Montclair State University

1. Montclair State University SUCCESSFUL UTILITY MASTER PLANNING Presented By: Greg Bressler – VP Facilities, Montclair State University Mike Fischette, P.E., Concord Engineering Group Johnathan Coleman, JA Coleman, LLC Concord Engineering Group, Inc.

2. Montclair State University • Montclair State University (MSU) was established in 1908, as the N J State Normal School at Montclair, a two year teacher preparatory school for women. • In 1927 it was renamed Montclair State Teachers College and began offering a four year Bachelors degree. • In 1994 the school became the first of the New Jersey State colleges to become a university and was henceforth known as Montclair State University. • MSU is currently the second largest and fastest growing university in New Jersey. • MSU is currently involved in an ambitious construction program to accommodate this growth, including eight (8) new buildings totaling about 590,000 GSF.

3. MSU HISTORY & BUILDING GROWTH Concord Engineering Group, Inc.

4. Concord Engineering Group, Inc.

5. Concord Engineering Group, Inc.

6. Concord Engineering Group, Inc.

7. Concord Engineering Group, Inc.

8. Concord Engineering Group, Inc.

9. MSU Utility Master Plan Evolution MSU recognized the need for utility infrastructure and energy consumption improvements to their facilities. However… Competing interests of MSU students, faculty and administration necessitated a dialog to develop a synergistic plan

10. Renewable Energy/ Sustainability Program Utility Infrastructure and Building Efficiency New Facility building to support Academic Master Plan Competing Factors at MSU Campus Architect desired to capitalize upon program initiatives including LEED guidelines on sustainability and renewable technologies such as wind and solar PV for each building without consideration of centralized utilities Facilities Department was aware of aging central utilities plant and that underground steam piping needed immediate upgrade and replacement. Building HVAC and lighting overdue for retrofits Faculty was focused on building new facilities to meet Academic goals without consideration for centralized utilities

11. Set Goals and Objectives Set Goals Combine stakeholder goals and objectives Executive Management Academic Instruction & Research Residence Life Facilities Management Establish priority list Focus on Central Power Plant (CPP) ability to support existing and new facilities Reliable/Efficient heating, cooling and power. Establish plan for upgrade or decommission of existing infrastructure asset Set Objectives Develop Utility Load Profile and Energy Cost Model Establish Condition and Lifecycle Status of Existing Utility Infrastructure Define Opportunities for Energy Cost Savings and methods of financing

12. Utility Master Plan Procurement Develop Scope of Work Consistent with University Strategic Plan Goals and Objectives Focus on central plant condition assessment and proposed upgrades to meet facility demands Meet NJ Energy Master Plan criteria Set Utility Master Plan Tasks Audit all permanent buildings (mech. rooms only) and CPP /thermal infrastructure assets Simulate current and future utility load profiles Evaluate reliability improvements and cost savings opportunities Report shall include system alternatives , recommendations, sensitivity analysis, cash flow, LCC, utility models Evaluate alternate financing methods Identify applicable grants and rebates

13. Define Process With Outcome in Mind Well defined request for proposal and scope of work for consultant to propose. Provide access to drawings, site tours, utility bills, facility master plans, off tariff agreements, thermal and O&M agreements Interview respondents and evaluate specific technical expertise and resources Combined Heat & Power design capability Knowledgeable utility tariff modeling and simulation Past experience with alternative financing and state/federal grants and incentive Interim progress meetings (present LCC alternatives early) Preliminary report review meeting (define winning system) Final report presentation with all major stakeholders (present financing method)

14. Montclair State Master Plan Completed by Concord Engineering Group Inc. in two (2) parts: Comprehensive Campus Wide Energy Audit (2004/2005) Energy Management and Utilities Master Plan (2007/2008)

15. Comprehensive Campus Wide Energy Audit (2004/2005) Demand Side Audit Evaluated Campus Building Utility Infrastructure Calculated Energy Consumption (Load Profiles) System Evaluations Potential Energy Consumption Savings Equipment Upgrades and Lifecycle Replacements Implementation Plan Budget Cost Project Schedule and Plan

16. Results MSU spends in excess of $10 million per year in energy costs (2007/2008) Identified 196 Energy Conservation Measures. $2.1 million annually in utility cost savings $298,000 annually in operations and maintenance savings Total energy related savings of $7,000 per day.

17. Energy Management and Utilities Master Plan (2007/2008) Demand Side Audit (Review) Additional New Campus Buildings Calculated Energy Consumption at new tariff rates Generation Side Audit Cogeneration and Central Plant System Steam and Electrical Distribution System Local Heating and Cooling Systems

18. MSU Utilities Over 75% of the campus heating load is provided from a central power plant (CPP) which generates electrical power and steam. The balance is supplied from local boilers, hot water heaters, and electric baseboard heaters. The CPP was upgraded in 1993 to include a 4MW gas turbine generator with fired steam production (cogeneration). Third party BOOM (currently MSU owns the CPP with annual O&M contract). There is no central chilled water production at MSU. All buildings with chilled water and air conditioning have local units (steam absorbers or DX).

19. MSU Existing Central Plant and Steam Loop

20. Utilities Master Plan (2007/2008) Systems Evaluated Current Operation New CPP with Steam Distribution New CPP with Steam/CW Distribution New CPP with Cascade HTHW/Steam/CW Avoided Cost for GT/HRSG/Steam Pipe Avoided cost for new chillers on future buildings

21. Proposed CCP w/Cooling

22. Life Cycle Comparison Option 4A – new CPP with new central steam/CW pipe Initial Cost = $55 million Life Cycle offset = ($15 million) Net Savings cumulative 20 yr = $267 million ROI = 9.2 % Includes $5 million DSM improvements from energy audit Option 3A – new CPP with new steam pipe only Initial cost = $34 million Life Cycle offset = ($9 million) Net Savings cumulative 20 yr = $266 million ROI = 11.3% Includes $5 million DSM improvements from energy audit

23. Results Calculated Energy Generation Savings $4.9 million annual savings over near term future campus energy purchase with no cogen $267 million total net future savings over 20 years Calculated Project Economics $55 million capital cost including building efficiency measures and new cogen plant and steam/CW piping About 10% ROI for All Projects; including Lifecycle Replacements, New Distribution Infrastructure, and New larger Central Plant.

24. Financing Analysis of alternatives produced the following recommendations for New Infrastructure improvements: Third party BOOM most desirable to MSU Qualified O&M labor and supervision to costly ITC and Accelerated Depreciation benefits could not be directly used by MSU Project may qualify for Federal Economic Stimulus funds State will assume obligation for infrastructure costs freeing MSU to bond for academic needs MSU will be a prototype for future public financing of long useful life infrastructure projects in the State.