Five Trends Facing Texas Independent School Districts Today and What You Can Do About Them at No Cos

1
Five Trends Facing Texas Independent School
Districts TodayandWhat You Can Do About Them
at No Cost To You
2
Outline

• Five Trends Facing Texas Independent School
  Districts
• What You Can Do
• Is It Right For You
• Case Studies
• Direct Energy
• What You Can Do Today

3
Five Trends Facing Texas Independent School
Districts
4
1 Growing Number Of Unfunded Mandates

• Complying with
• Senate Bill 12
• Direction to reduce energy consumption 5 a year
  for the next 6 years
• Publicly reporting of historical energy
  consumption
• HB3693
• Direction to install the most energy efficient
  lighting in your facilities.
• Direction to implement energy management control
  at your vending machine (There is even a
  financial penalty if you dont do it!)

5
2 Rising Cost of Energy

• Electricity rates for a kilowatt hour have
  increased almost 50 since 2002
• Electricity rates tied to cost to fire generation
  with natural gas
• Natural gas that cost you 5.00 an MCF in 2002
  cost on average over 10.00 a MCF today
• More demand than supply
• Water rates are poised to increase dramatically
• Demand
• Aging infrastructure
• Changing climate

6
3 Aging Energy Infrastructure

• Facility stock older than ever before
• Roofs and windows in need of replacement
• Rapidly increasing cost of raw materials for new
  construction
• 15 for steel in one month
• 10 increases on average for general construction
  estimating
• Utility consuming infrastructure in need of major
  repairs and replacement
• Code requirements more stringent
• Indoor Air Quality
• Energy efficiency ratings
• Legal threats

7
4 No Comprehensive Long Term Strategy

• No energy specialist on your staff
• Disconnected process
• Energy industry fragmented
• Retail Electric Providers
• Aggregators/Consultants
• Brokers
• Energy Product Representatives (including roof
  and windows)
• Carbon Traders
• Demand Response Companies
• Black Box control providers
• Green strategies that affect energy consumption
• No single point to pull it all together (until
  now)

8
5 Financial Issues

• Budgets under attack, leading to staffing issues
• Skill set requirements require higher pay
• Deferred maintenance cost continues to rise
• Unplanned equipment failures
• Unplanned increases in energy cost
• Investment returns lower than ever before
• Fund balance shrinking
• Unable to pass new bond programs
• Inflation on the rise

9
What You Can Do

• Performance Contracting Concept
• A facility improvement program using guaranteed
  energy savings to fund the program
• Typically includes
• HVAC repairs or replacements
• Lighting improvements
• Window replacements
• Roofing projects
• Water conservation projects
• New or upgraded energy management systems
• Solar and Wind power systems
• Power management
• Comprehensive energy plan going forward

10
What You Can Do

• Performance Contracting Concept

• 1,000,000

• Today
• Total Utility Expenditure

11
What You Can Do

• Performance Contracting Concept
• Implementation of Facility Improvements
• HVAC repairs or replacements
• Lighting improvements
• Window replacements
• Roofing projects
• Water conservation projects
• New or upgraded energy management system
• Solar and Wind power systems
• Power management
• Comprehensive energy plan going forward

12
What You Can Do

• Performance Contracting Concept

• 1,000,000

• Guaranteed Energy Savings

• Tomorrow
• Total Expenditures for Energy AND Infrastructure
  Renewal

13
What You Can Do

• Performance Contracting Concept - You have a
  choice
• Continue to pay the utility company (US or
  someone else in the future) 1,000,000 OR
• Spend 1,000,000 for utilities and receive much
  needed improvements TODAY.

14
Is It Right For You ?

• Do you have the money to upgrade your facilities
  and reduce your total cost of energy?
• Then do it yourself
• Do you have the expertise to implement a
  comprehensive energy plan and energy savings
  project at no cost?
• Then do it yourself
• Otherwise use Direct Energy Performance
  Contracting

15
Is It Right For You ?

• Year Annual Utility Savings Annual
  Program Annual Program Performance
• Savings Guarantee Payment
  Contractor
• 1. (100,000) 100,000 100,000 paid at end
  of
• 2. (100,000) 100,000 100,000
  construction work
• 3. (100,000) 100,000 100,000 via lease
• 4. (100,000) 100,000 100,000
• 5. (100,000) 100,000 100,000
• 6. (100,000) 100,000 100,000
• 7. (100,000) 100,000 100,000
• (100,000)
  100,000 100,000
• (100,000)
  100,000 100,000
• (100,000)
  100,000 100,000
• Total (1,000,000)
  1,000,000 1,000,000 you own
  it

Owner Risk Direct Energy Risk 0
1,000,000
16
References and Case Studies

• Ben Bolt Palito Blanco
• Air Conditioning, Control Systems, Lighting,
  Power Management, Energy Plan
• Texas State Technical College
• Air Conditioning, Control Systems, Lighting,
  Power Management, Energy Procurement, Energy Plan
• Nueces County
• Air Conditioning, Control Systems, Lighting,
  Power Management, Energy Procurement, Energy Plan
  consulting agreement
• Eastland County
• Air Conditioning, Controls, Lighting
• Hayes CISD
• Lighting

17
Simple Process
Done
Step 1
Step 2
Step 3
Implement MASBA Interlocal Agreement
Project Implementation
On-Going Support
Detailed Evaluation

• Start today

• Construction management
• Facility improvements
• Commissioning
• Training
• Start-Up

• Performance Assurance
• Warranty
• On-Going training and recommendations
• Comprehensive energy plan
• Financial Guarantee of results

• Energy and operational savings analysis
• Detailed scope of work developed
• Comprehensive solution
• Funded through utility savings

18
Easy to Implement
Done
April 14
June 14
June 15
Implement MASBA Interlocal Agreement
Project Implementation
On-Going Support
Detailed Evaluation

• Start today

• Energy and operational savings analysis
• Detailed scope of work developed
• Comprehensive Solution
• Funded through utility savings

• Construction management
• Facility improvements
• Commissioning
• Training
• Start-Up

• Performance Assurance
• Warranty
• On-Going training and recommendations
• Comprehensive energy plan
• Financial Guarantee of results

19
Next Step - Detailed Evaluation

• We collect background data on your utility
  consumption
• Engineers from Direct Energy conduct interviews
  and survey facilities
• Identify facility improvements that pay for
  themselves
• Finalize scope of work with you
• Design the final scope of work
• Present self funding project to you for
  implementation

20
About Direct Energy

• A Retail Electric Provider (REP)
• Selected REP for TASB
• Parent Company of the new CPL
• Only REP with an dedicated in-house energy
  solutions team in Texas
• Helping you reduce energy consumption
• Helping you manage energy cost
• Offering comprehensive strategies to lower your
  total cost of energy
• MASBA sponsor

21
About Direct Energy

• Business Unit of centrica a leading integrated
  energy company
• 34 billion dollar global energy company
• We source it
• We generate it
• We store it
• We trade it
• We supply it
• We service it
• And most importantly we help you save it. and
  the environment

22
Direct Energy Headquarters in Texas
1.0 million Texas Customers
23
Direct Energy Headquarters in Texas

• Over 3000 employees in Texas
• Over 300 energy solutions staff members in Texas
• Business unit dedicated to Guaranteed Utility
  Savings Projects
• Over 50 years of team experience
• Professional Engineers
• Professional Project Managers
• Professional Management
• Focus on saving you energy and lowering your
  total spend on energy

24
Thank you
25
Where has this been done and WHY (more)

• Texas Solar for Schools
• 31 small-scale solar energy systems to reduce
  dependency on fossil fuel and educate
• Midlothian ISD
• Energy Star Award
• Reducing operating cost and pollution via new
  environmental systems and computer control
• Whitesboro ISD
• New Environmental Systems and Computer Control
• Bonham ISD
• New Roofs, Environmental Systems and Computer
  Control
• McKinney ISD
• Sustainable School Design
• Spring Branch ISD
• Reducing operating cost and pollution via new
  environmental systems and computer control
• Houston Community College
• To meet growing facility needs and contain
  operating cost