Annual Energy Review

Transcription

1 ATTACHMENT A Oakland University Annual Energy Review FY 2002 Submitted, April 2003 by James Leidel Energy Manager

2 TABLE OF CONTENTS Table of Contents... 2 List of Tables & Figures... 2 Executive Summary... 3 Fiscal Year 2002 Usage and Costs... 4 Historical Usage and Costs... 4 Viron Energy Services Energy Services Agreement (ESA) Update... 6 Electrical Purchasing Update Retail Open Access Contract... 8 Natural Gas Purchasing Update... 8 Alternative Energy at OU... 8 Solar Energy... 8 Wind Energy?... 8 Cogeneration... 9 Energy Conservation Measures... 9 Current Activities (a few major items)... 9 LIST OF TABLES & FIGURES Table 1 Fiscal year 2002 utility usage & cost with comparison to FY01 for the main campus... 4 Figure 1 Main campus annual utility expenditures and usage. Combined cost total for electricity, natural gas, and water/sewer, and combined usage for electricity and natural gas (in MMBTU)... 5 Table 2 Recent additions to main campus building area... 5 Figure 2 Main campus total utility cost per Full Year Equivalent Student (FYES) and per square foot... 6 Figure 3 Originally estimated avoided costs from Viron ESA throughout the 10 year term of the agreement (source: Viron ESA, Schedule F, March 10, 1997, verified by Viron annual reports through FY01)... 7 Figure A1 Historical monthly electric consumption and cost for main campus Figure A2 Historical monthly electric unit cost for main campus Figure A3 Historical monthly natural gas consumption and cost for main campus Figure A4 Historical monthly natural gas unit cost for main campus Figure A5 Historical monthly water/sewer consumption and cost for main campus. 14 Figure A6 Historical main campus facility square footage growth

3 EXECUTIVE SUMMARY A mild winter and substantially lower natural gas prices in fiscal year 2002 gave Oakland University a temporary reprieve in our escalating utility costs. Total utility expenditures for main campus utilities were $3.70 million, down 3.4% from FY01. Currently, fiscal year 2003 has seen the addition of the School of Education & Human Services Building, the University Student Apartments, and the new parking structure. Coupled with increases in the use of technology on campus and intensity of building usage, FY03 will show a sizable increase in utility consumption. However, due to favorable natural gas purchase contracts and a new electrical purchase contract on the Retail Open Access program, COSTS for FY03 are projected to remain approximately constant compared to FY02. Numerous energy conservation projects are underway: The Campus Wide Energy Metering & Monitoring System is being commissioned and will be fully operational in spring of 2003 A new energy management web site was created for the University at A $100,000 State of Michigan grant was obtained to install a 10-kilowatt solar electric demonstration project on the roof to the new Student Apartment Community Building The Science & Engineering Building chiller plant & ice storage system will receive a control system upgrade to avoid expensive peak time energy usage, for an estimated $35,000 annual savings 3

4 FISCAL YEAR 2002 USAGE AND COSTS A mild winter and substantially lower natural gas prices gave Oakland University a temporary reprieve from escalating utility costs. Electricity consumption was up slightly and water/sewer was up significantly, likely due to the dry summer and added irrigation of the playfields. Table 1 Fiscal year 2002 utility usage & cost with comparison to FY01 for the main campus Usage % change Cost % change from FY01 from FY01 (Millions) Electricity 29,674,680 kwhr + 1.6% $ % Natural Gas 245,021 MCF - 4.6% $ % Water / Sewer 11,253,500 CF % $ % TOTAL $ % kwhr = kilowatt hours MCF = 1,000 cubic feet CF = cubic feet = 7.5 gallons Fiscal year 2003 has seen the addition of the School of Education and Human Services Building, the Student Apartment complex, and the parking structure. Coupled with increases in the use of technology on campus and intensity of building usage, FY03 will show a sizable increase in utility consumption. However, due to favorable gas purchase contracts and a new electrical purchase contract on the Retail Open Access program, costs for FY03 should be approximately the same as FY02. See below for more information on purchasing. HISTORICAL USAGE AND COSTS Utility costs have climbed steadily through the mid 1990 s as our campus has expanded. The large hike in natural gas prices in the winter of 2000/2001 was the biggest contributing factor for the significant increase in FY01. The natural gas market has still not fully recovered. See Figure 1. 4

5 $4,000,000 Utility Cost $3,839,000 $3,706,930 $3,620,075 $3,500,000 Combined Elect & Gas Usage (MMBTU) $3,000,000 $2,814,246 $2,500,000 $2,218,674 $2,330,500 $2,470,566 $2,501,108 $2,000,000 $1,500,000 $2,002,245 $1,908,464 ESTIMATED $1,000,000 $500,000 $- FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 Figure 1 Main campus annual utility expenditures and usage. Combined cost total for electricity, natural gas, and water/sewer, and combined usage for electricity and natural gas (in MMBTU) Recent additions to our campus can be seen below in Table 2. Next to the gas price spike, OU s growth has been the largest contributing factor to escalating utility costs. Figure 2 illustrates utility costs per square foot and per full year equivalent student. It is notable that cost per square foot was maintained at a relatively constant level until the winter 2000/2001 natural gas market spike. Table 2 Recent additions to main campus building area Building Name Sq Feet A Year Total Main Campus Sq Feet ,523,024 Science & Engineering Bldg. 165, ,688,518 Recreation & Athletic Center 253, ,942,012 Biomedical Res. Support Facility 14, ,956,312 Elliott Hall (BIT) 74, ,030,894 Education & Human Serv. Bldg. 130, ,160,969 Student Apartments 148, ,309,092 Parking Structure 179, ,488,912 A These 7 facilities increased the main campus square footage by 63% since

6 Cost per FYES $ $ $ $ $ $ $ $ $ Cost per FYES Cost per Building Sq Ft Cost per Sq Ft $2.00 $1.90 $1.80 $1.70 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $ $1.00 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 Figure 2 Main campus total utility cost per Full Year Equivalent Student (FYES) and per square foot Additional detail on expenditures and rates for electricity, natural gas, and water/sewer are shown in figures A1-A6 at the end of this document. VIRON ENERGY SERVICES ENERGY SERVICES AGREEMENT (ESA) UPDATE With Board approval, Viron Energy Services discontinued their annual energy savings report beginning with FY2002. Per the agreement approved by the Board and executed with Viron, in place of the annual report and savings guarantee, the ESA now provides engineering services to assist with additional energy conservation and project implementation. Several of the more significant activities to date under the revised agreement include: design of North Foundation Hall Admissions area lighting retrofit design of Oakland Center Student Services area lighting retrofit analysis of east campus utilities and potential service from the new substation which shows a potential $73,000 per year savings study & auditing of individual building energy usage 6

7 The figure below graphically illustrates the originally estimated cost savings resulting from the Viron ESA. These savings were documented and verified for the first 3 full years of the project verification phase (through FY01). $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Figure 3 Originally estimated avoided costs from Viron ESA throughout the 10 year term of the agreement (source: Viron ESA, Schedule F, March 10, 1997, verified by Viron annual reports through FY01) 7

8 ELECTRICAL PURCHASING UPDATE RETAIL OPEN ACCESS CONTRACT In February of 2000, the Board authorized the University to enter into an electrical wheeling purchasing program. This came into being under a contract with Quest Energy, LLC of Ann Arbor. We began receiving power through Quest in August of As a result the University is saving an estimated $30,000 per month in electrical cost. Each year the Michigan Public Service Commission (MPSC) rules on the Detroit Edison local delivery charges. These charges may increase in the coming months, reducing our savings by some percentage, but we should continue to see substantial savings over the two-year life of the Quest contract. See Figure A2 for a historical illustration of OU s electrical unit cost per kilowatt-hour. NATURAL GAS PURCHASING UPDATE Natural gas costs have been unstable since the aforementioned market price spike in FY01, which prompted the University to initiate an 18 month term layered purchasing program. The bulk of our gas is now supplied via contracts in the range of $3.80 per million BTU. Consumers Energy also charges approximately $0.55 per million BTU to deliver the natural gas to our campus. See Figure A4 for a historical illustration of the OU s natural gas unit costs. ALTERNATIVE ENERGY AT OU Solar Energy OU Facilities Management has been awarded a $100,000 grant from the State of Michigan Energy Office for a 10-kilowatt solar electric public demonstration project. In March of 2003, we installed 10 kilowatts of a solar shingle product on the roof of the new student apartment community building. It is an attractive, building-integrated product that will provide over $1,000 per year of electricity for the University Student Apartments. A lot of interest and exposure has been generated by this project that is expected to be completed by June of The Detroit News and Oakland Post have both featured the project in recent articles. Wind Energy? In addition, the potential for a small, utility scale wind turbine is being investigated for installation on campus. Although our wind resources might not be sufficient to make a project feasible with older technology, new low-wind speed turbines are becoming 8

9 available. The costs of new turbines sited with a good wind resource are now producing electricity in the range of 3-4 cents per kilowatt-hour across the United States. Cogeneration Perhaps the greatest potential for an alternative energy installation here at OU may be a cogeneration system. A cogeneration system is an electric power generator that simultaneously provides an electrical output and a thermal output. The University s heating and cooling systems are almost ideally suited to utilize the waste heat from such a system. Although a conventional natural gas driven turbine or engine would be the driver of a cogeneration unit, the efficiency of energy conversion would be in the 80% range, while our current power supply from conventional coal-fired power plants is at best 40% efficient. A feasibility study is currently underway to review the economics and engineering viability of cogeneration at OU. This project would be largely dependent upon future electrical and natural gas prices. The project could also be installed and financed by a third party to yield a net positive cash flow to the University. Lastly, the installation of a sizable generator on campus would give increased reliability in the remote event of a power outage by Detroit Edison. The generator could be connected to the campus electrical systems such that critical buildings and information technology systems would remain on-line. ENERGY CONSERVATION MEASURES Current Activities (a few major items) The Campus Wide Energy Metering & Monitoring project is nearing completion. The installation is complete, and programming and commissioning is underway. This system will provide a detailed view into when, where, and how energy is used on campus. Numerous cost savings and operational benefits will be identified with the information provided from this project. Also, an Oakland University energy management web site was created to begin an outreach program to involve the campus faculty & staff in energy awareness and conservation. The web site is Also, the University Student Apartments original design had called for a dedicated Detroit Edison electrical service. Instead, the OU electrical system was extended to serve the site. As a result, the University will realize annual electrical cost savings of about $70,000. Lastly, an upgrade to the Science & Engineering chilled water ice storage plant is underway. This upgrade will allow the SEB building to avoid expensive summer peak electrical loads for an estimated savings of $35,000 per year. 9

10 $250,000 $200,000 $150,000 ANNUAL TOTALS FY1994 $1.27M FY1995 $1.22M FY1996 $1.24M FY1997 $1.29M FY1998 $1.33M FY1999 $1.60M FY2000 $1.80M FY2001 $1.92M FY2002 $1.92M FORECAST 4,000,000 3,500,000 3,000,000 2,500,000 $100,000 FY2003 $1.75M estimate 2,000,000 1,500,000 kw-hrs 1,000,000 $50, ,000 $- 0 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Monthly Cost Monthly Consumption kwhrs Figure A1 Historical monthly electric consumption and cost for main campus

11 $0.075 $0.070 $0.065 $0.060 $0.055 $0.050 $0.045 Figure A2 Historical monthly electric unit price for main campus Jul-93 Oct-93 Jan-94 Apr-94 Jul-94 Oct-94 Jan-95 Apr-95 Jul-95 Oct-95 Jan-96 Apr-96 Jul-96 Oct-96 Jan-97 Apr-97 Jul-97 Oct-97 Jan-98 Apr-98 Jul-98 Oct-98 Jan-99 Apr-99 Jul-99 Oct-99 Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Dollars per kwhr Monthly Electric Cost per kwhr 10 Month Moving Average FORECAST

12 $250,000 $200,000 $150,000 $100,000 $50,000 $- $(50,000) ANNUAL TOTALS FY1994 $573,000 FY1995 $519,000 FY1996 $682,000 FY1997 $733,000 FY1998 $839,000 FY1999 $606,000 FY2000 $760,000 FY2001 $1.64M Winter 2001 spike in prices! FY2002 $1.46M FY2003 $1.50M estimate 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Consumption (Million Cubic Feet) Monthly Cost Monthly Consumption Trend in Consumption FORECAST $(100,000) 0 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Figure A3 Historical monthly natural gas consumption and cost for main campus

13 $ $9.000 $8.000 $7.000 $6.000 $5.000 $4.000 $3.000 $2.000 $1.000 $- FORECAST Cost / MMBtu 10 Month Moving Average Figure A4 Historical monthly natural gas unit price for main campus Dollars per Million BTU Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03

14 $50,000 1,800,000 $45,000 Monthly Cost Monthly Consumption FORECAST 1,600,000 $40,000 1,400,000 $35,000 $30,000 $25,000 $20,000 $15,000 1,200,000 1,000, , ,000 Consumption (Cubic Feet) $10,000 $5,000 ANNUAL TOTALS FY1995 $166,000 FY1996 $299,000 FY1997 $308,000 FY1998 $299, , ,000 $- 0 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 FY1999 $292,000 FY2000 $256,000 FY2001 $285,000 FY2002 $320,000 FY2003 $386,000 estimated Figure A5 Historical monthly water/sewer consmptn & cost for main campus

15 Sq Ft 2,500,000 2,000,000 Figure A6 1,500,000 1,000, , Historical main campus facility square footage growth 15