Managing Costs via Automated Control Systems. Dave Franczak President Engineered Energy Systems

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1 Managing Costs via Automated Control Systems Dave Franczak President Engineered Energy Systems

2 Good News / Bad News "The good news is that America's energy problems can be solved," (Energy Secretary Spencer) Abraham said. "The bad news is that the situation in California is not isolated. It is not temporary. And it will not fix itself." Source: Energy Chief Says U.S. Is Facing Worst Shortages Since '70s, Richard Simon, LA Times, 3/21/01

3 How can automated control systems help? Better information Help you identify energy cost centers Load profile Better bargaining position Enable flexibility in operations Impacts supply AND demand side management!!!

4 Let s look at an example of a successfully AUTOMATED control system!

5 2,000,000 ft 2 R&D Facility Jersey - 60 s building 6000 ton chilled water plant - five electric drive centrifugals Manually operated - obsolete monitoring system Simultaneous heating & cooling High potential for savings

6 Let the results speak... Automation solved or uncovered many operational problems Comfort level of occupants dramatically increased Energy savings in excess of $300K annually Foundation for the future

7 Where are you today?

8 Some questions to ponder? Where is my control system? Do I know the true cost savings my system provides? Am I locked into one control system vendor? Have I benchmarked my system? Do I need to re-commission my system? Is my system a glorified time clock or smart system?

9 System works Energy cost savings? Labor savings? Reliability? Too overloaded to worry about it! In the dark?

10 Graphics show that the readings are correct. Confident System has been working fine for years. Must be saving me some energy If it ain t broken...

11 Happy System has not caused any problems. Downtime and repairs have been minimal Operators like the graphics Always sign off on the maintenance contract

12 Turn your automated control system into an information system!

13 Breakdown of Costs Lighting Cooling Heating Internal loads

14 You can tackle the issues once you have identified the potential for $$$ savings.

15 To find the potential cost savings... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

16 Benchmark Your Facility Walk around and look Interview operators / maintenance 2:00 a.m. on Sunday Occupancy, running equipment, operations Know cost/ft 2

17 BOMA Benchmarks Table 1 Facility Type Operating Expense Comparisons Total Operating Costs Facility Type ($/RSF) Back-Office Operations and Administrative $6.41 Computer Operations/Data Services $7.07 Headquarters $6.63 Mixed Function (No predominant use) $5.21 Production/Process Facility $9.25 Research and Development $6.43 Table 2 Industry Function Operating Expense Comparisons Total Operating Costs ($/RSF) Industry Function Financial/Insurance $6.90 Hi-Tech $5.94 Utility $7.49 Health $5.78 Manufacturing $5.84 Wholesale/Retail $6.13 Source: BOMA 2000 Experience Exchange Report Corporate Facility Highlights

18 $2.00 $1.80 Expense Trends Source: BOMA 2000 Experience Exchange Report U.S. Office Market Highlights $1.60 $1.40 $/RSF $1.20 $1.00 $0.80 Cleaning Repair/Maintenance Utilities Roads/Grounds Security Administrative $0.60 $0.40 $0.20 $

19 Highest Expenses - Downtown Washington, DC Minneapolis, MN Chicago, IL Boston, MA New York, NY $8.00 $9.00 $10.00 $11.00 $12.00 $13.00 $14.00 $15.00 $16.00 $/RSF Source: BOMA 2000 Experience Exchange Report U.S. Office Market Highlights

20 Highest Expenses - Suburban Morristown, NJ Los Angeles, CA Minneapolis, MN New York, NY Honolulu, HI $8.00 $8.20 $8.40 $8.60 $8.80 $9.00 $9.20 $9.40 $9.60 $9.80 $/RSF Source: BOMA 2000 Experience Exchange Report U.S. Office Market Highlights

21 What does this mean? Utilities and Maintenance are the largest cost drivers (about 1/2 of operating expenses in office bldgs). Computer room - add 10% on average to $/sf Where is your facility? Does your control system provide you with real data? Use the control system to flatten your load profile.

22 Onto Step 2... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

23 Control System Costs Self sufficiency MTBF Labor costs impacted by system sophistication Life cycle vs. first cost Service contracts

24 Life Cycle vs. First Cost 50% 35% 12% 3% Concept Non-Recurring Costs Design & Build Install & Commission Operation & Support

25 50% 35% 12% 3% Incremental spending Concept Do the math... Non-Recurring Costs Design & Build Install & Commission Savings opportunitie s Operation & Support

26 Planning for the future... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Re-commission the control system Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

27 Technical Considerations Age and flexibility Capability to be tied into the meter? Level of customization for optimization Open protocol Communication platforms Controlling systems vs. equipment Level of operator intervention Internet / Intranet

28 How do I find out? Control system vendors Engineering firms Internal resources Independent control system integrator Team solution

29 Decision Time Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

30 Why get rid of it? COST OF KEEPING OUTWEIGHS THE BENEFIT DECREASED FLEXIBILITY SERVICE CONTRACT PRISON VENDOR INDEPENDENCE TECHNICAL DINOSAUR System must have the ability to tell you actual $ per BTU and verify with bills!!

31 If you jettison... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Re-commission the control system Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

32 Most important step... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

33 Re-commissioning SHOULD ALWAYS BE DONE FOR NEW CONSTRUCTION MAY BE MORE IMPORTANT THAN NEW CONSTRUCTION BENEFITS TO RETROFIT PROJECT Increased efficiency Reduced operating costs Reduced maintenance costs

34 Re-commissioning IDENTIFY PROBLEMS INCREASE OPERATING EFFICIENCIES IDENTIFY, QUANTIFY & RESOLVE COMPLAINTS IDENTIFY WHERE NEW SYSTEMS ARE APPLICABLE RE-TRAIN PERSONNEL DOCUMENT

35 Mechanical Systems Dampers stuck Valves not controlling properly Air and water pressure Chiller / boiler efficiencies Strainers, filters, tube fowling, etc. Operator inserts fixes without energy considerations!

36 Mechanical Band Aids QUICK FIXES THAT BECOME PERMANENT High Condenser Pressure = Extra pump AHU Coil frozen = Seal off the outside air SEPARATING FACT FROM FICTION Computer Center requires 44 Degree Chilled 120 GPM The tail wags the dog

37 Electrical Systems PC / Occupancy Shifts Classify loads Essential Ability to be shed Sub-metering cost allocation benchmark changes Lighting survey Projects may have been done without looking at the BIG PICTURE!

38 Control System Calibration of sensors Calibration of controlled devices Verification through to the graphics Control system is only as good as its data. Get back into AUTO

39 Sensors Can make data unbelievable Bad data = bad automation Proper range Calibrated when??? Blow down pressure lines Evaluate quality requirements Knowledge is the key!!!

40 Controlled Devices Dampers allowing OA to enter AHU Valves leaking / shutoff Analog signal calibration Re-examine setpoints Rethink control strategies Retune PID loops Mechanical efficiencies

41 Control System Data Verify data to front end graphics Recheck all loops with proper test equipment Bad data = bad automation Operator ambivalence Migration to HAND Lose / Lose to all To automate, data must be correct!!!

42 Getting bang for your buck... Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

43 Where can AUTOMATED control systems help you save $$$? Lighting Heating Cooling Demand based ventilation Demand Cost Energy Purchase Options End product People

44 Lighting Controls Look around Interior and exterior Occupancy sensors and photosensors are a good start Networked programmable breakers - next step scheduling load shedding ASHRAE 90.1 creates total building wattage limitations.

45 Control the Heat Integrated system - room to boiler Common situations Unnecessary simultaneous heating and cooling Cooling towers System running fixed No night setback

46 Stop the Waste Recapture waste heat AUTOMATIC resetting of setpoints outside air space conditions night setback Systems need to operate in harmony to maximize savings!

47 Cooling Controls Integrated system - room to chiller Common situations Unnecessary simultaneous heating and cooling Chillers running during the winter System running fixed Shock loads No night setback

48 Take Advantage of Nature & Time Free cooling w/ plate and frame HX Ice storage build ice bank off peak emergency cooling Multiple source choices Don t leave it up to the operators to make the decision!

49 Demand Based Ventilation What is it? CFM of OA / person Measure CO 2 vs. VOC gases ASHRAE Location of building is important.

50 Control Considerations Adjust OA CFM based on CO 2 Safety factor to setpoint Impact heating / cooling requirements Save $$$ Example: classrooms

51 Demand Cost Load profile When does your peak KW come into play? Automatic load shedding Real time pricing Alternative sources of energy Strategic Utility Management

52 Energy Purchase Options Automated control system MUST provide info Flatten the load profile Autoswitching to self generation Allow users to shop Provide flexibility with multiple sources

53 End Product Cost Quantitative $/widget Become part of product supply chain Departmental budgeting Boiler room to board room integration Good information = good decision

54 People Component Automation creates manpower savings Use people in other capacities Pushbutton on screen saves the wrong kind of energy. Efficient operation must be net result In house support with open system Growth of staff

55 Re-evaluate Step 1 - Benchmark your facility Step 2 - Identify cost of your control system Step 3 - Technical considerations Step 4 - Jettison or Keep Step 5 - Commission / Re-commission Step 6 - Figure out where $$$ can be saved and go to task Step 7 - Re-evaluate and back to step 6

56 Re-evaluation This is why you commissioning the control system! Did the change work? Meter your results for verification Work on simple fixes first Evaluate and re-evaluate

57 Just to summarize...

58 Find out where you are... In the dark Confident Happy Combination Evaluate technical and financial costs/benefits of the system!

59 Step 1 - Benchmarking HOW DOES YOUR BUILDING COMPARE WITH SIMILAR USE BUILDINGS IN YOUR GEOGRAPHIC AREA $/sq.ft. BTUs/sq.ft. Automated control systems can help you get back into line!!!

60 Step 2 - Control System Cost First Cost vs. Life Cycle Cost Service Contract Prison Cost of repairs Downtime costs Who is in control? Vendor independence is the way to go!!!

61 Step 3 - Technical Considerations Automated vs. Optimized Flexibility Implement customized control strategies Be careful of the open buzzword! Tied to the meter for real time automated decisions Know building / plant information anywhere, anytime, through any media!

62 Step 4 - Keep or Jettison Take into account both the tangible and intangible benefits / costs when making the decision.

63 Get the correct data Step 5 - Commission / Recommission Ensure system works from graphics to end device Third party solution Report and document No Sacred Cows! You MUST do this or the other steps become moot!

64 Steps 6 & 7 Take Action Everything up to speed Determine where you can save $$$ Prioritize, determine payback, and act!!! Those who get past here will be rewarded in the deregulated market!

65 How will you be rewarded with an AUTOMATED system? Quantitatively track demand - better energy contract Energy cost centers Help utilities on supply side More flexible operations Easily incorporate new engineering solutions Run the facility on the edge Power quality Reduced energy use = environmentally friendly

66 Good Team is the Key! In the new market, efficiency goes to the bottom line and is better for the environment!!! Much to evaluate Owner Operator Engineer Commissioning Agent System Integrator individual systems big picture