PRESENTATION TITLEThe Peoples Gas and North Shore Gas Natural Gas Savings Programs

HESNI Annual ConferenceJim HauserMay 7, 2015

PRESENTATION TITLE• Prescriptive

oMenu of 1-for-1 upgrades for designated equipmento Examples include steam traps, boilers, food service equipment, energy recovery

units, ozone laundry, pipe insulation• Custom

oRebates are calculated based on energy savings and receive the lesser of:oBuy down to one-year paybacko$.75 per therm saved annually (projects ≤ 7,500 therms) or $1 per therm saved

annually (projects > 7,500 therms)o Full incremental project cost or 50% of the total project cost

Commercial and Industrial Rebates

PRESENTATION TITLE

Commercial and Industrial Prescriptive RebatesPrescriptive Measure Rebate Through May 31, 2015

Steam trap repair/replaceSpace heating: $120Process: $300Unaudited: $30Testing: $10

Pipe insulation (space heating) $1-15 per foot

Space heating steam boilers $2 per MBH

Space heating hot water boilers $3 per MBH

Boiler tune-up $0.40 per MBH (cap @$500)

Demand-controlled ventilation $350 per fan HP (Kitchen DCV)All other DCV is handled as a custom project

PRESENTATION TITLEIntroducing Efficiency Navigator

PRESENTATION TITLE• Best practices for achieving significant gas savings

o Start with low-hanging fruit, including no-cost measureso Explore healthcare-safe faucet and showerhead reduced-flow deviceso Understand benefits of steam trap testing and repairo Insulate steam and condensate pipe, insulated jackets for valves,

fittings, heat exchangers and steam trapso Kitchen demand-controlled ventilation overview

Maximizing Utility Rebate Opportunities

PRESENTATION TITLE• Direct installation of no-cost offerings for Commercial and Industrial customers

—perfect for non-clinical areas• Products include:

o Showerheads o Faucet aeratorsoPre-rinse sprayers

Commercial and Industrial Energy Jumpstart

PRESENTATION TITLE• 160-unit apartment building for nursing students• The Jumpstart Team installed 160 energy-saving, high-pressure,

reduced-flow kitchen and bath aerators and showerheads at NO COST

Annual natural gas savings $ 3,009 Annual water savings 3,916 Annual sewage savings 3,916 Total annual savings* $10,841

*2015 rates used in example

Advocate Illinois Masonic Barr Tower Case Study: Energy Jumpstart Project

PRESENTATION TITLE• Silver ion-infused faucet laminars and showerheads are

the answero Used in the majority of hospitals in California where

water is so scarceo Laminars do not draw air into the water streamo Uses 30% less water than a common 2.2 gpm aerator

and up to 50% less when aerator has been removed

o Minimizes water, natural gas and sewage costs

Faucets and Showerheads in Healthcare:A Safe, Energy-Saving Solution

PRESENTATION TITLE• Installation of silver ion-infused faucet

laminars and showerheads in over 80 patient roomso Over 200 faucet laminars reduced sink

water flow from 3 gpm to 1.5 gpmo Over 80 showerheads reduced flow

from 2.5 gpm to 1.5 gpmo Showerheads can be handheld or fixed

Mt. Sinai Hospital Case Study:Healthcare Faucet Laminars and Showerheads

Before After

PRESENTATION TITLEProject cost $ 13,620Custom rebate - 8,317Net project cost $ 5,303Natural gas savings -2,956Water/sewer savings -2,287Net project cost: $ 60 Payback: One Year, 16 Minutes!

Before After

Mt. Sinai Hospital Case Study:Healthcare Faucet Laminars and Showerheads

PRESENTATION TITLE

• Available to small business customers that use less than 60,000 therms annually • Free energy assessment and recommendation report• Free direct installations of natural gas-saving products• Perfect for off-site office buildings and clinics

Small Business Energy Jumpstart

PRESENTATION TITLE• Implement a yearly steam trap testing and replacement plan

oApproximately 20% of the steam leaving a central boiler plant is lost via leaking traps*o The most accurate testing includes temperature AND ultrasoundoOutside contractors usually provide exact trap inventory, location, type, elevation and

ID tag for easy identificationoA detailed trap inventory report is often worth the cost of the survey aloneo Electronic real time testing is now available and our program is developing an offering

to address this technology

*Source DOE/EE-1093

Steam Traps: Silent Thieves

PRESENTATION TITLE• Commercial and Industrial steam trap testing and replacement rebates

o $10-20 per trap testedo $120 rebate for space heating applicationso $300 rebate for process-industrial applications

• Covers many of the traps in a hospital• Sterilization• Humidification

Steam Trap Testing and Replacement Rebates

PRESENTATION TITLE

Proper Steam Trap Testing Procedure

PRESENTATION TITLEComprehensive Steam Trap Survey and Testing Sample Report

PRESENTATION TITLEComprehensive Steam Trap Survey and Testing Sample Report

PRESENTATION TITLESteam Trap Case Study Presence Resurrection Medical Center

• 23 Failed High Pressure TrapsProject cost (self installed) $ 4,855Steam trap rebates - 4,855Net project cost $ 0Estimated steam savings $38,533

Payback achieved in 0 days

PRESENTATION TITLENorthwestern Memorial Hospital Case Study: Steam Traps Northwestern Memorial Hospital• 69 failed high-pressure trapsProject cost $39,954Testing and trap rebates - 33,370Net Project Cost $ 6,854Estimated Steam Savings $222,334

Payback achieved in 7.3 days

PRESENTATION TITLEAdvocate Condell Medical Center Case Study: Steam Pipe Insulation Advocate Condell Medical Center• 2,056 ft. of steam and condensate pipe insulated

Project cost $94,870Custom rebate -39,980 (Buy down to one year payback)Net project cost $54,890Annual savings (64,417 therms) $41,875

Payback achieved in 1.3 years

PRESENTATION TITLE• Over 1,000 insulated jackets for gate valves, PRVs,

elbows and fittings• More than 1,200 ft. of steam pipe insulation• Insulated jackets contain ceramic wool rated to

1,200°F, D-ring closures, Velcro and tie straps on each end for easy removal

• Typically custom made for best fit and energy savings

Northwestern Memorial Hospital Case Study: Removable Valve Jackets and Insulation

PRESENTATION TITLENorthwestern Memorial Hospital Case Study: Removable Valve Jackets and Insulation

PRESENTATION TITLEProject cost $151,331Rebates 93,188Net project cost $ 58,143Project savings $ 58,143

1 Year Payback

Northwestern Memorial Hospital Case Study: Removable Valve Jackets and Insulation

PRESENTATION TITLE• Most run at FULL SPEED—often

24/7 even when there is no cooking activity—wasting valuable conditioned air

• Kitchen demand-controlled ventilation controls reduce exhaust and make-up fan speeds during idle, lower temperature and non-cooking conditions

Kitchen Demand-Controlled Ventilation

Full Speed

PRESENTATION TITLE• Retrofitting DCV controls is easy and

cost effective• 20% reduction in fan speed equals a

50% reduction in motor power required• Kitchen DCV can control the MUA to

keep the system in balance and save natural gas

Kitchen Demand-Controlled Ventilation

Half Speed

PRESENTATION TITLEKitchen Demand-Controlled Ventilation

• Energy savings potentialo Fan energy savings up to 90%oConditioned air savings up to 50%o Savings due to reduced stress on

motors and belts with soft start from VFDs and reduced speeds

oPayback typically 1-3 years

PRESENTATION TITLEKitchen Demand-Controlled Ventilation

• Supported by both gas and electric rebates

• Peoples Gas offers $650 per exhaust fan horsepower

• ComEd® offers $350 per exhaust fan horsepower

• A 20 HP system qualifies for $20,000 in rebates!

PRESENTATION TITLENorthShore Highland Park Hospital Case Study:Kitchen Demand-Controlled Ventilation

PRESENTATION TITLEKitchen Demand-Controlled Ventilation Systems Installed in the Chicago Area

• Adventist Hinsdale Hospital• Advocate Condell Medical Center• Advocate Illinois Masonic Medical Center• Advocate Trinity Medical Center• Advocate Good Samaritan Medical Center• NorthShore Highland Park Hospital• Northwestern Memorial Hospital (3)• Presence St. Joseph Hospital

• Presence Our Lady of the Resurrection• Presence Mercy Medical Center• Presence St. Mary and St. Elizabeth• Presence Resurrection Retirement Community• Presence Life Center• Presence St. Benedict Nursing and Rehab• Shriners Childrens Hospital• University of Chicago Medical Center

PRESENTATION TITLE• Utility programs provide:

oProgram staff support during implementation and project managementoA technical team to perform studies (up to $15,000)

• Customer provides/commits to:o Facility access and staff support (est. not to exceed 20 hours) to complete the studyo Implement measures with a payback under 1.5 years (up to $10,000) within 90

days of report presentation

Gas Optimization Studies Overview

PRESENTATION TITLE• Three types of studies available:

o Steam Plant Optimization o Building Heating Optimizationo Process Heating Optimization

Gas Optimization Study Types

PRESENTATION TITLE

Common Low- and No-Cost Measures

Steam System Optimization Process Heating Optimization Building Heating Optimization

Optimize boiler system operation

Dampers on hot water tank vents Optimize AHU operation

Run boilers preferentially Steam vent recovery Thermostat setback

Optimize standby boiler operation Eliminate excess air flow Reduce air exchange rates

Lower deaeration tank pressure Insulate exposed piping Shut off heating coils during

warm weather

Lower steam generation pressure

Eliminate coincident heating & cooling Outdoor air reset

Reduce outdoor air intake

PRESENTATION TITLEHoly Cross Hospital Case Study: Building Heating Gas OptimizationHoly Cross Hospital• Building heating optimization study found the following:o Deaerator vent oversized wasting over $5,000 per year in steamo 28 air handlers with outdated, non-functioning pneumatic controls

leading to little or no control of the primary hot and chilled water coils and pre-heat/pre-cooling coils when present

o 5 steam to hot water heat exchangers without functioning controlso Disconnected outside air dampers and actuators resulting in 8-10%

excess outside air on averageo Discharging at over 95 degrees F, 7 of the 28 air handlers

The study confirmed that a new BAS system would solve these problems and save almost 180,000 therms conservatively

PRESENTATION TITLE• Holy Cross chose Northern Weathermakers to

design and install an open-source, Tridium-based automation system

• The new system includes panels with BACnet controllers for each of the 28 air handlers networked into a Tridium front end

• Complete control of each AHU including outside air damper position, mixed air, discharge air, heating and cooling coils and pneumatic transducers for existing AHU controls and steam heat exchangers

Holy Cross Hospital Case Study: Building Heating Optimization-

PRESENTATION TITLEProject cost $464,430Rebate @ $1/therm -178,077Net project cost $286,353Project savings $ 97,943

2.92 years payback

Holy Cross Hospital Case Study: Building Heating Optimization

PRESENTATION TITLEProgram Success To-Date

• Gas Optimization Study Program has become an integral part of the overall portfolio

• 22 studies performed—8 in North Shore Gas and 14 in Peoples Gas• Customers totaling over 31M therms annual usage• 38 projects generated from the studies (1.4M therms saved)• $1.44M in rebates

PRESENTATION TITLE• Start off right—meet with management for approval and buy-in• Recruit from all levels of your organization, not just management and facilities• Invite your energy advisors and major account reps from both the natural gas and

electric utilities to assist• Utility energy advisors can offer guidance on incentives for planning and budget• Identify an action plan and kick off activities• Hold brown bag lunches and invite in-house and outside experts to speak about

energy efficiency• Celebrate the successes along the way and watch it grow

Leveraging the Power of Energy Teams

PRESENTATION TITLELeveraging the Power of Energy Teams

PRESENTATION TITLEEnergy Team Successes To-Date

• Northwestern Memorial Hospital’s Energy Team saved $500,000 in one year in combined energy efficiency efforts

• Advocate Health includes incentives in every project at the planning phase and stay in constant communication with their natural gas and electric energy advisors—this has helped them to implement major energy upgrades across the system

• Presence Health Green and Sustainable Development Council meets monthly and have welcomed both natural gas and electric energy advisors to attend and participate

• University of Chicago Medical Center has a combined Energy Team with the University that meets quarterly to review goals, progress and utility incentives with Peoples Gas

PRESENTATION TITLE• Projects and savings in a two year timeframe

oBoiler efficiency improvementsoGas Optimization Studieso Steam trap testing and replacementoPipe and valve insulationoKitchen demand-controlled ventilationoRebates totaling $1.25 milliono800,000 therms savedo$520,000 in operational savings per year

Presence Health Hospital System Case Study:Five Hospitals in Peoples Gas Territory

PRESENTATION TITLE• Savings by the numbers in a two year timeframe

Combined project costs $2 million Peoples Gas rebates -1.25 million Net project costs $750,000 Therm savings (all projects) 800,000 Cash value of therms saved $520,000 (@.65 therm)

Combined Payback – all projects: 1.6 years

Presence Health Hospital System Case Study:Five Hospitals in Peoples Gas Territory

PRESENTATION TITLE• Financial impact of projects and savings

According to ENERGY STAR®, every dollar a non-profit healthcare organization saves on energy is equivalent to generating $20 in new patient revenue for hospitals, assuming a 5% operating margin.*Using the EPA’s formula, Presence Health has replaced the equivalent of $10 million dollars in patient revenue every year for the life of the efficiency measures, often 20 years or more.

*Source: www.epa.gov July 2004

Presence Health Hospital System Case Study:Five Hospitals in Peoples Gas Territory

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Thank you for continued partnership!

Questions?

PRESENTATION TITLE

Jim HauserOutreach Lead—Energy Advisorjhauser@franklinenergy.com312-878-0038, x 2673 Office815-614-0555 Cell

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