1. Energy Conservation & Performance Contracting
Dos Palos – Oro Loma Joint Unified School District
November 19, 2009
Justin Surratt
Energy Solutions – Buildings Business

2. Agenda Schneider Electric: Who we are… Performance Contracting
Preliminary Energy Audit Results
Suggested Energy Conservation Measures
Investment Grade Audit and Risk Evaluation
Questions/Comments

3. Schneider Electric: Who we are…
Key Markets for Our Company
Our Buildings Business Division Works Primarily in the K-12 Market
Energy Solutions Provider
We provide Facility and Energy Conservation solutions that maximize building performance but most importantly, maximizing the school district’s return on investment
Performance Contracting Specialization
Utilize Energy Savings Dollars, as a result of the project, to offset the cost of the facility improvements

4. History with District & Current Central Valley Customers
History with Dos Palos – Oro Loma Joint Unified School District
History with CASBO - Central Section
Delhi Unified School District
Completed Investment Grade Audit Development
Construction Vote: December 2009
Clovis Unified School District
Exploration and Discovery Phase

5. Performance Contracting
Utilities
$ Annual Bill

6. Performance Contracting
Utilities
$ Annual Bill
Improvements
“CM at Risk” plus…
+ Design
+ Energy Focus
+ Energy Savings Guarantee
CM at risk-
Customer assumes that we are paid on a fee…if you bring it in cheaper than lump sum given, you split the fee as an incentive. Sempra writes their contracts this way. You have to know your audience to know whether or not to include this. **Need to clarify how we get paid.
*Make sure to ascertain that the customer knows what CM at risk is…good place for interaction with the audience.

7. Performance Contracting
Utilities
$ Annual Bill
Improvements
Third party funding
-Secured against Savings
-Paid on Schedule of Values
Up-Front Cost
Schedule of Values—
We get paid on a SOV…explain how third party escrow account works for financing.
We are paid when we do work…draw-down schedule. Generally, we like to be paid on the work we have done. (Percent of Completion)

8. Performance Contracting
Utilities
$Historical
$ New Bill
Guarantee:
$Savings
>= Payment
$Diff.= $Payment
Improvements
Guarantee
PC Review
Up-Front Cost
Guarantee box…may not want to put the yellow box in there because of negative cash flow.
The goal of the project is to have a break even or positive cash flow, but this doesn’t take into account a negative cash flow project.
States where laws state that savings has to cover price of the project…we interpret that savings have to pay for the financed part of the project.

9. Performance Contracting: What?
Solar (PV)
Lighting
Major Mechanical
Water Cons.
Building Envelope
Energy Management
Power Systems

10. Performance Contracting: What?

11. Performance Contracting
The goal of PC is to implement a project that will be offset by the energy savings as a result of the project
Example:
$100,0000 Annual Energy Savings x 15 Years =
$1,500,000 Break-Even Facility Project Opportunity

12. Performance Contracting: How?
Stage 1:
Determine if PC is right for you
Stage 2:
Develop Project: Investment Grade Audit
Stage 3:
Implementation, measurement and verification

13. Step 1: Determine if PC is right for you
Feasibility Assessment
Completed: November 2008
Reported to Tim Zearley
Workshop
Completed: March 2009
Reported to “Energy Committee”
Board Member Joe Castillo
Board Member Dewayne Weagel
Dr. Brian Walker
Tim Zearley
Select DPOLJUSD Maintenance Staff

14. Step 1: Determine if PC is right for you
Preliminary Energy Audit
Completed: July 2009
Reported to “Energy Committee”
Next Steps:
Investment Grade Audit – TBD
Construction & Implementation
Measurement and Verification of Performance

15. Preliminary Energy Audit Results
$92,865 Savings Opportunities (15% Savings)
Building Savings Impact
Dos Palos HS
59%
Bryant MS
15%
Dos Palos ES
12%
Marks ES
10%
Oro Loma 4%
Baseline Annual Utility Cost: $606,197
Potential Annual Energy Savings: $92,865
Savings Percentage: 15.3%

16. Total Energy Cost/Savings by Site
Annual Energy Cost
Dos Palos-Oro Loma USD
$267,698
$98,113
$75,272
$67,230
$97,883
$60,820
$55,233
$84,701
$86,078
$226,499 $0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Dos Palos High
School
Bryant Middle
Dos Palos
Elementary School
Oro Loma
Marks Elementary
Baseline
Proposed

17. Total Energy Cost/Savings per sq. ft.
Annual Energy Cost ($/sf)
Dos Palos-Oro Loma USD
$1.88
$1.81
$1.99
$1.59
$1.58
$1.50
$1.61
$1.94
$1.73
$0.00
$0.50
$1.00
$2.00
$2.50
Dos Palos High
School
Bryant Middle School
Dos Palos
Elementary School
Oro Loma
Marks Elementary
Baseline
Proposed

18. Suggested Energy Conservation Measures
District-wide Lighting Modernization
Satisfies Facility Master Plan
EPAct 2005 Compliance
Comprehensive Energy Management System (EMS)
Future State Energy Mandate Compliance (e.g. AB32)
Heating Ventilation and Air Conditioning (HVAC) Upgrades

19. Lighting Modernization
Classrooms and Workspaces
T12 Fixtures  T8
Federal Mandates require phasing out of T12 Magnetic Lighting Ballasts by 2010 (EPAct 2005)
The energy efficiency AND light quality will be improved as a result of these upgrades.
Gym Lighting Upgrades
Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures will allow for instant ON/OFF control while reducing electricity demand.
Exterior Lighting Upgrades
Campus Security Enhancement

20. Lighting Modernization
Opportunity
Retrofitting the T12 lamps to T8 lamps and electronic ballast will save energy while maintaining proper light levels. Upgrading the gymnasium lamps to high-bay T8 or T5 fluorescent fixtures will allow for instant ON/OFF control while reducing electricity demand.
Occupancy sensors can be installed in some areas where occupancy varies to reduce operation when spaces are unoccupied.
Benefits
Installation of the new lighting systems and controls will reduce the electrical demand and energy use. The light quality will be improved as a result of these upgrades.

21. Energy Management System
Opportunity
A district-wide Energy Management System (EMS) upgrade will provide tighter control of schedules and setpoints for HVAC equipment.
Benefits
An EMS provides significant energy savings by running equipment only when it is needed while providing comfort for the occupants in the facilities.
Relevant Considerations
Expansion and modernization of existing Alerton EMS. Also note that no controls exist at Dos Palos High School, which is an opportunity for excellent operational and energy savings.

22. HVAC Upgrades Opportunity Benefits
Replacing units that have reached the end of their economic useful life with new, high efficiency units will decrease electricity and gas use and provide better temperature control.
Benefits
Capital Cost Avoidance strategies
Operational Savings can be realized as soon as possible
Opportunity to choose brand/type
of equipment
Planning for best operating
system structure

23. Performance Contracting: How?
Stage 1:
Determine if PC is right for you
Stage 2:
Develop Project: Investment Grade Audit
Stage 3:
Implementation, measurement and verification

24. Next Step: Investment Grade Audit
Schneider Electric will provide Customer with the following:
A list of energy conservation measures planned for each facility;
A description of how the energy conservation measures would interact with the existing equipment in the facilities;
Financial analysis;
Guaranteed energy services contract for the facilities;
Utility analysis;
Project pricing for a turnkey installation

25. Investment Grade Audit
Investment Grade Audit Agreement
10¢ / square foot
Owner pays if Schneider Electric hits target, but Owner decides to back out.
Otherwise, costs rolled into project financing.
Preliminary Audit
defines the target savings.

26. Investment Grade Audit
Proposed Cost:
$33,317
If project is selected following IGA:
No up-front cost; Cost is rolled into Construction Contract
If no project is selected following IGA:
the district would be responsible for the IGA cost
Proposed School Board Vote on IGA
December 17, 2009

27. $2,785,950 Cost of Doing Nothing… Lost Savings in Energy Consumption
$92,865/year x 15 years = $1,392,975
Lost Facility Improvements (Capital Avoidance)
Break-Even Project Opportunity: $1,392,975
Total Opportunity Cost of NOT leveraging energy savings for facility improvements….
Lost Energy Savings + Lost Facility Improvements =
$2,785,950

28. Financial Risk Evaluation
District Risk
Cost of Investment Grade Audit (note no up-front cost if project moves forward to construction)
$33,317
Opportunity Cost = Guaranteed Opportunity Lost
Cost of Doing Nothing (Lost Energy Savings + Lost Improvements)
$2,785,950

29. Financial Risk Evaluation
$33,317 Potential Loss
(IGA Cost if NO Project is Selected)
vs.
$2,785,950 Guaranteed Opportunity Lost

30. Investment Grade Audit
Proposed School Board Vote on IGA
December 17, 2009

31. Questions/Comments? Justin Surratt Tim Zearley
Tim Zearley
Chief Business Officer
Dos Palos – Oro Loma Joint Unified School District