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

Utilities help local grocery stores find energy savings

Most utilities, no matter how small, have at least one grocery store as a commercial customer. The stores—often independently owned or part of a small chain—are important to the local economy, and Western customers are doing their part to keep these businesses profitable. 

G&T provides technical assistance

For a generation and transmission cooperative, that may mean providing technical support and coordination to member utilities serving retail loads. That was the role Kansas Electric Power Cooperative, Inc. played for Steve's Thriftway in Valley Falls, Kan.

Steve and Monica Mackison bought the small grocery about 25 miles north of Topeka seven years ago. "It was an old store, and we knew if we wanted to stay in business, we would have to upgrade the equipment," Steve Mackison said.

Al Smith, Jefferson County economic development director, asked the Mackisons if they had heard of the USDA Rural Development Program. The program makes zero-interest loans to utility programs and third-party recipients to finance projects that promote economic development and job creation in rural areas. Farmers, ranchers and rural small businesses can also receive grants for projects to reduce energy costs through USDA's Renewable Energy Systems and Energy Efficiency Improvements Program.

The Mackisons contacted their utility, Leavenworth-Jefferson Electric Cooperative, about applying for USDA funds. KEPCO helped the co-op pull together the various funding sources. "KEPCO doesn't work directly with consumers, but we help our members provide services for their members," explained Business Development Coordinator Loren Medley, who worked on the Mackisons' project. "There is a lot involved in applying for Rural Development funding, so applicants need plenty of support to get through the process." 

The paperwork was the hard part, Mackison agreed, "but the utility was very helpful."

State, local consultants help

Finding an auditor to perform the energy audit necessary to determine the store's eligibility wasn't easy either. "Ours was the first store in Kansas to be audited," recalled Mackison.

The Kansas Corporation Commission and Kansas State University assisted the Mackisons with a list of licensed engineers qualified to perform a commercial energy audit. The Mackisons hired an auditor from Topeka whose experience included several hospitals. 

Steve's Thriftway easily qualified for USDA's program, receiving a Rural Economic Development Loan of $234,000 and a USDA energy efficiency grant for $29,000. A bank loan of $87,000 made up the balance of the $350,000 project.

The Mackisons hired a local building contractor when it came time to make the improvements. "He walked us through process and suggested changes that would cut our energy use," Mackison said.

Upgrades prove cost-effective

Recommendations included upgrading the lighting from the old fluorescent ballasts to T-8 fixtures and replacing old refrigerator units. "Our lighting improved if anything, and we doubled our refrigerator space," the store owner declared. "And the electric bills went down."

A trash compactor was the last piece of performance-enhancing equipment the Mackisons installed. "It's a small store, and we didn't think we could find a model that would fit in the space," he said.

Not only did it fit, the unit paid for itself in a year. The Mackisons had been collecting cardboard boxes and paying $300 to $350 monthly to have them hauled away. "Now, the disposal company pays us for the compacted boxes and paper," Mackison said. "That offsets the cost of the rest of our trash bill."

The loan required a study documenting savings from replacing old equipment with energy efficient models, which the USDA consultant completed. Equipment for the project cost $138,000, installation cost $62,000, the contractor received $60,000 and electrical work to support the equipment cost $90,000.

Mackison said the payback varied depending on the equipment. The lights and the trash compactor paid for themselves in less than two years. The payback period for the larger systems runs between three to 11 years, as USDA loan guidelines require.

Municipal utility offers rebate

A complete makeover isn't the only way to get energy savings—sometimes, targeting one particular system can make a big difference, as the seven-store chain Hugo's Family Marketplace proved. 

Take, for instance, anti-sweat door heaters which prevent condensation from forming on refrigerator cases in supermarkets. "During the 1970s' energy crisis, we turned off half the in-store lights and shut off the door heaters at night," recalled Hugo's Operations Director Doug Driscoll, who was a store manager at the time. "Those two measures alone cut our energy use 33 percent, so we knew that door heaters were a big user."

Driscoll was interested when a vendor, Super Market Energy Technologies, made a presentation to the store on a digital control system for the door heaters.  Hugo's agreed to test the units in its East Grand Forks store, and contacted the city Water and Light Department to see if any incentives were available. 

Utilities General Manager Dan Boyce heard the presentation and agreed that the system was worth a try. "With energy prices going up, we have more customers of all sizes asking about energy efficiency. We do what we can to help them control costs."

Refrigeration controls pay off

The municipal utility provided half the funding for the cost of installing the Door Miser on 35 refrigerator cases. Without controls, the heaters run constantly to keep the glass case doors clear. The Door Miser cycles the heater on and off based on the moisture level in the case. According to the manufacturer, the Door Miser can cut the store's energy use by up to 15 percent. 

Driscoll noted that the actual savings were around 13 percent. Boyce added that several factors may have affected the results. "The year they installed the units, we had an unusually hot summer," he noted. "There may also be a demand component to the savings calculations, since Hugo's is on our large commercial rate."

The rate, available to three-phase customers using 100,000 kWh or more per month, is based on their 15-minute integrated-kW demand occurring during the city's monthly system peak demand. "The savings from the Door Miser were modest, but 2006 was another hot, humid summer. Hugo's savings continued while the rest of the customers in its class experienced much higher average use over the prior year," said Boyce.

The results were good enough for Hugo's to roll out the technology to its others stores. "We can see the energy savings, so we are satisfied that the technology is good for the bottom line," said Driscoll.

Other measures considered

The operations director prefers to test equipment performance in one store before installing it throughout the chain. This summer, the East Grand Forks Hugo's launched a test on another Supermarket Energy Technologies product.

The Night Shield was installed on Hugo's five-deck, open cold meat and dairy cases. The covers, which resemble window blinds, are pulled down over open cases to keep the cold air in when the store is closed. In the morning, employees simply roll up the covers, out of customers' sight. "They are a lot more convenient than the plastic curtains that hang over the entrance of walk-in freezers," observed Store Manager Jeff Westrem. 

 Only after evaluating the energy savings from the East Grand Forks test will Driscoll consider installing the Night Shield in other Hugo's stores. "We've also been looking at a capacitor for compressors that is supposed to eliminate power spiking on electric motors," added Driscoll. "Of course, we would test it first."

Reduced demand benefits utilities

Measures that help large customers reduce energy use have an impact on revenue, especially for smaller utilities. However, Boyce pointed out a number of sound reasons for supporting energy efficiency. "It's better to help a commercial customer control operating costs than to lose the load entirely," he said. "Also, many of our residential customers work at those businesses."

Municipal utilities like East Grand Forks pay hefty charges on purchased power, too. "Energy is money, so ultimately it benefits us to keep our demand down," Boyce said.

Medley agreed that encouraging wise energy use is good for G&Ts, as well. "Helping consumers use less energy helps us control the cost of electricity that members pay," he said. "Simply put, it's good for everybody."