Cogeneration at UC July 18, 2013

2 Welcome

3 Transformation of the Power Plant POWER PLANT CENTER OF CAMPUS CENTRAL UTILITY PLANT 2007

4 Power Plant Site transformed Campus Recreation Center POWER PLANT SITE OF REC CENTER CAMPUS RECREATION CENTER

Investing for the future $84,000,000 Construction of Central Utility Plant 2004 $6,000,000 Solar Turbine Maintenance contract $6,000,000 Construction of Thermal Storage System 2011 $7,000,000 Construction of New Substation Total Investment of Over $100,000,000 5

Central Utility Plant

Childrens Hospital Medical CenterShriners Hospital for Children Veterans Hospital University HospitalHoxworth Blood Bank Holmes Hospital Hospitals Served by UC Utilities

8 University of Cincinnati Consolidated Utilities UC and 6 Hospitals 100 buildings 12 million square feet Two Utility Production Plants Piping/Tunnel System 100% distribution

9 Electric production 47MW Steam Production 610,000 pounds-per-hour capacity-coal, gas, oil, interruptible gas Chilled Water Production 34,000 tons capacity natural gas and electric chillers Thermal Energy Storage 2.8 million gallons of chilled water East Campus 4.0 million gallons of chilled water West Campus Consolidated Utilities Operations Capacity

10 Steam Pipes - 35,509 Linear Feet Chilled Water Pipes- 32,889 Linear Feet Tunnels - 13,947 Linear Feet Utilities Distribution System

Central Utility Plant

2 Solar Titan Combustion Turbines kV 13,400 kVA State of the Art Electric Production Equipment

2 ERI HRSGs 600 PSIG 40,000 #/hr 120,000 #/hr with burners Heat Recovery From Cogen Increases Efficiency Overall efficiency is double the efficiency of a large utility plant

Use for campus heat in winter Use for more electricity in summer 20 MW steam turbine generator kV Additional Electric Production Equipment

Cogen Benefits Increased Reliability “Free” Steam $2,590,000 per year of savings Lower Emissions No transmission and distribution losses Certified Emission Monitoring System Cogen Benefits

17 Electric Monitoring

Duke Energy Ohio regulated DERS non regulated supply Both depend on PJM 5 CP 5 CP is determined by regional transmission operator 5 CP stands for top 5 highest coincident peaks in PJM total territory Peak Load Is Main Priority

Weather in DC, Philadelphia, New Jersey, or Chicago Could affect total Peak load PJM Service Territory

PJM Historical Coincident Peak Hours Look at the trend Peak is almost always hour ending 17:00 Only 4 of 25 hours were not hour ending 5PM and they were close 20

DATEHOURPEAK TIME Meter (kw) Meter (kw) Meter (kw) Meter (kw) Meter (kw)Total (kw)Peak Averag (kw) :00-16: :00-17: :00-17: :00-17: :00-15: Average11.52 Last Year’s 5 Peak days These results are excellent and avoided millions of dollars of additional demand charges on our electric bill Electric Bill would be additional $380,000 per month higher

CTG Performance

Simple Fuel Operation We use 600 cfm more gas to produce additional 5,000 kW This is equal to 36 MCF per hour $4 per MCF = $144/5,000kWh = $0.0288/kWh $5 per MCF = $180/5,000kWh = $0.036/kWh $6 per MCF = $180/5,000kWh = $0.0432/kWh $7 per MCF = $180/5,000kWh = $0.0504/kWh $10 per MCF = $180/5,000kWh = $0.072/kWh

O& M Costs 4 Additional Operators Full Service Contract with Solar $1,500,000 per year fixed cost $0.01/kWh

Debt Costs Tax Exempt Bonds Low Interest rates $40,000,0000 $3,600,000/ yr $0.02/kWh Could be less if you needed more capacity

Gas is still low but climbing

EFFICIENCY RESULTS

Energy use per student down 30% over last 9 years

City water usage down 43% over last 9 years

GF Adjusted Utility Budget Compared to PUCO Historical Commercial & Industrial Rates for Cincinnati

Award Winning Operations

Energy Conservation Saves money Reduces carbon footprint Over $2,500,000 of rebates Promotes sustainability Duke Power Partner Award

Awards and Honors 2012 International Thinking Buildings Award 2011 EPA Combined Heat and Power Award 2010 EPA Combined Heat and Power Award 2009 EPA Combined Heat and Power Award 2005 Energy Project of the Year, Association of Energy Engineers (AEE) 2005 System of the Year, International District Energy Association (IDEA) 2005 CHP Certificate of Recognition, U.S. EPA 2005 Governor’s Award for Excellence in Energy, State of Ohio 2003 Ohio Governor’s Award for Excellence, highest award in the Ohio Award for Excellence competition 2001 Corporate Energy Management of the Year, Association of Energy Engineers (AEE) 2001 Award for Excellence in Facilities Management, Association of Higher Education Officers (APPA) 2000 Governor’s Award for Excellence in Energy Efficiency, State of Ohio 2000 Facilities Management Excellence Award, Association for Facilities Engineers 1999 Facility Management Achievement Award, International Facilities Management Association (IFMA) 1997 Greenlights Partner, U.S. Environmental Protection Agency (EPA) 33

Additional Benefits Improved Reliability Voltage Sags reduced Reduced carbon footprint Less transmission and distribution losses Good Publicity

Additional Concerns Increased Fuel Volatility Increased Operational Complexity Additional regulatory issues PJM Interconnect may be needed Increased Staff may be needed Additional environmental permitting, monitoring, and reporting

Summary Great technology, but it is not for everyone Need a medium - large summer steam load and year round need for power Adds complexity to operations Capital and regulatory intensive Works great with low gas prices

Other Sources of Information DOE’s Federal Energy Management Program (FEMP) has issued a Notice of Intent (NOI) to provide grants for capital projects to Federal Agencies through a Funding Opportunity Announcement (FOA) entitled, "Assisting Federal Facilities with Energy Conservation Technologies (AFFECT)." CHP projects will be eligible for direct funding.

Questions?

39 For more information contact Joe Harrell (513) Summary