APTA Sustainability Workshop 2016 Utility Management: A Cornerstone of an Agency’s Sustainability Program APTA Sustainability Workshop 2016 Internal Sustainable Business Practices Michael Donaghy MBTA Manager of Energy Efficiency

Utility Management as a Sustainability Strategy AGENDA 1. Background 2. Why Environmental? 3. Energy Management Strategy 4. Program Specifics 5. Expanding the Program

Utility Management as a Sustainability Strategy ASSETS UNDER MANAGEMENT 27 maintenance shops 478 bridges 20 miles of tunnels 1,193 miles of track Over 2,000 revenue vehicles 275 stations

Utility Management as a Sustainability Strategy ENERGY PROFILE - CONSUMPTION Electricity: 446,000,000 kWh Natural Gas: 1,554,150 Therms Water: 174,000,000 Gal. Steam: 26.2K Mlbs. Over 600 utility accounts FY16 Utility Spend: $35.2M Wonderland Station & Parking Garage Government Center Station

Utility Management as a Sustainability Strategy WHY SHOULD ENVIROMENTAL MANAGE UTILITIES? Reduce Costs & Carbon Intensity Streamline Processes Budget and Capital Planning Treat Energy as an Asset Implement an Energy Management Standard

Utility Management as a Sustainability Strategy ENERGY MANAGEMENT STRATEGY OBJECTIVES OPTIMIZE BUY IT AND USE IT MORE EFFICIENTLY CONSERVE USE LESS ENERGY REGENERATE PRODUCE IT FROM RENEWABLE SOURCES OR RECAPTURE SPENT ENERGY TARGETS RELIABILITY MAINTAIN OR IMPROVE SERVICE DELIVERY (OPERATIONS) ENVIRONMENTAL CREATE THE LOWEST POSSIBLE ENVIRONMENTAL IMPACT SAFETY MAINTAIN OR IMPROVE SAFETY AT ALL MBTA LOCATIONS RISK MITIGATE PRICE AND SUPPLY VOLATILITY SUSTAINABLE DESIGN INCORPORATE ENERGY & ENVIRONMENTAL FUNDAMENTALS IN CAPITAL PLANNING

Utility Management as a Sustainability Strategy OPTIMIZE: CONTRACT MANAGEMENT Mitigating Price Risk Wholesale Electricity Contract $25 Million in Savings over 5 years $46.35/MWh from $65.78/MWh 12.8% Overall Reduction in Utility Spend in FY17 Managing Contract Delivery Retail to Wholesale Transfer Regulatory Changes Result in $880K in annual savings Monetizing the Benefits of Emergency Generation Units Participate in the forward reserve and capacity markets Achieve ten fold increase in revenue from improved reliability

Utility Management as a Sustainability Strategy OPTIMIZE: ENTERPRISE ENERGY MANAGEMENT SYSTEM Utility Management and Cost Savings Verification Allocation Benchmarking Project Analysis (Cost/Benefit) Environmental Tracking Impacts Behavior Outreach – Sets the Example

Utility Management as a Sustainability Strategy CONSERVE: ENERGY EFFICIENCY PROGRAM Total Project Cost to Date $6.17M 81 Projects Completed over the past 4 years Utility & 3rd Party Contribution $3.87M (63%) MBTA Contribution $2.28M (37%) Average MBTA Payback Period 1.31 years Project Achievements Annual Savings $1.74M Demand Reduction 2.98 MW Consumption Reduction 15.3M kWh Projects in pipeline projected to add $5-6M in annual savings

Utility Management as a Sustainability Strategy REGENERATE Renewable Energy Wind turbines Kingston (100kW) & Bridgewater (750 kW) Solar Power Purchase Agreements 20 year Fixed Price Cost Stability Mitigates Future Cost Increases Energy Storage & Regenerative Breaking Airport Station Project Load Reduction / DR Opportunities Kingston Turbine

Utility Management as a Sustainability Strategy EXPANDING THE PROGRAM – HOW DO WE RALLY THE TEAM? TARGET AUDIENCE CONCERNS Customers/Taxpayers Transit Fares; Service Reliability Policy/Lawmakers Funding; Infrastructure; Long-term planning Front-line Employees Change in Work Duties; Job Security Middle Managers Operational Performance; Workforce Harmony Senior Management Cost v. Benefit; Competing Projects; Public Perception; Long Term Impacts

Manager of Energy Efficiency Utility Management: A Cornerstone of an Agency’s Sustainability Program THANK YOU! Michael Donaghy Manager of Energy Efficiency MBTA 617-222-1684 MDONAGHY@MBTA.COM

Utility Management as a Sustainability Strategy MITIGATING RISK: RISING ENERGY COSTS Actual Forecast

Utility Management as a Sustainability Strategy MITIGATING RISK: RISING ENERGY COSTS Additional power costs include: Transmission Charges ISO Charges Other Ancillary Charges Actual Forecast

Utility Management as a Sustainability Strategy MITIGATING RISK: RISING ENERGY COSTS Capacity costs are paid to generators to ensure adequate electricity supply Actual Forecast

Utility Management as a Sustainability Strategy CONSERVE: 3RD RAIL AND TRACK SWITCH HEATER CONTROLS Efficient Heaters 4,000W per element from 8,000W (50% Reduction) Projected Annual Savings: 6,000,000 kWh Heater Controls Reduce run time from 24hrs/180 days to on demand remote control (estimate 60% reduction) Projected Annual Savings: 19,000,000 kWh Total Projected Annual Savings: 25,000,000 kWh ($2,125,000)

Utility Management as a Sustainability Strategy CONSERVE: LIGHTING UPGRADES Before After