Download - © 2015 Trane | 1 Roger Hubert, Sales Leader, West Territory, Trane nICE Way 2 Close Business
© 2015 Trane | 1
Roger Hubert, Sales Leader, West Territory, Trane
nICE Way 2 Close Business
© 2015 Trane | 2
“nICE Way 2 Close Business”
• Why the name of our workshop? • Because, helping close business is
one of the most important goals of the Partner Program…agree?
• Well, “ICE” has closure rates of nearly 100%...for both our Partners and Trane so this is a “nICE
Way 2 Close Business.”
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Introductions:
• Paul Valenta, V.P. Sales and Marketing, Calmac
• Evan Berger, Director of Energy Solutions, Calmac
• Raynor Smith, Comprehensive Solutions Account Executive, Brady Trane
• Sam Van Riper, Director, North America Pricing, Trane
• Smitty, Director Systems and Solutions, Trane
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This workshop is like a three legged stool with each of the three legs focusing on one key aspect of selling ICE:
The legs are: 1. Operating Cost2. Installed Cost3. Making ICE Easy
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Operating Cost:
The first leg of our stool, “operating cost”, has three segments:
1. Understanding how to read your utility bill.
2. An easy way to call up your local utility’s rate structure.
3. A simple way to estimate ICE’s impact on the job’s operation cost.
Operating Cost
Presenters: Evan Berger, Director of Energy Solutions, Calmac Paul Valenta, VP Sales and Marketing, Calmac
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Understanding The Electricity Bill
Evan BergerDirector of Energy Solutions
Paul ValentaVice President of Sales & Marketing
CALMAC Manufacturing Corp.Fair Lawn, NJ
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1. There are three ways to lower electric costs:
a) Buy fewer units of energy.
b) Purchase it when it’s cheaper, at night.
c) Negotiate a better rate.
Conclusions
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Conclusions
2. Commercial Rates are Different than Residential Rates:
a) Residential Rates are based solely on Usage (kWh)
b) Commercial Rates are typically basedon a mixture of Usage (kWh) andDemand (peak kW)
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Conclusions
3. Rates and tariffs are complicated.
Why? A few possible* reasons come to mind—
a) Lawyers write them
b) Regulators dislike plain English
c) The less customers know about their electricity bills, the more utilities and Third-Party Suppliers can possibly* earn more money at their expense
*Note: pure speculation
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Demand Charges
Definition: any electricity charge that is assessed on a per-kW basis
There are two types of Demand Charges:1. Utility Demand Charges2. Grid Demand Charges (from PJM, ERCOT, NYISO,
etc.)
Note: more often than not, Grid Demand Charges are “blended” in Third Party Supplier bills and thus not visible to the customer; we’ll discuss this issue at great length later in the presentation
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The Demand Charge Effect
“Typical” General Rate Structure, Anytown USA
Energy (usage): Day: $0.060/kWhNight: $0.060/kWh
Demand: $14.00/kW/Month
How big an effect is the Demand Charge??
Energy is 60% less expensive at night
$0.060/kWh
$0.145/kWh
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Demand Charge Effect….. Do the Math (Back of the Envelope)Conventional Chiller System Demand Cost /month 1000 tons x 0.8 kW/ton = 800kW 800 kW x $14.00 = $11,200/month
Energy Usage for Chiller for Month 1000 tons x 10 Hrs x 75% x 0.8 kW/ton x 22 days/month =
132,000 kWh
Approximate Cost for Demand / kWh $11,200/132,000 kWh/month = $0.085/kWh
Therefore Daytime Energy = $0.06 + $0.085 = $0.145/kWh
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Sample Office BuildingAnytown, U.S.A.Electricity: $0.06/kWh; Demand: $14.00/kW monthlyPeak Demand of 1000kW, 35% load factor
Typical Office Building Weekly Sumer Load Curve
Saturday Sunday Monday Tuesday Wednesday Thursday Friday
1000 kW
800 kW
400 kW
200 kW
600 kW
Monthly Electricity Costs:Usage: $15,120 (52%)Demand: $14,000 (48%)Total: $29,120
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Ratchets
50%
75%
With ratchets, the peaks you hit in the summer are carried through all year long
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Ratchets With ratchets, the peaks you hit in the summer are carried through all year long
Month Base Peak Max/Inter. Peak
August 600kW 600kW
September 400kW 400kW
…January 300kW 225kW
…March 250kW 250kW
450kW
450kW
450kW 300kW
300kW
Cost per kW of ratchets: $4/kW each month for Base, $10.62/kW for the Max + Intermediate
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Hidden Charges
High load factor hospital; Demand makes up 50% of total energy spend.
With riders, Duke Indiana customers pay $23.47/kW in Demand.
Usage is3.9 cents/kWh.
Indiana
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Sample ComEd Bill
Ice customer:Demand
makes up 32% of this customer’s
bill.
Without ice, Demand would
make up 40% or more.
$5.89/kW utility demand – seems inconsequential
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Utilities with Demand above $14
• ConEd (NY)• SCE (CA)• PG&E (CA)• SDG&E (CA)• LIPA (NY)• Nstar (MA)• HECO (HI)• O&R (NY)• Santee Cooper
(SC)• Austin Energy (TX)• United Illuminating• PSEG (NJ)
• Dominion (VA)• Appalachian Power
(WV)• Forked Deer (TN)• Delmarva (DE)• City of Batavia (IL)• Mon Power (WV)• Potomac Edison• Duke (SC, NC)• Tucson Electric
Power (AZ)• Lincoln Electric
Service (NE)
• LG&E (KY)• Hydro One (Qu.)• NV Energy (NV)• Toledo Edison (OH)• Duke (IN)• Consumers Energy
(MI)• Rocky Mountain
Power (UT)
Representative List – a small fraction
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Ice Index
Awesome Ice RatesGreat Ice RatesGood Ice RatesModerate Ice Rates
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Alaska Hawaii
Places with High Ice Potential
Awesome Ice RatesGreat Ice RatesGood Ice RatesModerate Ice Rates
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Alaska Hawaii
Places with High Ice Potential
Awesome Ice RatesGreat Ice RatesGood Ice RatesModerate Ice Rates
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Action Items
1. Be sure to include Demand calculations into all life cycle analysis scenarios – chillers, lighting, etc.
2. Let your Trane rep and CALMAC review your electricity bill for opportunities to save significant operating expenses.
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When Would you Fill-up?
26
Daytime
$ 2.49/gallon
Nighttime
$ 0.99/gallon
Final Thought
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Questions?
Evan Berger, Director of Energy SolutionsCALMAC Manufacturing Corp.
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Installed Cost:
This second leg of our stool, “Installed Cost”, will focus on one premise: Partial ICE can be cheaper than a Traditional AC/Chiller-VAV system for many jobs:
1. Trane does not have creditability on this subject. But you, our partners, do. That’s why we have asked David Engel, CCI Mechanical, to review an installed cost comparison between a Traditional AC/Chiller-VAV system and a Partial ICE system.
2. Background, the definition of a Traditional AC Chiller-VAV System is: 10F Delta Tee, 55F SAT VAV, and Rectangular ductwork.
3. Key to David’s comparison is taking advantage of : 16F vs. 10F delta tee 50F vs. 55F SAT VAV Round vs. Rectangular ductwork
Installed Cost
Yea But, what if it’s anexisting building:
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Two Existing Building Scenarios: 1. Change out of same tonnage 2. Situation where the load has grown
Change out to Same Tonnage (300 tons) 1. One choice is to go with a 300 ton AC Chiller2. A second choice is to go with a Smaller
Chiller (160) + ICE tanks (6 tanks) + ICE Completion Module. This would cost about 30% to 50% more than the cost the 300 ton chiller.
3. On a 300 ton job that’s roughly $45,000 to $70,000.
4. In areas that have ICE Friendly Utility Rates, a typical payback on a job like this would be in the range of 2.5 to 3 years.
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Two Existing Building Scenarios:
What if, instead of 300 tons, the building has grown to 350 tons?
1. Two 180 ton Chillers+• Upgrade the electrical power
infrastructure.• Replace the piping• Replace the pumping
2. Or…go with one 180 ton chiller and 9 ICE tanks• Use the existing electrical power
infrastructure• Use the existing piping • Use the existing pumping
1. Change out of same tonnage2. Situation where the load has grown
Existing Conventional Chilled Water System with 100 Delta T with Two Air Cooled RTAE 180 Chillers (350 Ton Load)
New Ice System with One Air Cooled RTAE 180 (350 Ton Load) and Nine Calmac 1190C Ice Tanks
Item Cost Item
Cost
Chillers & Pumps Installed $388,104 Chillers, Ice Tanks & Pumps Installed $348,104
100F T Chilled Water Piping $433,625 No piping $0
Electrical Connections Chillers & Pumps $27,602 No pumping $0
Total $849,331 $348,104
Situation where the load has grown
Less Piping $415,706 $348,104
Difference - $501,227
Difference - $67,602
Existing Conventional Chilled Water System with 100 Delta T with One Air Cooled 225 (200 Ton Load)
New Ice System with 160 Delta T with Two Air Cooled RTAE 180 (350 Ton Load) and Nine Calmac 1190C Ice Tanks
Item
Cost
Item
Cost
Chillers & Pumps Installed $219,825
Chillers, Ice Tanks & Pumps Installed $472,104
100F Delta T Chilled Water Piping $374,930
160F Delta T Chilled Water Piping $392,602
550 F VAV AHU (76,000 CFM) $172,410
480 F VAV AHU (92,000 CFM) $208,432
Rectangular Ductwork with Insulation & 65 VAV Boxes at 550 F DA
$608,650
Spiral Ductwork with Insulation & 80 VAV Boxes at 480 F DA
$533,743
Electrical Connections Chillers & Pumps $27,602
Electrical Connections Chillers & Pumps $31,950
Total $1,403,417 Total $1,638,831
Upsizing a project with Thermal Storage
Difference with 150 tons more $235,414
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Installed Cost Summary:
1. New Construction – Win with ICE2. Existing Building with an Increase
in Tonnage – Win with ICE3. Existing Building Same Tonnage –
Win with ICE Friendly Rates or if not, it simply may not be a good candidate for ICE
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Making ICE Easy:
Let me introduce our third and final leg of our workshop entitled “Making ICE Easy”.
Making ICE Easy
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Making ICE Easy!
ICE Completion Module
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Making ICE Easy:
To talk about his experience with the ICE Completion Module let me introduce Raynor Smith, Comprehensive Solutions Account Executive, Brady Trane.
Making ICE Easy
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Summary:
1) What did you hear?2) Is there a specific job you should target? 3) How can we help you succeed? 4) Announcing one BIG way we will help!!
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Workshop SurveyTell Us How We Did!
Please go online now and fill out the survey. You will complete a survey for each workshop you attend.
Link to survey http://irco.az1.qualtrics.com/SE/?SID=SV_9LauROO2dnkarPL
ReminderEmail Photos from event to: [email protected]
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nICE Way 2 Close Business