Power and Energy Savings. KVAR Energy Savings, Inc.

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1 Power and Energy Savings KVAR Energy Savings, Inc.

World Energy Crisis Next to the Economy Energy is the biggest concern to most citizens safe, reliable service that is affordable, conserves natural

National leaders are looking for innovative ways to reduce energy consumption and carbon footprint, while developing more efficient methods of power

Fuel and electrical generation costs are also set to increase substantially.

2 World Energy Crisis Next to the Economy Energy is the biggest concern to most citizens safe, reliable service that is affordable, conserves natural resources, and protects the environment. National leaders are looking for innovative ways to reduce energy consumption and carbon footprint, while developing more efficient methods of power distribution & utilization. Electricity demand will increase considerably over next several years, while growth in capacity is precarious at best. Fuel and electrical generation costs are also set to increase substantially. Intensive energy conservation efforts at largest Industrial and Commercial clients could save up to 40% of power on the grid the equivalent of building two multi-billion dollar power plants! Energy savings projects could minimize or eliminate blackouts, reduce electric costs and increase worker/employer productivity a benefit to both the Power Company and Businesses!

KVAR s Energy Savings at Power Plants There is tremendous potential for energy efficiency savings within

generate within the facility itself for the operation of numerous large and small motors, water pumps and

If this internal plant consumption were cut in half to 10%, then a $1B/year operating power plant has the

3 KVAR s Energy Savings at Power Plants There is tremendous potential for energy efficiency savings within large power plant facilities, given that power plants can utilize up to 20% of the electricity they generate within the facility itself for the operation of numerous large and small motors, water pumps and cooling fans. If this internal plant consumption were cut in half to 10%, then a $1B/year operating power plant has the potential to save over $10M/year by using KVAR! Not only that, but every kva of energy saved inside the power plant now becomes available kva to sell to power company customers on the electric distribution grid!

KVAR in Manufacturing, Mines & Agriculture

business operating expenses by significantly

irrigation and water pumps, conveyor belt

4 KVAR in Manufacturing, Mines & Agriculture KVAR has lowered industrial and commercial business operating expenses by significantly reducing the energy consumption of irrigation and water pumps, conveyor belt and grain mill motors (for produce and mineral processing), and chillers and compressors (used for meat refrigeration and cold storage applications).

KVAR s Positive Impact on the Environment Let s take, for example, the installation of 1,000 KVAR Energy Controllers at selected municipal

" Assuming 800kWh average usage per household per month, with at least 10% energy saving from KVAR EC, the result of such a project would have

To put such a project into perspective, installing 10,000 KVAR ECs (about $5M) would have the affect of restoring over 800MVA of electricity on

5 KVAR s Positive Impact on the Environment Let s take, for example, the installation of 1,000 KVAR Energy Controllers at selected municipal residential housing locations as a "pilot project." Assuming 800kWh average usage per household per month, with at least 10% energy saving from KVAR EC, the result of such a project would have the effect of restoring 80kWh per household or over 80MVA back on the local power grid. To put such a project into perspective, installing 10,000 KVAR ECs (about $5M) would have the affect of restoring over 800MVA of electricity on the nation grid. Construction costs for an 800MVA coal-fired plant would be well over $1B, with expenses to run the plant ranging up to $10M per month. The price for sixteen 50MVA diesel generators would be about $900M, and around $5.3M per month for fuel, maintenance and other operational expenses.

Your Electricity Bill ~25% Lighting, TVs,

Heating, etc ~50% Motors, Pumps and Fans!

hotels, supermarkets, restaurants, industrial

6 Your Electricity Bill ~25% Lighting, TVs, Computers, Stereo, Electronics ~25% Stove, Heating, etc ~50% Motors, Pumps and Fans! For example: $200k electric bill ~$100k for inductive motor loads! For manufacturing facilities, factories, hotels, supermarkets, restaurants, industrial facilities, etc --- motors & pumps could account for up to 75%+ of your electricity costs!

Optimization Device" Industrial, Commercial and Residential

7 KVAR Energy Savings, Inc. In business since 1992, products are Made in the USA. Manufactures and Installs a U.S. patented and UL listed Energy Controller "Power Factor Optimization Device" Industrial, Commercial and Residential applications 600-volts to 110V AC, 50Hz or 60Hz. Single-phase or Three-phase 100 s of modular/scalar pre-engineered models/sizes.

solution. Installed at electric service entry panel or directly at control panel of heavy motor loads.

8 KVAR Energy Savings, Inc. KVAR Energy Controller is a custom sized capacitor bank. KVAR Sizing Units: analyzes motor in real-time for capacitance optimization not a one size fits all solution. Installed at electric service entry panel or directly at control panel of heavy motor loads. Reduces energy consumption of motors, air conditioners, condensers, chillers, air handlers, refrigerators, fans, blowers, and pumps.

KVAR Energy Savings, Inc. KVAR Energy Controller supplies reactive power to inductive motor loads. Reduces "kilo-watt-per-hour" energy consumption between 8% to 25%.

9 KVAR Energy Savings, Inc. KVAR Energy Controller supplies reactive power to inductive motor loads. Reduces "kilo-watt-per-hour" energy consumption between 8% to 25%. Return-on-investment less than one-year to 24-months. Payback period reduced when combined with solar, wind, lighting and other renewable and energy efficiency projects.

KVAR Energy Savings, Inc. KVAR Energy Controller: Residential units guaranteed 12-yrs.

More than 75,000 industrial and commercial devices sold internationally.

10 KVAR Energy Savings, Inc. KVAR Energy Controller: Residential units guaranteed 12-yrs. Commercial and Industrial units guaranteed 5-yrs. Over 300,000 residential units sold. More than 75,000 industrial and commercial devices sold internationally. KVAR has been business for over 20-years now four times as long as the warranty on our commercial units (5-years)! Do not risk the safety of your home or business or compromise the integrity of your building s electrical system by installing a cheap, poor quality, sub-standard imposter!

11 The Motor Load s Power Triangle KVAR EC lowers your power bill by reducing the current (amps) required by inductive motor loads Less Apparent Power Results in lower kva and kwh Lowered Reactive Power Reduced by KVAR EC Power Factor = Cos (changed at the load) Real/Working Power at the Load is Not Changed (kw) NOTE: Harmonics must remain below 22.5% for current, under 5% for voltage

The Electric Meter s Power Triangle Power Factor = Active Power Apparent Power Reactive Power Supplied & Absorbed by KVAR EC at 60/50 cycles/second Lowered Reactive Power Reduced by KVAR EC Less

12 The Electric Meter s Power Triangle Power Factor = Active Power Apparent Power Reactive Power Supplied & Absorbed by KVAR EC at 60/50 cycles/second Lowered Reactive Power Reduced by KVAR EC Less Apparent Power Results in lower kva and kwh Real/Working Power (kw) Reduced 6-25% at the Meter Power Factor = Cos (changed) NOTE: kw energy savings achieved through reduction in I 2 R losses between KVAR unit & electric meter, and current transfer inefficiencies within the bldg s electrical network, such as lose wire connections, corroded breaker contact surfaces, disconnect switches and fuses.

motor loads Before KVAR EC Power Factor.

99 Optimizes Power Factor Reduces Amperage draw Reduces waste

Controller In accordance with Article 460 of the National

installs next to your motor on the load side of your motor s

13 Where does the KVAR EC fit in? Your electric meter Your motor control center Your inductive motor loads Before KVAR EC Power Factor.75 After KVAR EC Power Factor.99 Optimizes Power Factor Reduces Amperage draw Reduces waste heat Reduces kwh consumed Stabilizes Voltage KVAR Energy Controller In accordance with Article 460 of the National Electrical Code (NEC), the KVAR Energy Controller (KVAR EC ) installs next to your motor on the load side of your motor s contactor switch, allowing your KVAR EC to switch on and off with your motor loads, resulting in the maximum possible level of energy savings benefits.

14 Why not just use VFDs? Variable Frequency Drives (VFDs) are only applicable for very specific situations in reducing motor power consumption; such as maintaining water pressure in tower high-rise buildings with multi-level stories, or for ventilation system air volume dampener adjustment. With VFDs there is reduced energy efficiency (~10%) from the onset due to conversion of electricity from AC to DC, along with noise and harmonics distortion introduced into the entire electrical network. If the facility is open to the environment or even minimally exposed to the elements, the digital control panels of VFDs can easily corrode and cease to operate the motor drive. VFD running at 80% or less capacity is not saving any energy!

U.S. Department of Energy Fact Sheet Reducing Power Factor Cost Low power factor is expensive, an inefficient use of power, and reduces electrical network distribution capacity.

15 U.S. Department of Energy Fact Sheet Reducing Power Factor Cost Low power factor is expensive, an inefficient use of power, and reduces electrical network distribution capacity. Benefits of increasing power factor: Reduced utility bill. Increased electrical system capacity. More effective motor performance. Strategies for correcting power factor Install capacitors in your AC circuit to decrease the magnitude of reactive power and stabilizes line voltage.

NASA Summary of KVAR Energy Controller 10hp compressor motor tested in Nov 1996.

16 NASA Summary of KVAR Energy Controller 10hp compressor motor tested in Nov Real power (kw) draw by motor decreased from 5.63kW to 5.14kW This corresponds to a power reduction of 8.7%

17 University of Greenwich Report Study examined 18 induction motors. Motors tested were 380V to 415V 3-phase units ranging 7.5 to 250kW Engineers identified average energy savings of 7.8% were achievable as a result of Power Factor Correction. This compares with a figure of only 3.3% that is typically calculated as solely reactive I 2 R losses.

18 Kuwait Oil Company Study Condenser pump at a chilled water plant: 225V, 3-phase, 45kW rating with a load capacity of 73.1amps KVAR EC sized and installed on pump, increasing Power Factor from 0.87 to 0.99 Current draw was reduced by 10.4% Apparent power (kva) reduced 10.5% 8.1% kw energy consumption reduction Study s conclusion: Power Factor increase close to unity (1.0) results in energy saving.

19 University of Santiago, Chilé Department of Electrical Engineering 7.5kW, 10kW and 15kW three-phase motors tested by USACH DIE. Testing discovered KVAR EC was considerably more effective in reducing energy consumption than new expensive "energy efficient" motors of equal rating. No change in motor horsepower output capacity. Improvement in motor performance measures; reduced heat, increased motor torque, voltage stabilization.

20 KVAR Industrial Clients Airports, Train & Subway Stations Hospitals, Medical & Dental Clinics Water & Sewage Treatment Plants Military Bases & Gov t Admin Bldgs Universities, Colleges, Schools, Community Centers Office Buildings, Banks, Fueling & Gas Stations Hotels, Apartment Buildings, Mosques & Churches

21 Schneider Valley Farms Dairy (SVFD) Williamsport, Pennsylvania KVAR EC installed on 50 high run-time motors kwh/cooling Degree Day (CDD) 1000 kwh lower Reduced kwh usage of over 8% Company Founders: Edward C. and Catherine Schneider

22 Wastewater Treatment Plant, Salisbury, Massachusetts KVAR ECs installed on four blowers that alternate running 24/7 and four effluent pumps. In 1st month of operations, client saw 18% reduction in electricity usage compared to the same month, a year prior. Return-on-Investment: Less than 6-months.

Wastewater Treatment Plant, New Lenox, Illinois KVAR ECs installed on three 125HP Aeration Blower motors The KVAR EC units replaced 28- year old

23 Wastewater Treatment Plant, New Lenox, Illinois KVAR ECs installed on three 125HP Aeration Blower motors The KVAR EC units replaced 28- year old non-functioning capacitors. Client realized significant energy savings in kwh with a 0.97 power factor. Return-on-Investment: Less than 10-months.

24 Village of DeForest, Wisconsin, U.S.A. Well Pump #3 (100HP)

56%, the estimated level of savings was exceeded, with an increase in kw

25 Village of DeForest, Wisconsin, U.S.A. Well Pump #3 (100HP) Conclusion: With an increase in water flow/day of 3.56%, the estimated level of savings was exceeded, with an increase in kw efficiency of 11.3%. In other words, the amount of energy (kwh) required to pump one thousand gallons of water decreased by 11.3%.

KVAR EC installed on one 600 hp motor, raised PF from 0.50 to 0.

26 New England Recycling (NER) Taunton, Massachusetts Recycling facility comprising 24 motors on conveyers and machines that crush materials 16 hours a day. KVAR EC installed on one 600 hp motor, raised PF from 0.50 to 0.99 and dropped current from 245 to 78 amps. Facility averaging 19% reduction on monthly electric bills. Return-on-Investment: Less than 12-months.

Grocery & Convenience Stores, Laundry & Dry Cleaners Restaurants, Fast-Food Franchises, Sports

27 KVAR Commercial Clients Food & Pharmaceutical Manufacturers and Distributors Distilleries, Beverage Producers & Beer Brewing Factories Frozen & Cold Food Storage Warehouses, Ice Plants & Dairies Grocery & Convenience Stores, Laundry & Dry Cleaners Restaurants, Fast-Food Franchises, Sports Arenas Department Stores, Retail Shops & Malls Farms, Agricultural Cultivation & Irrigation, Wood & Paper Plants

Post-installation, elimination of the PF penalty saved Jacobson over $13,000 per year. 8.

28 Jacobson Company Cold Food Storage Facility, AZ Goals were to: (1) Increase Power Factor (PF); and (2) Reduce kwh (kilo-watt hour) consumption. Pre-installation, facility charged low power factor penalty of $1100 per month. Post-installation, elimination of the PF penalty saved Jacobson over $13,000 per year. 8.6% kwh reduction saved over $1,500 per month Annual energy savings total of $31,000 per year, with project payback of less than 12 months.

U.S. Foods Cold Food Storage Facility Corona, CA PROJECT

Average kwh Used in 2011 After KVAR Installation: 4,043,359

2% Annual 2011 Monetary Savings $32,279 KVAR Installation

29 U.S. Foods Cold Food Storage Facility Corona, CA PROJECT SUMMARY Average kwh Used from 2009 to 2010: 4,438,219 Average kwh Used in 2011 After KVAR Installation: 4,043,359 Annual 2011 kwh Savings 394,860 Percent kw Savings 9.2% Annual 2011 Monetary Savings $32,279 KVAR Installation Cost: $31,500 Return-on-Investment (ROI) Period 11.7 Months ROI Rate 102%

KVAR EC deployment aimed at reducing energy consumption of 40 air

30 Charmer Sunbelt Group Beer and Wine Distributor State-of-the-art beverage warehousing and distribution center. KVAR EC deployment aimed at reducing energy consumption of 40 air conditioning, heating, refrigeration and conveyor motors. Facility maintains 10% sustained kwh energy savings.

31 Lucca Freezer and Cold Storage Vineland, New Jersey 200,000-sq.ft. freezer warehouse facility. Two KVAR ECs installed on two 350hp and two 250hp compressors motors. Initial 0.62 Power Factor optimized to 0.96 PF with a reduction in current draw from 232-amps to 150! Sustained 12% kwh energy saved.

32 Bernie Little Distributing Ocala, Florida Beer warehouse and distribution center. Owners pleased with KVAR Energy Controllers since electric bills have been reduced by 7.6% over the same time the year before.

Indian Ridge Country Club Palm Desert, CA Indian Ridge Clubhouse-Fitness Center KVAR EC Cost Savings Energy

$117,553 $106,896 $10,657 $8,863.24 Annual % Energy Cost Savings 9.

After KVAR EC - 2011 Annual kwh Savings with KVAR EC 874,289 822,279 52,010 Annual kwh Percentage Difference

33 Indian Ridge Country Club Palm Desert, CA Indian Ridge Clubhouse-Fitness Center KVAR EC Cost Savings Energy Cost Before Energy Cost After Annualized KVAR EC KVAR EC KVAR EC Cost Savings Installation Cost $117,553 $106,896 $10,657 $8, Annual % Energy Cost Savings 9.07% Indian Ridge Clubhouse-Fitness Center KVAR EC Energy Savings kwh Usage Before KVAR EC kwh Usage After KVAR EC Annual kwh Savings with KVAR EC 874, ,279 52,010 Annual kwh Percentage Difference 6% These energy and cost savings were realized, even with the country club increasing their hours of operation from 7:am 5:00pm to 7:am 10:00pm 7-days per week.

9% monthly cost reduction exceeding targeted goals.

34 Omni Hotel San Diego, CA June 2012 electric bill $51,576 compared to $56,730 in June $5,154 monthly energy savings realized! 9% monthly cost reduction exceeding targeted goals. Even with 16% increase in occupancy from 12,058 in June 2011 to 14,191 in June 2012 KVAR EC still saved Omni $3.54 in energy costs per occupant!

35 Marriott Hotel, Gaslamp Quarter Downtown San Diego, CA $6,119 energy savings in Aug2010, compared to Aug % electric utility cost reduction! $8,422 energy savings in July2010, compared to July % electric utility cost reduction!

Doubletree Hotel Downtown San Diego $23,300

36 Doubletree Hotel Downtown San Diego $23,300 average monthly electric bill in 2010 compared to $25,900 in % average monthly cost reduction exceeding targeted goals. Doubletree SD also experienced a 6,312 increase in room night occupancy (+ 7.5% increase) in 2010!

37 Radisson Hotel Whittier, CA Energy savings from Aug 2010 to Oct 2010 $48,220! This corresponds to a 21% energy reduction. ROI less than 12-months!

Oklahoma Tower Oklahoma City, Oklahoma By improving power factor on large motors used to cool and re-circulate air throughout the 31-story commercial building, managers saved 13% to 18% on monthly

38 Oklahoma Tower Oklahoma City, Oklahoma By improving power factor on large motors used to cool and re-circulate air throughout the 31-story commercial building, managers saved 13% to 18% on monthly electricity costs! Director of Operations, said the trial outperformed expectations as This project delivered more than double the anticipated kilo-watt-hour savings. These gains in efficiency provide a direct benefit to our tenants, because they help us to keep operating expenses low.

Optimized Power Factor significantly reduced current (I 2 R) losses, and lowered line currents losses throughout the building

39 Why KVAR? KVAR Energy Controller results in more efficient performance of motors due to voltage stabilization (no line voltage drops). Optimized Power Factor significantly reduced current (I 2 R) losses, and lowered line currents losses throughout the building s entire electrical distribution system => thus lowering your energy bill! Less energy is wasted as heat and windage losses. Results in cooler running and longer-lasting motors. Motors require less maintenance and reduced magnetic core fatigue.

40 KVAR Energy Savings, Inc. Sales, Technical or Engineering Questions: Theron "TC" Colbert, P.E., MSEE Commander, U.S. Navy (retired) Vice President of Business Operations 741 Orange Avenue Daytona Beach, Florida, U.S.A Office: Mobile:

Kvar Energy Savings, Inc.

Kvar Energy Savings, Inc. presents KVAR Energy Controller (EC) It is a Desired & a Simple Solution for RISING ENERGY COSTS Everyone wants to lower their energy bills The U.S. Government is mandated to