strategic energy management: a three tiered approach randy gaines, c.e.o.e. white lodging services...

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

• Full Service and Limited Service brands

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

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60

80

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120

1985 1990 1995 2000 2005

Total Properties

Increase of 4.5 MSF to date

Nu

mb

er o

f H

otel

s

Energy Management Strategy

Tier I Utility Data Management

Tier II Commodity Purchasing

Tier III Asset Optimization

Energy Management Strategy

Tier I Utility Data Management

Utility Data Management

TEG Process

BillsElectric

Bills

GasBills

TEGDatabase

Enter Usage & Cost Information

Audit & Validate Bill

Resolve BillingDiscrepancies

PerformanceReports

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 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 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 Strategy

Tier II Commodity Purchasing

Commodity Purchasing

TEG

Suppliers

•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

ElectricUtility

Natural GasUtility

FederalRegulators

State UtilityCommission

Commodity Purchasing

• Leverage Purchasing Power of White Lodging and TEG

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• Monitor Energy Futures Market

Contract

• Negotiate Contract Terms & Conditions•Process All Required Utility Forms & Contracts

Energy Management Strategy

Tier III Asset Optimization

Asset Optimization

Prioritize

Validate

Data management enables the effective prioritization and validation of asset optimization activities

Utility Data Management

• Quarterly Reports• Property Rankings• PAR and POR Analysis• Cost per Unit of Commodity

Asset OptimizationActivities

• High Impact Items• Daily Meter Readings• Peak Control• Equipment / Technology Changes

– Occupancy Sensors– Ozone Laundry– Lighting– Energy-efficient Electronics– Energy-efficient Appliances

2001 Performance Metrics

Electric

Utility Comparison

Hotel X

Hotel Y

2001 Performance Metrics

Electric Natural Gas

Utility Comparison

Hotel X

Hotel Y

Hotel X

Hotel Y

2001 Performance MetricsUsage and cost will be analyzed on a per available

room, per occupied room, and per square foot basis.

Usage

2001 Performance MetricsUsage and cost will be analyzed on a per available

room, per occupied room, and per square foot basis.

Usage Cost

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 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 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 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

• Line item on accountability meetings, once a month

Discuss:

• Findings of investigations and reports

• Successes, Projections

• Opportunities for employee involvement

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

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

Average Weekday

Average Weekend

Usage and Demand, FFI

October 00 November 00 December 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

Challenges

• Maintaining energy savings during growth

• Ensuring communication between housekeeping and engineering staff

• Receiving buy-in from general manager and staff