Metro Nashville DISTRICT ENERGY SYSTEM DES Advisory Board Meeting - PowerPoint PPT Presentation

Metro Nashville DISTRICT ENERGY SYSTEM DES Advisory Board Meeting Third Quarter FY12 May 17, 2012

Metro Nashville Agenda DISTRICT ENERGY SYSTEM Call to Order 1. Review & Approval of Previous Meeting Minutes 2. Customer Sales 3. Review of DES Contractor Performance 4. Natural Gas Purchasing Status 5. FY12 Costs to Date 6. Update on FY12 Budget 7. Capital Projects Review & Status Report Update 8. Other Board Member Items 9. 10. Adjourn 2

Metro Nashville DISTRICT ENERGY SYSTEM 1. Call to Order 2. Review and Approval of Previous Meeting Minutes 3

Metro Nashville DISTRICT ENERGY SYSTEM 3. Customer Sales v Table 3: Customer Cost Comparison v Figure 3A: CHW Sales & CDD v Figure 3B: Steam Sales & HDD 4

Metro Nashville DISTRICT ENERGY SYSTEM Summary Table 3: Customer Cost Comparison for the Previous 12 Months Steam - Rolling 12 Month Chilled Water - Rolling 12 Month Apr 2011 - Apr 2012 - Apr 2011 - Apr 2012 - % Diff. % Diff. Mar 2011 Mar 2012 Mar 2011 Mar 2012 Private Cost $ 1,594,263 $ 1,444,939 -9.37% $ 3,184,104 $ 3,357,010 5.43% 72,341,372 79,522,078 9.93% 17,444,562 17,869,948 2.44% Usage (lbs or tonhrs) $ 22.04 $ 18.17 -17.6% $ 0.183 $ 0.188 2.9% Unit Cost State Cost $ 2,100,852 $ 1,893,713 -9.86% $ 3,331,546 $ 3,466,582 4.05% 88,421,744 92,062,410 4.12% 17,539,204 17,582,753 0.25% Usage (lbs or tonhrs) $ 23.76 $ 20.57 -13.4% $ 0.190 $ 0.197 3.8% Unit Cost Metro Cost $ 1,892,433 $ 1,689,879 -10.70% $ 3,128,791 $ 3,298,471 5.42% 82,996,343 84,939,850 2.34% 18,961,342 19,354,000 2.07% Usage (lbs or tonhrs) $ 22.80 $ 19.90 -12.7% $ 0.165 $ 0.170 3.3% Unit Cost Aggregate Cost $ 5,643,373 $ 5,051,229 -10.49% $ 10,219,751 $ 10,732,370 5.02% 243,806,607 256,524,338 5.22% 56,381,396 57,212,050 1.47% Usage (lbs or tonhrs) $ 23.15 $ 19.69 -14.9% $ 0.181 $ 0.188 3.49% Unit Cost *FY09 MFA = $3,217,986; FY10 MFA = $2,661,553; FY11 MFA = $2,444,100; post-True-up; MFA not included in values shown 5

Figure 3A: CHW Sales & Cooling Degree Days Chilled ¡Water ¡Sales ¡ ¡(tonhrs) Thousands 10,000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 49,679 ¡tonhrs 1,611 ¡CDD 48,816 ¡tonhrs 1,950 ¡CDD Chilled ¡Water ¡Sales 57,673 ¡ ¡tonhrs 1,895 ¡CDD DISTRICT ENERGY SYSTEM 61,166 ¡tonhrs Metro Nashville 2,325 ¡CDD 54,325 ¡ ¡tonhrs 1,913 ¡CDD 50,599 ¡tonhrs 1,559 ¡CDD CDD 54,848 ¡tonhrs 2,130 ¡CDD 55,619 ¡tonhrs 1,909 ¡CDD -­‑ 100 ¡ 200 ¡ 300 ¡ 400 ¡ 500 ¡ 600 ¡ 700 ¡ 800 ¡ Cooling ¡Degree ¡Days 6

Figure 3B: Steam Sales & Heating Degree Days Steam ¡ ¡Sales ¡ ¡(lbs) Thousands 10,000 20,000 30,000 40,000 50,000 60,000 0 316,641 ¡Mlbs 3,391 HDD 290,688 ¡Mlbs 3,465 HDD Steam ¡Sales 334,903 ¡Mlbs 3,072 HDD 286,155 ¡Mlbs DISTRICT ENERGY SYSTEM 3,155 ¡ HDD Metro Nashville 299,436 ¡Mlbs 3,581 ¡HDD 267,084 ¡Mlbs 3,631 ¡HDD HDD 274,596 ¡Mlbs 4,000 ¡ HDD 276,506 ¡Mlbs 3,463 ¡ HDD -­‑ 200 ¡ 400 ¡ 600 ¡ 800 ¡ 1,000 ¡ 1,200 ¡ Heating ¡Degree ¡Days 7

Metro Nashville DISTRICT ENERGY SYSTEM 4. Review of DES Contractor Performance Contractor (CEPS) is in compliance with their contractual obligations for FY12. Excellent Performance – No Improvement Necessary Satisfactory Performance – Some Improvement Could Be Made Poor Performance – Much Improvement Necessary 8

Metro Nashville DISTRICT ENERGY SYSTEM Performance Measurement FY12: Steam Electric Conversion 7.00 6.00 5.00 kWhr/Mlb 4.00 3.00 2.00 1.00 - GMQ Elec to Steam FY11 - FY12 Actual Elec to Steam FY11 - FY12 9

Metro Nashville DISTRICT ENERGY SYSTEM Performance Measurement FY12: Steam Plant Efficiency 2 1.8 1.6 1.4 Dktherm/Mlb 1.2 1 0.8 0.6 0.4 0.2 0 GMQ Fuel to Steam FY11 - FY12 Actual Fuel to Steam FY11 - FY12 10

Metro Nashville DISTRICT ENERGY SYSTEM Performance Measurement FY12: Steam Water Conversion 2,000,000 1,800,000 1,600,000 1,400,000 Gallons of Water 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - GMQ Water to Steam FY11 - FY12 Actual Water to Steam FY11 - FY12 11

Metro Nashville DISTRICT ENERGY SYSTEM Performance Measurement FY12: CHW Electric Conversion 1.20 1.00 0.80 kWhr/tonhr 0.60 0.40 0.20 0.00 GMQ Elec to CHW FY11 - FY12 Actual Elec to CHW FY11 - FY12 12

Metro Nashville DISTRICT ENERGY SYSTEM Performance Measurement FY12: CHW Water Conversion 6 5 4 gal/tonhr 3 2 1 0 GMQ Water to CHW FY11 - FY12 Actual Water to CHW FY11 - FY12 13

Metro Nashville DISTRICT ENERGY SYSTEM Third Quarter CHW Losses 500,000 450,000 400,000 350,000 300,000 Ton-hrs 250,000 200,000 150,000 100,000 50,000 0 January February March 3rd Qtr FY11 Losses 3rd Qtr FY12 Losses 14

Metro Nashville DISTRICT ENERGY SYSTEM Steam System Water Usage 2,000 1,800 1,600 1,400 1,000 Gallons 1,200 1,000 800 600 400 200 0 January February March 3rd Qtr FY11 Steam City Wtr MU 3rd Qtr FY12 Steam City Wtr MU 15

Metro Nashville DISTRICT ENERGY SYSTEM Water Treatment v Steam and Condensate v Corrosion v Iron v Hardness v Chlorine/Sulfite v Condensing Water v Conductivity v Biologicals v Chilled Water v Hardness v Corrosion v Biologicals 16

Metro Nashville DISTRICT ENERGY SYSTEM EGF Walkthrough ü Equipment Maintenance ü Operations ü Electrical ü Housekeeping ü Building Structure ü Building Exterior and Grounds 17

Metro Nashville DISTRICT ENERGY SYSTEM EDS Walkthrough ü Vault/Tunnel Housekeeping ü Maintenance Items ü Insulation Repair/Replacement ü Water Infiltration (MH B2 being sealed) ` ü Corrosion of Structural Metal Components ü Safety Items (DES 080 under construction – additional items added to scope) 18

Metro Nashville DISTRICT ENERGY SYSTEM 5. Natural Gas Purchasing v Natural Gas Purchasing Review v Table 5: FY12 Gas Spending & Budget Comparison v Figure 5: Actual and Projected Gas Cost Comparison for FY12 19

Metro Nashville DISTRICT ENERGY SYSTEM Table 5: FY12 Gas Spending & Budget Comparison Actual FY12 Budget Percent FY12 Difference To date (Mar 31) Steam Sendout 254,852 281,594 9.5% (Mlbs) Fuel Use (Dth) 356,102 399,300 10.8% (includes propane) Plant Eff (Dth/Mlb) 1.397 1.418 1.5% Total Gas Cost $1,732,457 $2,640,970 34.4% (includes propane) Unit Cost of Fuel ($/ $4.865 $6.614 26.4% Dth) Excludes consultant fees and FEA 20

Metro Nashville DISTRICT ENERGY SYSTEM Figure 5. Actual and Projected Gas Cost Comparison History $16.00 FY08 FY09 FY10 FY11 FY12 FY13 $14.00 $12.00 $10.00 Unit Costs ($/dktherm) $8.00 $6.00 $4.00 $2.00 $- Actual & Projected Unit Costs Budgeted Unit Costs Market Unit Prices 21

Metro Nashville DISTRICT ENERGY SYSTEM 6. FY12 Costs to Date Item Percent FY11 Actual FY12 Budget FY12 Actual of w/MCCC FY12 Budget FOC's $ 4,129,302 $ 4,303,100 $ 3,185,550 74.03% Pass Throughs Non-Energy $ 859,795 $ 1,031,400 $ 461,645 44.76% Water/Sewer $ 396,869 $ 597,700 $ 320,943 53.70% Natural Gas $ 2,496,141 $ 3,939,300 $ 1,749,524 44.41% Electricity $ 4,310,054 $ 5,192,900 $ 3,538,752 68.15% Debt Service $ 5,042,150 $ 5,703,700 $ 3,345,367 58.65% Total Expenses $ 17,234,310 $ 20,768,100 $ 12,601,780 60.68% Total Revenues $ 15,395,261 $ 18,405,100 $ 12,025,567 65.34% Metro Funding Amount $ 1,839,049 $ 2,363,000 $ 576,213 24.38% 22

Metro Nashville DISTRICT ENERGY SYSTEM 7. Capital Expenditure Update Spent to End of FY12 Balance to Date FY11 (04/17/12) Spending R&I Projects $1,313,613 $185,108 $409,420 2005B Bond $8,139,071 $31,516 $15,913 2010 Bond $1,461,651 $140,897 $807,452 MCCC Fund $3,856,349 $1,044,372 $3,599,279 Total $14,770,684 $1,401,893 $4,832,064 23

Metro Nashville DISTRICT ENERGY SYSTEM Capital Projects Review Active Capital Projects DES 048: Tunnel Lighting Replacement Phase III – in construction; additional items § added to scope DES 061: MH & Tunnel Steel Corrosion Repair & Prevention – in construction/ongoing § DES 076: MH-S4A State Manhole Rebuild – in closeout; under budget § DES 080: Misc. MH & Tunnel Safety Repairs – in construction; additional items added § to scope DES 087: Exploratory Dig @ MH D/CJC (Chilled Water Leak) – in closeout § DES 090: MH/Tunnel Insulation – tunnel insulation in closeout (ongoing) § DES 091: Thermal Storage System – in design/evaluation phase § DES 093: Manhole 6 Repair and Structural Rehabilitation – in closeout § DES 094: Molloy Street Exploratory Dig – Phase I complete; Phase II to start § construction during Fourth Quarter FY12 DES 095: MH B2 Water Infiltration Remediation – in construction § 24

Metro Nashville DISTRICT ENERGY SYSTEM Active Capital Projects 25

Metro Nashville DISTRICT ENERGY SYSTEM Active Capital Projects 26

Metro Nashville DISTRICT ENERGY SYSTEM Active Capital Projects 27