BOMEX Conference 2003 Energy Issues Today: Measurement, Monitoring, Management

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BOMEX Conference 2003Energy Issues
TodayMeasurement, Monitoring, Management
Procurement

• October 2, 2003

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Energy Issues Today

• Introductions
• Deregulation Across Canada
• Types of Power Contracts
• Continuous Improvement
• Measurement Procurement
• Energy Contracts Risk
• Credit Issues
• Questions

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Mark Gallagher, Direct Energy

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Regulatory Landscape
Some form of gas competition

Gas and electricity competition

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How Does Energy Purchasing Affect Your Building
Operation?

• Type of Contract is Closely Related to Type of
  Meter
• Type of Contracts
• Load Following (Full Requirements)
• Block Purchases (Contract for Differences)
• Profiling as Soft Energy Management
• Interval meter decision
• Load management options
• Load anomalies
• Tariff selection

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Blocks To Match Loads
Monthly Profile
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Demand Limiting Strategies
3 MEG spike drives peak
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Individual Load Profiles
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Aggregate Load

Contract
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Ken Lau, BC Hydro

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Continuous Improvement Cycle
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Metering Energy Management

• Metering systems support the energy mgt. process
• Captures data for baseline purposes
• Used to set and track performance
• Provide data for reports
• Metering system uses
• Verify bills
• Understand usage patterns
• Identify savings opportunities
• Enable cost allocation
• Benchmark performance against standards
• Support standard techniques to quantify savings

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Typical Metering Systems

• Single building systems (house, tenant loads)
• Communication via phone, serial, or Power Line
• Software generates the bills
• Systems include Carma, Intellimeter, Quadlogic
• Enterprise-wide systems
• Involve many metering systems
• Communication via phone or Ethernet
• Utilize central web server
• May accept process signals
• Systems include PML ION, Schneider PowerLogic,
  C-H IQ DataPlus

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Types of Data

• Load profile
• kW vs. time
• Load duration curve
• kW in descending order vs. time of day
• Peak demand components
• Aggregation of loads comprising peak demand
• Min, Avg, Max Demand in a period of time

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Chris Vilcsak, Solution 105

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Services We Offer

• Bill Audits
• Front to Back Procurement Services
• Load Profiling
• Contract Negotiations
• Contract Review (for existing contracts)
• Budget Creation
• Usage and Cost Monitoring (budget variance
  reporting)
• Market Updates
• Data and Financial Analysis
• Tailored Services

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Contract Terms Conditions - Risks

• Volume Risk
• Price Risk
• Other Risks
• Counterparty/Credit Risk
• Performance Risk
• Force Majeure (Unit Contingency) Risk
• Miscellaneous

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Comments - Electrical usage drops below normal
levels around 10 am Monday, June 23, 2003. -
This lower level is not a consistent pattern
however.
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Price Risk

• Real-Time and Short-Term Price Changes
• AB, ON price changes can be huge (x200)
• Load flexibility is the key
• An issue only on exposed load
• Long-Term Price Changes
• What happens if market moves either way?

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Other Risks

• Counterparty/Credit Risk
• Enron
• Most of focus will be on customer risk
• Note that retailer licence prudential
  requirements may only cover a fraction of a
  percent of their total exposure
• Performance Risk
• Enron
• Billing
• Additional services offered (demand response,
  etc.)

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Other Risks

• Force Majeure or Unit Contingency Risk
• A fixed price may not really be fixed
• What happens if retailers purchased generation
  is not available due to unit outage?
• Miscellaneous Risks
• Take or Pay
• Account management services
• Billing
• Limited options for energy efficiency

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Credit Issues

• Payment history not as much an issue
• Term offered may be affected
• Release of financials a problem for
  privately-held companies
• Down payments or performance bonds
• Changes in collateral in future
• Parental guarantees may be requested

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Questions?