Maximize your Energy Cost Reduction Plan by Year-end

December 14, 2010

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Meet your moderators

Marilyn Arnall, Account Manager,

FPL

Mike Carter, Sr. Engineer,

Business Energy Service, FPL

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• Reviewing your energy plan

• Evaluating your consumption

• Energy plan enhancements and case studies

– Making timely upgrades

– Implementing control systems

– Scheduling maintenance

• Involving your employees

– Best practices

– Case studies

• Next steps

Agenda

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A successfully implemented energy plan improves energy and financial performance while distinguishing your business as an environmental leader

Sample Energy Plan Example of an energy policy from ABC Inc. Energy Mandate

We recognize energy as a controllable operating expense wherein lower energy consumption results in decreased operating expense, environmental emissions, and maintenance costs. Energy management is the responsibility of all staff in our facility, guided and supported by the facility/energy manager. We will assess our energy performance and share energy use data with all employees. We will create and implement an energy plan to achieve our energy goals. Our use of equipment and controls for energy savings will be a show-piece in our industry.

– ABC Inc. has established three key energy goals:

Reduce kWh energy consumption per square foot by 20% in one year

Reduce kW peak demand per month by 10%

Obtain a minimum 20% IRR on efficiency investments

Established this ______ day of ___________, 2010.

President/CEO/Director of Ops/Facility/Energy Manager/Financial Manager

________________________

Many businesses can save 5 to 20 percent of their energy consumption annually by improving operations and maintenance

practices.

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FPL’s Business Energy Evaluation helps to identify immediate cost savings opportunities

Bingo at Four Corners Success Story Challenge

• Better manage energy costs

Results

• 13.54 kW reduction

• 88,727 kWh/yr savings

• Total energy cost savings of $18,483/yr

• FPL incentive of $1,354

Solution

• Replace 107 T-12 lighting fixtures and magnetic ballasts with new high-efficiency T-8 fixtures and electronic ballasts

• Install programmable thermostats

• Add water heater timer to move operation to off-peak hours

• Clean refrigeration condenser and evaporator coils regularly

“With rising fuel costs affecting our bills, we would be paying a lot more

for electricity right now. Instead, we’re using a third less kilowatt-hours.” - Mike Goldin, Bingo at Four Corners

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Some companies turn building repairs, upgrades, or equipment failures into lasting savings

WFLX Success Story Challenge

•Replace built-up, dark gravel roof that was nearing the end of its useful life

•Ensure that replacement:

‒Better reflects the sun’s heat

‒Improves the performance of the A/C system by reducing the amount of heat entering the building

‒Provides better protection against Florida’s heat, humidity and extreme weather

‒Saves money on electric bills

Results

• 10.79 kW reduction

• 21,059 kWh/yr savings

• Total energy cost savings of $2018/yr

• FPL incentive of $1,205

Solution

• Install single-ply white reflective membrane over the aging roof

‒Solar reflectivity of .86

‒Reflects 86 percent of the sun’s radiant energy away from the roof

“Now that we have the new roof, our air conditioning system doesn’t have

to work as hard to keep our facility cool. This is saving us energy. Like

any business, anything that affects our bottom line is important.” - Butch Figurella, WFLX-TV

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1. Making timely energy-efficient upgrades

2. Implementing manual or programmable control systems

3. Scheduling regular maintenance

Effective energy plans typically include initiatives from three focus areas Key Focus Areas

1. Make timely energy-efficient upgrades

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• Office equipment and appliances

• Lighting

• Heating Ventilation Air Conditioning (HVAC)

• Refrigeration

Upgrading to new energy-efficient models saves immediately and over time

FPL offers incentives and programs to help offset the cost of new

equipment installations and replacements.

Visit www.FPL.com/business for more information

Equipment Upgrade Opportunities

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• Switch computer equipment, including printers and copiers, to ENERGY STAR models

– On average, ENERGY STAR equipment is 25 percent more efficient than standard models

Long-term energy savings will typically outweigh any initial price difference

Lifetime energy savings can go a long way towards paying the cost of a new computer

• Replace cathode ray tube computer monitors with liquid crystal display monitors

– Over the course of its lifetime, the LCD monitor will save more than $100 in energy costs and last nearly three times as long as a similar CRT monitor

• Choose the smallest monitor that meets your needs

Computer equipment and system upgrades are a good source of savings opportunities that may be overlooked

Computer Equipment Upgrades

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Turning computers off and/or activating power management settings is an effective way to save

Estimated Savings Potential on ENERGY STAR

Qualified Computers

To estimate your savings potential, visit:

http://www.energystar.gov/index.cfm?c=bulk_purchasing.bus_purchasing#off

How Your Computers are Used If you pay

$.11 per kWh

We typically leave our computers on nights and

weekends

$88

We typically turn computers off every night $24

We will activate power management settings on

new computers, but did not do so on the old

computers

$218

Estimated lifetime

(4 yrs) savings

per desktop

computer

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• Upgrade to ENERGY STAR fax machines, vending machines, and other personal appliances

– ENERGY STAR vending machines save more than 1,500 kWh per year compared with non-qualified models

• Avoid phantom energy use by using smart strips

Remember that when office equipment and personal appliances are switched off but are plugged in, they are still consuming electricity

Office Equipment and Appliance Upgrades

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• Upgrading standard servers to ENERGY STAR qualified servers can save as much as $500 for each server installed over a five-year period

– ENERGY STAR qualified servers could save as much as 1,000 kWh per server

• Features ENERGY STAR servers must offer:

– Efficient power supplies

– Improved power quality

– Ability to measure real-time power use, processor utilization and air inlet temperature

– Advanced power management features and components

– Power and performance data sheet

Servers and data centers are responsible for a large percentage of energy usage associated with computer systems

Server & Data Center Upgrades

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• Eight leading organizations are currently working together to establish guidelines to reduce energy consumption among data centers

– Guiding principles and recommendations from tasks forces currently being developed and refined

– Visit http://www.energystar.gov/ia/partners/ prod_development/downloads/EPA_Datacenter_Report_Congress_Final1.pdf for report

Data center conservation has become a worldwide initiative

Upgrade Guidelines

To benchmark your data center, visit:

http://www.energystar.gov/ia/partners/prod_development/

downloads/Data_Center_QRG.pdf

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• Replace incandescent lights with halogen, compact fluorescents, or light-emitting diodes (LEDs)

– New halogen bulbs offer up to 30 percent energy savings, instant on, and no mercury

– Compact fluorescent lamps use 75 percent less energy than standard incandescent bulbs and last up to 10 times longer

– Remember to use LEDs in exit signs and holiday lights, too

• Replace T12 fluorescent lamps with T8 or T5 lamps

– Higher intensity T8 and T5 bulbs tend to have a longer life span

Reduced-wattage T8 (23w) and T5HO (49w) lamps now available

Like computer equipment, lighting is easily overlooked but offers high savings potential

Lighting Upgrade Reminders

FPL rebate: Up to $4 per lamp on qualifying technologies such as

T8, T5 or pulse-start lamps

Be sure to check www.FPL.com for more information

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• Replace magnetic ballasts with electronic ballasts

– NEMA premium electronic ballasts use up to 30 percent less energy than magnetic ones and offer near flicker-free operation

• Use high-intensity fluorescent lamps in rooms with ceilings more than 15 feet high

• High temperature (130F) T5HO fluorescent high bay fixtures now available for hot climates

• Miniature metal halide lamps replace incandescent flood/spot lights

– 50 percent savings

Lamp and ballast upgrades typically offer fast payback with long-term savings

Lighting Upgrade Reminders (Continued)

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• Allow for natural daylight

– Diffuse/reflect most of it

Use <10 percent direct sunlight

– Add sparkle with electric lighting

– Sky lights and “sun tubes” transfer solar light from the sun to a building without heat gain

Sky lights (typically limited to <4 percent of roof area)

Sun tubes transfer solar light from sun to a building without heat gain

– Light shelves

When planning new construction projects or major remodels, remember that natural light is best whenever possible

Lighting Upgrade Reminders (Continued)

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Upgrading to more efficient fixtures, bulbs, and ballasts offers immediate savings while prolonging bulb life and increasing occupant comfort

Athletic Club Success Story Challenge

• Identify savings opportunities

Results

• $5,387 yearly savings

• Decreased energy consumption by 26 percent

• $294 FPL incentive

Solution

• Replaced 131 fluorescent fixtures with more efficient T8 fixtures with electronic ballasts

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• Evaluate your air-conditioning unit or system

– If your system is at least 10 years old, you may save 20 percent on your cooling costs by replacing it with a newer, more efficient model

• Evaluate your chiller

– Your company may benefit by installing a higher-efficiency unit

• Consider installing an Energy Recovery Ventilation system (ERV)

– Reclaims waste energy from the exhaust air stream and uses it to condition incoming fresh air

HVAC systems are a major contributor to electric consumption and should be addressed in every energy plan

FPL rebate: Based on size, type and efficiency of qualifying new

and upgraded high-efficiency split/packaged DX units, chillers and

ERV units

Be sure to check www.FPL.com for more information

Heating Ventilation Air Conditioning (HVAC)

Upgrade Reminders

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Upgrading A/C units helped IKEA realize significant cost savings and enhance its image as an environmentally responsible company

IKEA Success Story Challenge

• Reduce carbon footprint

• Offset the effects of climate change

• Improve overall energy efficiency

Results

• Total energy cost savings of $18,500/yr

• FPL incentive of $13,564

• Carbon footprint reduction of 513,030 pounds

Solution

•Upgrade existing A/C units to new direct expansion (DX) units

“At IKEA, we believe that taking responsibility for people and the

environment is a prerequisite for doing good business.” - Martin Ching, IKEA Facilities Manager

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Upgraded chillers that are better-than-required by code helped a Florida hotel save

Hotel Success Story Challenge

• 500,000 square foot hotel needed to reduce high operating costs

Results

• FPL incentive of $19,968

• Projected $60,000/year in savings

• Payback: 2.5 years

Solution

• Installed three 1600 ton centrifugal chillers at .53 kW/ton efficiency

•Chillers were 7 percent better than required by code

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A redesigned air conditioning system with ERV helped the Museum of Art/Fort Lauderdale yield success

Museum of Art/Fort Lauderdale Success Story Challenge

• 20-year-old chillers were ineffective at maintaining humidity and temperature levels needed in a museum environment

• The MoA/FL also wanted to become one of four U.S. locations to attract the King Tut exhibit. Stringent requirements exist for protecting the 3,500 year old artifacts

Results

• Won the exhibit and over 700,000 visitors

• 31,000 kWh/yr savings

• Cooling reduction of 48 tons

• Total energy cost savings of $5,966/yr

• FPL incentive of $16,482

Solution

• A re-designed air-conditioning system with ERV

“We welcomed 700,000 people to the King Tut exhibit. Our new cooling

system did its job to keep indoor temperatures cool and humidity under

control – which is an essential part of our existence.” - Anthony Lauro, Museum of Art/Ft. Lauderdale

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• When purchasing a new refrigerator or freezer, consider energy-saving features such as:

– Premium insulation packages

– Premium and variable speed motors

– Glass door cases

– Oversized condensers to super-cool refrigerant

– Automatic door closers

• Look for ENERGY STAR commercial refrigerators and freezers

– 35 percent energy savings with a 1.3 year payback

If your business uses industrial refrigeration equipment, many high-efficiency features are now available

FPL rebate: Up to $75 per kW reduction for installation of qualifying

controls and equipment that reduce electric strip heater usage

Be sure to check www.FPL.com for more information

Refrigeration Upgrade Reminders

Technology options can save considerably on electricity used for refrigeration:

• 10 percent with energy-efficient case lighting

• 3 to 10 percent with floating head pressure controls

• 5 to 13 percent with energy-efficient fan motors

• 1 to 6 percent with defrost controls

• 3 to 9 percent with evaporative condensers

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Upgraded food service equipment helped Austin Public Schools offer healthier choices while saving on electric bills

Austin Public Schools Success Story Challenge

•Tight public education budget combined with increased energy costs forced the school district to find creative solutions to save money

Results

• Reduced annual utility bills by $3,500+

• Cash incentive of $4,675

• Savings of 32,000 kWh, 400 therms or natural gas, and 340,000 gallons of water

• Replaced deep fryer with steamers requiring much less ventilation and energy to operate

Solution

• Balance the need for new kitchen equipment with its commitment to energy efficiency by purchasing ENERGY STAR qualified food service equipment

- 3 reach-in refrigerators

- 3 reach-in freezers

- 2 electric steamers

- 3 hot food holding cabinets

“Be sure to get insight from others who have knowledge of what is available

and work closely with your local utility. Manufacturers are knowledgeable

about the equipment, but guidance from kitchen specialists, buildings and

grounds employees, and other schools that have completed similar retrofits

was essential to the successful completion of this project.” - Carmel Taylor, Austin Public Schools

Knowing the estimated life span of your equipment helps remind you when to upgrade

When Should Your Equipment Be Replaced? Sample

Equipment

Estimated

Service Life

Factors

Motors Not rated in terms of operation • Deterioration of insulation performance

• Wear of sliding parts

• Deterioration of bearings

Lighting

•Fluorescents

•High Intensity Discharge

(HID)

•Electronic Ballasts

• 2 years for Fluorescent and HID

lamps

• Ballast operating life varies from 1

to 5.5 years based on

manufacturer and type

• Turning lights off more frequently than

the standard test time will diminish the

life

• Heat and voltage transients negatively

affect ballasts

Water Heaters 6 , 9, or 12 years Water properties (i.e., water softeners)

Chillers 15 - 25 years Good maintenance practice required

Rooftop A/C 10 – 20 years Good maintenance practice required

Boilers 19 – 29 years • Boiler type (cast-iron and steel last

longer than copper-tube)

• Cycle times

• Water type

Transformers 25 years • Fluid maintenance

• Winding resistance testing

2. Implement manual or programmable control systems

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• Office equipment and appliances

– Automatically shut down select equipment and appliances when not in use

– Use smart power strips

Even when powered off, many office equipment products continue to draw a small amount of energy

– Set computer power-management software

Place computers (CPU, hard drive, etc.) into a low-power “sleep” mode after a designated period of inactivity

Does your plan require devices to be powered off either manually or automatically to save energy while allowing access when needed?

Effective Control Systems

Appliance

Average

Power

(watts)

Annual

Operating

Hours

Annual

Energy

(kWh)

Space Heater 1,500 500 750

Mini-fridge, 3ft3 150 Year-

round

320

Microwave 1,000 125 125

Portable Fan 180 500 90

Coffee Pot/Warmer 300 250 75

Employee personal appliances circumvent energy-efficiency efforts and can cost up to

$135 annually per office

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• Water heater

– Set your water heater to the lowest acceptable temperature

– Turn your water heater off during hours when your business is not open

Water heaters are typically not needed when your business is closed

Effective Control Systems

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• Lighting

– Train your staff to shut off interior and exterior lights as part of closing procedures

– Remember to shut off lights on displays

– Use task lighting when appropriate

– Use blinds to control window light

– Label electrical switches

Left on at all times

Left on during business hours only

Left on during occupancy hours only

If lighting controls are not currently part of your plan, many no-cost and low-cost options are available

Effective Control Systems

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• Lighting

– Install occupancy sensors in areas that are vacant for periods of time

– Use daylight sensors (photocells) to turn exterior lights on and off based on daylight

– Automatically turn off half of the lights in a room when full illumination is not needed with bi-level switching

– Install dimmers to save 20 to 60 percent energy usage on a particular fixture

Since lighting can account for 20 to 50 percent of your monthly electric bill, you may want to consider automating controls

Effective Control Systems

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• HVAC

– Turn-up HVAC settings during unoccupied hours and on weekends or automate HVAC settings with programmable thermostats or through a building automation system

– Try implementing small 1 to 2 degree temperature setbacks during working hours

– Consider night pre-cooling if your building has a building automation system

– Consider installing Demand Control Ventilation (DCV)

Reduces cooling costs based on occupancy as measured by carbon dioxide levels in the air stream

Using heating and cooling systems only when necessary saves money and often goes unnoticed by occupants

Effective Control Systems

A Watt Miser saves energy by turning off lighting when not

needed and by managing compressor cooling cycles

3. Schedule regular maintenance

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• Lighting

• HVAC

• Insulation

• Refrigeration

• Overall system performance

Clean and service your building and equipment regularly to optimize performance and savings Operations and Maintenance Best Practices

Implementing operations and maintenance best practices

can save 5 to 20 percent annually

HomeBud27

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• Lighting

– Keep light fixtures clean and dust-free to maintain light output

– Replace lamps before they lose effectiveness

• HVAC

– Have a licensed technician check, clean, calibrate, lubricate, and if necessary, repair your air-conditioning equipment before peak cooling season

– Be sure to inspect and repair damaged or disconnected ducts, seal duct joints and elbows, insulate duct work where needed

– Repair insulation on cooling system pipes

• Refrigeration

– If you use industrial refrigeration equipment, check that refrigerator and freezer doors seal properly

Reduce the risk of early equipment failure and unscheduled down time Operations and Maintenance Best Practices

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• Insulation

– Install weather stripping around doors and caulk window frames

– Use window shades to block heat from summer sun or consider low-cost reflective window film

• Overall system performance

– Consider commissioning your building every 3 to 5 years to evaluate your building’s overall system performance

Appropriate maintenance prolongs the life of your building and equipment

Operations and Maintenance Best Practices

FPL Building Envelope rebate: From $.05 to $1 per square foot

incentive on qualifying roof / ceiling insulation, spray polyurethane

foam, reflective roof surfaces, and window film treatments

Be sure to check www.FPL.com for more information

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Upgraded Equipment Added Control

Systems

Developed

Maintenance Program

Lighting

•Retrofit stores to T5 fluorescent

lighting

•Install efficient LED exit signs

•Test skylights

DX air conditioning and DCV

•Install DX air conditioning

systems at 41 stores

•Add DCV systems to 17

locations

•Add white reflective roofs and

insulation

Office Equipment

•Replace obsolete computers,

printers, faxes and copiers with

ENERGY STAR models

• Allow for centralized

management of air

conditioning settings and

lighting usage in individual

stores

• Put occupancy sensors in

restrooms

• All office equipment added to

smart power strips

• Bi-annual A/C inspections

• Monthly lighting cleaning

included in maintenance

contract

Most companies with energy plans identify and implement a mix of initiatives, based on their specific business types and requirements, to reach their goals Sample Mix of Initiatives

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Involving employees in energy conservation can be one of the most effective ways to control your company’s energy costs

Why Should Your Employees Save Energy?

Employee Reaction Suggested Response

“This Employee Energy Awareness

program only benefits the company,

not me.”

• Energy efficiency contributes to greater productivity and

larger profits for our company, leading to job security and

higher wages.

• Energy efficiency results in a more comfortable working

environment.

• Energy savings will be allocated toward employee reward

programs that recognize individual efforts.

• You can “take home” the energy-saving techniques you

learn at work, saving energy and money at home.

“I don’t have enough time and am

already too busy with my regular job

duties.”

Becoming efficient is easy and doesn’t take any additional

time. It’s a matter of small behavioral changes, and once

they become habits, they don’t take any more time than

energy-wasting habits.

“How can my small contribution really

make a difference?”

Individuals play a key role in the success of an energy

efficiency program and should be proud of their

conservation efforts. Individual actions do make a

difference. For example, If every person did X, Y would be

saved, enabling Z.

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Posters hung in high traffic areas inform employees of energy-efficiency initiatives

Sample Energy-efficiency Tip Posters

To download these posters, visit

http://www.FPLnews.com/article.aspx?articleID=13781&userID=1349657

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• Set clear and measurable goals

• Select an energy champion

• Create a team

• Engage vendors, partners, service providers and customers in your plans

• Develop an internal energy awareness program

• Reward and recognize outstanding performance

• Alert the press!

Best-in-class companies engage their employees and business partners to maximize results

Best Practices in Successful Energy Planning

Tip: When setting goals, make sure that they are “SMART:”

Specific, measurable, attainable, realistic, trackable goals

increase your chance of success

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Other companies, even those in different industries, can lend ideas that can help your energy plan thrive

Best Practices at Work California Portland Cement Company

A subset of the company’s energy team is made up of process engineers who visit a different plant every six weeks and do an energy audit. At one plant, the process engineers focused on the finish grinding system and identified $300,000 in opportunities for annual energy savings

Toyota

“As part of our environmental activities, energy savings is listed as one of our key performance indicators,” says Bruce Bremer of Toyota. “So it’s right up there on our radar screen. Over the years, we moved it up on the company’s priorities by keeping it visible.”

Eastman Kodak

Has preferred supplier agreements to buy all its motors from preferred vendors. “With an agreement comes engineering and technical support, so when we’re doing energy assessments, we can rely on them to help us decide whether the cost of putting in a high-efficiency motor is justified,” says Kodak worldwide energy program manager George Weed

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• Plan for the new year

– Review last year’s plan to determine successes and improvement opportunities

– Ensure that you are capitalizing on available incentives and programs

– Draft 2011 plan, get buy-in, and plan for implementation

• Schedule a Business Energy Evaluation at no cost to you, to enhance your current plan

– Evaluates your energy usage

– Provides recommendations that align with your objectives

– Offers qualifying incentives and rebates

Reviewing the status and outcomes of your company’s previous energy plan will help you determine what initiatives make sense for next year

Planning for 2011

For a Business Energy Evaluation, call 1-800-FPL-5566 or contact

your FPL account manager if you have one