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Strategic Energy Management: A Three Tiered Approach Randy Gaines, C.E.O.E. White Lodging Services AH&MA Annual Conference and Lodging Expo April 5, 2001.

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Presentation on theme: "Strategic Energy Management: A Three Tiered Approach Randy Gaines, C.E.O.E. White Lodging Services AH&MA Annual Conference and Lodging Expo April 5, 2001."— Presentation transcript:

1 Strategic Energy Management: A Three Tiered Approach Randy Gaines, C.E.O.E. White Lodging Services AH&MA Annual Conference and Lodging Expo April 5, 2001

2 Portfolio 69 Hotels in eight states (IN, IL, TX, FL, CO, MI, UT, KY) 8,000+ Rooms Full Service and Limited Service brands

3 Energy Management Mission Statement To increase profits, prevent pollution, and enhance the indoor environment for guests and employees through cost-effective strategic energy management.

4 Growth Since First Opening Increase of 4.5 MSF to date Number of Hotels

5 Energy Management Strategy Tier I Utility Data Management Tier II Commodity Purchasing Tier III Asset Optimization

6 Energy Management Strategy Tier I Utility Data Management

7 Utility Data Management TEG Process Bills Electric Bills Gas Bills TEG Database Enter Usage & Cost Information Audit & Validate Bill Resolve Billing Discrepancies Performance Reports

8 Utility Data Management Perform Detailed Analysis of Each Utility Account –Analyze utility rate, implement most inexpensive option –Investigate all findings faulty meters missing water meters late fees double billing

9 Utility Data Management Utility Errors and Faulty Equipment –Faulty natural gas meter identified - recovered overpayment of $15,482! –Faulty water meter identified - recovered overpayment of $32,540! –Hotel billed for two water accounts, one of which was neighboring hotel- recovered overpayment of $28,230!

10 Utility Data Management Utility Errors and Faulty Equipment –Identified oversized water meter - downsized water meter and implemented lower rate resulting in annual savings of $5,600! –Identified gradual upward trend in water consumption and leak in irrigation system camouflaged by clay soil - secured utility refund of $5,200 due to sewer exemption These savings alone total over $100,000!

11 Energy Management Strategy Tier II Commodity Purchasing

12 Commodity Purchasing TEG Suppliers Monitor State Utility Commissions Monitor Federal Legislation Interact With Utilities To Keep Abreast of Pilot Programs Interact with Suppliers To Keep Abreast of Pilot Programs Electric Utility Natural Gas Utility Federal Regulators State Utility Commission

13 Commodity Purchasing Leverage Purchasing Power of White Lodging and TEG Monitor Energy Futures Market Contract Negotiate Contract Terms & Conditions Process All Required Utility Forms & Contracts

14 Energy Management Strategy Tier III Asset Optimization

15 Asset Optimization Prioritize Validate Data management enables the effective prioritization and validation of asset optimization activities Utility Data Management Quarterly Reports Property Rankings PAR and POR Analysis Cost per Unit of Commodity Asset Optimization Activities High Impact Items Daily Meter Readings Peak Control Equipment / Technology Changes – Occupancy Sensors – Ozone Laundry – Lighting – Energy-efficient Electronics – Energy-efficient Appliances

16 2001 Performance Metrics Electric Utility Comparison Hotel X Hotel Y

17 2001 Performance Metrics ElectricNatural Gas Utility Comparison Hotel X Hotel Y Hotel X Hotel Y

18 2001 Performance Metrics Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis. Usage

19 2001 Performance Metrics Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis. Usage Cost

20 High Impact Items Lighting –All lights off when unoccupied –TCP 30 watt Bulb with 36 watt Ballast –Exterior lighting, profiler system or photocell properly placed –Sport courts and storage rooms, equipped with timers for auto- shutoff PTAC –Units off when F outside –Settings for unoccupied rooms determined by Maintenance Manager daily –Filters cleaned quarterly –Power wash coils every two years –Associates do not pre-cool or pre-heat rooms

21 High Impact Items Water Heater –Remove all deposits from tank –Burner maintained with bright blue flame –Ensure no airflow is restricted –Verify water temperature is 110 degrees at the furthest room Laundry –Only full loads –Done in off peak hours –Keep drier lint screens clean - check after every load

22 High Impact Items In Room Water Equipment –2.5 gallon per minute shower heads installed –Faucet arreators installed, 1.5 gallon per minute –1.6 gallon per flush toilets installed when replacement occurs –Dye test toilets annually to ensure no water leaks Evening Energy Walks –Night Auditor Self Audit Energy Absolutes

23 Daily Meter Readings Daily meter reading log –Maintenance manager to complete each day –Readings to be taken at same time each day Computerized monthly meter reading spreadsheet –GM will have daily information transferred to spreadsheet –Daily occupancy column will also be updated Monthly reporting –Monthly spread sheets forwarded to Regional Directors of Housekeeping and Maintenance –Copies will be kept at each property in the Life Safety Manual under new “Energy Usage” tab

24 Energy Committees Line item on accountability meetings, once a month Discuss: Findings of investigations and reports Successes, Projections Opportunities for employee involvement

25 Peak Control Strategies Peak usage is 7:00 to 9:00 a.m., 6:00 to 10:00 p.m. Key areas to control peak –No laundry before 9:00 am –Ensure PTACS for all unoccupied rooms are shut off during peak times –Common area thermostats are set back, upgrade to electronic thermostats for auto set back capability –In kitchen area, shut off any unneeded electrical equipment during peak hours Educate staff and get them involved in peak control

26 Demand Curve October, FFI Peak Day, Thursday October 5, 2000 determines bill for the entire month Average Weekday Average Weekend

27 Usage and Demand, FFI October 00November 00 December 00 January 01February 01

28 Accomplishments Implemented strategic energy management plan across portfolio Achieved annual savings of $100,000+ while increasing portfolio by 31% Leveraged energy performance efforts through energy alliances Involved staff in education, training, and implementation

29 Challenges Maintaining energy savings during growth Ensuring communication between housekeeping and engineering staff Receiving buy-in from general manager and staff


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