6. BPA/BacGen Electric Power Reduction and Cost Savings ProgramCity of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
REPORT TO: Mayor and City Council
FROM: Jim Hansz, Director of Public Works
SUBJECT: BPA/BacGen Electric Power Reduction and Cost Saving Program
MEETING DATE: December 17, 2001
BACKGROUND: Several months ago the City was approached by BacGen Technologies, a
power conservation technical consultant representing the Bonneville Power Administration.
BacGen offered a proposal for analysis of the City's utility operations and equipment to identify
potential ways to reduce the amount of power consumed. The City Council directed the staff to
work with BacGen toward this goal. The initial analysis and evaluation of the wastewater
treatment plant and water production facilities is complete.
BacGen has determined that the WWTP is already being operated in a more efficient
manner than is typical for similar plants. Nonetheless, the review identified a series of potential
changes that may yield reductions in power consumption of approximately 10%. Based on this,
BacGen developed a program for the in-depth analysis of the plant operation over the next year
using sophisticated analytical equipment to measure the performance of the biological processes
throughout the energy intensive areas. This analysis will confirm that the proposed operational
changes will yield the expected savings with no negative impacts on our system. After reviewing
the BacGen recommendations, Bonneville Power has determined that the potential power
reduction (10%) justifies their investment of $28,231.00 toward the cost of this effort.
The water system evaluation yielded similar results except that a few more items to
improve efficiency have been identified. The investment that BPA is willing to make to
implement these changes is $42,980.00 for the water facilities. Some of these changes will
involve motor replacements for units of higher efficiency.
There is no direct capital investment obligation on the City of Kalispell for this effort.
The City's commitment is for the use of existing personnel to assist the effort. In exchange for
the investment by BPA to identify power saving measures at our W WTP, the City is asked to
consent to the detailed analysis of the plant operations. The City also agrees to implement the
energy saving measures that are identified provided they do not adversely impact the
performance of the plant. If any additional energy efficiency enhancing items are subsequently
identified from this effort there is a potential that an additional grant request can be submitted to
BPA. Should the costs of equipment replacement in this initial effort exceed the grant ceiling for
then the added cost would be subject to further negotiation between BacGen and the City. These
negotiations would move forward with the understanding that the cost of the items would be
recovered from energy savings and not provided up front. Council approval would be requested
prior to moving ahead with any program element that raised cost beyond the BPA grant amount
or personnel participation levels agreed in relation to the grant.
In order to follow through on this as quickly as possible the City has received a simplified
letter agreement from BPA, similar to the letter agreement that initiated the program effort to
date. This letter agreement briefly outlines the program described above, the level of investment
by BPA, and that there is no direct financial obligation on the part of the City other than the
stated commitment of personnel. Our desire is to begin implementation very soon after the
holidays are over. A copy of the initial review report also is attached for your information.
The total grant funding investment to be made by BPA for improving electrical efficiency
at the City's facilities is $71,211.00.
RECOMMENDATION: Staff recommends continuing with this effort with BPA and
BacGen and further recommends entering into an agreement with BPA/BacGen to do so at no
direct incremental cost to the City. The City Attorney reviewed the proposal and found no
problem.
ACTION REQUESTED: Motion to authorize the City Manager to sign the letter agreement
with BPA/BacGen for BPA to invest approximately $71,211.00 in the analysis, identification
and installation of energy saving measures and equipment.
ALTERNATIVES: As recommended by the City Council.
Respectively submitted:
s C. Hansz, P.E. Chris A. Kukulski
Director of Public Works rty Engineer City Manager
Report compiled December 4, 2001
Attachments: BacGen Report and letter Agreement to Proceed
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0
VBac.Gen Technologies
Wastewater & Water Treatment Energy Efficiency Technologies and Services
Wastewater Facility Energy Efficiency Optimization
System Recommendations
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Facility Owner Name: Kalispell, Montana
Facility Contact: Jim Hansz
Phone: 406-758-7720
Address: P.O. Box 1997
City: Kalispell
State: Montana
Zip: 59903
Serviltg�i�ri�t:atn���ats�t�lifnslaticrn..: _
Serving Utility: Flathead Electric Cooperative
Utility Contact: Ross Holter
Phone: 406-751-4433
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The Kalispell Wastewater Treatment Plant C'WWTP") is a highly advanced Biological Nutrient Removal
or "BNR" activated sludge facility. The plant serves approximately 18,000 ratepayers with a design
capacity of 3.1 million gallons per day ("mgd") and average daily influent flows of 1.8 — 2.3 mgd. The
facility is extremely well operated by an outstanding staff.
The facility is comprised of a complex series of small tanks wherein each tank may be managed as a
separate "biological reactor" in an effort to induce specific biochemical treatment elements at different
stages in the overall detention period. The tanks are aerated by a central 200 HP blower system feeding
distribution lines with fine bubble air diffuser mechanisms resting on the floor of each cell. There are
also low power submerged mixing propellers in the tanks.
As with other facilities in the Flathead region, Kalispell is under very tight Montana DEQ restrictions for
nutrient content in the effluent, and Kalispell must remove Nitrogen, Ammonia and Phosphorous using
its advanced treatment system and polymers in the final clarifier. Dried biosolids are land applied. The
facility operates within permit.
12/4/2C01 8:35 NM FROM: Martin Shai^_-BacGen ➢acGen Teaz:_elagi. TO: 9,7555056 PAGE: OC3 OF 004
The recommendation by BacGen engineering staff is to analyze and profile the facility for precise
benchmarking and dynamic optimization modeling through the temporary installation of BacGen's
Respirometry/DOSS sensing and data collection units, strategically circulated from one tank to the next
in an effort to highly "tune" each of the separate treatment cells. Subsequently, BacGen would institute
it's modeled and optimized process modifications enhancing and leveraging the control structure within
the existing system
The sensing units were designed to be extremely low maintenance, being both self-cleaning and self -
calibrating in -situ, are fully programmable and have built in data logging and fault diagnostics
capabilities.
The sensors are able to measure and analyze a broad range of critical system parameters including
Oxygen Uptake Rates ("OUR"), Dissolved Oxygen ("DO"), Temperature, the auto -detection of
endogenous respiration rates and respiration rates for each aeration and decay cycle, the dynamic
concentration of oxidizable substances and the required system treatment time utilizing biological and
hydraulic loading data and dynamic respiration rates. The collected information is subsequently
modeled, calibrated and tuned for optimal system performance and energy utilization.
The modeled and optimized system detention, air delivery and pumping strategies are then fed into an
installed SCADA system which is programmed to control the speed and/or on -off function of the surface
aeration units to deliver residual system aeration to dynamic set points. Basin weirs and sludge return
and wasting pump rates are modified as necessary.
'The model is also designed to assess the effects of changing weather conditions and biological and
hydraulic loading within the facility by applying adaptive model algorithms to address dynamic external
system variables.
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Based upon discussion with facility management and historical costs structures, it is believed that the
Kalispell W WTP spends approximately $130,00 per year on energy costs of which $68,200 may be
directly related to the aeration blower. Electrical energy billing statement requests have been approved
and will be attached, as they are made available by city and facility administration personnel.
Anticipated energy savings are predicated on initial system profiling and process modification pre -
engineering efforts. It is estimated that of the 200 HP applied for aeration purposes within each of the
separate treatment cells in the facility, BacGen's recommended process modifications will allow in -
permit performance while potentially reducing overall energy requirements by an incremental 12%.
This equates to the conservation of approximately 156,839 kWh per year.
Energy Use = 200 HP x .746 = 89.52 kW x Current Use of 8760=1,306,992 kWh
Energy Savings = Energy Use of 1,306,992 x Estimated Reduction of 0.12% = 156,839 kWh
When electrical energy billing statements are received, actual dollar cost savings to the facility will be
accounted for and estimated.
12/9/->np1 8:35 Mf 3ROM: Martin Shain-AacGer Hie -en Ye_hnol ,ui=a Tr: 9,755505" PACE: 004 D. M4
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Kalispell's potable water treatment, raw water pumping and distribution system is an older albeit very
well maintained, facility with strong opportunities for cost efficient energy use optimization. More data
is being collected to accurately quantify optimization costs and benefits and a separate System
Recommendation proposal will be submitted.
Kalispell's water and wastewater facilities are reasonably sized plants with varied electrical loads. The
wastewater facility is quite complex allowing myriad conservation opportunities. The potable water and
collection systems are well maintained but older and somewhat inefficient. There is clearly opportunity
in the inventory, analysis and optimization of plant motor systems, lighting, heating and cooling,
particularly within the potable water system. Immediately following or in parallel with the
implementation of measures directly related to Kalispell's wastewater system, BacGen will build a Task
Order Addendum to undertake a full scale "balance of plant" audit and prepare an analysis and
recommendation document.
Based upon historical instrument manufacturing lead times and the required engineering, system
analysis, programming and installation time necessary to implement, it is anticipated that, from the date
of BacGen's receipt of executed task order documents, 8 — 12 weeks will be necessary to fully implement
recommended efforts in the Kalispell facility.
Example: Executed Task Order Received
July 6th
Equipment & Instrumentation Ordered
July 9"
Pre -Engineering & Programming Work Commences
July 9th
Pre -Installation Preparations Commence
July 23`d
Equipment & Instrumentation Received
August loth
Equipment & Instrumentation Installation Commences
August lit`
In -Facility Applied Engineering & Programming Work Commences
August 20th
Facility Implementation Complete
September 30th
Facility Model Benchmark Verification & Tuning
On -Going, 12 Mos.
Facilities are being prioritized for implementation based upon guidance from BPA Project
Administration Water System and Balance of Plant executed Task Orders may he implemented, in part,
on a narallel hasis to wastewater instillations due to thr dcner of snerialiaatinn rem►ired within senior
ItlsitettpltAisli±[r;T3 e1I1t1eat Serv�ises Cofnpietitsnst�s
Assumed Receipt of Executed Task Order: July 6th, 2001
Installation Completion Date: September 3e, 2001
Technical Services Completion Date: September 30th, 2002
12/4/2001 8:5C PST FROM: M.rtin nr,n in-BacGen 6acGen Teehnotag=es TO: 0,7555056 PAGE: 902 OF HE
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Bcat eGe1"I Technologies
Wastewater & Water Treatrnent Energy Efficiency Technologies and Services
Water Facilities Energy Efficiency Optimization
Initial System Recommendations
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Facility (honer Name: Kalispell, Montana
Facility Contact: Jim Hansz
Phone: 406-758-7720
Address: P.O. Box 1997
City: Kalispell
State: Montana
Zip: 59903
SctTO
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Serving Utility: Flat -head Electric Cooperative
Utility Contact: Ross Holter
Phone: 406-751-4433
Site - at1—� H - _ .
The Kalispell water system is composed of 6 well sites and 2 booster stations. The system includes
storage capacity in the form of two ground tanks and one elevated storage tower. The total annual water
production for the year 2000 was 1,185,307 kGallons (1.185 Billion).
12/4"00: 8:56 AM FROM: Martin SSain-BacGen BacGe: T_a,n1lo3 tes TO: 9,755505E PAGE: OC3 OF 005
The reconunendation by BacGen engineering staff is to collect highly detailed system modeling data by
measuring and recording all key operating parameters of the various motors, pumps, supply and
distribution lines and storage capacity elements for the subject water system. The objective of this effort
is to model for optimization and identify conservation opportunities across three key areas.
First, where pumps operate under large dynamic losses, it may be viable to employ strategies to lower the
fluid flow rates within the piping system. These strategies may include adding incremental, high
efficiency smaller pumps in parallel with current pumps. Such pumps would operate at a lower GPM for
longer hours facilitating lower fluid flow rates and the consequent lower operating costs yet the system is
optimized to continue to meet demand curves over all diurnal and seasonal periods. A second approach
considered and weighed against cost:benefit parameters, is the installation of variable speed drives and
controls to match the model optimized flow rates to the system demand.
Second, it may he discovered that system pumps have been improperly sized based upon one of many
possible factors including poor initial engineering, historical changes in the overall water system,
historical upgrades or alterations to a specific component of the system by operations staff without
consideration to overall system impacts, etc. In such a situation, replacement with an optimized modeled
pump can save significantly on operational costs. To determine the estimated conserved energy savings,
the specific operating conditions of each pump are measured, recorded and modeled. This includes the
total dynamic head and flow rates of each pump during normal and computer synthesized low and peak
historical operation periods. This information is then used to calculate the overall efficiency of the
existing pumps and determine to what economic extent a fully optimized pump is more appropriate.
Finally, where existing system motors are of an older vintage and/or have been rewound, replacement
with new energy efficient motors may be a viable and cost efficient option. To determine the estimated
conserved energy savings, each motor is tested for kW draw and actual shaft speed vs. nameplate full
load speed and related original manufacturer motor data. The actual motor efficiency can then be
closely determined and modeled against system optimums with the net system savings from an energy
efficient replacement motor accurately calculated.
In addition, the system is analyzed for valving, pipeline material and design efficiencies and treatment
system backwash methods.
All water system modifications are programmed into existing PLC and/or SCADA systems, as applicable,
for ongoing management and continued optimization modeling.
Ctt1'o1��
Based on calculations and estimates, the current annual energy- consumption of the entire water system is
over 1,556,000 kWh. The maximum estimated conjunctive demand is 550 kW. The estimated cost for
this level of consumption and demand is $72,700 per year. Flathead Electric Cooperative -Energy
Northwest supplies the power for these accounts under rate class 943. Based upon the averages taken
from supplied utility billing statements, the cost for power is S2/kN' and 50.0381kWh. It is expected that
this rate and the direct costs associated with facilities operation will increase substantially over the
remainder of the year 2001.
12/4/20C1 8:56 Ni FROM: Martin Shair-HacGen RacGen T=nclogies 70: 9,755805E PA13.: C04 03 CCS
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Upon overall system review, the following initial findings were noted. Anticipated energy savings are
predicated on initial system profiling and process modification pre -engineering efforts.
Buffalo Hill Well
This well is a deep well (approximately 160 Feet) driven from ground level by a 200 HP motor through a
vertical shaft. The pump discharges a very short distance into a nearby reservoir. The pump delivers an
estimated 2,250 GPM at 165 feet of total dynamic head. The motor is estimated to operate at 94%
efficiency. With these assumptions, the existing pump is calculated to operate at an efficiency of about
56%. Through modeling the system for optimized performance, it is expected that replacing the pump
and installing an energy efficient motor can save an estimated 46 kW and 135,000 kWh/year. This would
represent a direct savings of approximately 34% over current facility operations. In addition, this effort
allows for the motor to be downsized to 125 HP. Reprogram SCADA system with new operations data.
Demand Savings = Current Load — Projected Load
(2250 GPM x 165 Ft x 8.341b/gal x 0.022597 W/ft-lb/min x (1 kW/1000 W) / 95.4%
motor efficiency / 83% pump efficiency)
= 134kW-88kW
= 46 kW reduction in load
Energy Savings = Demand Savings x Calculated Run Hours
= 46 kW x 2,939 hrs/yr
= 135,194 kWh/yr
Armory Well
This well is approximately 45 feet in depth and is driven by a vertical shaft and ground based 150 Hp
motor. The well pump discharges directly into the water distribution system It operates under an
estimated 202 feet of head and delivers an estimated 1,700 GPM. The motor for this pump is estimated to
operate at an efficiency of 93.6%. With these assumptions, the pump is calculated to perform at 63%
efficiency. Through modeling the system for optimized performance, it is expected that replacement of
the pump would raise the pump efficiency to an estimated 84%. The addition of an optimized energy
efficient motor would bring the motor efficiency up to 95.4%. Again, as with Buffalo Hill, the reduction
in load from this change would allow for the downsizing of the motor to 125 Hp. Overall savings over
current facility operations are estimated to be 29 kW and 103,000 kW'7dyr. Reprogram SCADA system
with new operations data.
Demand Savings = Current Load — Projected Load
(1700 GPM x 202 Ft x 8.34 lb/gal x 0.022597 W/ft-lb/min x (1 kW/1000 W) / 95.4%
motor efficiency / 84% pmnp efficiency)
= 110kW-81kW
= 29 kW reduction in load
Energy Savings = Demand Savings x Calculated Run Hours
= 29 kW x 3,572 hrs/yr
= 103,588 kWh/yr
12/4/2001 8:56 AM FPOtI: MsrCin Sha-BacGen EacGe- Tecnnoleg:es TO: 3,-1555C5e PAGE: C05 OF CC5
t p 14a �61 d11 � S nr7,�ded
Please see Wastewater Recommendations document for Kalispell.
Based upon historical instrument manufacturing lead times and the required engineering, system
analysis, programming and installation time necessary to implement, it is anticipated that, from the date
of BacGen's receipt of executed task order documents, 8 —12 weeks will be necessary to fully implement
recommended efforts in the Kalispell facility.
Example: Executed Task Order Received
July 6'
Equipment & Instrumentation Ordered
July 91
Pre -Engineering & Programming Work Commences
July 91
Pre -Installation Preparations Commence
July 23"d
Equipment & Instrumentation Received
August 100'
Equipment & Instrumentation Installation Commences
August 13a'
In -Facility Applied Engineering & Programming Work Commences
August 200'
Facility Implementation Complete
September360'
Facility Model Benchmark Verification & Tuning
On-Going,12 Mos.
Facilities are being prioritized for implementation based upon guidance from BPA Project
Administratiom Water System and Balance of Plant executed Task Orders may be implemented, in part,
on a parallel basis to wastewater installations due to the degree of specialization required within senior
engineering staff.
iltat aitr p %reicesn�n{tle£iaHr 15
Assumed Receipt of Executed Task Order: July 6', 2001
Installation Completion Date: September 30o, 2001
Technical Services Completion Date: September 30'h, 2002
OBacGen Technologies
Water & Wastewater Treatment Energy Efficiency Technologies and Services
BPA-BacGen Water & Wastewater Conservation Program Funding Commitment
November 19, 2001
Mr. Jim Hansz
City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
Re: Funding commitment and conditions per Energy Use and Performance Optimization of Water & Wastewater Treatment
Facilities governed under BPA-BacGen Program Grant Funding.
Background
Pertinent to and referencing the program introduction letter dated and sent to the City of Kalispell on or about June 12,
2001, along with any subsequent amendments, which letter outlined the BPA-BacGen Water and Wastewater System
Conservation Grant Program, and wherein BPA has contracted BacGen Technologies, its selected industry specialist, to
implement projects within the BPA service region with the objective of lowering the overall energy and peak demand period
usage by fresh water and wastewater treatment facilities and their respective distribution and collection systems. Please
note the following grant funding commitment and conditions.
Program Contractor
BacGen Technologies ("BacGen") is a firm specializing in energy efficiency and performance optimization specifically
within the fresh water and wastewater treatment industries. BacGen has been selected as the technical applications
specialist in the above outlined effort by BPA and is the primary program contractor. The energy efficiency project, known
as the "BPA-BacGen Water & Wastewater System Conservation Pilot Program", (the "Program"), is now in its
implementation stage.
Grant Funding and Grant Funding Cap
The City of Kalispell ("Kalispell") has been selected for participation within the Program Should Kalispell choose to
participate, it is under no financial obligation for the professional services rendered or equipment and instrumentation
installed including and up to the stated grant -funding cap ("Grant Cap") which Grant Cap amount is outlined below. All
such direct costs necessary to implement the Program, up to the Grant Cap, shall be underwritten in their entirety by BPA.
Program Cost Coverage over Grant Cap
With Kalispell's participation in the program and acceptance of the facility upgrade recommendations as proposed by
BacGen, BPA will underwrite out of Program funds the cost of such upgrades up to and including the Grant Cap. It is
further understood that any mutually agreed upon project costs expended over and above the Grant Cap, shall be negotiated
in good faith and on a best efforts basis as a separate agreement between the City of Kalispell and the project contractor,
BacGen. Within the Program, BacGen, as the Program's primary contractor, has committed to BPA that it will internally
finance any such mutually agreed project expenses that exceed BPA's Grant Cap for a given implementation. Further,
BacGen has committed that it will only accept repayment of such expenses based upon either:
1. A share of direct energy savings from the Program's implementation on a long term, going forward basis, or
2. An on -going long term service fee based upon facility energy use optimization consulting and related support
services, and/or
3. Any combination of the above and/or any other form of repayment deemed mutually acceptable to both parties.
Page 2
Program Cost Coverage over Grant Cap (continued)
In no event, however, shall such repayment of costs over the Grant Cap represent a net cost to the City of Kalispell after
full consideration is allowed for any direct kWh consumption or kW demand energy savings yielded from the Program's
implementation, as figured against the serving utility rate structure, on a going -forward basis, for the City of Kalispell's
Water and Wastewater facilities impacted by the Program.
The City of Kalispell agrees that it shall make its best efforts to operate its facilities, as benefited by the Program, in a
manner consistent with good and prudent energy conservation practices.
It is understood by all parties that neither the Program nor BPA bears responsibility for any costs over the below stated
Grant Cap and that any costs or expenditures negotiated between the City of Kalispell and BacGen are solely the
responsibilities of the like-minded parties and that BPA, acting solely as a funding provider herein, accepts no further
commitment within the Program other than the below stated funding, and that both BacGen and the City of Kalispell agree
to hold BPA harmless from all liability herein.
Program Cost Coverage & Grant Cap
Subject to final cost estimates and agreement by all parties to the conditions herein, the Program is prepared to allocate and
grant funding towards the respective facility upgrades up to and including the below stated Grant Cap amounts.
City of Kalispell Wastewater Treatment Plant & Collection System $28,231.00
City of Kalispell Fresh Water Plant & Distribution System $42,980.00
Consequent Procedures
Given Kalispell's agreement to participate in the Program and its acceptance of the conditions herein, BacGen will work
closely with Kalispell facility and City management to:
➢ Finalize and document mutually agreed upon facility upgrade elements, and
➢ Author mutually acceptable terms and conditions addressing the repayment of any agreed upgrade costs exceeding
the above stated Grant Cap amounts.
➢ Schedule the Program upgrades in a manner mutually acceptable and commence such efforts as soon as is
practically feasible assuming both parties best efforts.
Should Kalispell be amenable to the above and wish to participate in the Program implementation, please countersign and
return this letter as soon as possible via facsimile to BacGen at 888-845-8892. Any questions should be directed to
BacGen, to the further attention of Martin Shain, Program Director, at 206-550-9995.
The Bonneville Power Administration and BacGen both appreciate the opportunity to work with Kalispell on this important
conservation project as well as the time and interest of all those involved in the approval and implementation of such an
effort, a decision clearly indicative of progressive and thoughtful city and facilities management.
Respectfully,
j,,,,,�
Martin J. Shain
Counter Signature