Facilities management paper
qq786767941Utilities Cost Control
Chapter 4
What are “utilities”?
All energy and water that we purchase for the building, including:
Electricity
Natural gas (nat-gas)
Propane
Purchased steam
Fuel oil
Water
Remember throughout this chapter
We are unlikely to be able to shop around for better utility rates
Therefore, our focus will always have to be controlling our usage of the utilities
If we do this right, we will provide:
Great guest experience
Good, productive work environment for employees
Excellent cost control, so better profit!
Electricity
Electricity enters our building and is measured by a meter
Your electricity service will be measured in two ways
Consumption:
This is how much electricity you use over the length of the billing period
Basically, it’s the total amount of electricity that you used over time
It is measured in kilo-watt hours (kWh)
All buildings are charged for consumption
Demand:
This is the highest amount of electricity that you used during any 15-minute period during the billing period
Basically, this measures the period that you had the highest need
It is measured in kilo-watts (kW)
Not all buildings at this time are charged for demand (usually only larger properties)
Consumption (supply) meters
Traditional consumption + demand meter
Demand meters for commercial accounts
If consumption is similar to a car’s odometer, the demand meter is similar to the speedometer
What rate structure is your property on?
Most electric utility companies offer a menu of rate “tariffs”, or rate schedules. How you are billed.
You should identify with rate schedule your property is on
Is a different schedule more appropriate for your property?
Discuss this with your customer service representative
NV Energy Rate Schedules (statement of rates)
What types of charges will you see?
You will see a variety of charges based on your consumption (kWH)
Your supplier may call these “supply charges” or “usage charges” they are the total amount of electricity consumed during the billing period.
Some properties will also have a demand meter and will see one or more charges based on demand (kW)
You will pay for demand – the highest 15-minute period of demand over the billing period
You may also pay a “facilities charge” – the highest 15-minute period of demand over the past 12 months
Time-of-day billing
Some electric rate schedules include seasonal and time-of-day billing
Summer is always more expensive than winter
Summer rates may be broken into a couple of seasons (on-peak, mid-peak)
Time-of-day schedules include at least two different rates that will apply, depending on when you used electricity
On-peak, mid-peak, low-peak, off-peak
This is the electric company’s version of revenue management
Time-of-day/peak billing rate implications
Under these rate tariffs, you are penalized for using electricity at the same time everyone else does
Summer is more expensive than winter (air conditioning uses a lot of electricity)
Daytime is more expensive than night
Midday is more expensive than morning or early evening
The middle of the day in the middle of summer is our most expensive time to use electricity – it can be dramatically more expensive
Therefore…
We have serious incentives to understand our electric bills and control our electrical usage
Controlling consumption is always good
Lowers overall usage
Lowers our environmental impact
Makes our property and the world more sustainable
Controlling demand
Most people understand the concept of controlling consumption
Demand control is less well-understood by many hospitality managers, but is critically important for cost control (and thus profit maximization)
Reducing demand during peak times:
Can greatly reduce our utilities costs, but…
Has virtually no effect on our environmental footprint
Therefore, the benefits of demand control are strictly financial
Peak-shaving systems
Peak demand control
Our goal should be to control our peak demand to the best of our ability without negatively affecting the guest’s experience
If we do it right, they won’t even notice!
Use an automated load-shedding program
Reads demand (at the meter) in real time
When a demand spike begins to form, and it is close to or during peak rates, the program will shut down pre-selected pieces of equipment (i.e., “electrical loads”)
The equipment will only be turned back on once the program determines that we are out of the billing “danger zone”
Which electrical loads can be shed?
Laundry operations (many facilities operate the laundry at night, to reduce daytime demand)
Non-essential lighting
HVAC systems – yes, we often shut down the chillers and cooling towers (see Chapter 10), which are major users of electricity during summer peak hours
What electrical loads should never be shed?
Refrigeration and freezer equipment
Computers and telecommunications
Fire and life safety systems
Elevators and escalators
Guestroom electrical (remember, they are not supposed to notice)
Sump pumps; ejector pumps
Managing electrical consumption
Work with your electric utility company to survey your property to identify ways to save energy
You may be able to get tax incentives or rebates for upgrading some equipment
Turn equipment and lighting off when it is not needed
Manage plug loads
Use sensors to automatically turn on and shut off equipment
Photosensor- turns lights on (dusk) turns then off (dawn)
Timers – turns equipment on/off same time everyday
Manage the setpoints on your thermostats
Use ceiling fans to supplement your heating and cooling systems
Fans do not lower air temp, the movement of air across skin gives the perception that cooling is occurring
Properly insulate your building
Clean and maintain equipment on a regular basis
Refrigerator / freezer door gaskets (tighter seal prevents air leakage)
Non-seasonal rate structure (Oct-May)
Seasonal rate structure (June-Sept)
Natural gas, oil, and other fuels
Natural gas (nat-gas)
The gas utility company pumps this to your property
It goes through a meter for measurement and billing
Nat-gas is billed in units called therms
One therm = 100,000 Btu
Nat-gas is used extensively in commercial kitchens, and may also be used for heating the building, heating water, and generating steam
Fuel oil and propane
These are delivered to your property by a truck
They are stored in tanks (preferably above-ground, due to past problems with below-ground tanks leaking and contaminating the environment)
Managing fuel costs
Many of the same methods used to manage electrical consumption apply here as well
Since nat-gas, fuel oil, and propane are used to heat, we should only permit heat energy transfer to occur where and when we intend it to happen
Insulate your building and plumbing pipes
Turn equipment off when it is not needed
Only run full loads of dishes or laundry (no partial loads)
Set thermostat setpoints to the proper level
Domestic hot water (DHW) maximum of 115° F at the tap (faucet)
Water and wastewater management
Water billing
We pay for water supply and for wastewater disposal (sewer)
You will definitely have a water supply meter
You will probably not have a sewer meter
Sewer charges are based on the supply amount
In the US, you will be billed either in units of:
1,000 gallon units
Hundred cubic feet (CCF)
1 CCF = 748 gallons
CCF
Gallons
Water billing
Tiered rate structure, the more you use the higher the cost. Cost per 1000 gallons increases as you exceed the maximum gallons per tier.
Your rate per 1,000 gallons or per CCF is not negotiable, so…
You will have to manage consumption
Fix leaks
Use water-conserving fixtures
If you have landscaping, use a xeriscape program (dry, arid areas)
use of native plants and grasses (adapted to local environment)
landscape in a style which requires little or no irrigation
Irrigate properly (don’t over-water the landscape)
Only run full loads of dishes or laundry
Recycle your water if permitted
Proper cooling tower and boiler operation and blow-down (cleaning out mineral build-up)
Proper pool and spa filter back-flushing
Limit cooling tower operation if possible
Waste water (sewer) rates & management
Sewer rates are commonly set based on the amount of water supplied. What goes in must come out, right?
Not necessarily the case for commercial properties
Swimming pools
Irrigation
Cooling towers
Water features
Sewer meters (if & where permitted)
Measures actual discharge
Potential to lower rate
Southern Nevada rate structure
Type of facility (assigned base rate)
Base rate x number of fixtures
Fixtures = anything that carries water away from the facility
Water recycling? Graywater systems
Capture lightly-used water
May require light filtration and sanitizing
Then use it for non-potable purposes
Irrigation
Car washing
Toilet flushing