Wise use of electricity saves money for a Florida school district, also helping fund purchases of new, energy-efficient equipment.

By Janis Keating

“Turn out that light—you think electricity grows on trees?” Most of us have childhood memories of such parental admonishments—indeed, we’ve perhaps said the same things to our own kids. What Mom said is correct: Energy conservation saves money. In a single-family home, turning out a lamp or replacing an incandescent bulb with a fluorescent one may not show immediate savings; however, for a large electric consumer, such as an office or a school, careful monitoring of electric use can reap rewards reaching thousands of dollars.

Energy conservation is a win-win situation for the supplier as well as the consumer. The consumer saves money on his electric bill; the power company can postpone the costs of building a new plant to supply electricity demand—an expense that inevitably shows up somewhere on the consumer’s electric bill.

Pinellas County’s Three Rs: Reading, Righting, and Replacing
The Pinellas County School District, situated midway up Florida’s west coast, is the 22nd-largest district in the nation and the state’s seventh-largest. Pinellas’ annual utility budget tops $26 million, and, as most of its counterparts across the nation, faces many income and expense dilemmas. Expenses go up every year—yet, if school-funding bond issues are turned down by voters, income stagnates—or, worse, decreases. As everyone with a budget knows, if income doesn’t go up, expenses must go down.

“My involvement started when I was co-chair of our energy management committee,” says Michael Tomalesky, assistant superintendent of institutional services operations for the Pinellas County Florida School District. “Our committee consisted of representatives from the schools, our maintenance department, et cetera. During conversations with the committee, we decided to use energy management as a tool to cut expenses. One of the big ideas to come from these meetings was the ‘energy coach’ idea. We decided we needed to find people who had experience in the electricity field to help with this program—as opposed to an ‘Energy Police’ idea—someone who would just write up problems. We wanted to work with the power company to save energy, as well as learning what we could do to use less power.”

It takes a big compressor to cool a large space.

“The customer approached us about this service,” explains Bryan Reardon, account manager with Energy Systems Group (ESG), the firm that’s helping Pinellas County Schools. “Progress Energy, a multi-billion-dollar electric provider in Florida and the Carolinas, is Pinellas County's provider in this area. We began working with Pinellas in May 2004, to form a partnership—we would assist its internal energy manager, who was responsible for energy conservation, and we’d also assist them in the day-to-day operations of saving energy.”

Saving energy—doesn’t that lower billings? What's in it for the power company? “The cost of building new generation is expensive,” Reardon explains. “It can take 10 to 20 years to get a new power plant online, and the demand goes up all the time—especially here in Florida, where the population is booming. Many power companies are trying to better utilize their current grids—with such plans as demand-side management programs, load sharing, and load-shedding programs—to avoid brownouts and blackouts by helping to control demand. ESG’s work fits into that. In fact, most states have requirements that conservation programs are in place.”

ESG is a wholly owned subsidiary of Vectren Corp., a multistate power provider. With the resources and support of a $3 billion corporate structure, ESG develops comprehensive, long-term solutions for all levels of partners. Although ESG’s primary interest in serving Pinellas was to implement Performance Contracting energy projects, it agreed to provide the Energy Coaches—a first not only for ESG, but for US energy services companies as well—as part of broad-scope energy management partnership.

The first step was to evaluate current electric usage at the schools and determine where savings could be made. “We run a 12-month program,” Tomalesky says. “We do have some schools open in the summer. And the school district doesn’t just involve schoolrooms—we operate a total of 150 buildings; some are adjunct to the schools, such as maintenance and administration buildings.”

Cooling relatively small classrooms is fairly simple, but high-ceilinged gyms pose unique problems.

Even if the schools didn’t run all year, Florida’s weather often requires air conditioning—not only to keep occupants comfortable, but also to keep the buildings healthy. “Sometimes we have nice weather, but we shouldn't open windows because some kids have asthma, et cetera, and the teacher may not have the ability to turn off the air conditioning. And, because of the high humidity, a lot of how you manage your A/C has big effect on the mold problem—which can really be a health problem. Sometimes it’s better to turn the A/C up—it will take the humidity out of the air better than if you turn it down, and humidity is what makes you feel hot, while also promoting mold,” he explains.

Checking Pinellas’ power bills was another important step. “We have 950 separate accounts for our electricity,” Tomalesky says. “Each has to be reviewed, with errors found and corrected. One of our ESG coaches, our rate expert, does nothing but go over all the bills. For example, our power company has a ‘time of use rate’—if this rate changes, we can save money on our bills without making any changes in the physical plants, or in electric use. The power company also has a ‘generator rate’—if a customer agrees to run his generators at certain times, instead of drawing from the grid, the power company gives you a reduction in electricity costs. We’re now actively looking at our specs on generators—what savings on electricity would we reap if we put in one that runs more than just in an emergency?”

“Rate analysis is crucial,” ESG’s Reardon says. “Electric companies sometimes have trouble being accurate with rate data. You can save a lot a money by being on the correct rate structure. We made sure Pinellas had the rate structure that worked the best for them. We gained perhaps $800,000 in refunds for billing errors—but, the electric company doesn't overcharge on purpose; maybe you need a different billing rate, or sometimes you find out the electric meter went bad.”

These analyses were performed by Pinellas’ Energy Coach team, which is comprised of four ESG people (three coaches and one clerical). Two coaches are certified energy managers and certified indoor air-quality professionals; the third has an extensive background in public utilities. “They are here every day,” Tomalesky says. “They do have an office in Clearwater and one in our institutional services office. But their primary role is to be out with our staff, showing us how we can improve our energy use.

“Our plan was to try a five-year agreement with ESG; we’re in the third year, and I will advocate that we keep the program going,” he says. “The energy coaches are not our employees, but we pay for those people with the money we save from our electric bill. As we enjoyed a $1.6 million reduction in electricity costs last year—the energy coaches pay for themselves.”

ESG’s Reardon explains some of the items covered, and discovered, during the initial energy audits. “Energy coaches would suggest things like pulling window shades in the afternoon to keep out the sun’s heat. We also suggested replacing incandescent or old fluorescent lighting fixtures with newer fluorescent lights—which not only give off more light for fewer kilowatts, but which also are even cooler than the older fluorescents—which further lessens the burden on A/C systems. The kind of questions/feedback we typically get—‘Such simple things; does that make that big of a difference?’ We do calculations and show them how much savings they can reap. We then have them follow through, and when they see their next utility bill it becomes an eye-opener.”

In the first 90–120 days of the agreement, ESG’s team spent all of its time going out to the school district’s facilities. “Our team of three took a lot of time, cataloging all the equipment in the systems. They looked at schedules for running A/C and took note of what each school’s electric use was and how much was being spent per square foot.” The team put together a facility report, a snapshot of what equipment Pinellas had and what amount of electricity it was using. “We then identified the trends—the times of day Pinellas was starting and stopping its A/C systems. We found the systems were being used longer than needed.”

Tomalesky agrees. “You don’t need to run A/C 24 and seven. How can we cool it just when needed [without making] people suffer. Every staff and school is different; we have some really older facilities that take longer to ramp up.”

Different procedures were in place throughout the system. “When we talked to the schools, some didn’t have to change,” Reardon says. “They already had a decent schedule for A/C on and off times. Others were running their air 24 and seven. We asked, ‘Why not change that turn-on time?’ Some schools we asked to cut off the air conditioning just two hours more than they usually did.” Based on its findings, ESG wrote recommendations of new air-conditioning schedules. “When Pinellas tried this, the savings was well over a million dollars per year.”

Computers—Part of the Problem and the Solution
Although the biggest part of its energy costs, air conditioning wasn't the only big-ticket item on the schools’ electric bills. Over the past 20 years, computers have become an increasing presence in classrooms; not only do they use more electricity, but during their on time, they also give off heat, which puts more pressure on the air conditioning system. It’s somewhat ironic, then, to discover that a computer system can actually help cut energy costs.

Hallways at Osceola High School brightened considerably with the installation of new lighting.

Dr. Tomalesky explains: “Progress Energy gave us the ‘energy profiler’ computer program, which shows us how much energy we use daily. The computer monitors the whole system and can tell you the temperature in each classroom. Often the coaches will place data loggers—sensors that record temperature and humidity—throughout a school. The coaches use the sensors’ data to develop computer-generated charts showing fluctuations of heat and humidity in the rooms tested.

“With this monitoring program, the maintenance staff can plot and follow how the schools are being run; they can tell when a school was running its air conditioning unnecessarily. They can call up a school and see what’s going on in that remote area; sometimes the computer program allows them to ‘see’ what’s going wrong, and diagnose/repair it. This operates mostly in our new schools, those older schools that have been retrofitted. When the maintenance staff talks to our head plant operator about possible changes in demand or scheduling, the computer allows them to have data in hand,” he concludes.

Spending Money to Save Money
However, monitoring and conservation can only take one so far—aged air-conditioning systems, 20 years old or older, just can’t match the efficiency of new systems. Although Pinellas opened two brand-new schools in fall 2007, “...one elementary school is well over 100 years old,” Tomalesky says. “The average building age is 15 to 20 years. The building where I am housed used to be a manufacturing center. The school district bought it and turned it into service building. Its chillers lasted 26 years, but they’re now wearing out and can’t be repaired.”

Considering that fact, Tomalesky’s building seems ripe for upgrade; but—any capital improvements must pay for themselves within a certain number of years. “Depending on the equipment and how it’s maintained, one can expect a chiller [an air-conditioning-type unit often used in very humid climates that cools the air] to last at least 15 years, if not 20. The unit needs to have ‘paid for itself’ in savings before you need to purchase another.

“We considered other conservation plans—planting our roofs, for example. But maybe you don’t need a new roof—it would be rather pointless to plant a roof that needed to be torn up in a few years—and if the project paid back in 26 years, that’s too many.”

From the power company’s perspective, however, new energy-efficient appliances are a major part of the game plan. ESG concurs.

“Pinellas county schools wanted to replace expensive lighting and equipment,” ESG’s Reardon says. “They told us, ‘We’re not looking for performance contracting; we want conservation, to learn how to use things more efficiently, teaching teachers and students to use less electricity during the day.’ We developed the program and the energy coaches to train and implement, but that’s not our core business—our core is capital improvements. We asked Pinellas to make a long-term commitment to our program, and they in turn agreed to make a capital improvement program. By attacking the problem from both ends, you can have a program that gains energy efficiency and conservation at the same time.”

After a client makes the improvements, “We will write you a check for the difference if your investment doesn’t pay for itself,” Reardon explains. As an example, the savings Pinellas reaped by monitoring its billing rates and air-conditioning conservation allowed it to make some equipment improvements.

Reardon also has to explain the difference in equipment—how spending more up front can save more money over the life of the unit. “For example, an on-demand water heater, which only heats the water when you turn on the ‘hot’ tap, is much more expensive to purchase than a typical home hot water heater. However, over the life of the unit, the water heater will cost you more in electricity, because the unit continually heats the water to keep it hot until you need it. Unfortunately, firms that are short on funds, such as schools, can’t always get the product that will give them the lowest cost over the life of the project.”

A state-of-the-art air handler keeps circulation reliable and constant at Osceola High School.

When Pinellas has to replace units, ESG’s team will explain which one will give the greatest payback, while also showing how to run the unit more efficiently. According to Reardon, retrofit insulation is also part of the conservation projects if such a move is cost effective for the schools.

BPOC: Big Project on Campus
“Osceola High School is our biggest conservation project right now,” Tomalesky says. “Replacing the hallway lighting was an early project—and we were amazed that new fluorescent fixtures not only saved electric costs, but they also greatly improved the amount of light.”

“We also did some things ‘above and beyond’ at the high school, such as new floors and IT operations upgrades,” Reardon adds. “Pinellas’ return on investment: They got a $16 million renovation, which extended the life of this high school for 20 years. The alternative? To make the school totally energy-efficient they would have had to tear it down and rebuild—which would have cost five to six times as much.”

Large plant improvements included a new air-conditioning system and air handler, as well as energy-efficient windows.

“Extra Credit”
Reardon’s coaches are also investigating the feasibility of Pinellas using its generators during certain peak demand times. “The schools only have backup generators, but as some are designated emergency shelters, they have more backup generators onsite,” he says. “We advised Pinellas to change their electric billing rate structure to the ‘generator rate’ program. Here’s how the program works: The electric company installs a switching gear at the school, which, when flipped, will put the school on generator power when the electric company has a higher demand for power, and can ‘use the help.’” Would this happen during very hot days? “Actually, on winter mornings when it gets cold, that’s when the electric company worries about having enough power in
the grid.

“There are times when the electric company can almost predict when this will happen,” he goes on. “Sometimes, they will be able to call the school to say. ‘We are expecting a high demand on this date—we will take you off the grid, and if you run your generators for two hours in the morning, you'll get a credit on your bill.’ Such an event almost never happens, but the credit is there monthly, whether they take the energy from the schools or not. We’re studying this plan, to see if it’s cost-effective for the schools.”

As the technology improves, does Reardon think Pinellas will add alternative power, such as solar, to its schools? “No, not at this point. Even though Florida’s the Sunshine State, we get a lot of cloud cover. Pinellas would have liked to have added a renewable-energy portion to the project, but, from a payback standpoint, the ROI [return on investment] would be about 45 years. You see, Florida’s power rates are still low compared with the rest of the country’s, hence the payback is lower here. It might be that in California, with a different rate structure, the ROI on such a project would take only 22 years. We talked a little about energy centers in concept—using biomass or cogeneration—but then Pinellas would have to employ staff to operate it, or the implementation would create a long-term contract for us to operate the plant for them. We’ve only discussed concepts thus far.”

Things to Learn and Teach
Tomalesky explains that the progress made thus far, and steps that will be accomplished in future, are all part of an energy management strategic process. “Communication about the plan is key. We report to the school board and have had articles in the internal school system newsletter as well as several articles in trade publications.

“Education: We not only had to educate ourselves on energy use, but we’re also working on an energy conservation program that will hopefully become part of the schools’ science curriculum.

“Data base and feedback: We use Energy Profiler to analyze power bills, looking for trends in electric use. The data is shared with individual schools to help guide them in running their systems efficiently; it also documents progress in reducing use and encourages staff to save electricity.

“We’re also working on facility development; for example, we’re incorporating the LEED [Leadership in Energy and Environmental Design] certification process in our new school designs for green buildings. New schools will be more energy efficient and cost effective.

“As we learn, we can also lead: Partnerships and community involvement bring us good working relationships with the municipalities and utility providers in our area. The coaches work hard to maintain positive relationships with the site staff and administrators.

“Finally, we’ve developed a Plan-Do-Study-Act Improvement Cycle. We’re always reviewing past performance, looking for new and better ways to manage our utility resources. ESG provides us with an annual report that documents the previous year’s success. We always identify new areas for improvement in the report. As far as saving energy goes, we've only just begun,” Tomalesky concludes.

Janis Keating is a frequent contributor to Forester Communications publications.

DE - January/February 2008