By: Daryl Androli Missouri River Energy Services Senior Energy Service Technician Certified: Airborne Ultrasound Level 1

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1 By: Daryl Androli Missouri River Energy Services Senior Energy Service Technician Certified: Airborne Ultrasound Level 1

2 Who is Missouri River Energy Services? 60 Municipal Electric Suppliers Minnesota, Iowa, North and South Dakota Headquarters in Sioux Falls, South Dakota Formed in 1965 Mission: MRES is dedicated to supplying its members with reliable, cost-effective, long-term energy and energy services in a fiscally responsible and environmentally sensitive manner.

3 Services Offered Digital Infrared (FLIR Infrared ) Ultrasonic Testing (UE Systems) Compressed air leak detection Bearing Surveys Steam trap inspection Electrical Inspections Motor Circuit Analysis (ALL Test Pro)

4 Where we work Municipal Electrical Distribution systems International Corporations including JBS Swift, Schwan Foods, Crystal Sugar, and AGCO Production facilities including ; Ethanol, Food, and Specialty manufacturing plants Healthcare, Education, and Government Facilities Totaling 150 visits per year (all services)

5 Basic Goals To promote Energy Conservation! Decrease downtime Increase efficiency To improve SAFETY BUT OUR ULTIMATE GOAL IS TO INCREASE PROFITABILTY OF OUR CUSTOMERS AND OUR MEMBER MUNICIPALS

6 Starting our program Like many other MRES sponsored programs, it started when our innovative customers asked us for help, in this case with electrical motor bearings. Research and purchase equipment in 2003, UE 9000 Certification in Feb 2003 Second purchase in Oct 2004, UE 9000 Third in 2008, UE 2000 Fourth in 2010, UE 9000

7 Starting our program First Compressed Air Survey completed in July 2003 Aluminum extrusion company was concerned about the amount of compressed air leaks they could hear in the plant, and that 325 Hp of combined air compressors were not keeping up to demand during 1 st and 2 nd production shifts were considering adding a third 75hp compressor Found 65 leaks (min level 50 Db) 26 leaks registered at 80 Db or HIGHER 396 CFM of air leaking from system costing this company roughly $11,500 of electricity to produce just the leaking air A 30.5% air leak rate Blended electric rate of $.06

8 DEED Grant awarded to Moorhead Public Service and MRES DEED (Demonstration of Energy-Efficient Developments) Five participating customers All Located in Northern Minnesota Findings based on separate evaluations All had an initial leak survey with follow-up validation survey Customers were not required to make repairs Management was included in all reporting

9 DEED Findings Company Name and Scan # of Leaks Total Leak Cost Company A - Scan #1 138 $11, ,565 kwh Used Company A - Scan #2 81 $6, ,943 Company A - Scan #3 94 $6, ,156 Company B - Scan #1 36 $5, ,019 Company B - Scan #2 26 $3, ,447 Company B - Scan #3 27 $3, ,266 Company C - Scan #1 18 $3, ,062 Company C - Scan #2 13 $1, ,622 Company C - Scan #3 12 $1, ,686 Company D - Scan #1 67 $11, ,942 Company D - Scan #2 60 $12, ,787 Company E - Scan #1 100 $3, ,581 Company E - Scan #2 43 $2, ,789

10 What we learned Customers will Take anything for FREE Allow access but question findings They all like the potential savings but would not necessarily complete the work Purchase compressors easier than they will agree to a Pro Active maintenance program Cut corners with staff and supplies any way possible or do not allow necessary time to repair QUESTION - QUESTION QUESTION???

11 Show Customers the Value Charge for service, but provide incentives to off-set Demonstrate value of proactive, ongoing maintenance Demonstrate value of calculating potential savings Business case for management Meet energy reduction goals Environmental benefits Educate employees and develop quality control process Use this service to help customer make other good energy decisions combine with other programs

12 Minnesota Conservation Improvement Program (CIP) All Minnesota electric utilities are required to have a CIP Program Each utility has a goal to save 1.5% of their average retail sales in kilowatt-hours (kwhs) The Minnesota Office of Energy Security will allow savings calculated from compressed air programs to count towards CIP. Iowa began to require a similar savings goal in 2010

13 MRES Development of Bright Energy Solutions Bright Energy Solutions (BES) is a portfolio of energy efficiency programs to help residential and business customers reduce energy costs and operate more efficiently. Two BES programs available through the MRES member municipal electric utilities BES Compressed Air System Efficiency Audit Compressed Air System Leak Survey Check out additional programs at brightenergysolutions.com

14 BES Compressed Air System Efficiency Audit Customer must use an approved vendor Customer must have a combined air system of 50 Hp or larger (excluding backup compressors) Air system must operate at least 2000 hrs/yr One rebate per five years for Air System Audit One rebate per year for Air Leak Survey Pressure and power recording must be taken for five consecutive working days Airmaster+ or equivalent analysis software must be used Ultrasonic Air Leak Survey is required Maximum Incentive Amount $

15 Compressed Air System Leak Survey Incentive Compressed Air Leak Survey to be completed by MRES Technician Customer must repair a minimum of 50% of air leaks identified (based on CFM volume) to qualify for the incentive Reporting will detail item area, leak description, size of leak in Db, cost in dollars of electricity misused and CFM lost to leak Following leak repair and within 90 days, customer to schedule verification visit with MRES technician Tags or identification markings must be left in place if possible or feasible Combined horsepower of compressors must total at least 20 Hp (excluding backup compressors) Incentive available once per 12 month time period Maximum Annual Incentive is $

16 2011 and beyond Customers are participating in current services with intent to cash in with the incentives As expected, our largest most maintenance oriented organizations are leading the way Payout of $25-$40,000 of incentives Projected 7-10 million KWh reduction Roughly 6000 cfm of air removed as wasted production

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