Engineering

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Engineering FacilitiesJohnson Controls, Inc.

• Utilities Management Program
• Briefing February, 2006

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Engineering and FacilitiesUtilities
Management Program

• What are we doing?
• Working with Johnson Controls to Identify
• - Cost saving ideas, and
• - Associated payback periods for future
  projects.
• Working with the SC Energy Office to
• - Assess funding and training opportunities, and
• Coordinate Use of Utility Direct
  (a new web based
  energy data software program).
• Meeting regularly with SCEG to review rates and
  performance.
• Working with CPW on a project by project basis
  concerning water related cost savings ideas.

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Engineering and FacilitiesUtilities
Management Program

• Rutledge Tower and Rutledge Tower Annex were not
  included.

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Engineering and Facilities Utilities Management
Program

• Past Projects
• Total decrease in electricity used since FY 02 is
  13.6
• 17 proactive 6 life-cycle projects completed
  since 2000
• Combined annual savings of proactive projects
  1,408,146
• Combined annual savings of life-cycle projects
  860,043
• Johnson Controls identified one proactive project
  in FY 2000, that saved 300,000 annually
• Education
• Two articles published in the Catalyst
• Two articles published in the Engineering and
  Facilities newsletter
• SET team, two departments VPs briefed on
  utilities management

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Engineering and Facilities Utilities Management
Program

• Current Projects
• 5 proactive projects and 2 life-cycle project
  currently underway
• combined annual savings of proactive projects
  59,823
• combined annual savings of life-cycle projects
  433,692
• Working with SCEG at the highest levels to
  determine if we are receiving the best rates
  available

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Engineering and Facilities Utilities Management
Program

• Future Projects
• 26 projects in various stages of development, of
  these 26
• 23 are proactive the combined annual savings
  (of 14) 703,574
• 3 are life cycle the combined annual savings
  (of 2) 37,333
• All projects waiting for available funding
• Johnson Controls helped us identify several
  projects

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Engineering and FacilitiesUtilities
Management Program

• Summary by entity

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Engineering and FacilitiesUtilities
Management Program

• What to do from Here
• A Low Cost Initiative
• - Implement Lights Out Campaign with Senior
  Mgmt Support through
• In-Service Training
• Catalyst articles
• Broadcast messages
• Web page
• Financial Strategies for Other Projects
• - Continue to identify and address projects
  with internal staff and .
• - Enter into a Performance Contract
• Recent Legislation Allows for this Savings Based
  Procurement Opportunity
• Overall Budget Implications
• - State currently funds utilities at 40.
  MUSC must contribute the balance.
• - 100 Savings realized for up to 12 years
  for qualifying projects.
• - Long term savings will be the 60 we
  contribute.

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The Performance Contract Opportunity

• It is a Procurement Mechanism that
• Allows owners to modernize facility assets.
• Can address a variety of cost saving initiatives
  under one contract.
• Results in energy and/or cost savings
• that cover the project costs.
• Projects can result in cost savings of up to
  15-25 of utilities expenses.
• A 15 cost savings for MUSC could fund 13 M in
  infrastructure improvements over 8 years
  (2.4M/yr. in cost savings).
• Financed under the State Master Lease Program
  (lease purchase with a maximum 12 year term).

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The Performance Contract Opportunity

• Section 11-27-110 Lease Purchase or financing
  agreement subject to constitutional debt limit
• Allows a lease purchase agreement for energy
  efficiency products
• Through a guaranteed energy savings contract
  (Section 48-52-670)
• Not included in limited bonded indebtedness of 8

Since a guaranteed energy savings contract does
not contribute to the indebtedness of the
university, a performance contract could provide
MUSC 13M or more in funding for deferred
maintenance and new HVAC equipment.
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The Performance Contract Opportunity

• Process
• Concept Approval from MUSC Leadership
• Develop Performance Contract Documents
• Establish SEO Project for Consultant Services
• Advertise for Select Consultant (MUSC BOT
  Action)
• Request for ESCO Qualifications
• Request Proposals from Top Two ESCOs
• Select Energy Service Company
• Negotiate Project Scope of Work
• Project Approval from MUSC BOT, CHE, JBRC, BCB
• Implementation