South Dakota's innovative plan earns Administrator's Award
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| The South Dakota State Energy Team accepts Western's Adminstrator's Award at an April 25 ceremony in Pierre, S.D. From left, Tim Reisch, secretary, S.D. Department of Corrections; Robert Tad Perry, executive director, S.D. Board of Regents; Tracy Thorne, statewide energy manager; Doug Hellekson, Western UGP contracts and energy services manager; Steve Stoneback, acting commissioner, S.D. Bureau of Administration; and Greg Vaselaar, Western field representative. |
At an award ceremony at the South Dakota state capital April 25, Western recognized the South Dakota State Energy Team for developing a unique approach to planning and funding energy efficiency improvements.
The team received Western's Administrator's Award for Energy Efficiency and Renewable Energy, which commends Western customers for outstanding achievements and commitment in those areas. A coordinated multi-agency plan and a matching grant program that pools state monies enabled the team to invest more than $370,000 in energy infrastructure improvements over the last two years.
"South Dakota's streamlined energy plan for state facilities, coupled with the innovative way to fund energy projects, is what sets them apart," explained John Pankratz, energy services manager for Western's Upper Great Plains region.
"The program is succeeding with tight budget constraints and limited manpower because the state and its institutions are committed to success," remarked Western field representative Greg Vaselaar, in nominating South Dakota for the award.
The award honors three key areas of success:
Teamwork and streamlined planning process add up to success
The energy team's work resulted in state facilities reducing connected load by 700 kW, reducing total energy demand by 2.6 million kWh and saving more than $100,000 in annual energy costs. "The state institutions have really stepped up and made meaningful improvements across the board," said Statewide Energy Manager Tracy Thorne. "This award is a great tribute to their efforts."
The South Dakota State Energy Team consists of the Board of Regents, Department of Corrections, Department of Human Services and the Capitol Complex. Western worked with the state to develop a coordinated energy management plan and an innovative strategy for funding energy efficiency projects.
Thorne attributed the successful implementation of the plan to two factors. "None of these improvements would have happened without the buy-in from participating state agencies. All the institutions have been willing to do their share to make the program work," he noted.
A more streamlined approach to the planning process also played a role. "A few years ago, Western revised the requirements for filing energy conservation and efficiency plans to give customers more alternatives," he explained. "That flexibility enabled South Dakota to come up with a customized and very workable solution."
State institutions submit proposals for stand-alone projects designed to improve the facility's energy efficiency. The team evaluates the projects for potential savings, system needs and available dollars. "We compare proposals from all over the state," said Thorne, "so if one agency comes up with a new idea for controlling costs, we can share it with the others. That helps to ensure that the projects give the most 'bang for the buck.'"
Institutions pool funds to implement projects
Partial financing for approved projects comes from a funding pool that the institutions contribute to based on a very low fixed rate for each kWh they purchase from Western. The institutions provide the balance of the funding on the projects that are undertaken at their own facilities.
The plan initially targeted incandescent lighting because it is one of the least efficient technologies and one of the easiest to upgrade. At many institutions, lighting constitutes up to 40 percent of the load. To date, most of South Dakota's largest institutions have replaced nearly all incandescent lighting with more efficient alternatives. The state correctional system reduced energy costs with lighting retrofits, and several universities aggressively embraced the program. Northern State University has been free from incandescent lighting for the past two years.
Quantifying long-term improvements such as lighting upgrades is difficult due to the volatility of energy costs, Thorne pointed out. However, he added, "We do know that the energy projects we do today will only increase in savings value years down the road."
Robert Tad Perry, executive director for the South Dakota Board of Regents, noted that the benefits extend beyond energy and cost savings. "The end result is better lighting in our buildings for students, staff and faculty," he said. "The regents are committed to this effort and have identified matching funds to further leverage energy efficiencies undertaken by our six universities."
Western is not going to let that kind of commitment pass without recognition. South Dakota's state institutions have used ingenuity and cooperation to make the most of taxpayer dollars and our energy resources. And that deserves an award.
EDITOR'S NOTE: Check back in the next issue of the Energy Services Bulletin for another Administrator's Award.