Roger Hubert, Sales Leader, West Territory, Trane nICE - PowerPoint Presentation

Roger Hubert, Sales Leader, West Territory, Trane nICE Way 2 Close Business

“nICE Way 2 Close Business” Why the name of our workshop? Because, helping close business is one of the most important goals of the Partner Program…agree?Well, “ICE” has closure rates of nearly 100%...for both our Partners and Trane so this is a “nICE Way 2 Close Business.”

Introductions: Paul Valenta, V.P. Sales and Marketing, CalmacEvan Berger, Director of Energy Solutions, CalmacRaynor Smith, Comprehensive Solutions Account Executive, Brady TraneSam Van Riper, Director, North America Pricing, TraneSmitty, Director Systems and Solutions, Trane

This workshop is like a three legged stool with each of the three legs focusing on one key aspect of selling ICE: The legs are: Operating Cost Installed Cost Making ICE Easy

Operating Cost: The first leg of our stool, “operating cost”, has three segments:Understanding how to read your utility bill. An easy way to call up your local utility’s rate structure.A simple way to estimate ICE’s impact on the job’s operation cost. Operating Cost Presenters: Evan Berger, Director of Energy Solutions, Calmac Paul Valenta, VP Sales and Marketing, Calmac

Understanding The Electricity Bill Evan Berger Director of Energy SolutionsPaul ValentaVice President of Sales & Marketing CALMAC Manufacturing Corp.Fair Lawn, NJeberger@calmac.com

1. There are three ways to lower electric costs:Buy fewer units of energy. Purchase it when it’s cheaper, at night. Negotiate a better rate. Conclusions

Conclusions 2. Commercial Rates are Different than Residential Rates:Residential Rates are based solely on Usage (kWh)Commercial Rates are typically basedon a mixture of Usage (kWh) andDemand (peak kW)

Conclusions3. Rates and tariffs are complicated. Why? A few possible* reasons come to mind— Lawyers write themRegulators dislike plain EnglishThe less customers know about their electricity bills, the more utilities and Third-Party Suppliers can possibly* earn more money at their expense*Note: pure speculation

Demand Charges Definition: any electricity charge that is assessed on a per-kW basis There are two types of Demand Charges: Utility Demand ChargesGrid Demand Charges (from PJM, ERCOT, NYISO, etc.)Note: more often than not, Grid Demand Charges are “blended” in Third Party Supplier bills and thus not visible to the customer; we’ll discuss this issue at great length later in the presentation

The Demand Charge Effect“Typical” General Rate Structure, Anytown USA Energy (usage): Day: $0.060/kWh Night: $0.060/kWh Demand: $14.00/kW/MonthHow big an effect is the Demand Charge??Energy is 60% less expensive at night$0.060/kWh $ 0.145/kWh

Demand Charge Effect….. Do the Math (Back of the Envelope) Conventional Chiller System Demand Cost /month 1000 tons x 0.8 kW/ton = 800kW 800 kW x $14.00 = $11,200/month Energy Usage for Chiller for Month 1000 tons x 10 Hrs x 75% x 0.8 kW/ton x 22 days/month = 132,000 kWh Approximate Cost for Demand / kWh $11,200/132,000 kWh/month = $ 0.085/kWh Therefore Daytime Energy = $ 0.06 + $ 0.085 = $ 0.145/kWh

Sample Office Building Anytown , U.S.A.Electricity: $0.06/kWh; Demand: $14.00/kW monthly Peak Demand of 1000kW, 35% load factor Typical Office Building Weekly Sumer Load Curve Saturday Sunday Monday Tuesday Wednesday Thursday Friday 1000 kW 800 kW 400 kW 200 kW 600 kW Monthly Electricity Costs: Usage: $15,120 (52%) Demand: $14,000 (48%) Total: $29,120

Ratchets 50% 75% With ratchets, the peaks you hit in the summer are carried through all year long

Ratchets With ratchets, the peaks you hit in the summer are carried through all year long MonthBase PeakMax/Inter. PeakAugust600kW600kWSeptember400kW400kW…January300kW 225kW …March 250kW 250kW 450kW 450kW 450kW 300kW 300kW Cost per kW of ratchets: $4/kW each month for Base, $10.62/kW for the Max + Intermediate

Welcome to the PJM Interconnection PJM is the world’s largest grid, covering 13 states from the Mid-Atlantic all the way down to North Carolina and over to Illinois PJM schedules the reliable flow of power from generators to consumers – and charges customers for the servicePJM Grid Demand Charges are $4+/kW, fully ratcheted from summertime peak hours Grid Demand

Hidden Charges High load factor hospital; Demand makes up 50% of total energy spend. With riders, Duke Indiana customers pay $23.47/kW in Demand.Usage is 3.9 cents/kWh.Indiana

Sample ComEd Bill Ice customer: Demand makes up 32% of this customer’s bill. Without ice, Demand would make up 40% or more. $5.89/kW utility demand – seems inconsequential

Comparison: Traditional Cooling vs. Load Shifting Compared to a 350 ton chiller, Thermal Storage plus a 190 ton chiller yields $15,000 in annual savings Much of the savings comes from the winter months, when they benefit from reduced PJM ratchet costs Results derived by Trace700

Third-Party Suppliers (LSEs) Many commercial customers use a third-party supplier, like a Hudson Energy, Direct Energy, Constellation, etc. Suppliers often use a blended rate – everything combined into one per-kWh rate.This makes it “easier” for customers, but it obscures one of the two ways they have to save money on their bills!Is this an insurmountable problem? No. When you consult with a client, advise them to insist that starting with their next contract, all charges, per-kW and per-kWh, be listed out line-by-lineSuppliers will do this, because they hate losing business. “Ask and you shall receive.” And if you don’t receive, ask somebody else.

Utilities with Demand above $14ConEd (NY) SCE (CA) PG&E (CA)SDG&E (CA)LIPA (NY)Nstar (MA)HECO (HI) O&R (NY)Santee Cooper (SC)Austin Energy (TX)United IlluminatingPSEG (NJ)Dominion (VA)Appalachian Power (WV)Forked Deer (TN)Delmarva (DE)City of Batavia (IL)Mon Power (WV)Potomac EdisonDuke (SC, NC)Tucson Electric Power (AZ)Lincoln Electric Service (NE)LG&E (KY)Hydro One (Qu.)NV Energy (NV)Toledo Edison (OH)Duke (IN)Consumers Energy (MI) Rocky Mountain Power (UT) Representative List – a small fraction

Ice Index Awesome Ice Rates Great Ice Rates Good Ice Rates Moderate Ice Rates

Alaska Hawaii Places with High Ice Potential Awesome Ice Rates Great Ice Rates Good Ice Rates Moderate Ice Rates

Alaska Hawaii Places with High Ice Potential Awesome Ice Rates Great Ice Rates Good Ice Rates Moderate Ice Rates

Action Items Be sure to include Demand calculations into all life cycle analysis scenarios – chillers, lighting, etc. Let your Trane rep and CALMAC review your electricity bill for opportunities to save significant operating expenses.

When Would you Fill-up? 26 Daytime $ 2.49/gallon Nighttime $ 0.99/gallon Final Thought

Questions? Evan Berger, Director of Energy Solutions CALMAC Manufacturing Corp. eberger@calmac.com

Installed Cost: This second leg of our stool, “Installed Cost”, will focus on one premise: Partial ICE can be cheaper than a Traditional AC/Chiller-VAV system for many jobs: Trane does not have creditability on this subject. But you, our partners, do. That’s why we have asked David Engel, CCI Mechanical, to review an installed cost comparison between a Traditional AC/Chiller-VAV system and a Partial ICE system. Background, the definition of a Traditional AC Chiller-VAV System is: 10F Delta Tee, 55F SAT VAV, and Rectangular ductwork.Key to David’s comparison is taking advantage of :16F vs. 10F delta tee50F vs. 55F SAT VAVRound vs. Rectangular ductwork Installed Cost

Installed Cost: This second leg of our stool, “Installed Cost”, will focus on one premise: Partial ICE can be installed cheaper than a Traditional AC/Chiller-VAV system: Trane does not have creditability on this subject. But you, our partners, do. That’s why we have asked Phil Corbin, Ahern, to review an installed cost comparison between a Traditional AC/Chiller-VAV system and a Partial ICE system. Background, the definition of a Traditional AC Chiller-VAV System is: 10F Delta Tee, 55F SAT VAV, and Rectangular ductwork. Key to Phil’s comparison is taking advantage of :16F vs. 10F delta tee50F vs. 55F SAT VAVRound vs. Rectangular ductwork Installed Cost

Note s :1. ICE System based on a 110 ton cooling load with 7 0 t o n c h iller a n d 4 0 t o n o f ice st o ra g e. 2 . Electrical C o nn ecti o n s are b ased o n d istri bu ti o n wiri n g , starter, a n d switch c o sts, d o es n o t i n cl ud e m ain d istri bu ti o n p o wer w h ich s h o u ld b e si m ilar wi t h each a pp r oach.3. Conventional system costs are based on an actual project performed, Hybrid costs are based on an estimate of the revised system design with the same labor productivity, hourly rates, sub unit costs, etc.4. Costs do not include hot water distribution system or boilers, which should be similar in each approach5. Engineering costs are embedded in cost breakdowns for each approach.Conventional VAV System at 10 F CHW/55 F SA withAHU, Air Cooled Chiller (110 tons)Hybrid VAV System with 16 F CHW/50 F SA with AHU,ICE AC chiller with integrated pump packageItemCostItemCost AC Chiller/Pumps - Installed $ 117,100.00ICE AC chiller, ICE tanks and integrated pumps - Installed $ 151,259.00 10 F CHW piping to AHU (200 LF) - 6" $ 15,999.00 16 F CHW piping to AHU (200 LF) - 4" $ 12,508.00Cost of 55 F VAV AHU (44,000 CFM) -Installed $ 116,196.00Cost of 50 F VAV AHU (36,000 CFM) -Installed $ 95,496.00 Cost of Rectangular Ductwork with insulation and 50 terminal boxes sized for 55 F SA Temp    $ 493,148.00 Cost of High Velocity Static Regain sized ductwork with insulation and 50 terminal boxes sized for 50 F SA Temp    $ 430,562.00Electrical Connections -Chiller/Pumps/AHU $ 19,600.00Electrical Connections - ICE AC Chillerwith pumps/AHU $ 15,800.00Total $ 762,043.00 $ 705,625.00Difference - $56,418

Installed Cost: This second leg of our stool, “Installed Cost”, will focus on one premise: Partial ICE can be cheaper than a Traditional AC/Chiller-VAV system for many jobs: Trane does not have creditability on this subject. But you, our partners, do. That’s why we have asked Mike Wagner, Tessier’s Inc., to review an installed cost comparison between a Traditional AC/Chiller-VAV system and a Partial ICE system. Background, the definition of a Traditional AC Chiller-VAV System is: 10F Delta Tee, 55F SAT VAV, and Rectangular ductwork.Key to Mike’s comparison is taking advantage of :16F vs. 10F delta tee50F vs. 55F SAT VAVRound vs. Rectangular ductwork Installed Cost

Conventional VAV System at 12 F CHW/55°F SA with AHU, Air-Cooled Chiller (500 tons) Hybrid VAV System with 16°F CHW/50°F SA with AHU, AC chiller with integrated pump package item cost item cost 500 Ton AC chiller / pumps - installed $300,115 400 Ton AC chiller, 12 ICE Tanks, with integrated pumps - Installed $440,000 Utility Rebate for Ice Storage 275 kW x $ 300/kW ($82,500) 12 F CHW piping to AHU (80 LF) - 8" (913 GPM) $9,326 16 F CHW piping to AHU (80 LF) - 8" (770 GPM) $9,326 Cost of Rectangular Ductwork with insulation and 145 terminal boxes sized for 55 F SA Temp $299,340 Cost of High Velocity Static Regain sized ductwork with insulation and 145 terminal boxes sized for 55 F SA Temp $222,183 Deduct for High Velocity Static Regain sized ductwork with insulation and 145 terminal boxes sized for 50 F SA Temp ($8,605) Cost of 55 F VAV AHU (128,000 CFM) - Installed $401,390 Cost of 50 F VAV AHU (108,250 CFM) - Installed $369,790 Electrical Connections - Chiller/Pumps/AHU $75,300 Electrical Connections - ICE AC Chiller with pumps/AHU $67,017 Total $1,085,471 $1,017,211 Difference - $68,260 Difference with a 250 AC Chiller and 12 ICE tanks - $125,260

Installed Cost: This second leg of our stool, “Installed Cost”, will focus on one premise: Partial ICE can be cheaper than a Traditional AC/Chiller-VAV system for many jobs: Trane does not have creditability on this subject. But you, our partners, do. That’s why we have asked Rick Dustin, McKenney’s, to review an installed cost comparison between a Traditional AC/Chiller-VAV system and a Partial ICE system. Background, the definition of a Traditional AC Chiller-VAV System is: 10F Delta Tee, 55F SAT VAV, and Rectangular ductwork.Key to Rick’s comparison is taking advantage of :16F vs. 10F delta tee50F vs. 55F SAT VAVRound vs. Rectangular ductwork  Installed Cost

Yea But, what if it’s an existing building:

Two Existing Building Scenarios: Change out of same tonnage Situation where the load has grown Change out to Same Tonnage (300 tons) One choice is to go with a 300 ton AC ChillerA second choice is to go with a Smaller Chiller (160) + ICE tanks (6 tanks) + ICE Completion Module. This would cost about 30% to 50% more than the cost the 300 ton chiller. On a 300 ton job that’s roughly $45,000 to $70,000.In areas that have ICE Friendly Utility Rates, a typical payback on a job like this would be in the range of 2.5 to 3 years.

Two Existing Building Scenarios: What if, instead of 300 tons, the building has grown to 350 tons? Two 180 ton Chillers+ Upgrade the electrical power infrastructure.Replace the pipingReplace the pumpingOr…go with one 180 ton chiller and 9 ICE tanksUse the existing electrical power infrastructureUse the existing piping Use the existing pumpingChange out of same tonnageSituation where the load has grown

Existing Conventional Chilled Water System with 10 0 Delta T with Two Air Cooled RTAE 180 Chillers (350 Ton Load) New Ice System with One Air Cooled RTAE 180 (350 Ton Load) and Nine Calmac 1190C Ice Tanks Item Cost Item   Cost Chillers & Pumps Installed $ 388,104 Chillers, Ice Tanks & Pumps Installed   $348,104 10 0 F T Chilled Water Piping $ 433,625   No piping   $ 0 Electrical Connections Chillers & Pumps $ 27,602 No pumping $ 0 Total $ 849,331   $348,104 Situation where the load has grown Less Piping $415,706 $348,104 Difference - $501,227 Difference - $67,602

Existing Conventional Chilled Water System with 10 0 Delta T with One Air Cooled 225 (200 Ton Load)New Ice System with 16 0 Delta T with Two Air Cooled RTAE 180 (350 Ton Load) and Nine Calmac 1190C Ice Tanks Item     Cost Item     Cost Chillers & Pumps Installed   $219,825 Chillers, Ice Tanks & Pumps Installed   $472,104 10 0 F Delta T Chilled Water Piping   $374,930   16 0 F Delta T Chilled Water Piping   $392,602 55 0 F VAV AHU (76,000 CFM)   $172,410 48 0 F VAV AHU (92,000 CFM)   $208,432 Rectangular Ductwork with Insulation & 65 VAV Boxes at 55 0 F DA   $608,650 Spiral Ductwork with Insulation & 80 VAV Boxes at 48 0 F DA   $533,743 Electrical Connections Chillers & Pumps   $27,602 Electrical Connections Chillers & Pumps   $31,950 Total $ 1,403,417 Total $ 1,638,831 Upsizing a project with Thermal Storage Difference with 150 tons more $235,414

Installed Cost Summary: New Construction – Win with ICE Existing Building with an Increase in Tonnage – Win with ICEExisting Building Same Tonnage – Win with ICE Friendly Rates or if not, it simply may not be a good candidate for ICE

Making ICE Easy: Let me introduce our third and final leg of our workshop entitled “Making ICE Easy”. Making ICE Easy

Making ICE Easy! ICE Completion Module

Making ICE Easy: To talk about his experience with the ICE Completion Module let me introduce Raynor Smith, Comprehensive Solutions Account Executive, Brady Trane. Making ICE Easy

Summary: 1) What did you hear?2) Is there a specific job you should target? 3) How can we help you succeed? 4) Announcing one BIG way we will help!!

Workshop SurveyTell Us How We Did!Please go online now and fill out the survey. You will complete a survey for each workshop you attend. Link to survey http://irco.az1.qualtrics.com/SE/?SID=SV_9LauROO2dnkarPL Reminder Email Photos from event to: avsgroupevents@gmail.com

nICE Way 2 Close Business