M&V Plan and Savings Calculation Methods Outline

v\. 1.0, Nov. 2004

\[Note: All content called for in this outline is required (if
applicable), except items noted as optional.\]

# 1. Executive Summary / M&V Overview & Proposed Savings Calculations

## 1.1 Proposed Annual Savings Overview

Table 1. Proposed Annual Savings Overview

\[Include all applicable fuels / commodities for project, e.g., electric
energy, electric demand, natural gas, fuel oil, coal, water, etc.\]

<table>
<colgroup>
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 10%" />
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<col style="width: 10%" />
<col style="width: 9%" />
</colgroup>
<tbody>
<tr class="odd">
<td>ECM</td>
<td>Total energy savings (MBtu/yr)</td>
<td>Electric energy savings (kWh/yr)</td>
<td>Electric demand savings (kW/yr)*</td>
<td>Natural gas savings<br />
(MBtu/yr)</td>
<td>Water savings (gallons/yr)</td>
<td>Other energy savings (MBtu/yr)</td>
<td>Total energy &amp; water cost savings, Year 1 ($/yr)</td>
<td>Other energy-related O&amp;M cost savings, Year 1 ($/yr)</td>
<td>Total cost savings, Year 1 ($/yr)</td>
</tr>
<tr class="even">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Total savings</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="10"></td>
</tr>
<tr class="even">
<td colspan="10"><strong>First Year Guaranteed Cost Savings:
$</strong></td>
</tr>
<tr class="odd">
<td colspan="10"><h4 id="notes" class="unnumbered"><u>Notes</u></h4>
<p>*Annual electric demand savings (kW/yr) is the sum of the monthly
demand savings.</p>
<h4 id="mbtu106-btu." class="unnumbered">MBtu=10<sup>6</sup> Btu.</h4>
<p>If energy is reported in units other than MBtu, provide a conversion
factor to MBtu for link to delivery order schedules (e.g., 0.003413
MBtu/kWh).</p></td>
</tr>
</tbody>
</table>

### 1.1.1 Site Use and Savings Overview (Optional)

17. Fill in Table 1A or provide equivalent information.

Table 1A. Site Use and Savings Overview (Optional)

+---------------+---------+-------+---+-----+----+---+--------+-------+
|               | Total   | Ele   | E |     | N  |   | Water  | Other |
|               | energy  | ctric | l |     | at |   | (gallo | e     |
|               | (M      | e     | e |     | ur |   | ns/yr) | nergy |
|               | Btu/yr) | nergy | c |     | al |   |        | (MBt  |
|               |         | (kW   | t |     | g  |   |        | u/yr) |
|               |         | h/yr) | r |     | as |   |        |       |
|               |         |       | i |     | (  |   |        |       |
|               |         |       | c |     | MB |   |        |       |
|               |         |       | d |     | tu |   |        |       |
|               |         |       | e |     | /y |   |        |       |
|               |         |       | m |     | r) |   |        |       |
|               |         |       | a |     |    |   |        |       |
|               |         |       | n |     |    |   |        |       |
|               |         |       | d |     |    |   |        |       |
|               |         |       | ( |     |    |   |        |       |
|               |         |       | k |     |    |   |        |       |
|               |         |       | W |     |    |   |        |       |
|               |         |       | / |     |    |   |        |       |
|               |         |       | y |     |    |   |        |       |
|               |         |       | r |     |    |   |        |       |
|               |         |       | ) |     |    |   |        |       |
|               |         |       | \ |     |    |   |        |       |
|               |         |       | * |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| Total         |         |       |   |     |    |   |        |       |
| proposed      |         |       |   |     |    |   |        |       |
| project       |         |       |   |     |    |   |        |       |
| savings       |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| Usage for     |         |       |   |     |    |   |        |       |
| entire        |         |       |   |     |    |   |        |       |
| site\*\*      |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| \% Total site |         |       |   |     |    |   |        |       |
| usage saved   |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
|               |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| Project       |         |       |   |     |    |   |        |       |
| square        |         |       |   |     |    |   |        |       |
| footage (KSF) |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| Total site    |         |       |   |     |    |   |        |       |
| square        |         |       |   |     |    |   |        |       |
| footage (KSF) |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| \% Total site |         |       |   |     |    |   |        |       |
| area affected |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
|               |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+
| [Notes        |         |       |   |     |    |   |        |       |
| ]{.underline} |         |       |   |     |    |   |        |       |
|               |         |       |   |     |    |   |        |       |
| MBtu=10^6^    |         |       |   |     |    |   |        |       |
| Btu           |         |       |   |     |    |   |        |       |
|               |         |       |   |     |    |   |        |       |
| \*Annual      |         |       |   |     |    |   |        |       |
| electric      |         |       |   |     |    |   |        |       |
| demand        |         |       |   |     |    |   |        |       |
| savings       |         |       |   |     |    |   |        |       |
| (kW/yr) is    |         |       |   |     |    |   |        |       |
| the sum of    |         |       |   |     |    |   |        |       |
| the monthly   |         |       |   |     |    |   |        |       |
| demand        |         |       |   |     |    |   |        |       |
| savings.      |         |       |   |     |    |   |        |       |
|               |         |       |   |     |    |   |        |       |
| \*\*Define    |         |       |   |     |    |   |        |       |
| usage period. |         |       |   |     |    |   |        |       |
|               |         |       |   |     |    |   |        |       |
| KSF = 10^3^   |         |       |   |     |    |   |        |       |
| square feet.  |         |       |   |     |    |   |        |       |
|               |         |       |   |     |    |   |        |       |
| If energy is  |         |       |   |     |    |   |        |       |
| reported in   |         |       |   |     |    |   |        |       |
| units other   |         |       |   |     |    |   |        |       |
| than MBtu,    |         |       |   |     |    |   |        |       |
| provide a     |         |       |   |     |    |   |        |       |
| conversion    |         |       |   |     |    |   |        |       |
| factor to     |         |       |   |     |    |   |        |       |
| MBtu for link |         |       |   |     |    |   |        |       |
| to delivery   |         |       |   |     |    |   |        |       |
| order         |         |       |   |     |    |   |        |       |
| schedules     |         |       |   |     |    |   |        |       |
| (e.g.,        |         |       |   |     |    |   |        |       |
| 0.003413      |         |       |   |     |    |   |        |       |
| MBtu/kWh).    |         |       |   |     |    |   |        |       |
+---------------+---------+-------+---+-----+----+---+--------+-------+

## 1.2 M&V Plan Summary

Table 2. M&V Plan Summary

  ---------- ----------------- ---------- --------------------------------
  ECM.       ECM Description   M&V Option Summary of M&V Plan
                               Used\*     

                                          
  ---------- ----------------- ---------- --------------------------------

\* M&V options include A, B, C, and D. Guidelines include *M&V
Guidelines: Measurement & Verification for Federal Energy Projects,*
Version 2.*2*
(www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm); and
*International Performance Measurement & Verification Protocol (IPMVP),*
Volume I, March 2002 (www.ipmvp.org).

# 2. Whole Project Data / Global Assumptions

## 2.1 Risk & Responsibility 

### 2.1.1 Summarize allocation of responsibility for key items related to M&V. 

18. Reference location of Risk & Responsibility Matrix[^1] (if
    required).

## 2.2 Energy, Water, and Operations & Maintenance (O&M) Rate Data

### 2.2.1 Detail baseline energy and water rates.

### 2.2.2 Provide performance period rate adjustment factors for energy, water, and O&M cost savings, if used.

## 2.3 Schedule & Reporting for Verification Activities 

### 2.3.1 Define requirements for witnessing of measurements during:

-   Baseline development

-   Post-installation verification activities

-   Performance period

### 2.3.2 Define schedule of verification reporting activities. 

Table 3. Schedule of Verification Reporting Activities

+----------------------+---------------------------+-------------------+
| Item                 | ^a^Recommended time of    | ^a^Owner's review |
|                      | submission                | and acceptance    |
|                      |                           | period            |
+----------------------+---------------------------+-------------------+
| Post-Installation    | 30 to 60 days after       | > 30 days         |
| Report               | acceptance                |                   |
+----------------------+---------------------------+-------------------+
| Annual Report        | 30 to 60 days after       | > 30 days         |
|                      | annual performance period |                   |
+----------------------+---------------------------+-------------------+

> ^a^Times are recommended based on industry practice; modify as needed.

### 2.3.3 Define content and format of reports: 

19. Post-installation report.

> Use Post-Installation Report Outline[^2].

20. Annual M&V reports.

> Use Annual Report Outline^1^.

21. Interval M&V reports

> Develop report outline if needed.

## 2.4 Operations, Preventive Maintenance, Repair, and Replacement Reporting Requirements

### 2.4.1 Define Government and ESCO reporting requirements:

22. Summarize key verification activities and reporting responsibilities
    of government and ESCO on operations, preventive maintenance,
    repair, and replacement items from details in ECM specific M&V
    Plans.

23. Define content of reports and reporting schedule.

## 2.5 Construction Period Savings

### 2.5.1 Provide overview of how construction period savings will be calculated, if applicable.

## 2.6 Status of Rebates 

-   Include if applicable.

### 2.6.1 Provide a summary of the source of any third-party rebates or incentives provided on this project.

### 2.6.2 Provide status of any third-party rebates or incentives.

## 2.7 Dispute Resolution

### 2.7.1 Describe plan for resolving disputes regarding issues such as baseline, baseline adjustment, energy savings calculation, and the use of periodic measurements. 

# 3. ECM \[Name / #\] M&V Plan and Savings Calculation Methods

-   Develop section for each ECM.

## 3.1 Overview of ECM, M&V Plan, and Savings Calculation for ECM 

### 3.1.1 Summarize the scope of work, location, and how cost savings are generated.

-   Describe source of all savings including energy, water, O&M, and
    other (if applicable).

### 3.1.2 Specify the M&V guideline and option used[^3]. 

### 3.1.3 Provide an overview of M&V Activities for ECM.

24. Explain intent of M&V plan, including what is being verified.

### 3.1.4 Provide an overview of savings calculations methods for ECM.

25. Provide a general description of analysis methods used for savings
    calculations.

## 3.2 Energy and Water Baseline Development

### 3.2.1 Describe in general terms how the baseline for this ECM is defined.

### 3.2.2 Describe variables affecting baseline energy or water use.

26. Include variables such as weather, operating hours, set point
    changes, etc.

27. Describe how each variable will be quantified, i.e. measurements,
    monitoring, assumptions, manufacturer data, maintenance logs,
    engineering resources, etc.

### 3.2.3 Define key system performance factors characterizing the baseline conditions.

28. Include factors such as comfort conditions, lighting intensities,
    temperature set points, etc.

### 3.2.4 Define requirements for government witnessing of measurements if different than whole project data requirements included in Section 2.3.

### 3.2.5 Provide details of baseline data collected, including:

29. Parameters monitored/measured

30. Details of equipment monitored, i.e. location, type, model,
    quantity, etc.

31. Sampling plan, including details of usage groups and sample sizes

32. Duration, frequency, interval, and seasonal or other requirements of
    measurements

33. Personnel, dates, and times of measurements

34. Proof of government witnessing of measurements (if required)

35. Monitoring equipment used

36. Installation requirements for monitoring equipments (test plug for
    temperature sensors, straight pipe for flow measurement, etc.)

37. Certification of calibration / calibration procedures followed

38. Expected accuracy of measurements/monitoring equipment

39. Quality control procedures used

40. Form of data (.xls, .cvs, etc.)

41. Results of measurements (attach appendix and electronic forma as
    necessary)

42. Completed data collection forms, if used

### 3.2.6 Provide details of baseline data analysis performed, including:

43. Analysis using results of measurements

44. Weather normalized regressions

45. Weather data used and source of data

## 3.3 Proposed Energy & Water Savings Calculations and Methodology

### 3.3.1 Provide detailed description of analysis methodology used.

46. Describe any data manipulation or analysis that was conducted prior
    to applying savings calculations.

### 3.3.2 Detail all assumptions and sources of data, including all stipulated values used in calculations.

### 3.3.3 Include equations and technical details of all calculations made. (Use appendix and electronic format as necessary.) Include description of data format (headings, units, etc.).

### 3.3.4 Details of any savings or baseline adjustments that may be required.

### 3.3.5 Detail energy and water rates used to calculate cost savings.

47. Provide performance period energy and water rate adjustment factors,
    if different from in section 2.2.2.

### 3.3.6 Detail proposed annual savings for this energy conservation measure for performance period.

48. Summarize information in Table 4.

## 3.4 Operations and Maintenance and Other Cost Savings

### 3.4.1 Provide justification for O&M cost savings, if applicable.

49. Describe how savings are generated

50. Detail cost savings calculations.

51. Provide performance period O&M cost savings adjustment factors, if
    different from in section 2.2.2.

### 3.4.2 Provide justification for other cost savings, if applicable.

52. Describe how savings are generated.

53. Detail cost savings calculations.

54. Provide performance period adjustment factors, if different from in
    section 2.2.2.

## 3.5 Proposed Annual Savings For ECM

Table 4. Proposed Annual Savings For ECM

\[Include all applicable fuels / commodities for project, e.g., electric
energy, electric demand, natural gas, fuel oil, coal, water, etc.\]

<table style="width:100%;">
<colgroup>
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
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<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td></td>
<td>Total energy use (MBtu/yr)</td>
<td>Electric energy use (kWh/yr)</td>
<td>Electric energy cost, Year 1 ($/yr)</td>
<td>Electric demand* (kW/yr)</td>
<td>Electric demand cost, Year 1 ($/yr)</td>
<td>Natural gas use (MBtu/yr)*</td>
<td>Natural gas cost, Year 1 ($/yr)</td>
<td>Water use (gallons/yr)</td>
<td>Water cost, Year 1 ($/yr)</td>
<td>Other energy use (MBtu/yr)</td>
<td>Other energy cost, Year 1 ($/yr)</td>
<td>Other energy-related O&amp;M costs, Year 1 ($/yr)</td>
<td>Total costs, Year 1 ($/yr)</td>
</tr>
<tr class="even">
<td>Baseline use</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Post-installation use</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Savings</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="13"><h4 id="notes-1" class="unnumbered"><u>Notes</u></h4>
<p>*Annual electric demand savings (kW/yr) is the sum of the monthly
demand savings.</p>
<h4 id="mbtu-106-btu." class="unnumbered">MBtu = 10<sup>6</sup>
Btu.</h4>
<p>If energy is reported in units other than MBtu, provide a conversion
factor to MBtu for link to delivery order schedules (e.g., 0.003413
MBtu/kWh).</p></td>
<td></td>
</tr>
</tbody>
</table>

## 3.6 Post-Installation M&V Activities

### 3.6.1 Describe the intent of post-installation verification activities, including what will be verified.

### 3.6.2 Describe variables affecting post-installation energy or water use.

55. Include variables such as weather, operating hours, set point
    changes, etc.

56. Describe how each variable will be quantified, i.e. measurements,
    monitoring, assumptions, manufacturer data, maintenance logs,
    engineering resources, etc.

### 3.6.3 Define key system performance factors characterizing the post-installation conditions such as lighting intensities, temperature set points, etc.

### 3.6.4 Define requirements for government witnessing of measurements if different than whole project data requirements included in Section 2.3.

### 3.6.5 Provide details of post-installation data to be collected, including:

57. Parameters to be monitored

58. Details of equipment to be monitored (location, type, model,
    quantity, etc.)

59. Sampling plan, including details of usage groups and sample sizes

60. Duration, frequency, interval, and seasonal or other requirements of
    measurements

61. Monitoring equipment to be used

62. Installation requirements for monitoring equipment

63. Calibration requirements / procedures

64. Expected accuracy of measurements/monitoring equipment

65. Quality control procedures to be used

66. Form of data to be collected (.xls, .cvs, etc.)

67. Sample data collection forms (optional)

### 3.6.6 Detail data analysis to be performed.

## 3.7 Performance Period Verification Activities

### 3.7.1 Describe variables affecting performance period energy or water use.

68. Include variables such as weather, operating hours, set point
    changes, etc.

69. Describe how each variable will be quantified, i.e. measurements,
    monitoring, assumptions, manufacturer data, maintenance logs,
    engineering resources, etc.

### 3.7.2 Define key system performance factors characterizing the performance period conditions.

70. Include factors such as comfort conditions, lighting intensities,
    temperature set points, etc.

### 3.7.3 Describe the intent of performance period verification activities -- what will be verified.

### 3.7.4 Provide detailed schedule of performance period verification activities and inspections.

### 3.7.5 Define requirements for government witnessing of measurements if different than whole project data requirements included in Section 2.3.

### 3.7.6 Provide details of performance period data to be collected, including:

71. Parameters to be monitored

72. Details of equipment to be monitored (location, type, model,
    quantity, etc.)

73. Sampling plan, including details of usage groups and sample sizes

74. Duration, frequency, interval, and seasonal or other requirements of
    measurements

75. Monitoring equipment to be used

76. Installation requirements for monitoring equipment

77. Calibration requirements/procedures

78. Expected accuracy of measurements/monitoring equipment

79. Quality control procedures to be used

80. Form of data to be collected (.xls, .cvs, etc.)

81. Sample data collection forms (optional)

### 3.7.7 Detail data analysis to be performed.

### 3.7.8 Define operations, preventive maintenance, repair, and replacement reporting requirements.

82. Detail verification activities and reporting responsibilities of
    government and ESCO on operations, preventive maintenance, repair,
    and replacement items.

83. Define contents of report and reporting schedule, if different than
    in global section 2.4.

[^1]: ^1^ The Risk/Responsibility Matrix is Attachment 5 of the Super
    ESPC IDIQ contract and is also available on FEMP's web site at
    www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm.

[^2]: Electronic copies of *Post-Installation Report Outline* and
    *Annual Report Outline* are available at www.
    eere.energy.gov/femp/financing/superespcs_mvresources.cfm.

[^3]: ^1^ Guidelines include *M&V Guidelines: Measurement & Verification
    for Federal Energy Projects,* Version 2.2
    *(*www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm);
    and *International Performance Measurement & Verification Protocol
    (IPMVP)*, Volume I, March 2002 (www.ipmvp.org). M&V options include
    A, B, C, and D.