Driving 2006 to a higher level

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Industrial Energy Efficiency Forum for Northwest
Utilities
Presented by the Industrial Efficiency
Alliance March 3, 2006
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Addressing the Northwest Pulp and Paper Market
Mike Roberts, Director
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Our Mission

• The Industrial Efficiency Alliance works with
  utilities and other strategic partners to help
  Northwest industries gain a competitive advantage
  via the adoption of energy efficient business
  practices.
• We enhance business performance
• through
• continuous energy improvement
• which results in
• bottom line benefits

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Why energy efficiency in pulp paper?

• More than 15 of the total U.S. manufacturing
  energy use is in pulp paper
• Approximately 30 of industrial energy use in the
  Northwest is in 30 pulp and paper facilities
• More than 40 of the industrys energy expenses
  are for electricity
• Electricity can be 10-30 of facilities
  variable manufacturing cost
• Pulp and paper consumes more than 1000 aMW in the
  Northwest

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The Northwest Industry
Thirty operating pulp and paper facilities are
served by 17 utilities in the Northwest.

• Avista Inland Empire, Potlatch
• Central Lincoln PUD G-P Toledo
• Chelan PUD Keyes Fiber
• Clallam County PUD Pt. Townsend Paper
• Clatskanie PUD G-P Wauna
• Cowlitz PUD WeyCo Longview, Longview Fibre,
  NORPAC
• Emerald G-P Halsey, Pope Talbot
• Eugene Water and Electric Board WeyCo
  Springfield
• Grays Harbor PUD GHPCo, WeyCo Cosmopolis
• Northwestern Energy Smurfit Stone

• PacifiCorp Boise Wallula, WeyCo Albany
• Pend Oreille PUD Ponderay Newsprint
• PGE Boise St Helens (Cascades), G-P Camas, Blue
  Heron, West Linn, SP Newsprint
• Port Angeles City Light Nippon Paper
• Puget Sound Energy G-P Bellingham, Sonoco
• Snohomish PUD Kimberly Clark
• Tacoma Power Simpson, Caraustar

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The Process for Participation
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How do we apply this process?

• IEAs resources are
• delivered to our clients
• In partnership with,
• Through the auspices of,
• In support of,
• complementary to,
• Clearly coordinating with,
• Using contemporaneous communication with,

The serving utility!
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Awareness

• Establish the significance of energy as a core
  business element
• Think
• Availability of resources to support your energy
  efficiency program
• Importance of continuous energy efficiency
  management

system vs. component life cycle vs. initial
cost reliability vs. capital
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Regional Key Performance Indicator (KPI)

• Establish a regional KPI that reflects the power
  use and improvements made by the pulp and paper
  industry
• Preliminary, partial data for fourth quarter
  2005 shows an aggregate KPI of 1,200 kWh/ton
  with
• a range of 500-2,800 kWh/ton

• Based on available data
• Confidential
• Reflects the regional industry
• kWh/ton

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Key Support Organizations

• Awareness extends to third party organizations
  serving the industry

• Consulting Engineers
• Academia Washington Pulp Paper Foundation
• Trade Associations NorthWest Public Power
  Association
• Professional Associations Technical
  Association of the Pulp Paper
• Industry, Paper Industry management
  Association
• Specialized equipment and service vendors

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Resources Customer-Orientation
Vertical Markets
Food
Pulp and
Processing
Paper
Management
Operations Assistance
Pumps
Motors
Cross Cutting Technologies
Compressed Air
Refrigeration
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Assessment
EnVINTA One-2-Five Organizes 22 Elements into 10
Key Areas
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What characteristics are shared?

• Operation is 24/7
• Focus on production
• Capital intensive
• Capital constrained
• Embedded technical skills
• Conservative business approach

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Who else can benefit?

• If this sounds like an industry you serve, the
  Industrial Efficiency Alliance has resources that
  can help!
• Information and tools to increase awareness of
  energy as
• core business value
• Management experience to help firms plan and
  execute
• continuous energy efficiency programs
• Technical resources to assess energy efficiency
  opportunities
• Training skills to support achieving and
  sustaining savings

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How can you apply our resources?

• Create awareness
• Encourage benchmarking
• Emphasize development of an energy plan
• Support assessment of system opportunities
• Embed continuous improvement through training,
  audits and KPIs
• Recognize when your customers make energy a core
  business value

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When to declare victory?
?

• Did we have any accidents?
• Did we spill anything?
• How much product did we make?
• HOW MUCH ENERGY DID WE USE?

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Addressing the Northwest Food Processing Market
Ed Birch, Director
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Target Companies

• Basic American Foods
• Henningsen Cold Storage
• New Season Foods
• Seneca Foods
• Amalgamated Sugar
• Simplot
• WestFarm Foods
• Norpac
• Ocean Spray
• Lieb Cold Storage

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Strategy

• Work with NWFPA - energy efficiency a competitive
  edge
• Drive food processors to adopt a Continuous
  Energy Improvement Process
• Support food processors with management coaching,
  technical resources and solutions-based training

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Available Resources

• Management coaching
• Systems approach
• - Solutions-based training
• - Technical assessment
• - KPI procedures
• 3) High performance commissioning
• 4) Cluster training

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1. Management Coaching
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• Management support
• Champion
• Burning platform
• Strategic plan
• Measurement

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2. Systems Development
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• In collaboration with utilities
• Establish cross-functional team (Utility, IEA
  Food Processor)
• Develop systems improvement process
• Establish KPIs to sustain improvements
• Develop technical expertise
• Success drives corporate commitment

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Solutions-based Training
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3. High Performance System Commissioning
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• Target market
• Energy efficient advanced companies
• Widening energy productivity gap
• Relentless pursuit of energy savings
• Objective
• Build on design success and culture
• Process
• Evaluate practice, process and equipment

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4. Cluster Training
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• Geographic clusters
• Industry specific focused on technology
• Technology specific to geographic area (CA,
  Pumps and Refrigeration)
• Forest Grove, Moses Lake, Boise and Tri-Cities
• Company cluster
• Multi-plant
• Technology specific
• Simplot, Sabroso, Conagra, National Frozen

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Case in point

• Henningsen Cold Storage results
• Focus on practices procedures
• Squeezed out an additional 10 savings
• Opportunities
• Narrow operating parameters
• Establish KPI and set goals
• Energy efficiency training
• NO CAPITAL REQUIRED but can and will lead to
  utility opportunities

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Available Resources

• Management coaching
• Collaborating systems development
• High performance commissioning

Cluster solutions-based training
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Technical SystemsRefrigeration, Motors, Pumps,
Compressed Air
Mark Hamilton, Project Director
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Industrial Efficiency Alliance

• Systems.not components
• Requires management support
• Products and Services are not available

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Systems Optimization and Life Cycle Cost
Life Cycle Cost of Compressed Air System Over 10
Years
Electricity 76
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Taking a Systems Approach in the Market
Whats the value to the utility?

• Continuous Improvement
• - System Champion
• - Key Performance Indicators
• - Comprehensive
• assessment/audit
• - Train staff at all levels
• - Select qualified trade allies

• - Knowledgeable internal advocate
• - ID opportunities, ensures persistence
• - Gets past the vendor selling iron
• Demonstrates value, ensures
  persistence
• Builds quality and opportunity in the
  market

These activities help your customer be more
competitive through improved energy efficiency.
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What can we do together?

• Work together to build coordinated customer
  strategies
• Build continuous improvement concepts into
  utility programs
• Demonstrate continuous improvement with a
  customer/project
• Participate in product and service development
  opportunities
• Training and education
• Engage in Compressed Air Challenge, Pump Systems
  Matter, EASA , HI

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Regional Industrial Energy Efficiency
Training Opportunities
Geoff Wickes/Heidi Sickert Director Program
Management/Training Director
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Benefits of Training

• Improved safety
• Improved production quality
• Improved reliability
• Lower maintenance cost
• Energy savings

Photo US DOE Best Practices
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Who sponsors training?
www.industrialefficiencyalliance.org
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The Role of Training

• Necessary to educate on Life-Cycle-Cost
• A critical element of a Continuous
• Improvement Process
• Needed at all levels of the organization
• Necessary for vendors as well as staff

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Industrial Course Offering

• Pumps Courses
• Pumps for Poets
• Pumps 101
• Pump System Assessment (PSAT)
• Field Measurements Pumping Systems
• PSAT Specialist Qualification
• Systems Solutions

Compressed Air Courses Shop Floor Air
Training Fundamentals of Compressed Air CAC
1 Advanced Management of Compressed Air CAC
2 AirMaster Qualified Specialist
Motor Systems Courses Motor Systems
(MotorMaster) Motor Systems Management
Other Courses Industrial Refrigeration Best
Practices Refrigeration Ammonia Safety training
(RETA) Low Pressure Blowing Process Heating
Systems Assessment Fan System Assessment
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Motor System Knowledge Chain
Basic Understanding
System Optimization
Audience
Course
Management
Motors for Executives
Purchasing
Maintenance
Motor Systems Training
Electrical
Data Analysis
Data Acquisition
Champion
System Engineer
System Solutions
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Compressed Air Knowledge Chain
System Optimization
Basic Understanding
Audience
Course
End-User
Shop Floor Training
Maintenance
CAC Level 1
CAC Level 2
Champion
System Engineer
AirMaster
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Pump System Knowledge Chain
System Optimization
Basic Understanding
Audience
Course
Pumps for non-technical
Management
Maintenance
Pumps
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Operators
Champion
PSAT
Field
System
PSAT QS
System Engineer
Measurements
Solutions
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Pump System Training Pyramid
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Pump Loop Demo Diagram
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Upcoming Courses
www.industrialefficiencyalliance.org
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Solutions-based Training
www.industrialefficiencyalliance.org
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The Wisdom of Tom Dunn

Efficiency activities do not sustain savings.
Ownership does!

Tom Dunn, Senior Engineering Specialist,
Weyco, Nov.4, 2005
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Next Steps

• Contact us to develop training series for your
  customers
• Promote the value of training to support
  continuous energy improvement
• Contact us for customized training
• Submit your Industrial Trainings to post on the
• Regional Training Calendar
• Check out www.industrialefficiencyalliance.org

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Wrap Up
Roger Spring Utility Coordinator
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A
Q