6.

1
Example M&V Plan

Example Measurement & Verification Plan

for a

Super ESPC Project

February 2007

Federal Energy Management Program (FEMP)

Office of Energy Efficiency and Renewable Energy

U.S. Department of Energy

This document was developed for the U.S. Department of Energy’s Federal Energy

Management Program by Nexant, Inc., and Lawrence Berkeley National Laboratory. This

document is posted on FEMP’s web site at

www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm.

Comments should be sent to [email protected].

 6.1
Example M&V Plan

Contents

1. EXECUTIVE SUMMARY / M&V OVERVIEW AND PROPOSED SAVINGS

CALCULATIONS ................................................................................................... 2

1.1 ROPOSED ANNUAL SAVINGS OVERVIEW ............................................................. 2

P
1.2 M&V PLAN SUMMARY ......................................................................................... 3

2. WHOLE PROJECT DATA / GLOBAL ASSUMPTIONS .................................. 4

2.1 ISK AND RESPONSIBILITY ................................................................................... 4

R
2.2 ENERGY, WATER, AND OPERATIONS AND MAINTENANCE (O&M) RATE DATA ... 4

2.3 SCHEDULE AND REPORTING FOR VERIFICATION ACTIVITIES ................................ 5

2.4 OPERATIONS, PREVENTIVE MAINTENANCE, REPAIR, AND REPLACEMENT

REPORTING REQUIREMENTS ................................................................................. 5

2.5 CONSTRUCTION PERIOD SAVINGS ......................................................................... 5

2.6 STATUS OF REBATES ............................................................................................. 5

2.7 DISPUTE RESOLUTION ........................................................................................... 6

3. ECM 1 — LIGHTING M&V PLAN AND SAVINGS CALCULATION

METHODS ............................................................................................................... 7

3.1 VERVIEW OF ECM, M&V PLAN, AND SAVINGS CALCULATION ......................... 7

O
3.2 ENERGY AND WATER BASELINE DEVELOPMENT .................................................. 8

3.2.1 Fixture Power ....................................................................................... 8

3.2.2 Usage Group Operating Hours ............................................................ 8

3.2.3 Sample Sizes .......................................................................................... 9

3.2.4 Results ................................................................................................. 11

3.3 PROPOSED ENERGY AND WATER SAVINGS CALCULATIONS AND

METHODOLOGY .................................................................................................. 12

3.4 OPERATIONS AND MAINTENANCE AND OTHER COST SAVINGS ........................... 13

3.5 PROPOSED ANNUAL SAVINGS FOR ECM............................................................. 14

3.6 POST-INSTALLATION M&V ACTIVITIES.............................................................. 14

3.7 PERFORMANCE-PERIOD VERIFICATION ACTIVITIES ............................................ 14

4. ECM 2 — EMCS M&V PLAN AND SAVINGS CALCULATION

METHODS ............................................................................................................. 15

4.1 O
VERVIEW OF ECM, M&V PLAN, AND SAVINGS CALCULATION ....................... 15

4.2 ENERGY AND WATER BASELINE DEVELOPMENT ................................................ 16

4.3 PROPOSED ENERGY AND WATER SAVINGS CALCULATIONS AND METHODOLOGY

............................................................................................................................ 17

4.4 OPERATIONS AND MAINTENANCE AND OTHER COST SAVINGS ........................... 18

4.5 PROPOSED ANNUAL SAVINGS FOR ECM............................................................. 18

4.6 POST-INSTALLATION M&V ACTIVITIES.............................................................. 18

4.7 PERFORMANCE-PERIOD VERIFICATION ACTIVITIES ............................................ 19

2/07 page i

 6.1
Example M&V Plan

5. ECM 3 — CHILLER REPLACEMENT M&V PLAN AND SAVINGS

CALCULATION METHODS .............................................................................. 21

5.1 OVERVIEW OF ECM, M&V PLAN, AND SAVINGS CALCULATIONS...................... 21

5.2 NERGY AND WATER BASELINE DEVELOPMENT ................................................ 23

E
5.3 PROPOSED ENERGY AND WATER SAVINGS CALCULATIONS AND

METHODOLOGY .................................................................................................. 25

5.4 OPERATIONS AND MAINTENANCE AND OTHER COST SAVINGS ........................... 26

5.5 PROPOSED ANNUAL SAVINGS FOR ECM............................................................. 26

5.6 POST-INSTALLATION M&V ACTIVITIES.............................................................. 26

5.7 PERFORMANCE-PERIOD VERIFICATION ACTIVITIES ............................................ 26

2/07 page ii
 6.1
Example M&V Plan

Background
This document is a comprehensive M&V Plan for a fictitious energy performance
contract project. This document is intended to serve the following purposes:
• Provide examples of M&V Plans for common ECMs that comply with the

requirements set forth in the FEMP M&V guidelines, Version 2.21, and

• Provide and promote use of a consistent format for M&V Plans for Federal ESPC
projects, as detailed by the M&V Plan Outline2.
This document contains M&V Plans for three measures, using Options A and B, at a
fictitious federal office building. The ECMs include lighting, energy management and
control system (EMCS) installation, and a chiller retrofit:
• Lighting Efficiency Measure – Option A, FEMP Method LE-A-02
• Energy Management Control System Installation – Option B, FEMP Method
GVL-B-01
• Chiller Replacement Measure – Option B, FEMP Method CH-B-02

1
FEMP M&V Guideline V 2.2 available at
http://www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm
2
M&V Plan Outline for FEMP Super ESPC projects is available at
http://www.eere.energy.gov/femp/financing/superespcs_mvresources.cfm

2/07 page iii

 6.1
Example M&V Plan

Measurement and Verification Plan

for the

Piscataway Federal Center

Provided in fulfillment of Super ESPC requirements,

Delivery Order Number FAKE34621

By

ABC Engineering, Inc.

April 1, 2003

Project contact information

Arnold Buchstaubner Richard Handy

M&V Specialist Sr. Engineer
ABC Engineering, Inc. Dept. General Services
24630 Corporate Road, Suite 3 Federal Center Building
Boulder CO, 80302 1800 Highrise Road
Phone (303) 988-1254 Piscataway NJ, 10012
Fax (303) 988-1202 Phone: (201) 455-3667
Email: [email protected] Fax: (201) 455-3439
Email: [email protected]

2/07 page 1
 6.1
Example M&V Plan

1. EXECUTIVE SUMMARY / M&V OVERVIEW AND

PROPOSED SAVINGS CALCULATIONS

1.1 Proposed Annual Savings Overview

The goal of this project is to achieve energy savings through upgrades to the building’s
lighting, improvements to the central plant chiller, and the addition of an energy
management control system (EMCS). This project will also result in improved lighting
levels and more reliable HVAC and central plant operation, thereby reducing
maintenance costs. Chiller operations and maintenance savings of $12,000 is due to the
replacement of a service contract with an ABC service contract as part of this Delivery
Order. The $12,000 represents a net reduction in annual service expenses. Savings from
the energy conservation measures (ECMs) included in the project are summarized in
Table 1-1.

Table 1-1: Proposed Annual Savings Summary

Total
energy & O&M
Electric Electric Natural Total water cost cost Total cost
energy demand gas Water energy savings, savings, savings,
savings savings savings savings savings Year 1 Year 1 Year 1
ECM (kWh/yr) (kW-yr)* (therms) (gallons/yr) (MBtu/yr) ($/yr) ($/yr) ($/yr)
Lighting 186,406 690 0 0 636 $15,339 $0 $15,339
EMCS 899,252 0 0 0 3,069 $23,841 $0 $23,841
Chiller 194,119 502 0 0 663 $14,230 $12,000 $26,230
Total 1,321,032 1,191 0 0 4,368 $53,410 $12,000 $65,410

Utility usage for site during the period from January to December 2002 iscompared to
project savings in Table 1.2.

2/07 page 2
 6.1
Example M&V Plan

Table 1-2: Site Use and Savings Overview

Electric Electric Natural Other
Water Total energy
energy demand gas energy
(kGal/yr) (MBtu/yr)
(kWh/yr) (kW-yr)* (MBtu/yr) (MBtu/yr)
Total proposed
1,321,032 1,191 0 NA NA 4,509
project savings
Usage for
9,195,271 31,890 0 NA NA 31,383
entire site
% Total site
14.4% 3.7% 14.4%
usage saved

Project square
footage (KSF) 664
Total site
square footage
(KSF) 664
% Total site
area affected 100%

Notes
MBtu = 106 Btu = 293 kWh
*Annual electric demand savings (kW/yr) is the sum of the monthly demand savings.
KSF = 103 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. 0.004313 MBtu / kWh).

1.2 M&V Plan Summary

ABC Engineering will perform measurement and verification (M&V) activities for each
of the three ECMs in order to estimate the actual cost savings achieved in the project. The
M&V plans for the three ECMs are described in Sections 3 through 5 of this document,
and are summarized in Table 1-3.
Table 1-3: M&V Plan Summary
M&V option
ECM ECM description Summary of M&V plan
used*
Lighting Retrofit existing lighting LE-A-02 Measured fixture wattages; short-term
fixtures w/ T-8 lamps, monitoring of operating hours.
elec. ballasts
EMCS Install EMCS for GVL-B-01 Instantaneous power measurements;
automated control of stipulated baseline operating hours,
HVAC systems monitored post-installation operating hours.
Chiller Replace chiller CH-B-02 Baseline and post-installation kW metering.
* M&V options cited are from FEMP M&V Guidelines: Measurement & Verification for Federal Energy
Projects, Version 2.

2/07 page 3
 6.1
Example M&V Plan

2. WHOLE PROJECT DATA / GLOBAL ASSUMPTIONS

2.1 Risk and Responsibility

The Risk and Responsibility Matrix is located in the Appendix of this document.

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

Data
Energy costs used to determine the value of the energy savings are based on the rates that
the facility is paying as of January 2004. The energy rates will be escalated to account
both for inflation and for changes to the real price of energy as anticipated by NIST3. In
order to remain conservative without unnecessarily lengthening the term of the contract,
it was decided to use the Census Region 1 fuel price indices with an assumed 3%
inflation rate. The overall inflation rate over 15 years is 2.9%. If energy prices increase at
a greater rate, then the agency will realize more savings than will be claimed. The agency
also needs to realize that in the unlikely event that energy prices do not increase as
predicted, the energy saved will still be valued at these rates.

The Federal Building purchases both electricity and gas from Public Service Electric &
Gas (PSE&G). Electricity is provided under rate schedule GS-1. The following rates
apply for the duration of the contract:

Table 2-1: Electric Rate Schedule GS-1

Year Year Index kWh kW
0 2003 1.00 $0.0525 $8.052
1 2004 1.02 $0.0536 $8.215
2 2005 1.03 $0.0541 $8.296
3 2006 1.03 $0.0541 $8.296
4 2007 1.04 $0.0546 $8.377
5 2008 1.06 $0.0557 $8.540
6 2009 1.09 $0.0573 $8.784
7 2010 1.13 $0.0594 $9.109
8 2011 1.18 $0.0620 $9.516
9 2012 1.23 $0.0647 $9.923
10 2013 1.27 $0.0668 $10.248
11 2014 1.31 $0.0689 $10.573
12 2015 1.36 $0.0716 $10.980
13 2016 1.42 $0.0748 $11.468
14 2017 1.47 $0.0774 $11.875
15 2018 1.54 $0.0806 $12.363

3
NISTIR 85-3273-17 (Rev. 4/01) Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis
– April 2002, Annual Supplement to NIST Handbook 135 and NBS Publication 709

2/07 page 4
 6.1
Example M&V Plan

2.3 Schedule and Reporting for Verification Activities

The schedule of M&V submissions is summarized in Table 2.2.

Table 2-2: Schedule of Verification Reporting Activities

Owner’s review and
Item Time of submission
acceptance period
Post-Installation Report 30 days after acceptance 30 days
Annual Report 30 days after annual 30 days
performance period

The Post-Installation Report will be submitted within 30 days of project completion. The
Federal Building’s representative will then have 30 days to review and approve the Post-
Installation Report. Commissioning will be reported separately. After receipt of the Post-
Installation Report, GSA will issue ABC Engineering a written notification of
acceptance.

The Post-Installation Report will document any deviations from the specified equipment
and, if necessary, make recommendations for approval of any adjustments to M&V plans
specified herein. The Post-Installation Report will follow the format and content defined
for Super ESPC projects. The specific items that will be reported are described in the
M&V plan for each ECM.

The Annual Report will be due within 30 days of the end of the annual performance
period. The Federal Building’s representative will have 30 days to review and approve
the Annual Report. The Annual Report will follow the format and content defined for
Super ESPC projects. The specific items that will be reported are described in the M&V
plan for each ECM.

2.4 Operations, Preventive Maintenance, Repair, and

Replacement Reporting Requirements
ABC Engineering will report on all maintenance work completed in the Annual Report.
GSA will continue to maintain maintenance records per existing procedures, and will
make these records available to ABC Engineering upon request.

2.5 Construction Period Savings

No construction period savings have been claimed.

2.6 Status of Rebates

Prescriptive rebates are available from New Jersey’s Clean Energy Program4 for lighting
efficiency upgrades. The table below lists lighting incentives available for this project.
ABC Engineering has submitted an application on behalf of the GSA to PSE&G to
4
http://www.njsmartstartbuildings.com/main/equip_inc.html

2/07 page 5
 6.1
Example M&V Plan

receive rebates for the lighting efficiency measure. Incentives will be provided directly
from PSE&G to the GSA.

Table 2-3: Lighting Rebates from Public Service Electric & Gas
Fixture type # Fixtures Rebate $ / Total rebate
fixture
T-8, 4-lamp 1,347 $10 $13,470
T-8, 2-lamp 94 $10 $940
Screw-in CFLs 307 $0 $0
Exit Sign LEDs 39 $20 $780
TOTAL 1,745 $15,190

2.7 Dispute Resolution

The procedures defined in this M&V plan should prevent any disputes. In the unlikely
event that a dispute does arise regarding issues such as baseline adjustments or use of
measured data, the issues will be jointly reviewed and an agreeable resolution reached.
Otherwise, the arbitration clause in the Management Plan of the Delivery Order will
apply.

2/07 page 6
 6.1
Example M&V Plan

3. ECM 1 — LIGHTING M&V PLAN AND SAVINGS

CALCULATION METHODS

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

A complete retrofit of the lighting equipment in the Federal Center is planned as a part of
the ESPC agreement. The existing T-12 fluorescent fixtures (1,745 total) will be
retrofitted with more efficient equipment, primarily T-8 lamps and electronic ballasts.
Energy savings and demand savings will result from this retrofit. An additional benefit
will be enhanced quality of lighting, as the new fixtures will provide improved color
rendering and reduced flicker.

The M&V Plan for the lighting efficiency retrofit at the Federal Center will follow FEMP
M&V Option A, Method LE-A-02. The variables affecting savings from this lighting
project are fixture powers, hours of operation, and level of coincident operation
(% operation when the building peak demand is set). Fixture powers will be measured on
a sample of the most common fixture types. For less common fixture types, fixture power
will be based on a table of standard fixture powers or manufacturer’s data.

Operating hours will be measured on a sample of space types during the Detailed Energy
Survey. The measured hours will then be used to estimate the energy and demand savings
during performance period and will not be adjusted even if the actual operating schedules
change.

Option A has been selected for this retrofit due to the measure’s relatively small cost
savings contribution of all the retrofits installed at the Federal Center, and due to the high
confidence with which the fixture demand and operating hours may be determined.
Equipment numbers and locations will not vary, and operating hours are not projected to
change after the project is implemented.

The M&V Plan for this retrofit assumes:

• Operating hours will be measured before the retrofit. The hours for the lighting
fixtures will be the same before and after the equipment retrofit for the purpose of
energy savings calculations.
• Fixture powers before and after the retrofit will be measured.
• Interactive effects on heating and cooling equipment from the lighting retrofit will
not be considered.
• Lighting levels will not decrease as a result of the lighting equipment retrofit.
Existing lighting levels have been measured and recorded for each area. Results
are included in the equipment inventory.

2/07 page 7
 6.1
Example M&V Plan

3.2 Energy and Water Baseline Development

During the Detailed Energy Survey, which took place during April 2003, a
comprehensive lighting audit was completed. A room-by-room inventory of fixture
counts, types, and circuits was made. This inventory of all existing lighting equipment,
including lighting levels, is provided in the Appendices.
3.2.1 Fixture Power
During the lighting survey, fixture types (lamp/ballast combinations) present in this
facility were identified. Samples of the most common fixture types were measured to
determine the fixture power under actual operating conditions. The measured fixture
types represent more than 75% of the baseline connected load. For the remaining fixture
types that were not measured, fixture powers were taken from a table5 of standard fixture
powers.

When the fixtures are replaced, power measurements will again be taken on a sample of
fixtures that represent more than 75% of the new connected load. For the remaining
fixture types that are not measured, fixture powers will be taken from a table of standard
fixture powers or from manufacturer specifications. The table of fixture powers to be
used is from PSG&E as part of their rebate program.

In all cases, the number of power measurements taken is sufficient to achieve a 10%
precision at 90% confidence as discussed in Section 3.2.3 Sample Size. Because fixture
powers tend to be in close agreement with each other, usually only three measurements
were required to meet this precision and confidence criteria. In some cases, three lighting
circuits (rather than three fixtures) were measured where all fixtures were the same and
no other loads were present. The total power measured was then divided by the number
of fixtures on each circuit to determine the average fixture power. The results of the
measurements are presented in Table 3-3 in section 3.2.4.

A Fluke 39 single phase power meter was used for all measurements. Measured lighting
fixtures had been operating at least one hour prior to measurement in order to achieve
typical operating temperature. The Fluke was used to measure actual wattage, which
considers volts, amperes, and power factor.
3.2.2 Usage Group Operating Hours
Lighting usage groups were identified based on space functionality and estimated annual
operation hours. For usage groups that represented more than 5% of the savings, fixture
operating hours were monitored to determine the typical operating hours. Groups that
represent 5% or less of the expected energy savings were not metered; operating hours
were based on typical hours of occupancy. However, sufficient usage groups were
monitored to account for at least 75% of the total energy savings.

During the audit, the operating hours for a sample of lighting fixtures in each usage group
was measured over a three-week period. The monitored operating hours were used to

5
PSG&E table…www…

2/07 page 8
 6.1
Example M&V Plan

estimate the annual operating hours for each of the seven usage groups with a precision
of 20% at 80% confidence. Initial sample size for each usage group was eleven loggers
before correcting for finite populations. In one case, additional loggers were deployed for
a second three-week period in order to meet the desired precision and confidence criteria.
The measured operating hours will be stipulated as annual operating hours during the
performance period.

Hobo lighting loggers were installed inside the lighting fixtures. These loggers record the
time of the change-of-state between on and off. In addition to the total operating hours
recorded, logger data was evaluated to determine the number of hours that a fixture was
operating between 1:00 and 4:00 p.m. This information was used to estimate the
probability that fixtures in each usage group would be operating coincident with the
building peak load. This data was used to determine an overall peak coincidence factor
for the lighting. The results of the measurements are presented in Table 3-2 in
Section 3.2.4.

The specification of the loggers is: light threshold range is 10 to 300 lumens/ft2
(fluorescent light); the sensitivity to incandescent light is about ten times greater. The
lighting loggers record on-off times with an accuracy of ±1 minute per week). The results
of the metered data are summarized in the following section and all metered data are
included in the Appendix.

3.2.3 Sample Sizes

Appendix D.3.2 in the FEMP M&V Guidelines (V 2.2, 2000) describes the method used
to determine the sample size for each usage group measurement. Precision and
confidence criteria were selected based on experience with previous projects and
represent a reasonable compromise between desired precision and cost-effectiveness.

A sample of monitoring points for each usage groups was determined by the following
procedure:

1. Define the desired precision and confidence for each measured parameter. For
measuring fixture powers, 10% precision at 90% confidence is desired. For
measuring usage group operating hours, 20% precision at 80% confidence was
selected.

2. Since sample size required to meet stated precision and confidence criteria is
dependent on the actual measurement results, assume an initial coefficient of
variation for each measured parameter. For fixture power, use Cv = 0.1; for operating
hours, use Cv = 0.5. The actual precision achieved will be calculated and additional
measurements made if the stated precision criteria is not initially met.

3. Using the stated assumptions and Equations D.3 and D.4 from the FEMP M&V
Guidelines, estimate the sample size n for the total population of lighting circuits
using the following standard statistical equations for estimating sample populations:

2/07 page 9
 6.1
Example M&V Plan

Z 2 C 2v Nn
n= (D.3); n * = (D.4)
p2 N+n
where:
Z = Z statistic for desired confidence interval
p = desired precision
Cv = coefficient of variation
N = population of usage groups or fixtures

n = sample size assuming infinite population size

n* = sample size corrected for population size

Because the sample sizes n and n* must be integers, the results from Equations D.3
and D.4 need to be rounded up to the nearest integer value. The coefficient of
variation (Cv) is simply the standard deviation of the measurement divided by the
average measurement value.
σ
Cv =
x
where:
σ = standard deviation
x = average measured value

When the measurements have been taken, the Cv can be quickly calculated. If the
actual Cv is less than the assumed value, then the precision and confidence criteria
have been met. If the actual Cv is greater than the assumed value, then additional
measurements must be taken. Alternatively, an investigation may reveal that one
sample was misidentified and belongs in another usage group or fixture category.
When taking power measurements, the standard deviation will be calculated in the
field. If the Cv is greater than 0.1, three additional fixtures or circuits will be
measured and the fixtures will be inspected to reveal whether any were misidentified.
For operating hour measurements, a Cv significantly greater than 0.5 will require
additional measurement samples such that the total number of samples satisfies
Equations D.3 and D.4 using the measured Cv.

4. Using the actual Cv, the precision can be calculated from the previous equations after
some simple algebraic manipulation. In practice, the finite population correction only
needs to be used where the actual population (N) is less than 100.
ZC v Nn * ZC v
p= ; n= ; p =
n N − n* Nn *
N − n*
5. Fixture powers will be based on the average of the measured values. Usage group
operating hours will be based on the average of the measured values. The coincidence
factor (CF, probability that operation coincides with building peak) for each usage
group will be based on the operating hours between 1:00 and 4:00 p.m. as follows:

2/07 page 10
 6.1
Example M&V Plan

Average Operating Hours between 1 : 00 and 4 : 00

CF =
3 hours
6. Using the demand savings and measured operating hours, estimate the annual energy
savings from each usage group.

3.2.4 Results
Based on Equations D.3 and D.4 and the assumed initial coefficient of variation, the
following table lists the initial sample size for each of the measured parameters for
lighting.

Table 3-1: Initial Sample Sizes For each Usage Group

Measured Precision Confidence Z Assumed Initial
Value Cv Sample Size,
n
Power, W 10% 90% 1.645 0.10 3
Hours 20% 80% 1.282 0.50 11

Table 3-2: Fixture Wattage Measurements – Types, Monitoring Points, Results

Fixture Number % of Table Number of Average Std Actual Precision
Type of Energy Power, Measurements Measured Dev, Cv at 90%
fixtures Savings W Power, W confidence
W
F44EE 1,000 70% 144 3 140 11.2 0.08 7.6%
F42EE 60 9% 72 3 74 3.7 0.05 4.6%
F82ES 339 7% 128 6 120 18.0 0.15 10.1%
75 Watt 307 10% 75 3 75 4.5 0.06 5.7%
Inc.
Inc. Exit 39 2% 22
Signs
Totals 98%

The fixture groups and metering results are shown in Table 3-2 above. The number of
samples in the Exit signs was set to zero because of their small contribution to the overall
savings. The initial three measurements of the 8-ft. fluorescent fixtures revealed a Cv
greater than 0.1, a result likely caused by all of the fixtures having old and flickering
lamps. An additional three measurements were taken to compensate. The resulting
precision of 10.1% with six measurements is considered as meeting the established
statistical criteria.

The operating hours for three usage groups were monitored for a three-week period in
April – May 2003. The average annual operating hours for each usage group are shown in
Table 3-3, along with the actual Cv of each group. The table shows that the estimated Cv
for two of the groups was less than the assumed value of 0.5 and so the precision criteria

2/07 page 11
 6.1
Example M&V Plan

for those two groups was met. For the closed office areas, the large variability in usage
resulted in a Cv greater than 0.5 and an initial precision of 24% with eleven samples. As a
result, an additional eleven loggers were deployed in different closed office spaces for
another three-week period in May 2003. With a total of 22 measurements, the achieved
precision is less than 20% at 80% confidence as desired.

Table 3-3: Usage Group Descriptions, monitoring Points and Results

Usage Number # # Demand Annual Energy % of Cv Precision Coincidence
Group of Circuits Points savings, op. savings, total at 80% 1 – 4 p.m.
fixtures (N) (n) (kW) hours kWh confidence
24 Hour - Est.
Exit 69 21 0 0.82 8,760 7,169 4%
24 Hour -
Misc 30 9 5 1.78 8,760 15,598 8% 0.2 7.6% 72%
Closed
Office
Areas 673 204 22 22.96 1,900 43,377 23% 0.65 16.8% 68%
Common
Office
Areas 581 176 11 37.39 2,800 104,343 56% 0.43 16.1% 86%
Conference Est.
Rooms 43 13 0 2.75 1,600 4,436 2%
Halls and
Common Est.
areas 131 37 0 1.56 3,000 4,633 2%
Storage,
comp. Est.
closets 218 66 0 5.57 1,200 6,850 4%
Totals 1745 526 38 72.83 186,406 100% 79%

The weighted peak coincidence factor is used to calculate the demand cost savings from
the demand savings. The demand reduction listed in Table 3-3 is based on a reduction in
the connected load. However, not all of this reduction will appear in the form of reduced
demand charges on the utility bill. The coincidence factor for each usage group represents
the fraction of fixtures operating when the building peak demand is set and therefore
represents that usage group’s contribution to the demand reduction seen at the utility
meter.

3.3 Proposed Energy and Water Savings Calculations and

Methodology
The baseline and post demand for each usage group will be determined using
Equation 3-1.

Equation 3-1:
kW UsageGroupU,baseline = Σu (kWbaseline fixture)

2/07 page 12
 6.1
Example M&V Plan

kW UsageGroupUpost = Σu (kWpost fixture)

Energy (kWh) and demand (kW) savings will be calculated using Equation 3-2 and
Equation 3-3, respectively.

Equation 3-2:
kWh Savings = ∑u [ (kW UsageGroupU,baseline - kW UsageGroupU,post ) x Annual Hours
of Operation]

Equation 3-3:
kW Savings = ∑u [(kW UsageGroupU,baseline - kW UsageGroupU,post) x
Coincidence Factor]
where:
kWh Savings = kilowatt-hour savings realized during
one year post-installation
kW Savings = Coincident kilowatt demand saving
realized
kW UsageGroup U,baseline = Lighting baseline demand for usage
group u
kW UsageGroup U,post = Lighting demand during post-
installation period for usage group u
Annual Hours of Operation = Annual number of operating hours for
the usage group u
Coincidence Factor = Maximum percent of lighting
operating during at time building peak
electrical demand, as determined from
metered data from time-of-use loggers

The annual cost savings will be determined using Equation 3-4.

Equation 3-4:
Annual Cost Savings = [RatekWh × kWhSavings] + [12 × RatekW × kWSavings]

where energy rates are outlined in Table 2-1 in Section 2.2.

As described in the Responsibility Matrix, no alterations or renovations to the office

spaces are anticipated for the duration of this delivery order. Should the GSA make any
improvements, it assumes the risk that the savings calculated by this plan may not
materialize.

3.4 Operations and Maintenance and Other Cost Savings

O&M savings are not being claimed or documented for this ECM.

2/07 page 13
 6.1
Example M&V Plan

3.5 Proposed Annual Savings for ECM

See detailed lighting inventory and retrofit specifications, along with savings calculations
in the Appendices.
Table 3-4: Proposed Annual Savings for ECM 1- Lighting
Total Electric Electric O&M Total
Electric Electric energy energy cost, demand costs, costs,
energy use demand* use Year 1 cost, Year Year 1 Year 1
(kWh/yr) (kW-yr) (MBtu/yr) ($/yr) 1 ($/yr) ($/yr) ($/yr)
Baseline use 557,365 2,090 1,902 $29,262 $16,832 NA $46,094
Post-
installation use 370,959 1,400 1,266 $19,475 $11,276 NA $30,752
Savings 186,406 690 636 $9,786 $5,556 $0 $15,342

3.6 Post-Installation M&V Activities

Upon completion, an as-built inventory of post-installation lighting fixtures will be
supplied, including the lighting ballasts and lamps actually installed, and lighting
illumination levels (foot-candles) in each area. Savings predictions will be corrected
based on as-built data and will be reported in the Post-Installation Report.

Immediately following installation, fixture power will be measured in a manner identical

to that for the baseline fixtures. Sample sizes for measurements and procedures are
described in Sections 3.2.1 and 3.2.3. Measurement standard deviations will be calculated
in the field. Any fixture types exceeding a Cv of 0.10 will have three additional
measurements taken and the fixtures will be inspected to verify that the correct fixtures
have been installed. These measurements will be used to calculate actual expected energy
savings, and will be detailed in the Post-Installation Report.

3.7 Performance-Period Verification Activities

Once per year, for each year of the contract, ABC Engineering will conduct a site visit,
during which the lighting system will be inspected to verify proper operation, ensure that
it has been maintained, and ensure that it continues to have the potential to generate the
expected savings. A minimum of ten fixtures of each type measured (four types) will be
opened to verify lamp counts and lamp and ballast types. Lighting replacement stock will
be inspected during the annual site visit to ensure that the proper replacement equipment
is available.

The Annual Report will detail the results of annual inspections, noting significant
problems such as burned-out lamps and ballasts and deviations with the expected number
of operating fixtures, etc. An estimate of energy and cost savings for the year will be
provided. As stated in the Responsibility Matrix, the GSA is responsible for the
consistency of operating hours and equipment replacement with identical or comparable
equipment. Changes in equipment type or operating hours will not result in adjustments
to the reported (guaranteed) savings.

2/07 page 14
 6.1
Example M&V Plan

4. ECM 2 — EMCS M&V PLAN AND SAVINGS

CALCULATION METHODS

4.1 Overview of ECM, M&V Plan, and Savings Calculation

A new energy management and control system (EMCS) will be installed in the Federal
Center to provide enhanced control of the facility’s HVAC systems. This system will
provide energy and cost savings by providing time of day control for the chiller, water
circulation pumps, and air-handler fans.

Currently, the HVAC fans and pumps operate at constant speed under manual on/off
control. The fan motors operate continuously and the chiller and pump motors run longer
than necessary. The control system will use an “optimum start” sequence to determine the
start-up time for this system, which will likely range between 4:00 a.m. and 6:00 a.m.
This sequence will evaluate indoor and outdoor conditions by taking temperature (indoor
and outdoor) and humidity (outdoor) measurements and start the equipment accordingly,
so that proper set-points are reached prior to occupancy. Shut-off time will be set to 9:00
p.m. in order to give cleaning crews time to work.

Current heating and cooling set-points are determined by pneumatic thermostats which
are no longer calibrated and can be changed by the occupants. The current heating and
cooling set-points are not easily quantifiable, but range from 68ºF to 76ºF winter and
summer. The new winter set-point (October – April) will be 68°F and the summer set-
point (May – September) will be 72°F, as agreed to between ABC and GSA.

The new control system will start and stop the equipment as needed, thereby reducing
operating hours, and provide savings in the form of reduced kilowatt-hour consumption.
Demand savings will not be realized for this measure, because the reduced operation
hours will take place at night and not during daytime peak periods.

Chiller savings due to reduced chiller runtimes will not be claimed. While the existing
chiller is enabled during the evenings in the cooling season, the actual hours of evening
operation are uncertain. Rather than stipulate an uncertain number of operating hours as
the baseline case, savings due to reduced runtimes will not be claimed. GSA will still
benefit from this reduced runtime. Operating conditions for the chiller will be monitored,
but this information will be used for chiller savings verification.

Natural gas savings from reduced heating are not included due to the difficulty in
quantifying these savings.

The measurement and verification plan for the EMCS installation will follow FEMP
Option B, Method GVL-B-01: generic variable load project with continuous metering.
The EMCS system will be used to record the actual run time of the equipment during the
performance period.

2/07 page 15
 6.1
Example M&V Plan

Option B was chosen for this measure because of the concern that post-installation motor
operation hours may not turn out as estimated. In addition, Option B was selected
because the installation of the new control system readily lends itself to ongoing
measurement. The control system can track the actual run times of equipment with great
accuracy and very little added cost.

The following assumptions are employed for this M&V plan:

• In the absence of this project, the pump and fan performance would remain
constant (and not degrade) at the levels measured during the detailed energy
survey. This is a conservative estimate in that should motor demand levels
increase, the overall effect on baseline energy consumption would be to increase,
thus increasing the savings estimated for this project.
• Chiller savings due to reduced evening runtimes will not be claimed.
• In the absence of this project, the operation schedule of the chiller, pump, and fan
motors would remain the same, and baseline operation hours would remain
constant. This assumption was based on the feedback received from the facility
staff who indicated that the operation schedule had not changed for the previous
five years.
• The occupied hours of the facility are assumed to remain unchanged for the
duration of the project, and are Monday – Friday from 7:00 a.m. to 7:00 p.m.

4.2 Energy and Water Baseline Development

The current annual operating hours that were reported by the facility staff are shown in
Table 4-1. Cooling equipment (chiller and water pumps) are enabled continuously from
May through September and operate as needed. The hot water pump operates
continuously from October through April. The air handler fans operate continuously year-
round.
Table 4-1: Equipment Baseline Operating Hours
Equipment Operating period Annual hours
Chiller Enabled May – 3,672
September 24/7
AHU-1 supply fan Always on 8,760
EX-1 exhaust fan Always on 8,760
HWP-1 hot water supply pump On October – April 5,088

Motor kW demand is assumed to remain constant for the duration of the contract. The
nameplate data of each motor was recorded, and the power draw from each was measured
on May 1, 2003 by ABC staff in the presence of Mr. Handy, the Federal Center Facility
Manager. These values are shown in Table 4-2.

2/07 page 16
 6.1
Example M&V Plan

Table 4-2: Equipment Nameplate Data and Measured Power Draw

Equipment Nameplate Nominal Nominal Measured
data (HP) RPM voltage power draw
(kW)
AHU-1 supply fan 75 1800 480 68.3
EX-1 exhaust fan 50 1800 480 48.7
HWP-1 hot water supply pump 25 1800 480 26.7

4.3 Proposed Energy and Water Savings Calculations and

Methodology
The run-time data recorded by the EMCS equipment will be analyzed and summarized
upon receipt on a bi-monthly basis. For each motor, during its operation period
(Table 4.1), the total number of operating hours will be determined by summing the
status data collected for each motor and multiplying by the data interval (15 minutes).

Annually, Equation 4-1 and Equation 4-2 will be used to calculate the energy savings
resulting from the EMCS installation for each piece of equipment listed in Table 4-1.

Equation 4-1:
Annual kWhsaved motori = kWbaseline motori ×
( Op. Hoursbaseline motori – Op. Hoursmeasured motori )

Equation 4-2:
Total Annual kWhsaved = Annual kWhsaved AHU-1 +
Annual kWhsaved EX-1 +
Annual kWhsaved HWP-1

The maximum operating hours expected for the equipment with the EMCS installed are
listed in Table 4-3 below. These values will be used if actual facility occupancy hours
increase.

Table 4-3: Annual Post-Installation Operating Hours, Expected and Maximums

Equipment Maximum Annual post- Expected Annual post-
installation operating hours installation operating hours
AHU-1 supply fan 5,616 4,380
EX-1 exhaust fan 2,070 4,380
HWP-1 hot water supply 2,544
pump 5,616

Cost savings will be determined using energy rates detailed in Table 2-1 of Section 2.2.

2/07 page 17
 6.1
Example M&V Plan

4.4 Operations and Maintenance and Other Cost Savings

O&M savings are not being claimed or documented for this ECM.

4.5 Proposed Annual Savings for ECM

Table 4-4: Proposed Annual Savings for ECM 2 – EMCS
Other
energy-
related
Total Electric Electric O&M Total
Electric Electric energy energy cost, demand costs, costs,
energy use demand* use Year 1 cost, Year Year 1 Year 1
(kWh/yr) (kW-yr) (MBtu/yr) ($/yr) 1 ($/yr) ($/yr) ($/yr)
Baseline use 1,266,002 158 4,321 $66,465 $15,291 0 $66,465
Post-installation
use 811,894 158 2,771 $42,624 $15,291 0 $42,624
Savings 454,108 0 1,550 $23,841 $0 $0 $23,841

4.6 Post-Installation M&V Activities

The points in the new EMCS system to be monitored for use in savings calculations are
listed in Table 4-5. All of these points will be “trended” — meaning that there will be a
time stamp associated with each recorded point value. From this information, the total
operating hours of the affected equipment for the year will be calculated. Temperature
data will be collected and analyzed to ensure that the operation of the control system is as
intended. Additional points will be collected for ECM 3 (Chiller) so that this information
can be used to verify the performance of that measure. A complete listing of the EMCS
system parameters will be provided in the Post-Installation Report, including:
• documentation of the actual EMCS installed, detailed sequences of operations, as-
built points list, and a summary of the EMCS operation features in regard to
control of the chiller pump and fan motors, and
• operation manuals for the EMCS and chillers.

2/07 page 18
 6.1
Example M&V Plan

Table 4-5: EMCS Control Points for Savings Calculations

Equipment Type of Point
Chiller compressor motor kW
AHU-1 supply fan Status
EX-1 exhaust fan Status
CHWP-1 chilled water supply pump Status
CWP-1 condenser water pump Status
HWP-1 hot water supply pump Status
Indoor air temperature Analog temperature sensor
Outside air temperature Analog temperature sensor
Outside humidity sensor Analog humidity sensor
Chilled water supply temperature Analog temperature sensor
Chilled water return temperature Analog temperature sensor
Chilled water flowrate Analog flow meter
Condenser water return temperature Analog temperature sensor

The EMCS system will be set up to automatically write the run-time data to the dedicated
control computer’s hard-drive each day at midnight. Every other month, ABC
Engineering staff will remotely download that data for analysis and back-up purposes.
The data will be reviewed at that time to ensure that the control system is operating
properly.

4.7 Performance-Period Verification Activities

During the first quarter of each year (January to March) a site visit to the Federal Center
will be conducted by ABC Engineering personnel. Activities to be conducted during this
site visit include verification of proper equipment and control sequence operation and
measurement of power draw of the equipment listed in Table 4.1 to ensure that the
equipment demand has not changed.

The equipment that was used for taking the baseline power measurements will be used
during the annual site visit to verify that equipment performance has not changed. The
meter to be used is a digital multi-meter, ACME model 40, which is calibrated by the
manufacturer on a semi-annual basis. The meter has an accuracy of +0.5%. The meter
specifications are included in the Appendices. Elite Industries thermistor sensors shall be
used for taking temperature measurements. These sensors are rated at ±1ºF accuracy.
Cut sheets are included in an Attachment to this document. Calibration will be provided
each performance year.

Elite Industries humidity sensors shall be used for taking humidity measurements. These
sensors are rated at ±5% accuracy. Cut sheets are included in an Attachment to this
document. Calibration will be provided each performance year.

Ongoing quality assurance procedures for the metered run times of equipment include a
bi-monthly review of the data to see if it is reasonable and corresponds to anticipated
values. Raw data files will be stored separately and made available to the Agency upon

2/07 page 19
 6.1
Example M&V Plan

request. In the case that some data are missing, a check for a valid reason for missing data
will be made. If the data is truly missing, then operating hours for the period with missing
data will be derived from data from a similar period. Sources of data used to make up for
missing data will be clearly identified and will be described in the Annual Report.

The Annual Report will summarize the results of calculations that determine the savings.
Monitored data and details of all calculations will be provided electronically in MS
Excel™ spreadsheets. An example spreadsheet format is provided in Table 4-6.

Table 4-6: Example Monthly Calculation Format – AHU1

Day Measured Operating kWhpost kWhbaseline kWh Savings
Hours – AHU1
1
2
3
…
…
Totals Op.Hrstotal kWhpost total kWhbaseline total kWhsaved total

2/07 page 20
 6.1
Example M&V Plan

5. ECM 3 — CHILLER REPLACEMENT M&V PLAN AND

SAVINGS CALCULATION METHODS

5.1 Overview of ECM, M&V Plan, and Savings Calculations

As detailed elsewhere in this proposal, the Piscataway Federal Center is cooled by a
central chilled water plant with a 400-ton constant-speed centrifugal chiller that is 20
years old and has experienced significant degradation in performance. The existing
chiller has a nominal rated full-load efficiency of 0.85 kW/ton at ARI conditions, which
is significantly poorer than the efficiencies of currently available centrifugal chillers.

As part of this ESPC project, the existing chiller will be replaced with a new, high
efficiency unit with the same capacity. The proposed chiller will have a nominal full-load
rating of 0.52 kW/ton at ARI conditions. Part-load performance is significantly improved
due to the VFD option, which allows better part-load performance than the existing
chiller with inlet guide vanes. The cooling tower was replaced five years ago, and will
not be modified; however, condenser water temperature will be allowed to drop below
85ºF when the wet-bulb conditions allow. This will further improve the part-load chiller
performance. The chilled water and condenser water pumps will be serviced, but not
replaced. No other changes to the cooling plant will be made. Energy savings for this
measure will result from the reduction of chiller demand to provide the same cooling as
in the baseline case.

FEMP Option B, Method CH-B-02 will be used to measure and verify the energy savings
from this retrofit. This method requires metering of chiller electric and load variables in
both the baseline and post-installation period. Baseline metering was performed over a
short-term period, and continuous metering via the EMCS will be done in the post-
installation period. It is appropriate to use Option B for this project for several reasons.
There is a significant uncertainty in what the actual operating hours and loads of the new
chiller will be, data collection is available with the use of the new EMCS (ECM 2), and
analysis of the collected data will provide a continuous performance check on the new
chiller.

The purpose of collecting baseline chiller data was to develop a model of the existing
chiller’s performance. This model will enable the prediction of the baseline chiller
demand from load and system operating parameter data. Approximately one month
(August 13 to September 17, 2003) of baseline metering was conducted, with enough
data points collected to successfully build the performance model.

In the post-installation period, chiller demand (kW), load data (tons, as calculated from
water temperature and flow measurements), and system operating parameters (chilled and
condenser water temperatures) will be collected continuously in 15-minute intervals. The
load data will be used to determine the equivalent baseline chiller demand for the same
interval. Savings will be determined from the difference in the calculated baseline chiller
demand and the actual post-installation chiller demand.

2/07 page 21
 6.1
Example M&V Plan

The following figure will help illustrate the savings verification process:

Figure 5-1
Chiller Performance and Savings

400

kW New
kW Baseline ASHRAE model for
kW measured baseline chiller

2. Estimate baseline chiller

300
demand at standard conditions.

4. Calculate kW reduction as Manufacturer's model for

difference between baseline new chiller
and measured values.
kW

200

3. Measure the new chiller

demand.

100

1. Measure chiller load and

operating conditions.

0 100 200 300 400

Tons

1. Measure the chiller load (tons) from the chilled water supply and return temperatures
and flow rates.

2. Estimate the baseline kW demand from the model of the old chiller at current
operating conditions (actual chilled water temperature, tons). The baseline condenser
water temperature will be held 85ºF since that was the steady-state case in the
baseline due to the old chiller’s operating limitations).

3. Measure the new chiller demand under actual operating conditions.

4. Calculate the demand savings for each 15-minute interval as the difference between
the baseline model and the measured value.

5. If the chiller is off, demand reduction is treated as 0 kW.

6. Annual energy savings will be calculated as the sum of the 15-minute savings. This
savings calculation assumes a minimum number of ton-hours of cooling per year. In
the event that the measured ton-hours are less than a specified minimum, savings
based on measured chiller performance may be adjusted upwards to reflect what
would have occurred had the minimum number of ton-hours been provided.

2/07 page 22
 6.1
Example M&V Plan

This M&V plan is based on the following assumptions:

• No other physical changes are planned to the condenser pumps, chilled water
pumps or the cooling tower.
• Condenser water in the baseline model will be held constant at 85ºF. The actual
condenser water temperature will be allowed to fall below 85ºF to improve part-
load performance.
• Baseline chiller performance will be adjusted based on actual chilled water supply
temperature.
• One month of monitoring of chiller demand and load variables was adequate to
develop an accurate model of the existing chiller performance.
• The building plans no major projects, such as building additions or changes which
would significantly alter the current building occupancy rate, schedule, or other
internal cooling loads.

5.2 Energy and Water Baseline Development

Data collection of the existing chiller’s demand, entering and leaving chilled water
temperatures, and entering condenser water temperature occurred during August and
September 2003. The data was collected in 15-minute intervals using an Elite 6-channel
data recorder6. In order to collect data over a full range of operating conditions (chilled
and condenser water temperatures, chiller demand) expected in the post-installation
period, the condenser and chilled water temperatures were reset manually. Chilled water
flow was measured with a portable ultrasonic flow meter installed in the chilled water
supply loop. The data was analyzed, and an appropriate model of chiller performance was
developed, as described below.

The monitored data collected during the baseline period were used to develop the
following model of the existing chiller performance. Because the performance depends
on so many variables, the chiller model was based on ASHRAE energy efficiency
Standard 90.1. The model is based on a set of bi-quadratic and quadratic equations,
detailed in Equations 5-1, 5-2, and 5-3.

The following notations are applicable to the equations used in this section:
CHWF Chilled water flow in gallons per minute (GPM)
ECHWT Entering chilled water temperature (return temperature,°F)
LCHWT Leaving chilled water temperature (supply temperature, °F)
CWT Condenser water temperature (°F) to chiller
PLR Part Load Ratio
500 Conversion from GPM to pounds per hour Btu per pound-degree
Fahrenheit
12,000 Conversion from Btuh to tons

6
See Attachment 4.

2/07 page 23
 6.1
Example M&V Plan

CAPnom Nominal full-load capacity of chiller (400 tons)

kWnom Nominal full load chiller demand. The nominal kW is the full-load rating
multiplied by the nominal capacity (0.85 kW/ton × 400 = 340 kW)

The maximum capacity (tons) of the chiller varies with operating parameters, and can be
determined from Equation 5-1:

Equation 5-1:
CAPt = CAPnom[a + b(CHWT) + c(CHWT)2 + d(CWT) + e(CWT)2 + f(CHWT)(CWT)]

In addition, the instantaneous chiller load and current part-load ratio are calculated by the
following equations:

Equation 5-2:
TONSt = (CHWF)(500)(ECHWT – LCHWT)(1) / (12,000)

Equation 5-3:
PLRt = TONSt / CAPt

The baseline chiller electric demand is calculated with the following equations:

Equation 5-4:
EIRadj = g + h(CHWT) + i(CHWT)2 + j(CWT) + k(CWT)2 + l(CHWT)(CWT)

Equation 5-5:
PLRadj = m + n(PLRt) + o(PLRt)2

Equation 5-6:
kWt = (kWnom)(PLRadj)(EIRadj)

The ASHRAE model coefficients a through o for a water-cooled chiller are listed in the
table below:
Table 5-1: Chiller performance coefficients (water-cooled)
a b c d e f
CAPt -1.74204 -0.029292 -0.000067 0.048054 -0.000291 -0.000106
g h i j k l
EIRadj 3.1175 -0.109236 0.001389 0.00375 0.00015 -0.000375
m n o
PLRadj 0.222903 0.313387 0.46371

These calculations will be executed using a spreadsheet model. When estimating the
baseline chiller performance, the actual chilled water temperature and tons will be used,
along with a fixed condenser water temperature of 85°F. The baseline chiller currently
operates at a fixed condenser water temperature and it is not appropriate to adjust the
baseline to account for the new condenser water temperature strategy, as the existing

2/07 page 24
 6.1
Example M&V Plan

chiller could not take advantage of reduced condenser water temperatures because of
physical operating limitations.

5.3 Proposed Energy and Water Savings Calculations and

Methodology
The energy and demand savings will be calculated using Equations 5-7 and 5-8,
respectively.

Equation 5-7
Energy Savings (kWh) = Σt (kWht, baseline, est – kWht, measured, post )
= 0.25 × Σt (kWt, baseline –kWt,measured post)
Where:
kWt,baseline = demand that the baseline chiller would have used
under the load conditions encountered for 15minute
interval t in the post-installation period
kWt, measured, post = measured demand of the new chiller during 15­
minute interval t.

Equation 5-8
Monthly Demand Savings (kW) = MAX(kWt,baseline) – COINCIDENT(kWt,post)

Where:
MAX(kWt,baseline) = maximum monthly demand of baseline
chiller predicted for each 15-minute interval
in the peak period (between noon and 6 p.m.
weekdays, May through October) during the
current month using the model developed
for the baseline chiller.
COINCIDENT(kWt,post) = measured demand of the new chiller during
the period when the predicted baseline
chiller demand was at its maximum value.

Annual cost savings will be calculated using Equation 5-9.

Equation 5-9:
Annual Cost Savings = Energy Savings (kWh) * RatekWh +
Σmonth(Monthly Demand Savings * RatekW)

where the rates are detailed in Table 2-1 in Section 2.2.

2/07 page 25
 6.1
Example M&V Plan

5.4 Operations and Maintenance and Other Cost Savings

O&M savings of $12,000 per year apply to this ECM. These cost savings are the result of
ABC Engineering assuming the chiller maintenance contract for the new chiller. The cost
of these annual services will be $14,000, compared to the existing contract for $26,000.

5.5 Proposed Annual Savings for ECM

Proposed annual savings are summarized in the table below. Hourly bin calculations
based on TMY weather data are included in the Appendix.

Table 5-2: Proposed Annual Savings for ECM 3 – Chiller

Other
energy-
related
Total Electric Electric O&M Total
Electric Electric energy energy cost, demand costs, costs,
energy use demand* use Year 1 cost, Year Year 1 Year 1
(kWh/yr) (kW/yr) (Mbtu/yr) ($/yr) 1 ($/yr) ($/yr) ($/yr)
Baseline use 500,004 1,292 1,707 $26,250 $10,403 $26,000 $62,653
Post-installation use 305,885 790 1,044 $16,059 $6,364 $14,000 $36,423
Savings 194,119 502 663 $10,191 $4,039 $12,000 $26,230

5.6 Post-Installation M&V Activities

After the new chiller has been installed and commissioned, ABC Engineering and
Federal Center representatives will conduct a post-installation inspection to verify that
the chiller installed is consistent with what was proposed and has the potential to generate
the cost savings predicted. ABC Engineering will provide a Chiller Inspection Report
detailing actual equipment installed, and include manufacturer’s specifications and
operating procedures, chilled water and condenser water flows, and documentation of the
chiller model number, and its rated and factory-tested efficiencies (in kW/ton).

5.7 Performance-Period Verification Activities

Post-installation monitoring of chiller demand and load variables (entering and leaving
chilled water temperatures, chilled water flow rate, condenser water temperature) will be
conducted for the entire contract period. This monitoring will be accomplished using the
new EMCS. The EMCS will log and time-stamp the data at 15-minute intervals, saving
the data weekly to disk. ABC Engineering will remotely download this data on a bi­
monthly basis for backup and quality control. In the event that there is a significant gap in
the data due to a sensor or other failure, the process of replacing the missing data with
interpolated or averaged data will be clearly documented.

2/07 page 26
 6.1
Example M&V Plan

Using the monitored post-installation data, the baseline energy use will be computed
using the ASHRAE model and assuming standard (ARI) conditions as previously
described.

The new chiller’s performance will be compared to the manufacturers’ rated performance
annually to ensure that the chiller is operating as expected. This will be accomplished by
using the manufacturer’s performance curves, which are analogous to the ASHRAE
performance curves used for the baseline chiller. The actual chilled and condenser water
temperatures will be used with the manufacturer’s model.

Some degradation in chiller performance is expected over the course of the delivery order
contract (5 years), which has been considered in determining the expected energy savings
and the annual contract payments. If substantial equipment performance degradation
occurs (>15% increase in annual energy use relative to the manufacturer’s model), the
Agency will be responsible for taking the necessary maintenance actions to restore the
chiller performance.

In the event of an unseasonably mild summer or change to the facility that decreases
cooling load, the savings claimed will be based on a minimum cooling load of six
hundred thousand ton-hours as defined by the typical monthly load curves included in the
Appendix.

Chiller demand: The chiller demand will be monitored using solid core current
transducers and voltage leads connected to each leg of the chiller’s 3-phase circuit. All
leads will be installed at the time of EMCS installation. These transducers will be
installed on Breakers 1, 3 and 5 (the A, B and C phases) of Switch-Gear SW-1.
Calibration of these sensors will be accomplished using an ACME True-RMS kW meter.
Calibration of this parameter will be carried out once per year.

Chilled water flow: Chilled water flow will also be monitored through the EMCS. At the
time of chiller installation, an ACME inline flow meter will be installed in the chilled
water loop. The flow meter is specified by the manufacturer to have an accuracy of
±10%. The chilled water flow will be verified bi-monthly by downloading and checking
data to identify sensors that have fallen out of calibration or to determine whether pump
or chiller performance has degraded.

Condenser and chilled water temperatures: Water temperature sensors will be the
insertion type, installed in new thermo-wells for both the condenser and chilled water
temperatures. The sensors used will be ACME 2-wire, 1,000 OHM platinum RTDs
paired with a 4-20 mA transmitter. The combined units will have an operating range of
20–120°F with an accuracy of ±0.50°F. An annual field check of calibration will be
conducted using the analog thermometers installed in the supply and condenser water
lines.

In addition to the calibration and testing procedures outlined above, all components will
be tested and evaluated once each contract year. Also, the EMCS will continuously

2/07 page 27
 6.1
Example M&V Plan

monitor the calculated kW/ton of the new chiller and issue an alarm when this value
moves outside the expected range (0.40 - 1.10 kW/ton).

The data will be collected using quality control procedures for checking the
measurements for reasonableness. Any and all missing intervals will be replaced either
by interpolation or use of average values. Such data will be described in the Annual
Report.

The Annual Report will summarize the calculated savings for the past year. Savings
calculations will also be provided electronically, in MS Excel spreadsheets. All
calculations will follow the procedure described in this M&V plan. In addition to the
reports, all monitored data will be submitted in electronic format.

The spreadsheet will show all intermediate steps in calculating baseline chiller kW, and
show how energy savings will be determined. A sample spreadsheet format is provided in
Table 5-3, with variable names as described in the Chiller M&V Plan.

Table 5-3: Sample Format of Baseline Calculations

Measured Data Calculated Data

Time ECHWT, LCHWT, CHW CWT, kWpost Tonst CAPt PLRt PLRadj EIRadj kWbase kWSaved
°F °F flow °F
(GPM)

2/07 page 28
 6.1
Example M&V Plan

Summary of Risk & Responsibility Matrix

RESPONSIBILITY/ PROPOSED APPROACH
DESCRIPTION
Financial:
Interest rates: ABC Engineering will work with the GSA to ensure that the best
possible financial terms are secured for this project.
Energy prices: Energy prices for this DO have been set in the M&V plan. These
rates are based on the current electric and natural gas costs for the
Piscataway Federal Center, and are escalated at XX% based on
NIST guidance.
Construction costs: Construction costs are fixed and are the responsibility of ABC
Engineering. If the DO is not awarded within 90 days of this
proposal, these prices may be modified.
M & V costs: The M&V costs are fixed for the duration of the contract. ABC
Engineering accepts all risks associated with performing the M&V
activities as stated herein.
Non-energy cost Non-energy cost savings in this project are the result of the transfer
savings: of the chiller maintenance contract to ABC Engineering. Since the
maintenance contract is the same length as the ESPC, no
verification activities are scheduled.
Delays: ABC Engineering will work with the GSA to ensure delays are
avoided and mitigated as much as possible. If delays are the result
of GSA actions, ABC Engineering may submit a change order.
Major changes in No facility additions are planned for this time, however:
facility: Lighting. Major renovations or additions to the facility could affect
both the number of fixtures and their operating hours, with the
possibility of causing the lighting energy costs to rise. The savings
for this ECM are based on measured fixture powers and operating
hours, values that will be held constant throughout th contract term.
EMCS. In the event that changes are made to the building, the
maximum operating hours for equipment has been defined in the
M&V plan.
Chiller. In the event that the cooling load increases, the measured
energy savings will also increase. If the annual cooling load
decreases, , the minimum annual chiller use (in ton-hours) to
calculate savings is specified in the M&V plan.

RESPONSIBILITY/ PROPOSED APPROACH

DESCRIPTION
Operational:
Operating hours: Lighting. Operating hours are based on monitored baseline data
described in this plan. The post-retrofit period operating hours
will be stipulated to be the same as the baseline period. Should
the Agency change operating hours, the estimated savings will
not change.

2/07 page 29
 6.1
Example M&V Plan

RESPONSIBILITY/ PROPOSED APPROACH

DESCRIPTION
EMCS. ABC Engineering verified fan and pump motor operating
hours for the baseline period, and will be responsible for
monitoring operating hours in the performance period. Maximum
operating hours for equipment has been defined in the M&V plan
in case of substantial change in schedule.
Heating setpoint will be set no higher than 68 ºF and cooling
setpoint no lower than 72 ºF as agreed to by ABC and GSA.
Chiller. ABC Engineering has estimated the load on the facility
based on short-term monitoring and historical log data. The GSA
is responsible for maintaining similar operating hours and load
conditions in the post-installation period, and agrees that the
chiller will be used annually for the minimum number of ton-
hours defined in the M&V plan. If operating ton-hours increase,
measured savings will also increase.
Load: EMCS. Increase in loads may result in use of maximum operating
hours specified in the M&V plan. Savings from reduced chiller
operation between 9:00 p.m. and startup will accrue to the EMCS
measure. Savings are based on measured chiller operation.
Chiller. In the event that the cooling load increases, the measured
energy savings will also increase. If the annual ton-hours of the
new chiller falls below the amount specified in the baseline, the
chiller savings will be calculated using the minimum defined in
the M&V plan.
Weather: Chiller. Although the operation of the new chiller may be affected
by weather conditions, no weather corrections are to be
performed. If mild conditions result in reduced chiller loads, the
loads may be adjusted upwards.
User participation: Lighting and Chiller: The savings for the lighting and chiller
ECMs are based on the continuation of the current operating
strategies. This responsibility is accepted by the Agency.
EMCS: The savings from the operation of the EMCS is based on
the control sequences outlined herein. Since these control
sequences could be overridden by the facility operating staff, the
Agency accepts responsibility that the EMCS will continue to
operate as specified.

RESPONSIBILITY/ PROPOSED APPROACH

DESCRIPTION
Performance:
Equipment Lighting. ABC Engineering is responsible for ensuring that the
performance: new lamps and ballasts are as specified for the first performance
year and meet the Energy Policy Act of 2005 requirement in
terms of minimum performance specifications. After this point,
the Agency assumes this responsibility.

2/07 page 30
 6.1
Example M&V Plan

RESPONSIBILITY/ PROPOSED APPROACH

DESCRIPTION
EMCS. The Agency is responsible for maintaining the fan and
pump motors so that the power draws remain at the baseline
level.
Chiller. The chiller is expected to perform as rated by the
manufacturer for the term of the contract and meets the Energy
Policy Act of 2005 requirement in terms of minimum
performance specifications. The GSA is responsible for
maintaining all central plant equipment, with the exception of the
new chiller, for the duration of the contract. Chiller performance
will be verified by ABC Engineering during commissioning and
checked annually for the duration of the contract.
Operations: The Agency accepts responsibility for the ongoing operation of
the equipment and systems affected by this DO, as described
herein.
Preventive The Agency accepts responsibility for the ongoing maintenance
maintenance: of all equipment affected by this DO, with the exception of the
new chiller. ABC Engineering will conduct annual inspections of
the affected equipment, and will report any discrepancies and
suggested remedies to the Agency immediately. ABC
Engineering will perform preventive chiller maintenance under a
separate contract with GSA. Annual calibration of chilled-related
sensors will be performed as part of this maintenance contract.
Equipment repair Lighting. ABC Engineering is responsible for replacement of
and replacement: failed, defective, or burned-out lamps and ballasts for the first
contract year. The Agency is responsible for replacement of
failed or burned-out lamps and ballasts after the first year.
Normal lifetimes of lamps are 15,000 to 20,000 hours when
connected to electronic ballasts. Electronic ballast lifetimes are
expected to be from 5 to 8 years.
EMCS. The fan and pump motors will not be changed as part of
this project, only control of the motors will be added. The motors
are expected to last throughout the term of this contract, but if
they should fail, the Agency is responsible for their replacement
and commissioning. Savings will be calculated based on the
baseline power measurements.
Chiller. Expected life of the chiller substantially exceeds the
contract length. The manufacturer’s warranty will determine what
coverage will apply in the event of premature failure.

2/07 page 31