Think for a moment about how much your facility pays annually for utilities: electricity, natural gas, etc. Now, think about taking one-fourth of an equivalent amount of money—and simply throwing it out the window!

Sure, this notion sounds crazy. But even in today’s cost-conscious world, that’s still essentially what American business does when it comes to the use of energy dollars. Recently compiled data by the Lawrence Livermore National Laboratory (www.llnl.gov) shows that nearly one-fourth of the energy consumed by U.S. commercial and industrial firms in 2010 ended up as “rejected”—wasted and nonproductive—energy.

How much benefit would it be if your company could save even a portion of these lost energy dollars? Unless yours is different than most, my guess is significant. For this reason, plus because energy in all its forms isn’t getting any cheaper, projects that improve energy efficiency or reduce consumption only make good sense for the firm wanting to be more competitive in 2012.

How much benefit would it be if your company could save even a portion of these lost energy dollars? Unless yours is different than most, my guess is significant. For this reason, plus because energy in all its forms isn’t getting any cheaper, projecA great way to cut consumption and save money is to make use of incentives offered by many utilities. Here are a few from the electric utility side:s that improve energy efficiency or reduce consumption only make good sense for the firm wanting to be more competitive in 2012.

• AEP Ohio’s gridSMART® initiative rebates up to 50% of project costs for improvements like more efficient motors and HVAC equipment. Its Express Program pays up to 100% of costs for small-business energy efficiency projects. There is even a retroactive program with partial rebates for projects completed as far back as January 1, 2009.

  As a member of the gridSMART Solutions Provider network, D.L. Steiner will be happy to help you take advantage of these great programs. Give us a call.

• The Efficiency Smart program by American Municipal Power, Inc. (AMP) offers industrial/commercial customers with annual usage of 20,000 to 500,000 kWh rebates for improvements that provide permanent usage reductions. These include lighting, HVAC, motors/drives, compressors, and refrigeration units. AMP also offers a custom program for those who use more than 500,000 kWh/year.
• The Ohio Rural Electric Cooperatives (OREC) offers reimbursement of 50% (up to $5,000) to its industrial and commercial clients who complete energy audits.

Check with your utility companies or contact D.L. Steiner for the energy efficiency rebates available to you. Refocusing on the basics is another path to savings. For example, how good is your power factor? Do you have a good control system to help you avoid demand charges?

By far the most effective tool for getting more from your energy dollars is the professional energy audit. An energy audit inspects and analyzes energy flows at your company to identify where energy inputs can be reduced without negatively affecting output. It prioritizes these to help you know which provide the greatest energy savings. D.L. Steiner offers several different levels of energy audits, depending on your need:

• Energy assessments, also known as “walk-through” or “one-day” audits,” that (1) compare your facility’s current energy consumption with reference standards for similar operations to determine “good,” “average,” and “bad” performance and (2) identify your facility’s most obvious areas of energy inefficiency and waste.
• Standard audits, intermediate-level audits that use data collection, interviews, facility/system studies, on-site measurement and testing, and engineering calculations to identify ECMs (energy conservation measures) appropriate for your company and the economic factors related to their implementation.
• Investment-grade audits (IGAs) that use in-depth data collection, comprehensive measurement and verification (M&V), and extensive engineering analysis to quantify the risks/rewards of energy projects—especially large capital ones—so stakeholders can be confident of the ROI before committing funds to these efforts.

As a certified energy manager (CEM), I’ve come to appreciate the value of “measure before doing.” The key to a successful energy audit is using M&V techniques that accurately determine how much energy the various initiatives will save. D.L. Steiner conducts our audits according to the International Performance Measurement and Verification Protocol (IPMVP). IPMVP is the recognized standard for reliability in energy savings claims.

Regardless of how well your company does on the energy efficiency scale, chances are good its rating could be even better—maybe by as much as 25%—for a real boost to your bottom line. Contact D.L. Steiner today for more on how we can help you save energy and reduce your energy costs in 2012.

D.L. Steiner’s energy assessment is a CEM-completed engineering study that uses your company’s historical energy data, an inspection of your facility, and comparisons with industry averages to identify areas where you can increase energy efficiency and conservation—and save money!

Contact D.L. Steiner at 419-222-6048 to schedule your free energy assessment and to request our Pre-Assessment Data Collection Form.

In the previous issue of the PCC Journal, we discussed how demand control can help companies lower their utility bills by smoothing out their electrical demand (the kW amount of electricity required for operations). This article looks at six great options for setting up an effective demand control program—and eliminating those costly demand charges!

Option 1: scheduled operations. Under scheduled operations, all operations are metered to determine their electrical load and then run at predetermined times, with some functions staggered so they don’t operate simultaneously. High-demand operations are then run at night, when utilities typically relax their kW demand limits. Scheduled operations often work well in situations where production is consistent from day to day.

Option 2: manual control. In a manual demand control system, someone is responsible for monitoring electrical demand (using meters) and shutting down certain equipment when the demand reaches a target level. Manual control is an effective demand control alternative—and one that’s fairly economical to implement. But if you decide on a manual system, we recommend also incorporating some type of alarm scheme to alert personnel when facility electrical demand is nearing its limit.

Option 3: interlocks, load shedders. Interlocks prevent two or more pieces of high-demand equipment from running at the same time. Load shedders automatically shut down equipment before the target electrical demand level is reached (shutdown occurs according to a prioritized schedule). Both methods depend on metering for the capabilities they provide.Interlocks and load shedders are less flexible than other demand control options, which may not make them ideal for environments where production operations change frequently. But if you want guaranteed electrical demand control, they may be the right choice for you.

Option 4: PLCs. Because of their versatility, PLCs can perform a range of demand control functions, from equipment interlocking to complex decision making. Most facilities have an abundance of PLCs, so you may already own all of the equipment you need to implement demand control.

Keep in mind, though, PLCs are not an out-of-the-box solution: they do require custom programming. On the plus side, D.L. Steiner offers complete PLC programming services for demand control applications.

Option 5: demand control systems. Demand control systems are typically whole-facility, software- and meterbased energy management applications that can be as extensive and integrated as you care to make them. With a demand control system, you can control every aspect of energy usage at your facility, not just electrical demand. Demand control systems can be expensive, but their capabilities make them worth every penny.

Option 6: special equipment. Generators and adjustable speed drives (ASDs) can help you avoid demand charges by providing as-needed auxiliary power or by flattening out the power spikes that lead to exceeding the demand limit. The expense of these systems is often offset by what that save you over time.

With the right demand control system, you can get rid of demand charges and significantly lower your facility’s electric bills—but the key is picking the best option from all the available alternatives. For assistance in identifying your ideal demand control solution, contact D.L. Steiner.

These two energy values aren’t the same thing, and they aren’t necessarily equal. Another type of energy present within the electrical system, reactive power (kVAR) counteracts working power (kW), causing it to be used less efficiently. In practice, the more kVAR you have in your system, the more apparent power (kVA) your utility must provide to supply the working power (kW) you need to run equipment.

As mentioned, power factor is the ratio of kW to kVA. The closer these values are to a 1:1 ratio, the closer you are to an ideal power factor of 1.0 and efficient power usage.

Figure 1—Less kVAR, Better Power Factor

Conversely, the more kVAR your system has, the greater the ratio between kW and kVA (0.90:1, 0.85:1, etc.) and the poorer the power factor.

Figure 2—More kVAR, Poorer Power Factor

Your utility tracks the kW you use and the kVA it must supply, and from this, it can calculate your power factor. If your power factor is below a certain level (e.g., 95%, or 0.95), the utility probably charges you a power factor penalty fee. Depending on your facility, this monthly penalty can be substantial. The good news is that power factor can be corrected to improve your kW-to-kVA ratio, which, in turn, can reduce your kW load and eliminate your power factor penalty fees.

When companies consider power factor correction, they typically think in terms of adding capacitor banks to decrease kVAR. Often, however, another excellent source of power factor correction is already installed within their plants: the synchronous motors running their processes. If your facility has synchronous motors, you may presently have all the equipment you need for better power factor and lower monthly electric costs!

Unlike induction motors that are by nature reactive, or “lagging,” synchronous motors can be set to operate in a “leading” mode that enables them to perform essentially the same function as capacitor banks, creating capacitive energy to counteract system kVARs and permit more efficient kW usage. For the production facility with (a) power factor problems and (b) synchronous motors on hand, this approach is an excellent alternative. But before you start adjusting synchronous motor settings, following are seven guidelines you should keep in mind to ensure a better, more effective project outcome.

• Complete a power quality analysis of your electrical system—Power quality analysis helps identify any harmonic, transient, and grounding issues that could impact power factor correction results. It also helps reconcile your facility’s power factor ratio with the one reported by your electric utility.
• Check your motor types—This is more than just verifying induction motors vs. synchronous motors. Some synchronous motors can be adjusted to no more than a 1.0 (unity) power factor mode, while others can be adjusted to a leading mode of 0.80 or more. For power factor correction, you need synchronous motors that can be set to a leading mode.
• Evaluate motor loading—If synchronous motors are under a full load, they may not be able to run in the leading mode, even if they have that capability. Remember, the lead is where the power factor correction is. To put motors in the lead, you may need to do some load shifting.
• Examine the motor controller—This involves determining how difficult it is to adjust the controllers in order to place the motors in the lead. If the process is too complicated, you may need to consider other options.
• Verify the magnitude of the power factor correction need—Setting your synchronous motors in the lead may reduce—but not eliminate—your power factor problem. For a total solution, you may also need to consider stationary, static, or climatic power factor correction equipment along with the synchronous motor adjustments.
• Perform preventive maintenance (PM) prior to adjusting the motors—Preventive maintenance ensures the motors and related equipment are in peak condition and operating correctly so that if a problem occurs after the adjustments are made, the equipment will shut down properly to protect itself.
• Meter motor operations—After synchronous motors have been placed in the lead, they need to be monitored to ensure they are performing as expected. If your electrical system doesn’t have the built-in metering capabilities for this, setting up a temporary metering installation is a wise investment.

In many cases, placing synchronous motors in the lead solves power factor problems without adding equipment to the system. It also eliminates related issues such as increased maintenance and decreased reliability. Additionally, when you factor ina typically better ROI than that of installing capacitors, the synchronous motor option is worth considering.

In many cases, placing synchronous motors in the lead solves power factor problems without adding equipment to the system. It also eliminates related issues such as increased maintenance and decreased reliability. Additionally, when you factor ina typically better ROI than that of installing capacitors, the synchronous motor option is worth considering.

But synchronous motor adjustments aren’t something you do as an isolated event. By following a few practical tips before and during motor adjustments, you’ll ensure this solution is as effective as it can be to deliver the power factor correction results you’re expecting.

For more information on how you can implement effective power factor correction using synchronous motors, contact D.L. Steiner, Inc.

What is a demand charge? It is the amount the electric utility charges your facility for supplying electricity at the rate it requires (demands) in order to operate. This demand rate is expressed in kW. As your facility reaches certain kW rate levels (these are set by your utility), the cost you pay per kW increases. The rule is the higher the kW demand rate, the greater the per-kW demand charge. Your utility monitors your kW demand rate, typically in 15- or 30-minute intervals, to track your peak kW demand for the billing period. It then calculates your demand charge for the period based on this peak rate.

If there are times during the period when your kW demand jumps significantly, the demand charge on your electric bill can be very costly. Additionally, at certain times of the year, exceeding your facility’s maximum kW service level (defined in your utility contract) can send your monthly demand charge through the roof! Why is this the case for both situations? Because the utility has to allocate additional resources to meet increased demand (e.g., start a backup generation plant or purchase power from another supplier).

If your facility can control electrical operations so that its kW rate is smooth, consistent, and as low as possible—without frequent or large spikes in kW demand—it will realize two benefits: (a) reduced electric charges and (b) increased electrical capacity without upgrading your electrical system. The latter comes primarily through reviewing your processes to see if any can be staggered so they don’t run at the same time. In some cases, this has no impact on operations and helps you avoid having to add new distribution equipment in order to handle the electrical load.

To determine if your facility is a candidate for saving money through electrical demand control, look at the demand charges on your electric bills for the past half-year to year. Are your demand charges excessive compared to your kWh usage? The best way to gauge this is by looking at your load factor (also listed on your bill). During regular production operations, if your facility’s load factor is below 80% and varies widely from month to month, this indicates a lack of electrical demand control. Developing and implementing a demand control program can enable you to smooth out electrical demand, allowing you to avoid spikes in the kW rate and higher demand charges

There are many techniques for controlling electrical demand to help your facility minimize its demand charges. These range from manual to automatic— but all involve a metering system to measure and monitor what’s happening inside the electrical system. This information enables you or the electrical system’s controller equipment to take appropriate actions to avoid reaching the more costly kW demand levels. In a future newsletter, we’ll discuss a few of these methods, plus their pros and cons.

For answers to your questions on controlling demand to lower electric costs, contact D.L. Steiner, Inc.

While most companies recognize the value of energy management, their success addressing the issue varies. Properly controlling a power system is often seen as too time consuming, inefficient, and expensive to be practical. Much of this perception stems from the past, when adequate monitoring equipment just wasn’t available:

• Monitoring devices were limited and analog based.
• The information they provided had to be gathered manually.
• These devices couldn’t be interconnected to collect and analyze preand post-fault system data, or to assess power factor.

As a result, power system management and maintenance functions were performed unnecessarily or not in time to prevent costly malfunctions.

Power Management Basics and Benefits

What is power management? Basically, it is “optimum continuity of power”—ensuring the highest quality power is available where needed, when needed, in the right amount, at the best cost, at all times. Effective power management is closely tied to an energy management program, or systematic approach to monitoring and controlling energy resources.

At the heart of the energy management program is the power monitoring system, also known as the power monitoring and control system (PMCS). A well-designed power monitoring system provides:

• Usage monitoring to track and analyze power consumption: kW, amps, Volts, etc.
• Power monitoring to protect the distribution system (via relays, power breakers, and other devices) against power outages, fault conditions, overloads, and downtime.
• Quality monitoring to track and analyze harmonics and disturbance data.
• Power factor status monitoring.

A well-planned, ongoing energy management program based on a modern power monitoring system offers these and other benefits:

• Correction of electrical equipment problems beforehand to prevent power outages and damage to distribution system components.
• Analysis of the power supply (source and quality) and demand patterns to develop appropriate
• load management strategies.
• Optimization of the distribution system to improve phase imbalances and maximize power availability.
• Automated billing for accurate cost allocations by area, process, etc.

Power Management System Components

At the heart of the power monitoring system and energy management program are the energy management system components, the hardware and software used for power monitoring and control.

Monitoring, control, and protection devices: The meters, trip units, relays, and other devices that control the source and flow of power, monitor power quality, protect the distribution system against overloads, etc.

Computer networks: Digital interconnects of various protocols that link the monitoring, control, and protection devices to a centralized computer(s) so system data can be collected and analyzed in real time.

Energy management software: Programs that collect data from the monitoring, control, and protection devices via the computer network and report this information in a graphical manner on the central computer display(s). Typically, such software can be customized to meet specific reporting needs.

In some cases, the energy management system components include programmable logic controllers (PLCs). These are often used as supervisory devices in control and gateway applications.

Implementing the Power Management Program

Getting a power management program off the ground involves planning and execution. The process begins by establishing program goals and strategies: What level of monitoring and control is needed? What analysis is to be performed (power quality, allocation usage reduction, etc.)? What are the desired system comparison-forecasting capabilities?

Goal setting is followed by reviewing and, if necessary, developing the distribution system’s single-line diagram. This drawing helps identify the best locations for placing the energy management components needed to accomplish program goals.

Next is the design and implementation (or upgrading) of an adequate power monitoring system. At this stage, all necessary monitoring, control, and protection devices are installed at predetermined locations.

The energy management system’s computer network links all devices together. Sometimes, a network suitable for energy management may already be in place (i.e., it was installed previously for purposes other than energy management). In such a case, network installation may not be a major task or expense.

Once the system hardware is in place, energy management software can be installed. This includes:

• Designing and setting up the power system monitoring “forms”: the computer screen displays used for data presentation and analysis.
• Defining monitoring, control, and protection devices within the software database.
• Establishing the communication link between all system hardware and software components.

At this point, the system can now be commissioned. Commissioning involves reviewing all energy management system hardware and software to ensure proper operation and coordination between components.

Finally, facility personnel are trained in energy management program operations. This includes such areas as using the system equipment, daily and weekly energy management procedures, data interpretation, preventive maintenance, and appropriate responses to specific situations.

Power Management Today and Tomorrow

A power management program to the level discussed here represents a significant investment to hire a consultant, plan the program, install equipment, and train personnel. Is the effort worth it? Naturally, results vary. But for most plants, the payback from cost savings, power system integrity, load monitoring/balancing, preventive maintenance, and allocations capability makes the answer a definite “yes.”

It’s important to remember that the most certain factor about the energy market is it will continue to change. And no one can predict exactly how these changes will shape tomorrow’s energy picture. An effective power management system can make dealing with these unknowns a whole lot easier.

By DANIEL L. STEINER, P.E., D. L. STEINER. INC., LIMA OH; AND
WILLIAM WHITEHEAD, SENIOR APPLICATION ENGINEER SIEMENS ENERGY & AUTOMATION NORCROSS, GA

Recent advances in both microprocessor- based monitoring and control devices and computer networking have expanded the range of power monitoring equipment available and improved functional capabilities of these devices. The result is a significant new potential for increasing power system reliability while simultaneously decreasing system operating costs. These advances along with deregulation are causing a growing number of plants to develop comprehensive new energy management strategies that help them maximize valuable energy resources. . .