X Hospital’s SustainableEnergy Management Plan

Prescription for Energy Savings Agenda

1. Overview of Duke Energy’s Prescription for Energy Savings2. Why Manage Energy?

― Benefits of an Energy Management Plan3. Energy Assessment Results 4. Draft Energy Plan

Overview of Duke Energy’s Prescription for Energy Savings

Program

PES Program Objectives

• Help Duke Energy’s Healthcare customers achieve fast and sustainable savings

• Leverage Duke’s energy efficiency programs such as Smart Saver for helpful incentives

• Monitor and verify performance improvements via the ENERGY STAR® benchmarking tool

• Document success stories to be used with a broader audience

• A partnership between Duke Energy and its hospital / health system customers to help them reach their sustainability goals and objectives through the development of a Sustainable Energy Management Plan…start to finish.

• A four-legged stool – all with experience in helping hospitals identify and resolve energy issues:

• Hospital / Health System• Duke Energy • ICF International • Engineering Firms

What is the Program?

What is the Program process?

Sustainable ENERGY

PLAN

Form Energy Team

Energy Plan Execution & Networking

Duke Program Benefits

• Potential to save 10%+ in energy costs above baseline • Assistance with Energy Plan preparation • Assistance in presenting plan to senior management • Expertise of Duke Energy, ICF, Engineering Firm XYZ,

and ENERGY STAR• Networking with healthcare industry peers• Minimal cost

Why Manage Energy?

Why Start with Energy?

• Energy is largest subset of a building’s environmental footprint

• Energy efficiency provides financial returns

• Use energy savings to implement other green features

Energy is the First Step to Going Green

• Highly visible strategy for going green.• Energy saving activities directly involve employees’ every

day behaviors:• Turn off lights, power down computers, use blinds,

recommend ideas related to their jobs, etc. • Energy efficiency is an investment in green that can give

back green• Educate employees to reduce energy at work and at

home.

Benefits of a Sustainable Energy Management Plan

• Provides a plan for continuous improvement in energy performance and continuously striving to minimize our impact on the environment and community health

• Demonstrates environmental stewardship & leadership• Employee engagement in greening efforts • External example regarding impact on the environment and

community health

• Demonstrates fiscal responsibility and stewardship

What’s Different About These Hospitals?

Hospital A Hospital B

Hospital A

• ENERGY STAR – top 25% • $2.58/SF in energy costs• X% more efficient than Hospital B• Reputation

Hospital B

• Average energy performance

• Room for Improvement• $X/SF in energy costs

$X million$5.74 million

The Bottom Line: Annual Energy Costs

Hospital BHospital A

$X million annual savings

Insert Participating Hospital Name

Equivalent to the Emissions from….

• X passenger vehicles• X million gallons of gasoline• Electricity to power X homes for one year• Energy use of X homes for one year• X acres of forest• Recycling X tons of waste instead of sending it to a

landfill

Energy Assessment Results

Energy Performance Energy Assessment

Is 446 kBtu/SF/YR high or low for a hospital?

Answer: ???

Is 60 MPG high or low for an automobile?

Answer: Common Knowledge

How do we assess hospital energy performance?

Fuel Efficiency:

MPG

Building Performance:

1 to 100 Score

Comparative Metrics

U.S. EPA Energy Performance Rating System

Building Energy UseHighest Lowest

1001 25 50 75Benchmark Score

The system overlays a 1 to 100 scale over national data, which gives relative meaning to energy use.

Nu

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of

Bu

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Interpret Your Energy Performance Score

O&MO&M

Invest MaintainInvest

Year

X Hospital’s Energy Performance Score

12 Month Period Ending

Energy Score

Source EUI Energy Spend

$X million

Potential Financial Impact of X% Reduction Goal

12 Month Period Ending

% reduction*

Energy Score

Estimated Cost Savings

*Percent reduction compared to FY20XX**Assumes no SF increases and energy rates remain the same

Cumulative Savings: $X million

Financial Impact (Examples)• Energy Costs Have Increased

• 2006: $X million• 2007: $X million• 2008: $X million• 2009: $X million

• X% square footage increase since 20xx

• Efficiency gains in new construction and energy efficiency measures have resulted in more efficient use of energy. • Ex: New Energy Plant in x/20xx

Costs Avoided (Examples)

• What if your EUI was the same every year as it was in 20XX?

• Energy spend would have been:

• $X more in 20xx• $X million more in 20xx

• Total: $X million more in energy costs

Energy Assessment

Project Description

Elec Savings (kWh)

NG Savings (MMBtu)

Annual Cost Savings ($)

Total Installed Cost ($)

Potential Incentive ($)

NET Installed Cost ($)

NET SPB (Yrs)

Implement Energy Management System 596,111 2,100 52,094$ 135,500$ 20,000$ 115,500$ 2.22 Lighting Improvements 452,952 - 23,975$ 131,250$ 9,900$ 121,350$ 5.06 HVAC System and Controls Improvements 5,952,505 10,782 419,574$ 1,768,750$ 176,875$ 1,591,875$ 3.79 Steam System Improvements 121,107 16,231 163,701$ 631,250$ 63,125$ 568,125$ 3.47 Chilled Water System Improvements 2,533,763 - 134,113$ 681,250$ 68,125$ 613,125$ 4.57 Totals for Site 9,656,438 29,113 793,458$ 3,348,000$ 338,025$ 3,009,975$ 3.79

% Savings: 12.1% 10.4% 11.4%

The preliminary survey identified X number of primary cost saving opportunities. When summed up, the projects identified total to an energy, and related cost savings potential of approximately $X per year, with an estimated implementation cost of $X. The combined overall simple payback is X years

Draft Sustainable Energy Management Plan

Energy Management Vision

• Insert vision

Business Proposition• Cost Reduction

• A X% reduction in energy use compared to 20xx energy consumption would result in annual savings of $X

• Attract and Retain Healthcare Professionals• Growing evidence that “green” hospitals attract & retain employees

• Quality of Care• High performance hospitals can positively impact patient care

• Community Leadership• First do no harm

Energy Plan Goals

• Insert goals

Objectives / Actions

• Insert objectives/actions

Energy Plan

• Add in highlights of the plan

Energy Projects

• TBD based on energy assessment report

THANK YOU!

Q & ADISCUSSION