1. REBUILD AMERICA

2. Why look at the bills? l Bills are the bottom line –they prove the savings!

3. Why look at the bills? l Bills are the bottom line –they prove the savings! l Bills are already available – no extra cost!

4. Why look at the bills? l Bills are the bottom line –they prove the savings! l Bills are already available – no extra cost! l Track on-going operations and find out if measures are really working, verify performance contracts or shared savings

5. Why look at the bills? l Bills are the bottom line –they prove the savings! l Bills are already available – no extra cost! l Track on-going operations and find out if measures are really working, verify performance contracts or shared savings l Assure fiscal managers that investment was well spent.

6. First Step What is the Baseline? l The baseline is what the old facility would have used.

7. First Step What is the Baseline? l The baseline is what the old facility would have used. l Savings are computed relative to the baseline.

8. First Step What is the Baseline? l The baseline is what the old facility would have used. l Savings are computed relative to the baseline. l But the baseline is the path not taken. How do we know what would have happened?

9. Baseline Issues l What were the most typical bills?

10. Baseline Issues l What were the most typical bills? l Were certain events unusual and should be corrected?

11. Baseline Issues l What were the most typical bills? l Were certain events unusual and should be corrected? l How do we adjust for weather changes?

12. Baseline Issues l What were the most typical bills? l Were certain events unusual and should be corrected? l How do we adjust for weather changes? l What if usage changes – say by extending operating hours?

13. What Tools are Needed? l Energy Accounting –Combine utility bills into one database –Establish weather-corrected baseline –Set up comparisons and tracking

14. What Tools are Needed? l Energy Accounting –Combine utility bills into one database –Establish weather-corrected baseline –Set up comparisons and tracking l Energy Simulation and Audits –Tie energy consumption to physical characteristics and operations –Adjust for baseline changes –Conduct “what if” scenarios –Set performance targets for verification

15. Energy Accounting Database program that helps to l Combine multiple meters or sites

16. Energy Accounting Database program that helps to l Combine multiple meters l Make simple corrections for weather

17. Energy Accounting Database program that helps to l Combine multiple meters l Make simple corrections for weather l Define the “baseline” for savings

18. Energy Accounting Database program that helps to l Combine multiple meters l Make simple corrections for weather l Define the “baseline” for savings l Perform on-going tracking of bills

19. Energy Accounting Database program that helps to l Combine multiple meters l Make simple corrections for weather l Define the “baseline” for savings l Perform on-going tracking of bills l Compare a group of facilities with each other

20. Using the Database Mike Meinecke is the energy manager for the Tigard School District in Oregon. Let’s ask him how he uses energy accounting.

21. Using the Database “I can look at the bills to track how we are using energy. If it comes up high, I go to the site to find out why.”

22. Using the Database “I look for the peaks and valleys. If a building is performing well, I see it here.“

23. Using the Database “I can show the program reports to others and explain how they are doing. The reports provide a way to communicate and be objective.”

24. What it Doesn’t Do Energy Accounting cannot deal with changes in facilities or operations. For example, Mike wants to change an electrically-heated school to gas. What savings can he expect? To answer this question, we need a physical or engineering model of the facility.

25. The Billing Simulation Model l Ties energy use to physical characteristics and operations of the facility –Update information later, as you collect it. –Calibrate the model to match the bills.

26. The Billing Simulation Model l Ties energy use to physical characteristics and operations of the facility –Update information later, as you collect it. –Calibrate the model to match the bills. l Displays results as graphics –Easy to explain and understand

27. The Billing Simulation Model l Ties energy use to physical characteristics and operations of the facility –Update information later, as you collect it. –Calibrate the model to match the bills. l Displays results as graphics –Easy to explain and understand l Computes “what if” scenarios –Identify problems and opportunities

28. The Billing Simulation Model l Ties energy use to physical characteristics and operations of the facility –Update information later, as you collect it. –Calibrate the model to match the bills. l Displays results as graphics –Easy to explain and understand l Computes “what if” scenarios –Identify problems and opportunities l Sets performance targets –Track the effect of changes

29. Simulation Example Here’s a graph showing electric end-uses in Mike’s school. The red block is space heating.

30. Simulation Example Here’s the electric end-uses after we change space heating to gas. Most of the red block disappears.

31. Other Examples Use a simulation when you need to adjust the baseline to a different set of conditions. l Adding portable classroom buildings l Extending operating hours

32. Verifying Savings Measurement and Verification (M&V) is used to l Verify performance-based contracts

33. Verifying Savings Measurement and Verification (M&V) is used to l Verify performance-based contracts l Define “shared savings”

34. Verifying Savings Measurement and Verification (M&V) is used to l Verify performance-based contracts l Define “shared savings” l Prove the measures are working (commissioning)

35. Performance Requirement All parties agree on: l Baseline for estimating savings

36. Performance Requirement All parties agree on: l Baseline for estimating savings l How to estimate partial savings during installation

37. Performance Requirement All parties agree on: l Baseline for estimating savings l How to estimate partial savings during installation l Interactive effects between measures

38. Performance Requirement All parties agree on: l Baseline for estimating savings l How to estimate partial savings during installation l Interactive effects between measures l Adjustments for weather, occupancy changes, or other changes that interfere with simply comparing the pre- and post- retrofit utility bills

39. M&V Methodology l Simulation Model is a good way to define the baseline and adjustment methods – all done together.

40. M&V Methodology l Simulation Model is a good way to define the baseline and adjustment methods – all done together. l Government has guidelines (IPMVP Protocol) for verification –These require that savings estimates also state the certainty of the estimate. –Certainty can be accomplished within the simulation model.

41. M&V Methodology l Simulation Model is a good way to define the baseline and adjustment methods – all done together. l Government has guidelines (IPMVP Protocol) for verification –These require that savings estimates also state the certainty of the estimate. –Certainty can be accomplished within the simulation model. l Cost to use billing simulation is not high.

42. Other Benefits Using billing analysis creates confidence. l Facility staff are better able to select ESCO contractors and evaluate proposals.

43. Other Benefits Using billing analysis creates confidence. l Facility staff are better able to select ESCO contractors and evaluate proposals. l Managers are more comfortable with performance contracts (shared savings).

44. Resources l Energy Accounting Software –Utility Managerwww.eqnetwork.com –Faserwww.eeis.ees.enron.com –Metrixwww.siliconenergy.com –Z-Powerwww.z-power.com l Billing Simulation Software –EZ Sim www.ezsim.com l Consulting Services –Energy Service Companieswww.rebuild.org Prepared by Stellar Processes www.ezsim.com