In this issue
		Energy Services Bulletin home page
		Solar power keeps L.A.'s Metro running in black and green
		Hospitals discover energy efficiency good for ailing budgets
		Teamwork helps small-town utility keep big customer happy
		Nucor energy teams tune up program with DOE assessment
		Energy efficient pool keeps Hemingford residents cool
		Utilities help local grocery stores find energy savings
		Many options available to make airports greener
		Insulation plant participates in DOE energy assessment program
		Western helps municipal, Federal agencies purchase RECs
		Power partnerships produce renewables education events
		Topics from the Power Line: Restaurant could benefit from heat-pump water heating
		Energy shorts
		Technology spotlight: Calculating energy savings of indoor swimming pool measures
		Calendar of events

Teamwork helps small-town utility keep big customer happy

MRES Energy Services Technician Daryl Androli takes a reading on an HVAC system. MRES offers its members a variety of diagnostic services to help consumers gain control their energy use. (Photo by Missouri River Energy Services)

Small-town utilities fortunate enough to have large industrial customers feel a great responsibility to the local economy to keep those facilities running smoothly. Jackson, Minn., Municipal Utilities—1,800 meters—shouldered that tall order by partnering with Missouri River Energy Services to improve the efficiency of a farming equipment manufacturer's Jackson plant.

"The company is our largest employer so we want to do whatever we can to help it stay on top," said Jackson City Administrator Dean Albrecht.

Big energy user, big savings opportunity

The customer consumed almost 15,000 MW in 2005, or 31 percent of JMU's total electricity sales. Compressed air equipment throughout the factory makes up a large part of that load. The Compressed Air Challenge , a nonprofit alliance dedicated to improving the performance of this technology, considers compressed air industry's fourth utility.

"Even the best performing air compressors use a tremendous amount of energy," said MRES Energy Services Supervisor Joni Livingston. "And most systems have significant leaks. It can really drive up a plant's energy costs."

MRES co-sponsored four compressed air workshops with Western in 2003. Leak detection was only one item on a long agenda, Livingston recalled, but it was the one that interested Jim Lutz, Jackson's then-electric superintendent, the most. Lutz, who now works for MRES, had discussed ways to control energy costs with the company's facilities manager. "He told us that on Saturday mornings, when the plant was quiet, line workers could hear the leaks," said Lutz.

Quantifying leaks, savings potential

Since MRES already had its Compressed Air Leak Detection service in place, JMU offered to split the price of an inspection with the manufacturer. The MRES service uses ultrasonic equipment to identify the location of the leaks and quantify them by size. Using decibel level, pressure-per-square-inch and size of the compressor, the survey also calculates how much energy could be saved by making the recommended repairs.

The company could have received a free post-repair inspection from JMU, but took another route, instead. "We're doing what amounts to ‘annual check-ups,' " explained Livingston. "It's a good idea because the equipment gets so much use, new leaks spring up almost as soon as the old ones are repaired."

MRES performed inspections for the company in 2004 and 2005. The 2004 survey identified a potential savings of more than $25,000 or about 1 million kWh annually. After repairing those leaks, the plant was able to completely retire two 100-horsepower compressors. In 2005, the inspection found another $20,000 or 800,000 kWh in potential annual savings.

Utility benefits, too

In addition to helping a large key account, JMU enjoys its own fringe benefits from MRES Compressed Air Leak Detection services. The Minnesota Public Utilities Commission requires utilities to develop a biannual Conservation Improvement Plan which includes investing 1.5 percent of gross operating revenues on conservation, energy efficiency or load management. The money JMU spends on diagnostic surveys for large customers counts toward its CIP requirement.

As a Western customer, JMU must periodically submit an integrated resource plan to Western. The IRP documents JMU's use of demand side management techniques, new renewable resources and other programs to meet future electricity demands. The CIP counts toward that requirement under Western's minimum investment reporting rule, so the survey helps JMU comply with its Federal requirements, too.

Another reason for JMU to support leak detection is that it helps reduce the utility's coincident peak. "All industrial equipment runs during the coincident peak," said Livingston. "The more efficiently it runs, the less likely the utility will need to buy expensive supplementary power. That should convince any utility of the importance of helping commercial and industrial customers improve their efficiency."

Diverse services

Of course, there are different types of key accounts and each has different needs. In addition to the farming equipment manufacturer, JMU's other large accounts include a nursing home, hospital, elevator feed mill group, school district, community college, plastic extrusion factory and seed company. Through MRES, JMU can offer those customers a variety of services designed to reduce energy use.

Infrared inspections and other types of ultrasonic surveys for motor bearings and steam traps can ensure that energy-intensive equipment is in good operating condition. Member utilities and consumers can also call MRES's Questline with their own questions.

MRES has a customer-owned generation program that helps its members manage peaks. Consumers who install backup generators to power their operations can receive a monthly payment from MRES to use the generator during peak demand times. MRES also pays the owner for the fuel when the generator is used. "It's like distributed generation, except that the generators can't run parallel to the utility," said Livingston.

Although no JMU customers are currently enrolled in that program, the utility appreciates all of the services MRES offers to large key accounts in Jackson. "Especially in a small town, those customers are critical to the health of the economy," said Albrecht. "Businesses go where they can get the best customer service, and our partnership with Missouri River allows Jackson Municipal utility to deliver it."