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Doing More with Less: Increasing Reliability and Efficiency While Decreasing Energy Spending 2011 VACo Annual Conference Larry Godleski, VP, Energy Efficiency.

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Presentation on theme: "Doing More with Less: Increasing Reliability and Efficiency While Decreasing Energy Spending 2011 VACo Annual Conference Larry Godleski, VP, Energy Efficiency."— Presentation transcript:

1 Doing More with Less: Increasing Reliability and Efficiency While Decreasing Energy Spending 2011 VACo Annual Conference Larry Godleski, VP, Energy Efficiency

2 Constellation Energy at a Glance A leading supplier of competitive power and natural gas, energy products and services for home and business Customers in 38 states & Washington, DC Owns and operates Marylands largest utility, Baltimore Gas and Electric Company 12,000+ megawatts of generating capacity – fossil, nuclear and renewable FORTUNE 500 company Revenues: $14.3 billion (2010) Ticker symbol: (NYSE) CEG Headquartered in Baltimore, Maryland 10,000+ employees (includes CENG) We help customers intelligently buy, manage and use energy 2

3 Pressures in Todays Marketplace o A Political Landscape In Motion o Enhanced Pressure on Operating Budgets o Uncertainty in the Financial Markets 3 The Challenges Facing Elected Officials Today Energy Efficiency Must Maintain Visibility o Recent Shifts in Legislative Policy and Focus o Model Programs Under Review o Resource Allocation (Financial and Human) The Business of Government: Needs vs. Means o Operating Costs Continue to Escalate o Tax Revenues Remain Stagnant o Financial Subsidies Dramatically Reduced o Infrastructure Continues to Age While the Need for Services Continues to Expand Financing is a Requirement for Success o Concern over Approaching Debt Ceilings and Focus on Debt Ratings o Market Access and Availability of Financing o Balance Sheet Preservation

4 Energy Efficiency Value Proposition 4 Energy Performance Contracting will significantly reduce the quantity of energy used, and therefore cost, over time while improving the reliability of your facilities 4 Energy Spend Energy Savings

5 Lighting System Upgrades Occupancy based redesign Direct/indirect systems Intelligent lighting system controls High efficiency re-lamp and re-ballast LED Applications Street and traffic lighting upgrades Incandescent to fluorescent conversion Parking area lighting upgrades Miscellaneous High efficiency motors Kitchen exhaust hood control systems Variable speed drives on many systems Elevator controllers Instantaneous hot water heaters Retro / Continuous commissioning Appliance / plug load timers Water Conservation Ultra-low flow toilets Ultra-low flow urinals Low flow faucet aerators Low flow showerheads Groundwater irrigation Laundry Ozone systems Leak detection systems Building Automation System Upgrades Enhance existing systems Complete new DDC systems Unoccupied setback control Integration of multiple systems Remote access and monitoring Efficient operation algorithms Outside air control strategies Renewable Energy On-site Solar Energy Systems Geothermal system Heat pump installation Wind energy Alternative fuel conversion Communication, Training & Awareness Stakeholder involvement Communications – internal & external Community participation Central Plants Steam to hot water conversion District steam & HW systems New chiller & boiler installations New cooling tower installations Primary/secondary systems Heat recovery systems Variable speed pumping systems Steam trap replacements HVAC System Upgrades New air handling system installations Economizer / HVAC Damper Zone isolation Constant volume to variable air volume conversions De-stratification fans Building Envelope Window replacement Roof improvements/replacements Stack effect mitigation Crack repair/weather-stripping Window solar film Energy Conservation Measures (ECMs) 5

6 Energy Performance Contracting Success in Virginia March 2001: Energy & Operational Efficiency Performance-Based Contracting Act – Maximum 15 year blended payback; self funding – Savings guaranteed by energy services company (ESCO) Virginias record of success with energy performance contracting – Over $350mm of projects completed to date Resources: – Va DMME Performance Contracting website: Charlie Barksdale – Constellation Energy Efficiency website: aspx aspx 6

7 2011 ACEEE State Energy Efficiency Scoreboard 7 Virginia Ranks #34 in Energy Efficiency Policies

8 Case Study: FCC Petersburg 8 Constellation implemented a $10.6mm EPC project at the Federal Corrections Facility in Petersburg, one of the larger prisons in the US (3,400 inmates; 1mm sq. ft.) FCC Petersburg is saving more than $1.4mm annually in energy costs The energy conservation measures (ECMs) include: –350-hp biomass boiler base load heating source –First of its kind at a DOJ facility –Geothermal heat pump system for the gymnasium –Solar PV system on the new biomass boiler building –Two all-electric vehicles Please extend a thanks to your staff for doing a superb job at the ribbon cutting event. Everyone enjoyed the function and the hands-on look at the ECMs. Well done! Dave Williams Energy Project Manager FCC Petersburg

9 Conclusion Counties can save money and enhance reliability and environmental attributes even in todays challenging economy Virginia has a very successful energy performance contracting process that must be utilized to a greater extent (ACEEE ranking #34) Constellation has over 25 years of experience implementing energy performance contracts – Over 4,000 projects with an average savings of 102% (exceed guaranteed savings) – 142,000 MWh conserved by customers in 2010 – Financed and built over $1Bn in energy related projects – National Super Energy Savings Performance Contract supplier chosen by DOE Energy performance contracting is a technical means to a financial end 9

10 Larry Godleski, VP, Energy Efficiency (724)


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