Ohio Energy. Workshop P

Transcription

1 Ohio Energy Workshop P Best Practices & Case Study: Kent State University & FirstEnergy Solutions Using Historical and Real-Time Data to Optimize Operations and Minimize Energy Costs Tuesday, February 21, 217 3:15 p.m. to 4:3 p.m.

2 Biographical Information Tom Schmuhl, Director, Sales FirstEnergy Solutions 341 White Pond Dr. Bldg. B-3, Akron, OH Tom Schmuhl is the Director of Sales, FirstEnergy Solutions headquartered in Akron, Ohio. Primarily responsible for Business Development by leading a team of energy professionals located throughout the PJM and MISO markets. Mr. Schmuhl has helped FirstEnergy Solutions become one of the largest retail suppliers behind PJM. FES holds lead share positions in several markets promoting innovative product offerings to a vast number of commercial and industrial customers throughout the Midwest and mid- Atlantic regions. Tom Schmuhl was previously the Product Manager for Electric Commodity, FirstEnergy Solutions with responsibilities for Product Development and Product Deployment. Mr. Schmuhl has worked in various capacities in the Sales and Marketing areas at FirstEnergy Solutions throughout his twenty year career in the energy field. Tom Schmuhl has been a lead presenter in FirstEnergy Solutions Energy Summit Series providing insights on energy purchasing, market fundamentals and customer product trends. During the ten year history of the Energy Summit Series, FirstEnergy Solutions has provided content to thousands of energy decision makers. During the years prior to electric deregulation Mr. Schmuhl worked in various selling capacities including the energy management arena working with large multi-state firms with energy spends in excess of $1M. Prior to joining FirstEnergy Solutions Mr. Schmuhl was the Vice President of Sales & Marketing for a national firm serving the mortgage industry. Mr. Schmuhl resides in Norwalk, Oh. Frank Renovich, D. Eng., Associate Director, Energy Operations Kent State University, Power Plant 151 Ted Boyd Dr., PO Box 519, Kent, OH FAX frenovi2@kent.edu Frank has been at Kent State University for the last 1 years and currently is the Associate Director of Energy Operations. This position is involved with the Power Plant, Energy Management System, energy conservation, energy procurement, and other associated activities. Prior to joining KSU, Frank was employed in automotive manufacturing for 35 years in variety of engineering, maintenance, operations, and managements positions. He has a BSEE from General Motors Institute, and a MSEE and D. Eng. from Cleveland State University.

3 Using historical and real-time data to Optimize Operations and Minimize Energy costs Workshop P Frank Renovich Associate Director of Energy Operations, Kent State University Thomas Schmuhl Director, C&I Sales, FirstEnergy Solutions Ohio Energy Management Conference February 21, 217

4 Workshop Topics Kent State University by the Numbers Power Plant Operations Optimization Seeking the Silver Bullet Energy Profile(s) of the Campus Curtailing for Peaks at Kent State University Ohio Energy Management Conference February 21, 217 2

5 Kent State University by the Numbers Energy Nearly 41, undergraduate and graduate students 6, students live in 25 residence halls 2,381 full- and part-time faculty at eight (8) campuses 53% of the classes have 2 or fewer students 282 undergraduate degree programs 33 days per year when students are on campus 11 main campus buildings, 31 satellite campus buildings, 7 million square feet Earned #1 spot in College Rank s list of Best College Dining experiences in the US Ohio Energy Management Conference February 21, 217 3

6 Power Plant Operations District CHP Constructed in 22 Provides electricity, steam and chilled water to the Kent, OH campus Two combustion turbines 5 MW with duct burner, 7 MW Two boilers heated with exhaust gas Energy Two additional gas-fired boilers 2 KPPH steam output Redundant chilled water capacity 4,6 tons electric cooling 5,3 tons steam-driven cooling JCI/Metasys controls system Entire campus monitored at 131,291 measurement points Kent Ohio Campus annual consumption Water Steam Cooling Tons MWh 24M Gal 47M LBS 13M Ton Hours 8, Ohio Energy Management Conference February 21, 217 4

7 Optimization Seeking the Silver Bullet Combination of revolutionary and evolutionary strategies and tactics Work with what you have until you get what you need One size does not fit all of the diverse needs of our customers Dr. W.E. Deming Col. John R. Boyd Pareto Principle Ohio Energy Management Conference February 21, 217 5

8 Optimizing Energy Guiding Principles (A) Electric and Gas Supply Contracts Unlimited swing fixed electric contract coupled with layered (largely fixed) gas supply (D) Special Programs PLC, NSPL Synergies and interaction between A, B, C, D (B) Operations and Production Operational redundancy provides needed flexibility to support campus growth Focus on reducing by leading-edge energy efficiency (C) Demand and Consumption Visibility to market conditions with energy awareness culture to limit peaks and minimize cost Ohio Energy Management Conference February 21, 217 6

9 Operations and Production Updated our costing process with a review of contracts, tariffs, heat rates, COPs measured against constraints Analyzed historical consumption data to develop typical profiles and then applied equipment combinations to create optimal operations Reached out to various stakeholders for needs assessments regarding maintenance and operating schedules As conditions change (scheduled maintenance, new technologies and system additions and subtractions), the reevaluation of operating conditions is on-going Ohio Energy Management Conference February 21, 217 7

10 Optimization Seeking the Silver Bullet Enterprise Optimization Solution How does it work? Mathematical Foundation Adaptive Equipment Models Weather Forecasts Load Predictions Utility Pricing Predictions Calendars / Maint. Schedules Model Predictive Control Optimal Equipment Dispatch Predictive Cost Optimization Boilers Chillers Pumps Towers

11 Demand and Consumption JCI Metasys energy management system Varied controls in all 11 campus buildings and power plant equipment, allowing for significant reshaping of demand curve of various utilities Building Automation and Controls Center (BACC) Manned by students who dispatch technicians to any out-ofrange/alarm condition Phased in HB251 energy conservation efforts Driven by the Office of University Architects with partner Brewer-Garret Company MMBTU/sqft reductions of 13% to date with projections up to 2% Ohio Energy Management Conference February 21, 217 9

12 Kent State University Where energy is used on a typical day on campus Heat/Cool 53% Baseload 1% Food Service 5% Computers 16% Lighting 16% 12: AM 1: AM 2: AM 3: AM 4: AM 5: AM 6: AM 7: AM 8: AM 9: AM 1: AM 11: AM 12: PM 1: PM 2: PM 3: PM 4: PM 5: PM 6: PM 7: PM 8: PM 9: PM 1: PM 11: PM August 11, 216 Summer III in session High Temp 2:PM MW Hourly Temp 9 Imported Generation Ohio Energy Management Conference February 21, 217 1

13 Thanksgiving week : AM 1: AM 2: AM 3: AM 4: AM 5: AM 6: AM 7: AM 8: AM 9: AM 1: AM 11: AM 12: PM 1: PM 2: PM 3: PM 4: PM 5: PM 6: PM 7: PM 8: PM 9: PM 1: PM 11: PM Total Campus Load Tuesday before Thanksgiving : AM 1: AM 2: AM 3: AM 4: AM 5: AM 6: AM 7: AM 8: AM 9: AM 1: AM 11: AM 12: PM 1: PM 2: PM 3: PM 4: PM 5: PM 6: PM 7: PM 8: PM 9: PM 1: PM 11: PM Total Campus Load Thanksgiving Day Ohio Energy Management Conference February 21,

14 Semester Break residence halls not open 12: AM 1: AM 2: AM 3: AM 4: AM 5: AM 6: AM 7: AM 8: AM 9: AM 1: AM 11: AM 12: PM 1: PM 2: PM 3: PM 4: PM 5: PM 6: PM 7: PM 8: PM 9: PM 1: PM 11: PM Total Campus Load Freeze Protection Jan 5, : AM 1: AM 2: AM 3: AM 4: AM 5: AM 6: AM 7: AM 8: AM 9: AM 1: AM 11: AM 12: PM 1: PM 2: PM 3: PM 4: PM 5: PM 6: PM 7: PM 8: PM 9: PM 1: PM 11: PM Total Campus Load No Freeze Protection Jan 1, Ohio Energy Management Conference February 21,

15 Managing Capacity Peaks Utilize all available options to lower system peaks Most generation resources on-line during system peaks Buildings are pre-cooled to limit needs during peak Switch from electric-driven to steam-driven chillers to limit electric consumption Energy Capacity Transmission Ancillary/Other Distribution Ohio Energy Management Conference February 21,

16 14, KSU PJM System Peaks During Capacity PLC Projection Kent St University , 1, 8, 6, 4, 2, 12/2/215 12/9/215 12/16/215 12/23/215 12/3/215 1/6/216 1/13/216 1/2/216 1/27/216 2/3/216 2/1/216 2/17/216 2/24/216 3/2/216 3/9/216 3/16/216 3/23/216 3/3/216 4/6/216 4/13/216 4/2/216 4/27/216 5/4/216 5/11/216 5/18/216 5/25/216 6/1/216 6/8/216 6/15/216 6/22/216 6/29/216 7/6/216 7/13/216 7/2/216 7/27/216 8/3/216 8/1/216 8/17/216 8/24/216 8/31/216 9/7/216 9/14/216 9/21/216 9/28/216 1/5/216 1/12/216 1/19/216 1/26/216 11/2/216 11/9/216 11/16/216 11/23/216 11/3/216 15, 1, 5, July 25, 216 PJM Peak Day *Weather factors for this EDC are not known. PJM Peak Coincident Hours Date Hour Metered KW Adjusted KW* Est. PLC (KW) 7/25/ ,1 9,672 7/27/ ,156 1,38 8/1/ ,393 1,663 3, /11/ ,463 1,747 8/12/ ,165 2,585 15, 1, 5, August 11, 216 PJM Peak Day July 27, 216 PJM Peak Day August 1, 216 PJM Peak Day August 12, 216 PJM Peak Day 1, 15, 15, 8, 6, 1, 1, 4, 2, 5, , Ohio Energy Management Conference February 21,

17 Managing Transmission Peaks NMB Pilot Available to large customers in FirstEnergy s Ohio service area who opt in to the program Objective: Customers with curtailment capabilities may be able to lessen their Transmission PLS Results: By lowering Transmission PLS, the pilot would result in lower overall transmission cost Complexity in managing Transmission peaks are measured at the zone and will not necessarily coincide with RTO-wide Capacity Peaks Not as much at stake but respectable returns possible Tools Peak day forecast from electricity supplier Reduction of power consumption in five out of five peak days Energy Capacity Transmission Ancillary/Other Distribution Ohio Energy Management Conference February 21,

18 KSU ATSI System Peaks During NITS PLC Projection Kent St , 12, 1, 8, 6, 4, 2, 12/2/215 12/9/215 12/16/215 12/23/215 12/3/215 1/6/216 1/13/216 1/2/216 1/27/216 2/3/216 2/1/216 2/17/216 2/24/216 3/2/216 3/9/216 3/16/216 3/23/216 3/3/216 4/6/216 4/13/216 4/2/216 4/27/216 5/4/216 5/11/216 5/18/216 5/25/216 6/1/216 6/8/216 6/15/216 6/22/216 6/29/216 7/6/216 7/13/216 7/2/216 7/27/216 8/3/216 8/1/216 8/17/216 8/24/216 8/31/216 9/7/216 9/14/216 9/21/216 9/28/216 1/5/216 1/12/216 1/19/216 1/26/216 11/2/216 11/9/216 11/16/216 11/23/216 11/3/216 15, 1, 5, July 13, 216 PJM Peak Day *Weather factors for this EDC are not known. ATSI Peak Coincident Hours Date Hour Metered KW Adjusted KW* Est. PLC (KW) 7/13/ ,134 1,341 8/11/ ,631 1,929 8/12/ ,165 2,561 2, /25/ ,127 3,699 9/7/ ,915 4,631 15, 1, 5, August 25, 216 PJM Peak Day August 11, 216 PJM Peak Day August 12, 216 PJM Peak Day September 7, 216 PJM Peak Day 15, 15, 15, 1, 1, 1, 5, 5, 5, KSU had great success when comparing operational peaks to utility s transmission peaks Ohio Energy Management Conference February 21,

19 Non-Market Based Pilot Analysis Planning Year Transmission PLC (MW) Transmission Tariff Rate ($/M W-Year) Annual Transmission Cost 1/216-1/217 - NITS Cost $43, $122, /216-1/217 - Other $7, Estimated Annual Tariff Total $21, $144, Other Cost = Transmission Enhancement Charges (TEC), Scheduling, Reactive Supply, Point to Point Revenues, and Generation Deactivation Billing Month PJM TARIFF RATE UTILITY NMB RATE EFFECTIVE 3/1/216 Monthly Peak kw Utility NMB Tariff Rate ($/Monthly Peak kw) Based on our new NSPL, KSU will see big benefits from NMB pilot NMB Monthly Cost 1/216 9,72 $2.97 $26, /216 1,519 $2.97 $31, /216 11,119 $2.97 $33, /216 1,98 $2.97 $29, /216 12,8 $2.97 $35, /216 12,836 $2.97 $38, /216 12,377 $2.97 $36, /216 11,486 $2.97 $34, /216 12,452 $2.97 $36, /216 11,578 $2.97 $34, /216 1,449 $2.97 $31, /216 8,348 $2.97 $24, Estimated Annual NMB Rate Total $393, Estimated Annual Savings $249,83.47 Estimated Monthly Savings $2, Ohio Energy Management Conference February 21,

20 Ohio Energy Management Conference February 21,

21 Forward-Looking Statements This presentation includes forward-looking statements based on information currently available to management. Such statements are subject to certain risks and uncertainties. These statements include declarations regarding management's intents, beliefs and current expectations. These statements typically contain, but are not limited to, the terms anticipate, potential, expect, "forecast," "target," "will," "intend," believe, "project," estimate," "plan" and similar words. Forward-looking statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, which may include the following: the speed and nature of increased competition in the electric utility industry, in general, and the retail sales market in particular; the ability to experience growth in the Regulated Distribution and Regulated Transmission segments and to successfully implement our revised sales strategy for the Competitive Energy Services segment; the accomplishment of our regulatory and operational goals in connection with our transmission investment plan, including but not limited to, our pending transmission rate case, the proposed transmission asset transfer, and the effectiveness of our repositioning strategy to reflect a more regulated business profile; changes in assumptions regarding economic conditions within our territories, assessment of the reliability of our transmission system, or the availability of capital or other resources supporting identified transmission investment opportunities; the impact of the regulatory process on the pending matters at the federal level and in the various states in which we do business including, but not limited to, matters related to rates and the Electric Security Plan IV in Ohio; the impact of the federal regulatory process on the Federal Energy Regulatory Commission (FERC)-regulated entities and transactions, in particular FERC regulation of wholesale energy and capacity markets, including PJM Interconnection, L.L.C. (PJM) markets and FERC-jurisdictional wholesale transactions; FERC regulation of cost-of-service rates, including FERC Opinion No. 531's revised Return on Equity methodology for FERC-jurisdictional wholesale generation and transmission utility service; and FERC s compliance and enforcement activity, including compliance and enforcement activity related to North American Electric Reliability Corporation s mandatory reliability standards; the uncertainties of various cost recovery and cost allocation issues resulting from American Transmission Systems, Incorporated's realignment into PJM; economic or weather conditions affecting future sales and margins such as a polar vortex or other significant weather events, and all associated regulatory events or actions; changing energy, capacity and commodity market prices including, but not limited to, coal, natural gas and oil, and their availability and impact on margins and asset valuations; the continued ability of our regulated utilities to recover their costs; costs being higher than anticipated and the success of our policies to control costs and to mitigate low energy, capacity and market prices; other legislative and regulatory changes, and revised environmental requirements, including, but not limited to, the effects of the United States Environmental Protection Agency's Clean Power Plan, coal combustion residuals regulations, Cross-State Air Pollution Rule and Mercury and Air Toxics Standards programs, including our estimated costs of compliance, Clean Water Act waste water effluent limitations for power plants, and Clean Water Act 316(b) water intake regulation; the uncertainty of the timing and amounts of the capital expenditures that may arise in connection with any litigation, including New Source Review litigation, or potential regulatory initiatives or rulemakings (including that such initiatives or rulemakings could result in our decision to deactivate or idle certain generating units); the uncertainties associated with the deactivation of certain older regulated and competitive fossil units, including the impact on vendor commitments, and as they relate to the reliability of the transmission grid, the timing thereof; the impact of other future changes to the operational status or availability of our generating units and any capacity performance charges associated with unit unavailability; adverse regulatory or legal decisions and outcomes with respect to our nuclear operations (including, but not limited to the revocation or non-renewal of necessary licenses, approvals or operating permits by the Nuclear Regulatory Commission or as a result of the incident at Japan's Fukushima Daiichi Nuclear Plant); issues arising from the indications of cracking in the shield building at Davis-Besse; the risks and uncertainties associated with litigation, arbitration, mediation and like proceedings, including, but not limited to, any such proceedings related to vendor commitments; the impact of labor disruptions by our unionized workforce; replacement power costs being higher than anticipated or not fully hedged; the ability to comply with applicable state and federal reliability standards and energy efficiency and peak demand reduction mandates; changes in customers' demand for power, including, but not limited to, changes resulting from the implementation of state and federal energy efficiency and peak demand reduction mandates; the ability to accomplish or realize anticipated benefits from strategic and financial goals, including, but not limited to, the ability to continue to reduce costs and to successfully execute our financial plans designed to improve our credit metrics and strengthen our balance sheet through, among other actions, our previously-implemented dividend reduction, our cash flow improvement plan and our other proposed capital raising initiatives; our ability to improve electric commodity margins and the impact of, among other factors, the increased cost of fuel and fuel transportation on such margins; changing market conditions that could affect the measurement of certain liabilities and the value of assets held in our Nuclear Decommissioning Trusts, pension trusts and other trust funds, and cause us and/or our subsidiaries to make additional contributions sooner, or in amounts that are larger than currently anticipated; the impact of changes to material accounting policies; the ability to access the public securities and other capital and credit markets in accordance with our financial plans, the cost of such capital and overall condition of the capital and credit markets affecting us and our subsidiaries; actions that may be taken by credit rating agencies that could negatively affect us and/or our subsidiaries' access to financing, increase the costs thereof, and increase requirements to post additional collateral to support outstanding commodity positions, letters of credit and other financial guarantees; changes in national and regional economic conditions affecting us, our subsidiaries and/or our major industrial and commercial customers, and other counterparties with which we do business, including fuel suppliers; the impact of any changes in tax laws or regulations or adverse tax audit results or rulings; issues concerning the stability of domestic and foreign financial institutions and counterparties with which we do business; the risks associated with cyber-attacks on our electronic data centers that could compromise the information stored on our networks, including proprietary information and customer data; and the risks and other factors discussed from time to time in our United States Securities and Exchange Commission filings, and other similar factors. The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on FirstEnergy's business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statements. FirstEnergy expressly disclaims any current intention to update, except as required by law, any forward-looking statements contained herein as a result of new information, future events or otherwise. Ohio Energy Management Conference February 21,