Azusa incentive program caters to C&I customer needs

Heppner Hardwoods, Inc. took advantage of Azusa Light & Water's Business Energy Partnership Program to install a more efficient dust recovery system. (Photo by Steve Castro, Eagle Photography)

Designing an energy-efficiency program for a large commercial and industrial (C&I) customer base takes a lot of creativity, and by that standard, Azusa Light & Water's Business Energy Partnership Program is a work of art.

Heating and cooling, appliances and electronics and lighting—most of the typical residential load—are only the beginning for a large C&I account. Depending on the business, a customer may have large refrigeration units, motors, compressors or high-temperature processing equipment to name only a few big energy-users. And then there are the buildings: warehouses, garages, cold-storage units, glassed-in showrooms, data-processing centers. All pose unique challenges to business owners trying to control operating costs, and to the utilities that want to help them.

Located in eastern Los Angeles County, Azusa Light and Water has plenty of experience meeting those challenges. About 13 percent of the municipal utility's load is C&I, said Public Benefits Manager Paul Reid. "We've learned that an incentive program has to be flexible to get C&I customers to participate," he noted. "There is no 'one size fits all' approach for business accounts."

Customized program has many C&I fans

In the spirit of choice, Azusa offers C&I customers a number of ways to improve the efficiency of their operations. Free commercial energy audits are available to established businesses. The New Business Retrofit Program provides rebates to new businesses installing energy-efficient equipment.

The Business Energy Partnership Program is the most popular, however.  It is not new, but the program's current form is Azusa's response to California's energy crisis. New state requirements to meet specific renewable energy standards and soaring energy costs have only increased customer interest. "I have business customers who call me every year to find out what kind of budget I have for energy efficiency rebates," said Reid.

The secret of success, Reid explained, is that Azusa pays rebates for any cost-effective energy-efficiency improvement. Most of the projects have targeted lighting and HVAC, but a few customers replaced industrial-type equipment such as single-speed reciprocating compressors.

The program's emphasis is on cost-effective upgrades—the net lifecycle savings from the project must be greater than the dollar amount invested in the improvement. "Otherwise, it's not an improvement," said Reid. "State regulations are getting more focused on results."

Replacing large system pays off

And the results from upgrading manufacturing and processing equipment can be impressive, Reid noted, pointing to a retrofit performed by large key account Heppner Hardwood, Inc.

As the first step in the application process, Azusa conducted an energy audit at the milling facility. The audit identified the dust collection system on multiple milling machines as a primary energy user. The system used three constant-speed, 100-horsepower suction blower units. The auditor recommended replacing the constant-speed blowers with variable-frequency drives and adding a state-of-the-art computerized blast gate control system.

Heppner secured two bids for similar, but not identical dust recovery systems, and submitted its application to Azusa. After the utility reviewed the proposal, Heppner selected the Ecogate Advanced Computerized Dust Collection System. By optimizing air velocity, the system lowers energy costs, reduces stress on the motors and eliminates amperage peaks during motor starts. It is also quieter than the system it replaced, allows for future plant expansion and more than satisfies OSHA standards and air quality regulations. 

A different, but related efficiency improvement involved moving the air compressor closer to the dust recovery system. This simple change decreased the distance compressed air had to travel from the compressor to the equipment and reduced the chance for leakage. "Compressed air is a major source of waste within a typical industrial facility," said Reid. "Even a relatively small leak can cost hundreds of dollars per year in wasted energy costs."

Adjusted for production, the new dust collection system should save Heppner an estimated 44 percent on its annual electricity bill. After the incentive payment—which varies from project to project—the company's payback period is slightly less than 50 months. The average savings for customer projects is 20 percent, with a payback period of about three years.  

Partnership good for community, too

The goal of the Business Energy Partnership is to encourage industrial energy efficiency, but the program is also about building relationships in the community.

During a site visit at Heppner Hardwoods, Reid noted that a large amount of scrap hardwood wound up in the recycling dumpster. At his suggestion, the milling company began donating the waste wood to the local high school's shop class. "We keep our eyes opened for opportunities like the wood donation," said Reid. "It's really rewarding to make connections that strengthen community spirit."

The program has an economic development aspect to it, as well. Increasing energy efficiency helps local businesses control costs and continue to provide affordable services to their customers. A municipal utility that actively engages its C&I customers in managing energy consumption helps to keep businesses in Azusa, and makes the city attractive to new businesses. The utility partnership was instrumental in helping Azusa to earn second place as "Most Economical City to do Business in Los Angeles County."

Of course, the community-minded utility helps its residential customers improve efficiency, too. Azusa provides homeowners with free online home energy audits and home-in-home audits that look at energy use within a residence. Rebates are also available for weatherization and for Energy Star refrigerators and air conditioners.

The municipal utility will continue to keep its sights set on increasing industrial efficiency, however, Reid acknowledged. "Replacing a 100-hp motor with an efficient variable-speed motor saves a lot of energy," he pointed out. "It takes a lot of compact fluorescent lights to match that."

Resources

Azusa Light & Water

Heppner Hardwood, Inc.

Ecogate

People

Paul Reid

Related articles

< PREVIOUS — NEXT >