COMPANY INTRO. PowerCore Engineering

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PowerCore Engineering COMPANY INTRO PowerCore is a Power Distribution System Engineering Company and a turnkey Automated Systems Integrator based in London Ontario. We specialize in Power Systems Engineering and Design, Engineered Drive Systems, PQ solutions, Power Management and Energy & Demand Control Automation systems. PowerCore is a team of skilled Electrical Engineering specialist with experience in leading edge technology solutions that enable our clients to optimize their power distribution system assets and generate sustainable results in Energy Cost Reduction We deliver services and products to commercial, institutional and industrial establishments and have the capacity to provide solutions ranging from limited scope to very complex projects

Electrical Energy WHAT MAKES UP THE COST? Peak Demand charges Peak kw Draw Consumed Energy charges Electricity kwh consumed kw Demand ( Rate or power flow ) is typically calculated as the facility s draw averaged over 15 min window (SD: Sliding Demand ). The SD value changes every 15 minutes, and is typically synchronized on top of the hour The maximum 15min kw Demand throughout a month will be selected as a Peak Demand ( Billing Demand ) The kw charges for the entire month are derived from one 15min Peak Demand throughout the month. There are number of charges related to the kw on the electrical bill. kwh is the amount of Electrical Energy used in the facility. Energy is usually tied to the requirements of the bldg operation, processes, machinery, facilities req s etc. The kwh is the kw demand integrated ( i.e. totalized) over the course of the entire month. The kwh charges on the electrical bill are derived from the monthly Energy Total There are number of charges related to the kwh on the electrical bill.

kw Demand Peak Demand Calculation EXAMPLE 15 min kw Average Calculation 1600 1400 1200 1000 800 600 kw : R/T kw: 15 min avg Demand 400 200 0 0 5 10 15 20 25 30 Time [min] kw Demand calculated as an average value of Real Time kw over 15 minute period NOTE_1: Instantaneous peaks have negligible effect on the 15min Demand NOTE_2: a term Sliding Demand is used where the kw demand is calculated across 15 min window that continuously slides along the Time axis in defined increments ( e.g. 15 or 5 minute jumps )

kw / kva Power Factor [%] kwh, kw & kva Demand DAILY PROFILE EXAMPLE 1600 1400 1200 1000 800 kw, kva and PF 100 90 80 70 60 50 600 400 200 0 Area under the Red kw line = kwh 40 30 20 10 0 Real Power: kw Apparent Power: kva Power Factor Power Factor : kw/ KVA => a measure of Real Power vs. the Reactive Power ; the closer to one the better => 100% PF means no reactive energy is drawn NOTE 1: Only PF at peak demand is taken into consideration for utility billing purposes NOTE 2: PF of less than 90% results in low PF penalty Load Factor : Total kwh / (kwpeak x # of Days X 24 Hours ) => a measure of flatness of the demand curve the closer to one the better => 100% LF means perfectly flat demand NOTE: Low load factor results in higher kw Peak Demand Charges.

What makes up Electrical Bill ELECTRICITY CHARGES COMPONENTS - EXAMPLE Fixed kw based kwh based Electricity Charge Global Adjustment Charge Distributon Fixed $150.00 Distributon Variable Transmission Connection Charge Transmission Network Charge Regulatory Charges Debt Retirement Charge Trfm Discount Interval Meter Charge $5.50 1.6995 $/kw 2.3902 $/kw 2.9550 $/kw -0.6000 $/kw 2.058 /kwh 8.718 /kwh 0.560 /kwh 0.700 /kwh

Energy Efficiency Strategies HOW CAN ELECTRICITY COST BE REDUCED? Reduce Peak Demand => decrease kw charges Improve Power Factor Reduce the Peak Demand Control Monthly Peak Demand through implementation of Peak Demand Control system Demand Response Program (DR3 - SaveOnEnergy ) through implementation of Peak Demand Control Reduce Consumed Energy => decrease kwh charges: Increase efficiency Reduce losses Shift energy consumption Some of the Strategies: Lighting retrofits VFD retrofits Equipment efficiency improvements

R/T WAGES System Load Demand Power Quality Abnormal Events Power Monitoring and Energy Management Systems WHAT S THE PURPOSE? Real Time Monitoring Energy / Usage Reporting WAGES Cost Energy Usage trends Energy usage Transparency Cost Allocation Cost-per-occupant (commercial & institutional) or Cost-per-unit (Industrial) Baseline for Energy efficiency retrofit programs (e.g. SaveOnEnergy) Utility Billing Verification Shared Infrastructure

Power Monitoring and Energy Management Systems Real Time Monitoring Facility Managers, Engineers and Operators WHO BENEFITS? Energy/Usage Reporting Cost Centers & Energy Managers Real Time Data Dashboard Overview (via local or remote PC or Mobile App) Instant information on loading and capacity. Alarms and Warnings Feedback on Demand Control performance (for Peak Demand control or DR3 Events) Remote System Control Logs and Historic Data Analysis loading and power quality trends Analyze disturbances Root cause Analysis for abnormal events affecting operation or production Energy usage Reports & Logs Energy Usage and Cost Reports in form of Profile Charts Usage Tables Cost-per-unit analysis, cost allocation Utility billing verification Baseline & Usage data logs to monitor performance following energy saving retrofits Energy usage transparency to drive conservation

Power Monitoring System Successful Implementation Strategy

EXAMPLE: Simple Power Monitoring System ALARM: V L-L Unbalance 9:15AM August 13 th, 2013 Phase A-B -> 8.4% Over Voltage

EXAMPLE: Full Scale PM Application kva Profile Trending Transient and Sag/Swell CBEMA Curve Transient Waveform Capture in Time and Frequency Domain

EXAMPLE: Energy Reporting Load Profile Trending

Fully Integrated Commercial/Institutional Power Monitoring System

Utility Monitoring System Mobile Application Real-Time Responsive Interactive Dashboard Daily Consumption Comprehensive R/T Location Details System Alerts

Demand Control Basics Demand Control is a process of understanding where, when and why high cost kw demand spikes occur and taking measures to reduce them. The goal is to reduce the kw Peak Demand and thereby: Reducing Billable kw Demand charges which can make up to 40% of the total Electricity bill Allow optimum participation in Ontario s Demand Response Program (DR3) for maximum sustainable payoff. Demand Control can be problematic to manage manually in facilities with multiple equipment types and process demands.

kw Automated Demand Control EXAMPLE Establishing Demand Control Setpoints : 5,000 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 February 2013 Max Day-time kw Demand: 4,456 Max Day-time kw Setpoint: 4,050 Time of Day

Demand Control Strategy Curtailment Action is taken within the last 2 minutes of the 15m interval to keep average kw Demand within limits Starting with the next 15 m interval, the system will allow sizeable peaks well over the setpoint, while monitoring the average kw Demand Average kw Demand for this 15m interval trends higher than 850kW Setpoint => Curtailment action will need to be taken. As the average for this 15m interval settles well within the 850kW Setpoint, no curtailment action is taken.

Demand Control Challenges Demand Control Solution must address these concerns: Load Shedding can be risky (or non-feasible) Manual Load Control may be unreliable (or non-feasible) Ability to determine exact curtailment needs Intuitive End User control Adaptive setpoints Tap into existing Control and Automation infrastructure Prioritize loads Provide Tools for performance Analysis Achieve savings large enough to justify the investment

Demand Control Targets Controllable Loads Large Fan Loads Climate Control Compressors & Pumps Conveyors & Hoppers Automated Demand Control System

Intelligent Operator Interface

Post-mortem Performance Analysis

Demand Control Impact Strategy Impact of kw Demand Reduction Monthly Billable Peak Demand Reduction DR3 Program Participation Global Adjustment Class A - PDF Reduction $ / kw Savings $6 /kw /month $38 /kw /year $63 /kw /year Pros - No Contract required - Payoff is immediate - Open to Class A & B customers - Contract can be tailored - No Contract required Cons - Payoff is low in many instances - Contract is required - Payoff is several months away - Payoff is a year away Notes If the load Factor is close to 1.0, Payoff may not justify the cost of Demand Control Measures. Proper analysis should be done to determine the optimum level of DR commitment. Every kw counts DR 3 Assumes 5 DR Events a year, OPA DR3 Program Option C (Call Hour Window: 12:30 PM - 6:30 PM) An effective and responsive Peak Demand Control System is crucial to maximize the Demand Reduction impact while maintaining Facility Priorities!

Additional INFO

Global Adjustment Strategies Reducing the Peak Demand Factor the $ IMPACT: $ /kw If the customer is able to reduce the demand during the Coincidental Peaks, It will directly impact the PDF for next year Example: Base Period 2012 Customer ABC - Reducing Demand: Customer ABC reduces the demand during the 5 Coincidental Peaks by 100 kw in each instance to: 5.9, 6.9, 7.9, 6.9 & 4.9 [MW] (Combined demand reduction of 500 kw) The Provincial Load during 5 Coincidental Peaks was: 24.46, 23.8, 23.87, 23.81, 23.47 [GW] ** Customer s reduced PDF will be: (5.9,6.9,7.9,6.9,4.9) (24.46, 23.8, 23.87, 23.81, 23.47) 1000 0.0272172% The IESO Set GA cost for October 2013: $ 634.3M *** Customer s Reduced GA Cost for Oct 2013 will be: 0.0272172 % x $634.3M = $172,611.17 Resulting in monthly savings of : $ 2,655 Projected yearly savings: $ 31,866 $31,866 500kW Savings per kw reduced: $ 63.73/kW / year