Energy Efficiency & Incentives

Ryan ShawNational Account ManagerUnion Gas Limited

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EnerSmart Programs

Agenda

• Union Gas Overview• Incentive Programs

• Why they exist • What they’re designed to do• How they are structured • Commonalities and themes• Union Gas Incentive Programs• Tips for participating

• Developing an Efficiency Plan• Calculating ROI • Popular technologies

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Union Gas Limited

• Natural gas storage, transmission and distribution company

• Our distribution business serves 1.3 million residential, commercial and industrial customers in more than 400 communities across Ontario

• The Dawn Hub is the largest underground storage facility in Canada and one of the largest in North America

• Union Gas is a Spectra Energy company with assets of $5.6 billion and approximately 2,200 employees.

• CELEBRATING 100 YEARS Est.1911

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Ontario Service Areas

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Why Do Incentive Programs Exist?

Systematically, it’s a great investment & hedging strategy for provinces, businesses, citizens...

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“Its cheaper to pay someone to consume less then it is to build more capacity...”

Infrastructure Costs

Externality Costs

Environmental Benefits

Effects on Peak Demand

Union Gas Programs - Benefits

Since 1997 Union Gas Incentive Programs have :• Reduced CO2 emissions by 8 million metric tons

That’s equivalent to:• Saving over $ 1.7 billion in energy costs• Removing over 1.8million cars from Ontario’s roads• Heating over 1.7million Ontario homes for one year

“A typical household spends $1,000 a year on gas. Gas conservation programs

cost an extra $10/yr, but have the potential to save households $100 or more.”

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SIncentive Programs

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What are incentive programs designed to do?

Empower you with the knowledge to make a decision

Improve the ROI

Reward early adopters and innovation

Stimulate the demand for new energy efficient products

Promote technological advancement

Education, information, training & incentives

How Are They Structured?

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Program Funding

Mechanisms

Program Geography/ Territory

Program Characteristics /

Traits

“Commonalities exist in almost all programs...but not all programs are created equal.”

How Are They Structured?

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Prescriptive Programs

Shopping List

Identified ROI

Most Simplistic

Involves Base Case

Calculation or Modelling

Most Complex

Custom Programs

“ A common theme is the dual stream approach... this provides flexibility for the customer”

Union Gas Prescriptive Programs

Union Gas’s Prescriptive Programs

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Union Gas Custom Programs

Union Gas’s Custom Programs

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Tips for Participating

• Find the right people at the utility • Be sure to understand all the resources available

• Expert energy advice • Audits, Modeling and Feasibility Studies • Education & Training • Research

• Be sure to get involved early in the process • Ask about program timelines • Put incentive participation directly into tender’s & contracts• Dedicated resources are an option• Understand how to apply them to your business

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Some good tips for participating in any program....

Developing a Plan

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Billing, Analysis, Metering

Recommissioning

Where is your business at and what sort of help do you need?

Demand Control Ventilation

Controls

Information Gathering

Performance Optimization

Equipment Installation

Monitor & Tracking

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Understanding Efficiency

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• Energy Use Index (EUI)• BTU’s of energy used per sqft • Average office building is 93,000 BTU/sqft/yr• How do your buildings stack up (CBECS)• Is the data normalized and how is it changing?

• Energy Cost Index (ECI)• All costs of energy divided by sqft • What is the exposure to risk

• Calculate the ROI

Where is the best return on my money?

Case Study

What Do You Need to Know?

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Maintenance Savings

Energy Savings & Incentives

“Be sure to account for all costs when calculating the ROI”

Downsizing of Equipment

Absenteeism /Productivity Gains

Resale or Leasing Rates

Occupancy Turnover

Vacancy Rates

Common

Less Common

Popular Topics & Technologies

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“What are the ventilation rates in your facility?”

• ASHRAE Ventilation Standard 62-2004 suggests 15 CFM/person

• EPA study showed average ventilation rates of 28.9 CFM/person• 83% of buildings were over 20cfm/person

• Demand Control Ventilation • CO2 Sensors

Over Ventilation : Mike Schell, AirTest Technologies Inc.

Popular Topics & Technologies

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“Be sure to look at what you have in your environment and what’s happening within it...”

• Demand Control Ventilation / CO2 Sensors • HRV’s & ERV’s• Alternative Forms of Heat Recovery• Insulation & Cool Roofs • Building Automation & Controls • Economizers• Real time monitoring• Sub-metering

Questions?

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Questions?

Ryan Shawrshaw@uniongas.com

A Case Study on Absenteeism

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Green Buildings and Sustainable Workplaces Going Mainstream Green is the New Black By Scott Brooker

While lower operating expenses are easy to quantify, the real value comes in the softer-cost opportunities. The biggest bottom-line contributor can be mined from your workforce. Reductions in absenteeism, increases in productivity, and greater employee engagement can pay massive dividends. Here is a quick case study on absenteeism; Take a 50,000 square foot tenant, paying $50 per square foot in gross rent is paying $2,500,000 year in rent. Assuming one employee per 200 square feet, puts 250 employees working in this space 245 days a year. Assume the average employee is making $80,000, factor in your benefits (0.4) and overhead (0.3) each employee costs your organization $136,000 a year. In the United States the average number of sick days per employee is nine, which would cost your organization $1,248,979 per year. Reduce that average by just ONE DAY, only one, it would save your organization $138,775 per year, or the equivalent of $2.78 per square foot. You just reduced your rent by 5.5% each year, just by moving into a green building over a traditional “brown” building. This case study does not even take into account the additional productivity gains of occupying a green building, which a study out of Michigan State University, published in the American Journal of Public Health, estimated an organization could gain the equivalent of 38.98 hours of additional productivity out of each and every employee each and every year. The potential impact on the bottom-line is nothing short of astronomical, you have the potential of gaining nearly an extra week of work out of each and every employee EVERY YEAR at NO ADDITIONAL COST.

(Courtesy of www.monstercommercial.com)