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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. Portfolio. 69 Hotels in eight states (IN, IL, TX, FL, CO, MI, UT, KY) 8,000+ Rooms

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strategic energy management a three tiered approach

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

portfolio
Portfolio
  • 69 Hotels in eight states (IN, IL, TX, FL, CO, MI, UT, KY)
  • 8,000+ Rooms
  • Full Service and Limited Service brands
energy management mission statement
Energy Management Mission Statement

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

growth since first opening
Growth Since First Opening

Number of Hotels

Increase of 4.5 MSF to date

energy management strategy
Energy Management Strategy

Tier III Asset Optimization

Tier II Commodity Purchasing

Tier I Utility Data Management

energy management strategy1
Energy Management Strategy

Tier I Utility Data Management

utility data management
Utility Data Management

Gas

Bills

TEG

Process

Bills

Enter Usage &

Cost Information

Electric

Bills

Audit &

Validate Bill

TEG

Database

Performance

Reports

Resolve Billing

Discrepancies

utility data management1
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
utility data management2
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!
utility data management3
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!

energy management strategy2
Energy Management Strategy

Tier II Commodity Purchasing

commodity purchasing
Commodity Purchasing
  • 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

State Utility

Commission

Federal

Regulators

TEG

Electric

Utility

Natural Gas

Utility

Suppliers

commodity purchasing1
Commodity Purchasing

Contract

  • Negotiate Contract Terms & Conditions
  • Process All Required Utility Forms & Contracts
  • Monitor Energy Futures Market
  • Leverage Purchasing Power of White Lodging and TEG
energy management strategy3
Energy Management Strategy

Tier III Asset Optimization

asset optimization
Asset Optimization

Prioritize

Utility Data Management

Asset Optimization

Activities

Data management enables the effective prioritization and validation of 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
  • Quarterly Reports
  • Property Rankings
  • PAR and POR Analysis
  • Cost per Unit of Commodity

Validate

2001 performance metrics
2001 Performance Metrics

Utility Comparison

Electric

Hotel X

Hotel Y

2001 performance metrics1
2001 Performance Metrics

Utility Comparison

Electric

Natural Gas

Hotel X

Hotel X

Hotel Y

Hotel Y

2001 performance metrics2
2001 Performance Metrics

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

Usage

2001 performance metrics3
2001 Performance Metrics

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

Usage

Cost

high impact items
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 55 - 85 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
high impact items1
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
high impact items2
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
daily meter readings
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
energy committees
Energy Committees
  • Line item on accountability meetings, once a month
  • Discuss:
  • Findings of investigations and reports
  • Successes, Projections
  • Opportunities for employee involvement
peak control strategies
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
demand curve october ffi
Demand Curve October, FFI

Peak Day, Thursday October 5, 2000 determines bill for the entire month

Average Weekday

Average Weekend

usage and demand ffi
Usage and Demand, FFI

December 00

October 00

November 00

January 01

February 01

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

Accomplishments
challenges
Maintaining energy savings during growth

Ensuring communication between housekeeping and engineering staff

Receiving buy-in from general manager and staff

Challenges