as a possible candidate for tie-in. If the candidate is identified as a point of connection, it will be included in the preliminary design.

Environmental and Building Permits

Air Quality Management District (AQMD)

Another extremely important aspect of some projects is the acquisition of an air quality permit. This project may be large enough to require that a New Source Review be conducted and emission offsets be acquired. We will conduct a survey into all of the steps needed to obtain an Authority to Construct, and eventually, an Operating Permit.

The City's Planning & Building and Safety Department

It is not known at this time exactly what will be required by your Facility to complete a project. As a part of this task, inquiries will be made at the Planning Department and the Building and Safety Department to determine, as closely as possible, what constraints will be imposed upon the project. Important questions, such as, Planning Commission decision trends, issuance of a Conditional Use Permit, noise constraints and other special city ordinances should be answered at this time.

Utility Interconnection Rules (For Possible Cogeneration)

Energy Services Provider (ESP)

As one can imagine, there are many rules and regulations governing parallel generation with the electrical utility grid. One of the first tasks, which must be completed and submitted to the ESP, is the Method of Services Study. This study essentially informs the ESP that your Facility is planning to install a cogeneration system which then triggers an internal investigation into Interconnection Contracts, Service Rates and Protection Engineering. However, this study should not be submitted until we are sure of the type, size and location of the cogeneration facility has been determined.

Your Facility's current rate schedules will be reviewed and compared against alternative schedules in an effort to reduce your Facility's utility bills. We have found, in many cases, that the rate schedules which companies are initially given are no longer economically beneficial after periods of growth and operational changes.

Local Gas Company

Wheeling gas from a wellhead supplier is another alternative to buying wholesale gas from the local gas company. Often gas can be purchased at a much lower rate using this method. We will be investigating alternative fuel sources and wheeling regulations with The Gas Company. Other parameters such as existing gas line sizes and available gas pressures in your Facility's area would need to be researched with The Gas Company.

After the completion of Phase I, it should become very clear as to the viability of several alternative energy savings options. If any one of the aforementioned tasks is determined to be impracticable, the entire project may be considered unfeasible. However, if all return a positive result, then Phase II of the study can commence. Phase II will be used to evaluate slightly more specific items concerning available options, such as identifying a preliminary site(s), selecting equipment, performing preliminary designs, assembling preliminary cost estimates, performing economic studies and finally, outlining our conclusions and recommendations. These tasks are discussed below:

Possible Energy Saving Alternatives

After the completion of Phase I, we will be better able to identify possible energy saving alternatives as in the following: (there could be many other possibilities in your facility)

Cogeneration for pool heating.


Cogeneration with hot water/steam heat recovery only


Cogeneration with absorption chiller heat recovery and thermal storage


Chilled Water Thermal Storage only utilizing existing chillers


Preliminary Site(s) Identification

The electrical and thermal connection points are to be determined in Phase I. Placing the optional facility in a strategic location is of economic importance. Therefore, a site will be proposed for the winning design.

Equipment Selections

The equipment selection criteria are significantly based upon the outcome of the electrical and thermal load profiles determined in Phase I. Other selection criteria such as initial cost, maintenance cost, parts availability, warranty, factory performance guarantees and dealer support are important factors to include in the selection equation. The selection(s) will be included in a preliminary design as well.

Preliminary Designs

Once all of the electrical and thermal points of connection are established, an electrical single-line diagram and a thermal process diagram will be developed. These schematics will show the overall proposed electrical and thermal designs. After the schematics are completed, all of the major equipment will be selected and shown on a site plan. The site plan will provide critical dimensions for material take-offs.

Preliminary Cost Estimates

The preliminary design will identify all of the major equipment and siting requirements needed to assemble a reasonable cost estimate. We have developed a cost estimating program specifically focused at alternative energy saving options which will be used to determine the installed cost of the proposed system.

Major inputs to the program are as follows:

Significant Equipment
Piping
Specialty Valving
Mechanical Equipment
Electrical Equipment
Control/Monitoring
Labor
Fees

Equipment costs used in the program are values which will be obtained directly from equipment suppliers while all material and labor costs will be estimated. At the end of the program, contractor summaries which include costs for material, labor, equipment rental, mobilization, profit and overhead are provided. The estimate will also include a 15% contingency factor.

Economic Studies

A computer program was developed by our company several years ago to estimate the cash flow and simple payback period over a 10-year time interval for various energy saving opportunities.

Major inputs to this program are as follows:

Equipment Parameters

Size
Recoverable Heat
Fuel Rate
System Parasitics

 

Site Characteristics

Capacity Factor
Electric Use Factor
Thermal Use Factor
Cooling Use Factor
Site Boiler Efficiency

 

Economic Parameters

Installed Cost
Operation & Maintenance Cost
Cost of Funds
Insurance & Taxes
Utility Gas & Electric Rate Schedules
Facility Hours of Operation
Equipment Hours of Operation
Actual Facility Chilled Water Load
Actual Facility Steam Load
Actual Facility Hot Water Load

The program calculates the following intermediate results by rate period:

Intermediate Results

Displaced Electric
Displaced Thermal
Electricity to the Grid
Dumped Thermal
Emissions
The final results are summarized in a ten-year cash flow table which includes a simple pay back calculation and estimated internal rate of return.

All equipment parameters will be incorporated into the program as the preliminary design dictates. All site characteristics, such as, actual facility use and typical equipment efficiencies will also be incorporated into the program. Furthermore, the installed cost will be incorporated into the program as the results of the Preliminary Cost Estimate provided.

Recommendations

Recommendations, as dictated by the economic results, will conclude the study.

The following is a list of usual excluded services and equipment, however, available upon request for an additional fee:

Additional work not defined in the Scope of Work will be billed at an hourly rate according to our current Labor Billing Schedule.
Soil, sound, water, air or any other type of testing
All transducers for measuring and data collection systems to be furnished by your Facility, if required.

Your Facility will need to make available to our analyst certain information which will be retained in strict confidence. All of the following data and drawings must be made immediately available in order to meet the schedule deadline. The information which will be requested is listed below:

One set of blueline drawings for the existing site, buildings, mechanical systems and electrical/control systems. These drawings should include all single line diagrams of the main electrical system for each metering point and all steam, hot water, chilled water and gas flow diagrams. (If these drawings are on AutoCAD, we would prefer these files on disk)

Complete list of packaged HVAC equipment by building.

Copies of the past 12 months of Gas & Electric utility bills.

Any available Energy Management data.

Copies of all AQMD permits for existing boilers and other permitable equipment.

In addition to the information, we will require access to all of the Facility buildings, especially the central plant and all satellite thermal/electrical facilities. The best way to handle this situation will be for your Facility to make available to our team one individual who has access to all buildings and possesses knowledge of the thermal and electrical systems.