1. 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

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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Manager of Energy Efficiency
Utility Management: A Cornerstone of an Agency’s Sustainability Program
THANK YOU!
Michael Donaghy
Manager of Energy Efficiency
MBTA

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

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

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

16. 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)

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