PANEL DISCUSSION

UTILITY ENERGY CONSERVATION PROGRAMS FOR THE PULP AND PAPER INDUSTRY

Preston L. Jackson, P.E BE&K Engineering Company Birmingham, AL 35202 Tacoma, WA 98477

Mark D. Weaver. Weyerhaeuser Paper Company

William L. Bundschuh Lake Superior Paper Industries Duluth, MM 55807 Atlanta, GA 30318

C.E. "Ed" Smith, Jr., P.E. EPRI Pulp & Paper Office

John R. Thompson (Moderator) Lake Superior Paper Industries Duluth, MN 55807

Introduction Energy conservation has been 'alive and well' in the pulp and paper industry for many years. In the early 70's and ~ O ' S , each mill or organization worked independently to reduce their total energy consumption. Now in the 1990'~~ federal and state legislation (i.e. State of Minnesota Omnibus Energy Bill) make it advantageous for pulp and paper mills to share informa- tion and strategies to take advantage of e I e ct ri ca I uti I it y rebates.

Expectation It is our expectation that the audience will be exposed to a wide range of actual projects and strategies develop- ed by paper companies and consultants across the nation. And through these projects, strategies and technologies the pulp and paper industry will obtain its first shared look at a subject that is in its infancy. Also, we expect many excellent contributions from the audience in the farm of projects, ideas and experiences.

Resources We were very fortunate to have participants from a wide range of experiences. They include a paper mill in the Northwest, which has been active in rebate programs for many years, with project examples you must hear. A paper mill in the Midwest that worked with other large power customers, and the utility, to develop their program, which includes rebates for process improvements and engineering studies. A consultant will discuss his research and experiences with different states. This discussion will give you some insight into the differences between states and a detailed account of how different utilities calculate rebates. And a look at what the strategies and objectives are thought to be for the future. This discussion will be presented by the manager of a private research organization funded by utilities.

John R. Thompson, Moderator

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Electric Utility Rebate Programs

Preston Jackson Senior Staff E l d c a l Engineer

B W Engineering Company

Energy use kWh X SRatqkWh = Annual Cost Energy

55321 X .05 = $2,765 Annual Cost Energy Standard = $2,765, Energy Efficient = $2,705 Yearly Savings = $2765 - $2705 = $60

Purchase Cost-Iowa Electric Incentive = Final Cost

$435 - 0 = $435 (StandardEfficiency) $615 - 100 = $80 (Energy Efficient)

I3raS.k -= Simple Payback in Years sBQ16p = 1.3 Years Payback

The typical values for hours of operation, nominal efficiency, cost of encrgy/kWh and puchase cost vary. The actual savings and payback can be determined by plugging in the proper values.

TheseefficienciesartperNEMAMG1,Table 1 2 4 , M a r c h 1991. Several manufacturersproduce high efficiency motors that meet or exceed these values.’Ilpical Values Are:

lLpical Values Are:

l h p = 82.5% efficient Qualifies for $25 Rebate

30hp = 92.5% Efficient Qualifies for $200 Rebate

200hp = 95.0% Efficient Qualifies for $lo00 Rebate

Sample Energy Savings at $.07/kWh Between Standard Energy Efficimt Motors l h p = $14.01 Annual Savings

304 = $151.57 Annual Savings

200hp = $644.96 Annual Savings

To qualify for the above rebates, Iowa Electric requim that an application be submitted and approved, proof of purchase can be sent along with the operating efficiency for all motors being considered. Iowa Electric will verify thcsc arc installed and then will provide a cash rebate. The Owmr must agree to allow metering any motor within the next 18 months if Iowa E l d c wishes to do so.

LiPhtinn Lighting can account for as much as 40 percent of the electricity for a typical business and as much as 8 percent for a manufacturer. Therefore, Iowa Electric also extended rebates to their commercial. industrial, and agricultural customers because of the opportunity for a substantial savings with energy efficient lighting.

’I)pical incentives range from $30 per 32 watt fluortscent bulb to $1.50 per 95 watt modem high efficiency bulb. - Electronic ballast which qualify will be rebated $7.00 for each ballast.

Qualifying metal halide and high pressure sodium lights will be rebated $25 per fmture.

controls When unoccupied areas have an occupancy sensor, these wiU qual@ for a .05 cents per watt of lighting rebate. There are some qualifying restrictions.

INTRODUCTIONS

As consultant engineers. on two recycle fiber projects, we were introducad to the energy savings rebate programs during our initial contact witb two power companies in 1993.

Iowa Electric requested that we consider their rebate program during our meetings to evaluate the power requirements for agrass mots recycle paper mill in Iowa

About 6 months later, a similar meeting was held with Northeast Utilities for a 450 ton per day recycle fiber addition to an existing Connecticut paper mill.

The details of both the plans will be discussed.

IOWA ELECTRIC

With Iowa Electric, there are four (4) areas which are potential candidates for the energy program and these are energy efficient motors, lighting, air conditioning systems, and p r m s systems. S t a d d s arc set for efficiency levels which qualify and can be considered for the rebate program through the application proctss. Reimbunrments are given when approved by Iowa Elecaic after quipment has been plrchasad and installed. As M example, motors over 200 horsepower are considered individually and the savings arc evaluated on the basis of 8.5 cents per kWh. Tbe rcquiranents for this program apply to industrial, commercial, and

crsh incentives an given on a portion of the equipment or systan cost. These cash rebates and operating savings can then be used as the basis of evaluating decisions for using more costly energy efficient equipment.

On “ k e y capital cost projua, it has always been difficult for the engineers to convince the p r o w managers that the more costly mew efficient equipment will retum to the client over the next 5 yean the additional cost of this investment. Unlcss these decisions arc made during the budgetary stages of the projects, it is almost impossible for the tumkey project to recover all of the investment fot this project.

EXAMPLES OF IOWA ELECTRIC REBATE

The following energy savings are for 1800 rpm totally enclosed, faa-cooled motors operated full load for 4400 hours per year (two working shifts). The High Efficiency Nominal Rating is per NEMAMG1126c.

plyicnttural customers.

Savings

Savings which can be realized are shown in the following.

ww = Energy USE kWb Efficiency

Standard Motor (vs Horsepower)

-46 X 44QQ = 515321. kWh .89

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The overall lqhting rebate program will allow up to $5O,OOO rebata per customer.

The fonowing types are included in the rebate program: Unitary Air Conditioners H e a t h p Room Air Conditioners and Packaged Terminal Units

0 chillers

?he incentive could amount to $6O/ton for 65,00&135,000 Btu/hr rated units having a 9.5 EER, for unitary air conditioners and heat Pumps. Chillus having a minimum efficiency of .61 kWhon could have a $ l S b incentive.

These can receive up to $63 per unit plus $70 per point over the E W of 9.5

EER (Energy Efficiency Ratio)

liw-Ehw Nut plmps only qum for replacement units.

This part of the rebate prograrn applies to both new and existing installations. Power must be m d for existing processes which pct being considered before the enhancement. The power savinp must be determined aftcr the enhancements have been completed.

&hatc Iowa Electric will pay up to 50 percent of the cost up to $S,OOO for a customs to hire an extcmal consultant to evaluate the qualifying process enhancement that becomes approved. The incentive check d be paid on the basis of $225/kW of the actual demand Itduction.

CONNECTICUT LIGHT AND POWER BUILDINGS

This program has one additional approach in that an en& building is naluated for the efficiency of operation. The manufacturing process is not considend in the case of CLBP.

At 80 percent completion an inspeaion will be made after installation of equipmen! is in place and co~ectad. C W willvenfy whatwasins:alledandwillpay80percent atthis stage of the project (option to design construction team).

100 percent or other 20 percent will be reimbursed after commissioning and after verification from the owner confirming that all equipment has been installed.

Aftcr the final 20 percent is paid, the owner must maintain the equipment for the next three years. Maintenance is intended to be m accordance with recommended standards. The owner will forfeit his rebate ifmaintenance is violated within the fmt 3 years.

In general, all of these above CLBrP incentives are on the building and consider the following:

Lighting

HVAC Motors (HVAC) w drives, etc. Motors (fan & pmnps) chilled water W A C Building I n s u l h

Controls-WAC Lightings Building OrientriOn Envelope changes

POINTS OF CONSIDERATION FOR BUILDING REBATES. Those passing test will be piontized by design.

Interactive runs will be mrde to eliminate common savings.

Likewise, run as individwl items to determine energy savings.

After this, those items or p u p s would be identified which are qualified to be put into the contract.

The contract must be signad before equipment is installed.

Plans and specification to be sent to Regional Conservation with load management with CLBtP. (An application has to been completed.)

CLAP gives feedback to h e design team on quality of meeting specifications.

Incentives will be paid (~t a rate of 2 cents/kWh saved as per the Comprehensive Area Incentive Rogram.

Then the design incentive duck i s sent to whomever the owner has designated. (Usually tfK design team)

kWh savings must be tcchnicaly verifiable for building structures.

at B- 1. Documents to be wed by:

DesipTermandCLBtp Owneramattoagreement.

Set out baselint Ior the project. 2. Forms Win be sent out in advance to establish an idea of wha criteria has to be.

3. cL8iP formulates simplate quest letter. This establishes what kind of energy can be saved. Design must wort on incremental cost deviation from baseline. Also savings f” baseline. Divide energy savings into the incremental cost. For all that arc 3.6 cmts or less, then C U P notifies that these items h v e passed the frrst hurdle.

MOTORS The following is an example of rebates associated with motors.

Energy-cfficient motors used on circulator pumps, fans, and blowers on W A C systems in new construction or major renovations are eligible for the listed incentives under the rules of the Energy Conscious Consrmction program ifthey meet or exceed the nominal efficiency stamped on the nameplate by the manufacturer per NEMA Standard MGI-12.54. The efficiencies are for 1800 rpm. polyphase. opcn dripproof and totally enclosed fan cooled motors at full load.

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