# Presentation: 850847

## Strategic Energy Management:		     	A Three Tiered Approach

- Randy Gaines, C.E.O.E.
- White Lodging Services
*AH&MA Annual Conference and Lodging Expo*
*April 5, 2001*

## Portfolio

- 69 Hotels in eight states *(IN, IL, TX, FL, CO, MI, UT, KY)*
- 8,000+ Rooms
- Full Service and Limited Service         brands

## Energy Management Mission Statement

-    To increase profits, prevent pollution, and enhance the indoor environment for guests and employees through  cost-effective strategic energy management.

## Growth Since First Opening

- Increase of 4.5 MSF to date

**Number of Hotels  **

## Energy Management Strategy

*Tier I Utility Data Management*

*Tier II Commodity Purchasing*

*Tier III Asset Optimization*

## Energy Management Strategy

*Tier I Utility Data Management*

## Utility Data Management

- TEG
- Process
- Bills

- Electric
- Bills

- Gas
- Bills

- TEG
- Database

- Enter Usage &
- Cost Information

- Audit &
- Validate Bill

- Resolve Billing
- Discrepancies

- Performance
- Reports

## Utility Data Management

**Perform Detailed Analysis of Each Utility Account**
- Analyze utility rate, implement most inexpensive option
- Investigate all findings
- faulty meters
- missing water meters
- late fees
- double billing

## Utility Data Management

**Utility Errors and Faulty Equipment**
- Faulty natural gas meter identified - *recovered overpayment of $15,482!*
- Faulty water meter identified - *recovered overpayment of $32,540!*
- Hotel billed for two water accounts, 				 _one of which was neighboring hotel-_ 				*recovered overpayment of $28,230!*

## Utility Data Management

**Utility Errors and Faulty Equipment**
- Identified oversized water meter  - downsized water meter and implemented lower rate *resulting in                                            annual savings of $5,600!*
- Identified gradual upward trend in water                               consumption and leak in irrigation system                             camouflaged by clay soil - *secured utility                                    refund of $5,200 due to sewer exemption*
***These savings alone total over ******	******	******	******	******$100,000!***

## Energy Management Strategy

*Tier II Commodity Purchasing*

## Commodity Purchasing

- TEG

- Suppliers

*Monitor State Utility Commissions*
*Monitor Federal Legislation*
*Interact With Utilities To Keep Abreast of Pilot Programs*
*Interact with Suppliers To Keep Abreast of Pilot Programs*

- Electric
- Utility

- Natural Gas
- Utility

- Federal
- Regulators

- State Utility
- Commission

## Commodity Purchasing

* **Leverage Purchasing Power of White Lodging and TEG*

* **Monitor Energy Futures Market*

- Contract

* **Negotiate Contract Terms & Conditions*
*Process All Required Utility Forms & Contracts*

## Energy Management Strategy

*Tier III Asset Optimization*

## Asset Optimization

- Prioritize

- Validate

- Data management enables the effective prioritization and validation of asset optimization activities

- Utility Data Management

-  Quarterly Reports
-  Property Rankings
-  PAR and POR Analysis
-  Cost per Unit of Commodity

- Activities

-  High Impact Items
-  Daily Meter Readings
-  Peak Control
-  Equipment / Technology Changes
-  Occupancy Sensors
-  Ozone Laundry
-  Lighting
-  Energy-efficient Electronics
-  Energy-efficient Appliances

## 2001 Performance Metrics

- Electric

***Utility Comparison***

- Hotel X

- Hotel Y

## 2001 Performance Metrics

- Electric

- Natural Gas

***Utility Comparison***

- Hotel X

- Hotel Y

- Hotel X

- Hotel Y

## 2001 Performance Metrics

***Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis.***

**Usage**

## 2001 Performance Metrics

***Usage and cost will be analyzed on a per available room, per occupied room, and per square foot basis.***

**Usage**

**Cost**

## High Impact Items

- Lighting
- All lights off when unoccupied
- TCP 30 watt Bulb with 36 watt Ballast
- Exterior lighting, profiler system or photocell properly placed
- Sport courts and storage rooms, equipped with timers for auto-shutoff
- PTAC
- Units off when 55 - 85 F outside
- Settings for unoccupied rooms determined 			  by Maintenance Manager daily
- Filters cleaned quarterly
- Power wash coils every two years
- Associates do not pre-cool or pre-heat rooms

## High Impact Items

- Water Heater
- Remove all deposits from tank
- Burner maintained with bright blue flame
- Ensure no airflow is restricted
- Verify water temperature is 110 degrees at the furthest room
- Laundry
- Only full loads
- Done in off peak hours
- Keep drier lint screens clean - check after every load

## High Impact Items

- In Room Water Equipment
- 2.5 gallon per minute shower heads installed
- Faucet arreators installed, 1.5 gallon per minute
- 1.6 gallon per flush toilets installed when replacement occurs
- Dye test toilets annually to ensure no water leaks
- Evening Energy Walks
- Night Auditor
- Self Audit
- Energy Absolutes

## Daily Meter Readings

- Daily meter reading log
- Maintenance manager to complete each day
- Readings to be taken at same time each day
- Computerized monthly meter reading spreadsheet
- GM will have daily information transferred to spreadsheet
- Daily occupancy column will also be updated
- Monthly reporting
- Monthly spread sheets forwarded to Regional Directors of Housekeeping and Maintenance
- Copies will be kept at each property in the Life Safety Manual under new “Energy Usage” tab

## Energy Committees

- Line item on accountability meetings, once a month

- Discuss:
-    Findings of investigations and reports
-    Successes, Projections
-    Opportunities for employee involvement

## Peak Control Strategies

- Peak usage is 7:00 to 9:00 a.m., 6:00 to 10:00 p.m.
- Key areas to control peak
- No laundry before 9:00 am
- Ensure PTACS for all unoccupied rooms are shut off during peak times
- Common area thermostats are set back, upgrade to electronic thermostats for auto set back capability
- In kitchen area, shut off any unneeded electrical equipment during peak hours
- Educate staff and get them involved in peak control

## Demand Curve October, FFI

- Peak Day, Thursday October 5, 2000 determines bill for the entire month

- Average Weekday

- Average Weekend

## Usage and Demand, FFI

- October 00

- November 00

- December 00

- January 01

- February 01

## Accomplishments

- Implemented strategic energy management plan across portfolio
- Achieved annual savings of $100,000+ while increasing portfolio by 31%

- Leveraged energy performance efforts through energy alliances
- Involved staff in education, training, and implementation

## Challenges

- Maintaining energy savings during growth
- Ensuring communication between housekeeping and engineering staff

- Receiving buy-in from general manager and staff