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September 30 th 2020 Jen Stokes, Mark Spanton, Paul Albinson, Jessica Miller Key Account Managers 2020 Seasonal Energy Management Seminar

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  • Proprietary and Confidential Information •September 30th 2020

    Jen Stokes, Mark Spanton, Paul Albinson, Jessica MillerKey Account Managers

    2020 Seasonal Energy Management Seminar

  • Proprietary and Confidential Information •

    Material Presented On a Courtesy Basis

    2

    • This presentation is being provided for informational purposes only and does not purport to be comprehensive. Neither CenterPoint Energy, Inc., together with its subsidiaries and affiliates (the “Company”), nor its employees or representatives, make any representation or warranty (express or implied) relating to this information. By reviewing this presentation, you agree that the Company will not have any liability related to this information or any omissions or misstatements contained herein. You are encouraged to perform your own independent evaluation and analysis.

    • This presentation contains third party information, including information provided by the various sources identified on the respective slides. CenterPoint Energy, Inc. has not independently verified this information. You are encouraged to perform your own independent evaluation and analysis.

  • Proprietary and Confidential Information •

    Seminar Agenda

    3

    • Curtailment must-knows

    • Rebate programs and services overview

    • How to maintain your steam or hydronic boiler system

  • Proprietary and Confidential Information • 4

    Curtailment Must-Knows

  • Proprietary and Confidential Information •

    Overview of CenterPoint Energy’s Customers

    5

    Dual Fuel Customers:• 1,325 Customers• Can be curtailed• Can tolerate an interruption and have the ability to discontinue

    using natural gas and switch to a back-up fuel• Do not pay for firm system capacity for agreeing to be curtailed

    when necessary

    Firm Customers:• 884,000 customers (commercial and residential)• Are not curtailed• Cannot tolerate an interruption in gas service• CenterPoint Energy purchases interstate pipeline system

    capacity and gas supply to continuously meet the needs of firm customers.

  • Proprietary and Confidential Information •

    What is a Dual Fuel Customer?

    6

    • To qualify as a Dual Fuel customer, you must be able to tolerate an interruption- by either switching to a back-up fuel or process interrupt

    • Dual fuel customers do not pay for firm interstate pipeline system and distribution system capacity for agreeing to be curtailed when necessary

    • We can serve firm customer demand above our pipeline entitlements using our local peak shaving storage and production

    • A dual fuel customer typically saves between 15-22% of natural gas cost in operating costs by avoiding the firm demand charge

  • Proprietary and Confidential Information •

    Why Does CenterPoint Energy Curtail?

    7

    • CenterPoint Energy contracts with interstate pipeline providers for a certain amount of pipeline capacity and builds peak shaving systems to serve firm customers only.

    • Dual fuel customers do not pay for this capacity.

    • To maintain minimum acceptable distribution system pressures

    • CenterPoint Energy does not build the distribution system to serve interruptible customers under peak conditions.

  • Proprietary and Confidential Information •

    When Does CenterPoint Energy Curtail?

    8

    • When customer demand exceeds contracted pipeline capacity• Pressure problems on the distribution system• Physical disruption on the distribution system• Supply limitations

    • Curtailment generally occurs in the winter BUT customers should be prepared to curtail anytime

    • When curtailment is in effect, CenterPoint Energy monitors current weather conditions and total pipeline volumes along with expected weather conditions

    • CenterPoint Energy only curtails as long as necessary

  • Proprietary and Confidential Information •

    How Does CenterPoint Energy Curtail?

    9

    When the decision to curtail is made: • The website is updated along with the infoline (612) 321-4998

    • CenterPoint Energy representatives call down the list of contacts provided by the customer until someone is reached. If no one is reached in person, a message will be left.

    • At the time message left, the one hour notification period begins.

    • This process is reversed when curtailment is released (please wait for your phone call before going back on gas regardless of what the website or infoline state)

  • Proprietary and Confidential Information •

    Role Temperatures Play in Curtailment

    10

    • As the temperature drops, demand for natural gas increases

    • When customer demand approaches our contracted pipeline capacity we curtail our dual fuel customers in order to continue to supply gas to our firm customers

    • We can serve firm customer demand above our pipeline entitlements using our local peak shaving storage and production

    Note: A number of other factors, such as wind, cloud cover, and day of the

    week also affect curtailment.

  • Proprietary and Confidential Information •

    Small Volume Dual Fuel (SVDF) Curtailment History

    11

    Days per month

    * Exceptions for operational curtailment.Based on 10-year HDD average

    . YEAR NOV DEC JAN FEB MAR

    TOTAL Temperature

    % above/below normal 2009/10 0 0 0 0 0 0 2% warmer 2010/11 0 0 0 0 0 0 8% colder 2011/12 0 0 0 0 0 0 25% warmer 2012/13 0 0 0 0 0 0 17% warmer 2013/14 0 1 8 0 2 11 11% colder 2014/15 0 0 2 0 0 2 5% colder 2015/16 0 0 0 0 0 0 11% warmer 2016/17 0 0 0 0 0 0 12% warmer 2017/18 0 0 0 0 0 0 5% warmer 2018/19 0 0 3 1 0 4 8% colder 2019/20 0 0 0 0 0 0 3% warmer Projected Normal

    0

    2

    4

    2

    0

    8-10

  • Proprietary and Confidential Information •

    Large Volume Dual Fuel Curtailment History

    12Based on 10-year HDD average

    * Exceptions for operational curtailment

    Days per month. YEAR NOV DEC JAN FEB MAR

    TOTAL Temperature

    % above/below normal 2009/10 0 0 0 0 0 0 2% warmer 2010/11 0 2 2 0 0 4 8% colder 2011/12 0 0 0 0 0 0 25% warmer 2012/13 0 0 1 0 0 1 17% warmer 2013/14 0 3 10 0 2 15 11% colder 2014/15 0 0 2 0 0 2 5% colder 2015/16 0 0 0 0 0 0 11% warmer 2016/17 0 0 0 0 0 0 12% warmer 2017/18 0 0 0 0 0 0 5% warmer 2018/19 0 0 3 1 0 4 8% colder 2019/20 0 0 0 0 0 0 3% warmer Projected Normal

    0

    4

    7

    4

    1

    10-16

  • Proprietary and Confidential Information •

    2019-20 Curtailment Learnings

    13

    • CenterPoint Energy did not call any large-scale curtailments in the winter of 2019-20 due to warmer than normal temperatures.

    • Although recent winters have been overall mild, we still experience extended cold snaps that require curtailment.

    • Year-round preparedness is essential!

  • Proprietary and Confidential Information •

    General Curtailment Learnings/Issues

    14

    Past issues have indicated that customers:

    • Removed their back-up system and were not able to curtail NOTE: MUST consult with CenterPoint Energy for permission to switch to firm and CenterPoint Energy will determine if it is an option before removing your back-up system.

    • Back-up fuel quality issues• Test your back-up system more than just once

    • Did not know how to operate their back-up systems• Have appropriate people been trained? • Has system been tested?

    • Incorrect curtailment contact person• Are your curtailment contacts that CenterPoint Energy has up to date?

    • Provided incorrect phone number (i.e. work number instead of cell phone for non-business hours)

  • Proprietary and Confidential Information •

    Charges For Not Curtailing

    15

    • Curtailment charges for not curtailing when requested:• $30/Dth plus highest gas cost for first time• $60/Dth plus highest gas cost for all other times

    • Tariffs stipulate all unauthorized gas use charges be collected from customers. These charges go to pay any penalty fees our suppliers charge us or are returned to the Firm rate payers

    • CenterPoint Energy does not profit from these charges!

    • High price impacts due to weather and demand

    • Lack of curtailment compliance has increased regulatory scrutiny and unauthorized gas charges, resulting to required annual attestation

  • Proprietary and Confidential Information •

    Curtailment Non-Compliance Example

    16

    Example:A customer who used 6,000 Therms of gas during a curtailment when the gas cost was $55 / Dth (or $5.50 / Therm)

    First instance: 6,000 X $3.0000 / Therm = $18,000 unauthorized gas charge6,000 x $ 5.50/ Therm = $33,000 gas cost$51,000 for that day (the curtailment lasted 3 days)

    Second Curtailment: 6,000 X $ 6.0000 / Therm = $36,000 unauthorized gas charge6,000 x $ 5.50/ Therm = $33,000 gas cost$69,000 for that day

    In Contrast – a LVDF system customer would have been billed (approx.):6,000 X $0.48310/ Therm = $2,899 for the same volume of gas

    NOTE: The highest daily price for natural gas in December 2017 approached $70

  • Proprietary and Confidential Information •

    Dual Fuel Savings

    17

    Typically save 15-22% of natural gas cost

    Note: Savings based on average rate class consumption and expected 2020 propane prices. Actual savings will vary depending on consumption, actual propane prices, level of curtailment, currently tariffed rates, etc. Annual savings affected by natural gas commodity and back-up fuel price volatility.

    Chart for illustration purposes only.

    Annual Daily Natural Gas

    Propane Total Firm Interruptible Savings

    Interruptible Savings %

    SVA

    6.300 46 $29,244 $342 $29.586 $35,820 $6,234 17%

    SVB

    18,000 141 $81,050 $933 $81,983 $101,285 $19,302 19%

    LVI 163,000 800 $615,106 $9,752 $624,858 $730,848 $105,990 15%

  • Proprietary and Confidential Information •

    Dual Fuel Class Definition

    18

    If you anticipate large changes in your natural gas usage, contact your Account Manager or call 612-321-4330 to ensure CenterPoint Energy can adequately serve you.

    Dual Fuel Customer Class Volume of Natural Gas Use

    Small Volume Dual Fuel & Small Volume Firm/ Interruptible – A

    Peak day is less than 200 Dth and less than 12,000 Dth/year

    Small Volume Dual Fuel & Small Volume Firm Interruptible – B

    Peak day is less than 200 Dth and 12,000 or more Dth/year

    Large Volume Dual Fuel & large Volume Firm/Interruptible

    200 Dth or greater peak day

  • Proprietary and Confidential Information •

    Firm/Interruptible Tariff

    19

    • Combined best of both Firm & Interruptible services for small volume & large volume, Sales & Transport

    • Elect a Base Level of Firm Service before Sept 1 each year– All excess volume is Interruptible– Required to curtail to you Base Level

    • Dual Fuel Unauthorized Charges apply to non-compliance

    • Pricing consistent with applicable Firm & Interruptible classes.• Remain either Sales Service, or Transportation Service

    – Monthly switching, or combinations of Sales & Transport not allowed

    • Requires CenterPoint Energy’s approval for Base Level of Firm which is subject to availability.

    • Requires a new Agreement• See your Key Account Manager for details & availability

  • Proprietary and Confidential Information •

    The Curtailment Queue

    20

    Small Volume Dual Fuel “A”

    Small Volume Dual Fuel “B”

    Large Volume Dual Fuel

    9 days

    14 days

    25 days

    0 to -10 F

    +5 to - 5 F

    10 to 0 F

    Days of Curtailment to Plan for (approx.)

    Average Daily Curtailment Temperature (approx.)

  • Proprietary and Confidential Information •

    Have a Curtailment Plan

    21

    Back-Up System To Do’s:1. Conduct maintenance / operation check2. Test your system for a 24-hour operation 3. Train the equipment operators4. Fill your back-up storage tanks5. Check and maintain good fuel quality6. Know your back-up fuel use rate

    • Oil: Jan. peak day therms x .72= gallons/day• Propane: Jan. peak day therms x 1.1= gallons/day

    7. Call utility if back-up system is inoperable

  • Proprietary and Confidential Information •

    Dual Fuel Considerations:Fuel Oil Users

    22

    Maintenance checklist for fuel oil back-up system:• Increase turnover if possible• Keep tanks full to reduce presence of air• Test fuel tanks twice per year for microbial and water

    presence • Treat with fuel stabilizer• Remove water• Partner with your maintenance company and supplier to

    review expectationsDisclaimer: Always consult the operations and maintenance schedule as provided by your back-up fuel supplier. This presentation is not intended to be interpreted as, and is not, a maintenance schedule for your back-up fuel system.

  • Proprietary and Confidential Information •

    Dual Fuel Considerations:Propane Users

    23

    Maintenance check list for propane back-up system:• Review system for compliance of codes and standards• Review operator training • Review system on an ongoing basis for signs of leakage • Ensure protection of buried pipe and equipment is adequate• Start and test system making sure all equipment is operating

    properly• Additional testing of system at cold- and high-demand times • Partner with your maintenance company and supplier to review

    expectationsDisclaimer: Always consult the operations and maintenance schedule as provided by your back-up fuel supplier. This presentation is not intended to be interpreted as, and is not, a maintenance schedule for your back-up fuel system.

  • Proprietary and Confidential Information •

    Have a Curtailment Plan

    24

    What you need to do: • Be off natural gas within one hour of receiving the curtailment notification

    • Have an internal communications plan established

    • Determine correct contact person for during and after business hours

    • Have all established contact persons trained to react

    • Are employee back-up systems in place?• Provide contact numbers that will ensure a live person, not voicemail

    • Always check your voicemail system. If we cannot reach your contacts, we will leave a message to go on or off natural gas.

  • Proprietary and Confidential Information •

    Reminder

    25

    Remember: You have ONE hour to curtail once the curtailment contact has been reached or a message has been left.

  • Proprietary and Confidential Information •

    Dual Fuel Requirements

    26

    Additional Dual Fuel Requirements:

    • Adequate standby systems with recommended alternate fuel storage for 7 to 10 days

    • Need 2.5 million Btu/hr connected load

    • Choose the supplied meter communication option (wireless cell phone technology) or provide an analog phone line for automatic meter reading

    • If you currently have analog, you can switch to wireless for $17/mo.

  • Proprietary and Confidential Information •

    Dual Fuel Considerations

    27

    Tangible and intangible costs to consider with Dual Fuel service versus Firm service

    •The obligations of owning and operating a back-up system•Discounted delivery service and no cost of gas (COG) demand charge•Arranging for and managing the purchase of fuel for the back-up system•Regular maintenance of the back-up system•Labor costs associated with having someone on-call to operate the system

    •Potential disruption to your operations heating source during peak heating times

    •Firm service must be approved by CenterPoint Energy prior to removing back-up system (firm service may not be available)

    •Contractual requirement is a 30-day written notice to terminate

  • Proprietary and Confidential Information •

    Is Your Contact List Current?

    28

    • Emails were sent to you by your account manager

    • Email will include an Interruptible Certification Form

    • Packets mailed in September to those that did not respond to the email requests. Replies are due back to CenterPoint Energy by September 30th

    • Please BE SURE to return your updated Curtailment Contact List ASAP to your Key Account Manager at CenterPoint Energy.

  • Proprietary and Confidential Information •

    Is Your Contact List Current?

    29

    3. Website: CenterPointEnergy.com under business services, select “Minnesota” and then “Commercial & Industrial” OR go to: CenterPointEnergy.com/CurtailmentContacts

    https://www.centerpointenergy.com/en-us/Services/Pages/CNP_Forms/Curtailment-Event-Contacts.aspx?sa=mn&au=bus

  • Proprietary and Confidential Information •

    Utilize SharePoint to Update Your Contact List

    30

    Step 1 Step 2

  • Proprietary and Confidential Information •

    Utilize SharePoint to Update Your Contacts

    31

    Step 3

  • Proprietary and Confidential Information •

    Update Your Contacts!

    32

    • For questions about completing the contact list, contact your Key Account Manager OR call 612-321-4330

    • This is YOUR responsibility

    • If you did not receive an email or packet, call your Account Manager or 612-321-4330

    • Be sure to reply to CenterPoint Energy even if there are no changes

    • If filling out the electronic form, simply state “no changes” in the “notes/special instructions” field).

  • Proprietary and Confidential Information •

    CenterPoint Energy Contact Information

    33

    • Gas Leak Emergencies 612-372-5050800-722-9326

    • Curtailment Infoline 612-321-4998800-234-5800 x14998

    • Curtailment Forecast webpage CenterPointEnergy.com/CurtailmentForecast

    • All other services, including:⚫ Adding load⚫ Equipment changes⚫ Pressure problems⚫ Efficiency improvements⚫ Any other non-emergency gas issues

    Call your Account Manager

    Or612-321-4330800-234-5800 x4330

  • Proprietary and Confidential Information • 34

    Questions?

  • Proprietary and Confidential Information • 35

    2020 Rebate Programs & Services Overview

  • Proprietary and Confidential Information • 36

    • Energy utilities in MN are required to promote and deliver energy efficiency programs for their customers (State legislation)

    • Regulated by the MN Department of Commerce (DOC), Division of Energy Resources (DER), and the MN Public Utilities Commission (PUC) to ensure:

    • Ratepayer dollars are used effectively• Annual energy savings and spending are reported accurately

    • MN is a national leader regarding energy efficiency and has been recognized by the American Council for an Energy-Efficient Economy (ACEEE), ranking as the 10th most energy efficient state in America during 2016.

    The “Why” and “What” of CIP

  • Proprietary and Confidential Information • 37

    2020 is an extension of the three year triennial plan. New plan will go into effect for 2021 with some new program offerings and continuation of many already existing.• Heating system rebates

    • Water heating rebates

    • Process equipment rebates

    • Foodservice equipment rebates

    • Custom rebates

    • Natural Gas Energy Analysis

    • Process Steam Trap Audit program

    • Multi-Family Building Efficiency program

    • Design / Engineering programs

    Prescriptive Rebates

    Programs & Services

    Programs and Services Overview

    Program is valid for 2020 calendar year installations.

  • Proprietary and Confidential Information • 38

    Prescriptive Rebates

    What is a prescriptive rebate?• A standardized, predetermined list of rebates for

    CenterPoint Energy customers who add, replace, or retrofit natural gas equipment of pre-qualified, high-efficiency performance. These rebates are set dollar amounts or rates.

    Prescriptive rebate offerings: • Boilers and boiler system components (hot water and

    steam)• Space heating system rebates• Water heater rebates• Process equipment rebates• Foodservice equipment rebates

    CenterPointEnergy.com/BusinessRebates

  • Proprietary and Confidential Information • 39

    Heating System Rebates

    Replacing a dual fuel boiler with a single fuel? Back-up system removal may not be an option unless firm classification is approved.

  • Proprietary and Confidential Information • 40

    Heating System Rebates

  • Proprietary and Confidential Information • 41

    Commercial Boiler Tune-Ups

    • Boiler tune-ups are eligible for a rebate every other year

    • Be sure to complete and submit your rebate applications as soon as the tune-up is complete.

  • Proprietary and Confidential Information • 42

    Other Heating Systems

  • Proprietary and Confidential Information •

    Commercial Laundry

    43

  • Proprietary and Confidential Information • 44

    Water Heating Rebates

  • Proprietary and Confidential Information • 45

    Process Equipment Rebates

  • Proprietary and Confidential Information • 46

    Prescriptive Rebate Calculator

    Estimate your rebate amount when you’re installing new or replacing old equipment using our Commercial Rebate Calculator

    •Simply select the equipment piece

    •Enter in required info

    •Find out the potential rebate amount your customer will receive

    CenterPointEnergy.com/RebateCalculator

    http://www.centerpointenergy.com/en-us/SaveEnergyandMoney/Pages/CNP_Calculators/Commerical-Rebate-Calculator.aspx?sa=MN&au=bus

  • Proprietary and Confidential Information • 47

    Multi-Family Building EfficiencyTwo energy companies. One Program.

    Multi-family buildings of 5 units or more can receive a rebate for alleligible projects completed within 2 years of receiving your energy analysis, and freeinstallation of energy efficient showerheads, faucet aerators and LEDs and more.

    MultiFamilyEnergySolutions.com

    FREE Services Throughout the Whole Building

    Reduce Energy Usage and Maintenance Costs

    Incentives to Boost ROI

  • Proprietary and Confidential Information • 48

    CUSTOM REBATES AND DESIGN/ENGINEERING PROGRAMS

  • Proprietary and Confidential Information • 49

    Custom Rebates

    What is the custom rebate program?The custom rebate program is designed to provide rebate opportunities for natural gas-saving technologies not covered in our Prescriptive rebate offerings.

    For a project to be approved for a custom rebate: • Contact CenterPoint Energy early on in the idea proposal state to

    review the project.• Provide project scope, energy savings calculations, and project

    costs.

  • Proprietary and Confidential Information •

    Custom Rebate Examples

    • Energy recovery systems• Air destratification systems• Dust (particle) collector• Waste heat recovery• Paint and powder process equipment• Thermal oxidizers• Various process equipment• And more…

    CenterPointEnergy.com/Custom50

    https://www.centerpointenergy.com/en-us/business/save-energy-money/efficiency-programs-rebates/equipment-programs-and-rebates/steam-trap-audit?sa=mn

  • Proprietary and Confidential Information • 51

    Natural Gas Energy Analysis Program

    CenterPointEnergy.com/EnergyAnalysis

    FREE direct install

    gas-saving measures

    include:

    ▪ Programmable

    thermostats

    ▪ Low-flow aerators &

    showerheads

    ▪ Pre-rinse spray valves

    ▪Weather-stripping for

    exterior doors

    Type of Analysis Cost Value

    Basic

    (for small business)

    $50 $500

    Comprehensive

    (for mid-size businesses)

    $200 $1,600

    Custom

    (for larger operations)

    Costs determined on a project-by-

    project basis for this specialized, in-

    depth approach.

    Ad hoc services

    (for specific energy use analysis, such as

    steam trap surveys for heating system and

    infrared scans)

    Costs determined on a project-by-

    project basis.

    What is it?A certified energy auditor will visit your facility, inspect your building envelope and installed natural gas equipment, examine how it is operated, and identify opportunities to improve energy efficiency.

    https://www.centerpointenergy.com/en-us/business/save-energy-money/efficiency-programs-rebates/equipment-programs-and-rebates/natural-gas-energy-analysis?sa=mn

  • Proprietary and Confidential Information • 52

    Natural Gas Energy Analysis

    What’s covered in the Analysis?

    • Building Envelope• HVAC• Controls• Kitchen and Laundry Equipment• Water Heaters

    For full details visit CenterPointEnergy.com/EnergyAnalysis

  • Proprietary and Confidential Information • 53

    Natural Gas Energy Analysis

    What’s included in the Analysis report?• Customer details• Auditors information• Executive summary

    – Basic facility info– Equipment usage and equipment details

    – Key findings and recommendations– Safety related items for immediate attention

    • Facility benchmarks• Equipment end use breakdown

    (pie chart)• Recommendations and rebate opportunities• Actions plans and next steps

  • Proprietary and Confidential Information • 54

    Natural Gas Energy Analysis

    Heating System Steam Trap AuditCenterPoint Energy offers a subsidized steam trap survey to Natural Gas Energy Analysis program participants through the Custom Analysis option.

    What’s included in this audit? An energy audit professional will visit your facility to:• Conduct steam trap testing using ultrasonic and infrared equipment • Inventory all traps tested• Identify failed traps to be replaced • Highlight other areas of concern (i.e. leaking valves and uninsulated pipes)

    CenterPoint Energy also offers rebates to cover 35% of repaired or replaced steam traps, up to $10,000 per building

  • Proprietary and Confidential Information • 55

    Natural Gas Energy Analysis

    Here’s how to participate:• Visit CenterPointEnergy.com/EnergyAnalysis

    • Call your CenterPoint Energy key account manager our Business Customer Hotline at 612-321-4939 (877-809-3803)

    • Email: [email protected]

    https://www.centerpointenergy.com/en-us/SaveEnergyandMoney/Pages/CNP_Forms/Natural-GasEnergy-Analysis-Request.aspx?sa=mn&au=bus

  • Proprietary and Confidential Information •

    Alternative Steam Trap Audit Program Modified for 2020

    How the Steam Trap Audit Program works:• Now available for heating and process customers

    • Any trade ally can conduct the audit

    • Customers may participate every other year

    • Program pays for the steam trap audit at a rate of $15/tested trap up to 100% of the audits cost

    Audit funding is payable upon receipt of:• Program application

    • Audit sheet(s)

    • Invoice(s) for repaired trap(s)

    • Invoice for audit

    • Invoices(s) for the repair labor (or estimate for internal labor)

    CenterPointEnergy.com/SteamTrapAudit56

    https://www.centerpointenergy.com/en-us/business/save-energy-money/efficiency-programs-rebates/equipment-programs-and-rebates/steam-trap-audit?sa=mn

  • Proprietary and Confidential Information • 57

    Process Steam Trap Audit

    CenterPointEnergy.com/ProcessSteamTrapAudit

    How the Process Steam Trap Audit Program works:• Customers may participate every other year• Program pays for the steam trap audit at a rate of $15/tested trap

    up to 100% of the audits cost

    Audit funding is payable upon receipt of:• Program application• Audit sheet(s)• Invoice(s) for repaired trap(s)• Invoice for audit• Invoices(s) for the repair labor (or estimate for internal labor)

  • Proprietary and Confidential Information • 58

    Industrial Process Study

    Program helps identify cost-effective natural gas-saving measures in an industrial facility.

    The study reviews:• Boiler room, steam distribution, condensate return and end users• Industrial furnaces and heat recovery• Other gas-using processes, such as dryers, thermal oxidzers, and production lines• HVAC equipment (particularly if large make-up air is involved because of the processes)• A combination of any of the above items

  • Proprietary and Confidential Information • 59

    Industrial Process Study

    How the Industrial Process Study program works:• CenterPoint Energy provides funding to offset a portion of the study

    costs for a third-party to detail the energy-saving potential of an industrial customer’s main gas-consuming processes.

    • Funding could be up to 75% of the study cost (capped at $15,000/customer)

    • Funding levels are dependent upon project gas-saving potential.• Rebates are also available for qualifying implemented gas-saving

    measures for even more bottom-line savings.• When improvement measures are implemented, operating costs are

    reduced and the efficiency of your existing mechanical systems for processing are improved, saving you money and energy.

    NOTE: CenterPoint Energy must pre-approve the study before any funding is made available.

  • Proprietary and Confidential Information • 60

    Design / Engineering Programs

    • Engineering and Certification Assistance• Engineering Assistance• LEED Certification• ENEGRY STAR® Verification Assistance

    Program

    • Energy Design Assistance • Recommissioning• Process Efficiency• Industrial Heating Study Assistance

  • Proprietary and Confidential Information • 61

    Design / Engineering Programs

    Engineering and Certification Assistance This program helps customers cover the cost of identifying, implementing and receiving third-party certification for energy efficiency upgrades. It also provides support for customers seeking ENERGY STAR® certification for their buildings.

    Engineering

    Assistance Program

    LEED Certification

    Assistance Program

    ENERGY STAR®

    Verification Assistance

    Program

    Provides funding

    UP to $5,000

    $5,000 additional if

    qualifying natural gas

    technologies are installed

    Reimburses customers

    UP to $5,000

    $5,000 additional following

    the completion and

    submission of application

    Reimburse customers for

    the cost of the ENERGY

    STAR® application

    verification

    UP to $1,500per building

    CenterPointEnergy.com/EngineeringPrograms

  • Proprietary and Confidential Information • 62

    Energy Design Assistance

    • Energy modeling• Predicted energy use• Strategies for energy savings• Projected energy cost savings for those

    strategies

    A free, comprehensive approach to energy savings that includes:

  • Proprietary and Confidential Information • 63

    Recommissioning

    1. Study Funding• Funding is a function of the customer’s usage and

    predicted savings potential• Up to 75% of study cost, not to exceed $5,000

    2. Implementation Rebates• $5.00/Dth saved• Must have 1 year to 10 year payback

  • Proprietary and Confidential Information • 64

    Process Efficiency

    What is the Process Efficiency program?The Process Efficiency program is designed to provide funding for an energy efficiency study to identify, scope, and ultimately lead to the implementation of energy-saving opportunities.

    The project is delivered in 3 phases: Phase 1 - Identification: A high-level analysis will be conducted to identify the energy conservation potential of the facility. This is completed at no cost to the

    customer.

    Phase 2 - Scoping: CenterPoint Energy will provide additional support and resources to define and provide recommendations for energy-saving

    opportunities.

    Phase 3 – Implementation: CenterPoint Energy will work with the customer to put in place a schedule with energy-saving goals and cost-savings estimates.

    Measures implemented as a result of this schedule will be eligible for CIP rebates to offset the cost of the facility upgrades.

  • Proprietary and Confidential Information • 65

    Energy Data Portal

  • Proprietary and Confidential Information • 66

    REBATE PROCESSING GUIDELINES

  • Proprietary and Confidential Information • 67

    Rebate Processing Steps

    Simple steps to receive a rebate for your customers:

    1. Use our online fill-and-print forms to apply for rebates as soon as projects are completed.

    2. Email or mail-in rebate form along with required paperwork. Allow 6-8 weeks for rebate processing.Email: [email protected]: Commercial Rebate Processing

    CenterPoint EnergyPO Box 59038Minneapolis, MN 55459

    3. Rebate applications must include a dated copy of the paid, itemized invoice(s). Invoices must include brand, complete model numbered, purchaser’s name and installation address.

  • Proprietary and Confidential Information • 68

    Questions?

  • Maintaining Your Steam or Hydronic Boiler System

    Joel V. Carberry, PE

    V.P. – PBBS Equipment Corp

  • Since 1955

    Family Owned and Operated

    Specializing in Boilers and Boiler systems.

    Me? One of the 2nd Generation 35 Years in the business

    Little Bit about us

    70

  • • In the beginning it was Steam

    • They weren’t really boilers, they were machines

    • Steam powered tractors• Steam Engines

    • Today, Boiler size is still referenced in Horsepower.

    A Little History…

    71

  • • Then they took the wheels off

    • “Stationary Engineer”• Boilers became a central

    heat source

    • Still Steam

    A Little History…

    72

  • A Little History

    • Hydronics quietly entered the boiler heating world circa 1875.

    • Gravity Circulation• Hot water rises

    • Forced (pumped) circulation became feasible after WWII

    73

  • A Little History

    •Why the switch (stm > wtr)

    •Safety!•Ease of operation•Lower temperature•NO, not efficiency

    74

  • Changes…

    75

  • Changes…

    76

    Boilers are more compact

    Higher efficiency

    Higher level of control

    Easier to operate

    Temperamental

  • Systems

    STEAM

    • High energy• High Temperature• Its own prime mover

    • Water treatment• Traps• Maintenance

    HYDRONIC

    • Lower energy• Lower Temp• Higher efficiency• Better control

    • Electrical use• More Moving parts

    77

  • Steam systemsBOILER

    Steam Traps

    Condensate Recovery

    Ancillary Equipment

    Water Treatment

    Maintenance

    78

  • Hydronic systemsBOILER

    Expansion and Air elimination

    Circulating Pumps

    Control Valves

    Water Treatment

    Maintenance

    79

  • Water Treatment - Hydronic

    80

    Still needs protectionBacterial in Temperatures from 100 – 150 F

  • Water Treatment - Hydronic

    81

    Still needs protectionBacterial in Temperatures from 100 – 150 F

    Oxygen Corrosion a real threat.

  • Water Treatment - Hydronic

    82

    Still needs protectionBacterial in Temperatures from 100 – 150 F

    Oxygen Corrosion a real threat.

    Even Glycol degrades with time.

  • Water Treatment - Hydronic

    83

    Still needs protectionSediment

    Iron, bacteria, calcium

  • Water TreatmentAppropriate Chemical Concentrations

    Regular Testing

    Maintenance - Hydronic

    84

  • Water TreatmentAppropriate Chemical Concentrations

    Regular Testing

    Filtration (Side Stream)

    Maintenance - Hydronic

    85

  • Maintenance - Hydronic

    86

    Sediment moving through the system causes mechanical failure

    Premature pump wear / imbalance

    Valve seat damage

    Valve stem wear

    Regular inspection of Valves for Leaks / freedom of movement

    Regular inspection of Pumps for leaks, vibration, and Amp Draw?

  • Water Treatment – Steam Systems

    87

    Calcium ScaleHard Water

    Boiler TDS

  • Water Treatment – Steam Systems

    88

    Calcium ScaleHard Water

    Boiler TDS

    Oxygen Attack

    Condensate Line Corrosion

  • Steam Traps1 Steam Trap on 10 psig System $100 per year

    Regular Testing

    Collect the CondensateSame Trap working, Same cost.

    Regular Testing

    Condensate Return Tank/Pump

    Maintenance – Steam System

    89

  • Water TreatmentAppropriate Chemical Concentrations

    Regular Testing

    Regular Blowdown

    Ancillary EquipmentBoiler Feed Tank / Pumps

    Water Softener

    Maintenance – Steam System

    90

  • Water Side

    Fire Side

    Burner

    The Boiler

    91

  • Highest Efficiency

    Reliability

    The Goal

    92

  • Water Side

    93

    Calcium Scale/Sediment

    Water Treatment

    Regular Blowdown (steam)

    Annual InspectionOpen and Inspect

    Flush and Clean

    3 to 5 years??

  • Fire Side

    94

    Combustion Byproducts

    Dirt, Dust. Temperamental

    Regular Tune upsMore than once per year

    Annual InspectionOpen and Inspect

    Flush and Clean

    3 to 5 years??

  • Today

  • Today

    4 pages of maintenance

    15 Pages of troubleshooting

  • Burners

    • Need to be inspected• Air filtration critical• Combustion Checks…

  • Burners

    • Need to be inspected• Air filtration critical• Combustion Checks…• Flame sensors and ignitors

  • Daily Checks

    STEAM BOILER

    • Check Water Level• Blowdown LWCO• Blowdown Boiler• Record Feedwater Temp/Press• Record Stack Temp / Firing Rate• Record Fuel Pressure• Visually Check Flame

    WATER BOILER

    • Record Supply and Return Temp• Record Supply and Return Press.• Record Stack Temp / Firing Rate• Record Fuel Pressure• Visually Check Flame

  • Weekly Checks

    STEAM BOILER

    • Check LWCO Operation• Check Air Intakes and filters• Check Operating Controls• Record Flame Signal

    WATER BOILER

    • Check Air Intakes and filters• Check Operating Controls• Record Flame Signal

  • Monthly Checks

    STEAM BOILER

    • Inspect Burner• Inspect for Flue Gas Leaks• Check Fuel Pressure Switches• Combustion Analysis

    WATER BOILER

    • Inspect Burner• Inspect for Flue Gas Leaks• Check Fuel Pressure Switches• Combustion Analysis

  • Annual Checks

    STEAM BOILER

    • Inspect Burner• Inspect/Clean Fireside • Inspect*/Clean Waterside• Inspect/replace ignition• Combustion Analysis• Check Gas Valve Tightness• Review Water Treatment

    WATER BOILER

    • Inspect Burner• Inspect/Clean Fireside • Inspect*/Clean Waterside• Inspect/replace ignition• Combustion Analysis• Check Gas Valve Tightness• Review Water Treatment

  • Write it Down

    Steam Water

  • Sum it up…

    • If you want a reliable boiler system, maintenance is Key.• Monitor and record your boiler readings daily.• Take water samples and analyze on a regular basis• Check the Water Level or Flow safeties on a regular basis• Annually check Burner and fireside condition

    • CLEAN AS NECESSARY• Replace Flame Ignitors and Sensors

    • Annually check Waterside condition of boiler• CLEAN AS NECESSARY

    • A Lot Can Happen in 365 Days

  • Locations

    105

    Milwaukee AreaN59W16500 Greenway CircleMenomonee Falls, WI 53051t: 800-236-9620p: 262-252-7575

    Madison Area380 Progress DriveCottage Grove, WI 53527t: 800-236-6604p: 608-839-8489

    Green Bay Area2283 Sachs CourtGreen Bay, WI 54313t: 800-236-3675p: 920-662-0300

    Stevens Point Area320 Saeco DrivePlover, WI 54467t: 800-236-7410p: 715-344-7310

    Twin Cities Area 3329 Mike Collins DriveEagan, MN 55121t: 800-236-9742p: 651-686-7227

    Fargo Area4102 14th Ave N Unit 19Fargo, ND 58102t: 877-865-1646p: 701-356-1002