2012 Innovation Awards Application

Transcription

1 2012 Innovation Awards Application EXTENDED Deadline: March 30, 2012 Sponsored by Please include this form and the following information with each program application. Contact Information Program Title: Kentucky - Commonwealth Energy Management and Control System Contact Person: Dick Mink, Project Manager Mailing Address: 403 Wapping Street City: Frankfort State: KY Zip Code: Phone: address:dick.mink@ky.gov Return this page to mstone@csg.org by March 30, 2012.

2 Commonwealth Energy Management and Control System (CEMCS) Commonwealth of Kentucky- Division of Facility Efficiency Dick Mink, CEM, LEED AP Project Manager 403 Wapping Street Frankfort KY, The Commonwealth of Kentucky has embarked on an endeavor to gain a complete understanding of the energy consumed during the operation of state-owned facilities; every minute of every day. Our methodology is centered on creating a data rich environment through state of the art collection methods. We are establishing a new state employee classification to analyze that data and enabling agencies to make information based decisions towards remediation of wasteful existing paradigms. The pilot project includes 43 facilities and 1.98MM square feet. Integrations to existing Building Automation Systems, existing Accounts Payable systems and existing Work Order systems are the heart of the operation. The ability to except Electronic Data Interchange (EDI) from all utility companies will modernize the entire energy financial transaction. Efficiencies achieved from these changes could reach 20% across the board, which translates to over 40MM annually in taxpayer value, based on current utility rates. With three distinct levels of deployment, CEMCS will allow for bill pay only with manual or EDI entry, bill pay and interval data with the addition demand response, and Building Automation Systems (BAS) integration via BACnet/IP and SQL to allow for operation data analysis. The pilot data and processes will be duplicated en masse and made available to all facilities managers in all governmental agencies. The initial statewide rollout is scheduled to include some 1700 facilities from 5 agencies. The requested budget is $41MM over 6 years (3 budget cycles) with an expected Internal Rate of Return to be approximately 16%.

3 What problem(s) is the program addressing? The CEMCS program solves the problem of scaling energy efficiency and gathering reportable utility consumption information (mandated by House Bill 2) at a statewide level. Kentucky s 7,000+ buildings are owned by 43 different agencies. This creates complications in delivering consolidated energy tracking and reporting information as legislatively required. A separate challenge is our executive order to reduce energy consumption 15% by 2015 and 25% by Each agency must be allowed to do business according to their own rules while complying with state mandates. Another challenge addressed by this project is the efficient and timely gathering of utility data to improve data accuracy as well as decrease the cost of late fees to the agencies. CEMCS solves that challenge by creating a central point of delivery and dissemination of manual and Electronic Data Interchange (EDI) utility data inputs to the system and processing of utility bills to multiple payment systems. Gathering data to meet reporting requirements is a complex task involving dozens of utility companies. Meeting the energy reduction and reporting goals necessitates an information system on which to build an effective strategy to systematically lower energy usage and costs. The program needs to become self-funding to enable the scale of expansion required. And, all this must be done with a level of transparency that allows tax payers to monitor progress. When was the program implemented, and is it still operational? CEMCS first delivered monthly utility data in January 2011 as part of a pilot project involving five agencies across 17 sites. In June 2011 additional operational data from building automation systems was added to the system. The program is still operational and we anticipate expansion both within the original five agencies as well as expanding to additional agencies as our new fiscal year begins in July. How does the program result in dollar savings and/or efficiency for customers? For the owner agency?

4 The savings from the program come from multiple venues. Utility bill analysis led to $81,000 in annual savings at one community college by identifying utility rate changes that lower costs even before addressing energy reduction efforts. This has led to a broad program with Kentucky Utilities (KU) to review major accounts for similar benefits across the state. This effort also led to a program with KU to install interval data meters for accounts above 50kW at very attractive prices, which feeds more data into CEMCS to enable additional analysis and savings. The system allows us to monitor and rank all facilities according to their energy intensity so properly prioritized focus can be directed at buildings that are energy hogs. A baseline energy model provides a way to measure weather-normalized progress, and benchmarking against other Commonwealth buildings and via Energy Star provides measurement standards. Facilities with modern building automation systems are tied into the system with a much richer set of information. This has led to significant energy reduction and savings, even at buildings with good benchmark scores. It has also changed how Kentucky does business with controls vendors, driving standards for naming conventions and data collection that will enhance CEMCS in the future and keep building on the savings momentum already obtained. As of this writing, the system has resulting in weather-normalized utility savings of over $600,000 as compared to our baseline year (fiscal year 2009), as can be seen on the public CEMCS energy tracking dashboard ( Other savings and cost avoidance benefits exist. The system streamlines utility bill processing. Two of our largest utility providers, KU/LGE and Frankfort Plant Board, have worked with us to institute Electronic Data Interchange (EDI) billing. This paperless approach saves time and reduces errors in managing utility bills. Manual data entry has also been streamlined with intelligent entry forms and bill auditing that identify potential billing errors or excessive usage. The system further automates the process by interfacing with our enterprise AP system and work order systems.

5 Is the program cost-effective? Be specific to benefits and costs and include start-up and annual costs and efficiency. The Commonwealth allocated $3.56MM to build the CEMCS, complete the testing and write standard operational procedures that will govern the state wide expansion. During the pilot over $1MM of repetitive savings (Rates and Usage) has been identified making the ROI more than 25%. Who are the beneficiaries of the program? All participating state agencies directly benefit from CEMCS. The dollar savings result in a benefit to taxpayers and feeding revenue back into the state operational budgets, potentially decreasing the need for to furlough personnel or implement pay cuts we project that if fully implemented across all state facilities, CEMCS could save Kentucky $40 million annually. Hand-in-hand with energy savings are also the resulting greenhouse gas emissions reductions that are goals for many state governments. The improvements to building operations are not only for energy savings, but also improve worker productivity as state workers enjoy ever-increasing comfort and improved air quality delivered to their workspace. The system even benefits our utility providers and contractors by providing back information that improves their efficiency and effectiveness. What is the feasibility of the program being used by other states? Our hope is that all other states can learn from the CEMCS project and launch similar endeavors. Each state will have unique considerations based on how the government is organized and how agencies operate, local utility provider differences, and what systems are in place to interface with (finance, asset management, work order, etc.). We believe CEMCS will prove that energy management can be effectively implemented and scaled at a statewide level, and provides an example and framework that other states can use to model their own energy management