District Energy Now


Volume 12 Number 11 July 1997


Welcome New Members!

We hope you will join us in welcomingthe following new members of IDEA!
Travis Peyton, P.E.
Manager of Energy Services
Ballinger
2005 Market Street
Suite 1500
Philadelphia, PA 9103-7088
(215) 665-0900
(215) 665-0980 fax

Edward J. Marks
Vice President
Beacon Piping Company
45 Industrial Drive
Canton, MA 02021
(617) 364-9008
(617) 821-0274 fax
referred by Rob Thornton, Northwind Boston

Steve Borden
Director, Government Markets
Susan Engeleiter
VP, Government Markets
Honeywell Inc.
PO Box 524
Minneapolis, MN 55440-0524
(612) 951-8533
(612) 951-3446 fax
E-mail: Steve.Borden@hbc.honeywell.com

Steven L. Daniels
Vice President Business Development
Zurn/NEPCO
18578 NE 67th Court
Redmond, WA 98052
(206) 869-3000
(206) 869-3095 fax
E-mail: steved@nepco.com

Calendar of Events

12th Annual IDEA Cooling Conference
October 15-17, 1997
Wyndham Hotel, Cleveland, OH
Contact: IDEA, (202) 429-5111

IDEA Distribution Workshop
November 5-7, 1997
Mayflower Park Hotel, Seattle, WA
Contact: IDEA, (202) 429-5111

3rd Annual Canadian District Energy Association Meeting
November 5-8, 1997
The Queen Elizabeth Hotel, Montreal, Canada
Contact: (613) 947-5287

IDEA Marketing Workshop
February 25-26, 1998
Crowne Plaza Redondo Beach & Marina Hotel, CA
Contact: IDEA, (202) 429-5111

11th Annual College/University Conference
February 25-27, 1998
Crowne Plaza Redondo Beach & Marina Hotel, CA
Contact: IDEA, (202) 429-5111

89th Annual IDEA Conference & Trade Show
June 13-16, 1998
Hilton Palacio del Rio Hotel, San Antonio, TX
Contact: IDEA, (202) 429­5111


IDEA Leadership Given New Titles

In April, the board of directors revised the bylaws of the association to change the titles for the top leadership positions in IDEA. According to the new bylaws, the position of president is now chairman; the vice president position is now vice chairman; and the executive director is now known as the president of the association.

These title changes reflect the trend to make the association more of a staff driven group in order to rely less on volunteers for the everyday activities and allow the board of directors to focus more on policy than management.

Principal Managers Forum Disbands

At its meeting on June 17, 1997 in San Diego, the Principal Managers Forum dissolved itself. They relinquished the oversight for the seasonal efficiency of chillers research project initiated by the PMs to the R&D Forum.

The views the members expressed were that the forum had served its purpose. The PM Forum's initiatives such as the steam safety video and bulk subscriptions to the magazine literally kept the association alive during a very critical period. In disbanding their special group, the PMs also recognized that the association is now on firmer footing financially and is transitioning into a staff driven organization in response to changes taking place in the industry.

New Business/Entrepreneurial List to be Assembled

The International District Energy Association is assembling a list of companies that are interested in new business opportunities in the district energy industry. This list is being compiled to respond to requests that the headquarters office receives occasionally (about three or four time per year) for names of members that would be interested in purchasing existing or starting new district energy systems.

We would like all member companies to have an opportunity to be added to this list that will be given out when requests are received. If you would like to be included in this, please contact John Fiegel (john_fiegel@sba.com) or Tanya Kozel (tanya_kozel@sba.com) at IDEA, (202) 429-5111.

New Promotional District Energy Video Released

A new video, District Energy is the Link, promoting the district energy industry was debuted at the Opening Luncheon of the 88th Annual Conference & Trade Show.

This short video, approximately 7 minutes, explains the concept and benefits of district energy in a very interesting way. District Energy is the Link was especially designed to introduce district energy to community leaders, campus officials or as a marketing tool to a potential district energy customer.

One copy is available to each IDEA member upon request. Additional copies and copies for non-members will be sold for $15 each (including postage).

Minneapolis Energy Center Wins Award

On April 8, 1997, the Minneapolis Energy Center was presented with an ASHRAE Minnesota Technology Award for 1996-1997. The award, a first-place finish in the Existing Industrial Facilities category, is for the Energy Center's conversion of Chiller No. 7 from refrigerant R-500 to R-134a. The conversion resulted in a 9 percent increase in chiller efficiency and 4 percent increase in chiller capacity. Martha Hewett, ASHRAE Technology Award Committee and senior research analyst with the Center for Energy and Environment, presented the award to Susan Larson, MEC's engineering services manager. The project was forwarded to the ASHRAE Regional Awards Committee where it won an honorable mention.

Two Internet Mailing Lists Assist District Energy Professionals

About 300 people are now subscribed to Holly, the district energy Internet mailing list is maintained by Morris Pierce at the University of Rochester (not IDEA). The Internet mailing list is named after Birdsill Holly, founder of the district heating industry. Subscribers send and receive information though Internet e-mail, which can be accessed through CompuServe, America On-Line, Prodigy, and other Internet service providers. Typical messages include information of interest to the district energy community, including new cogeneration and retail wheeling developments. Subscribers can also send questions to the listserv and receive answers from a wide range of district energy professionals also on the listserv.

There is no charge for subscribing and everyone interested in district energy topics is welcome to join. To subscribe, send a message to:

mailserv@dbv.cc.rochester.edu

with no subject and with the message:

subscribe holly

You will then receive information on how to use the Internet mailing lists features. If you have any questions or problems, please feel free to e-mail Morris Pierce at mapi@dbv.cc.rochester.edu.

Another helpful Internet mailing list is STEAM­LIST. It's managed by Miles Abernathy of the University of Texas.

The STEAM­LIST is intended for discussion of steam generators, piping and equipment. Boilers, boiler feed pumps, water treatment, corrosion and scaling, valves, PRVs, traps, turbines, flow metering, heating coils, condensate pumps, district heating, system modeling, that sort of stuff. Practical discussions, rather than theoretical or academic ones, are the intent of this list.

To subscribe to this list, send the request subscribe STEAM­LIST YourFirstName YourLastName in the body of a mail message to

listproc@mcfeeley.cc.utexas.edu

These Internet mailing lists offer a valuable service to industry professionals looking for answers to questions. The mailing lists are not intended for advertising purposes.

IDEA Exhibits at BOMA

IDEA recently took its exhibit booth on the road to BOMA's 90th Anniversary Convention and Trade Show in Minneapolis, Minnesota, June 22-24. Jeff Hayter of IDEA's staff was assisted at the trade show by Matt Schuerger, Anders Rydaker, Alex Sleiman and Sharon Lundberg from District Energy St. Paul and Gary Gustafson and Tom Davison of Minneapolis Energy Center.

Local district energy customers stopped by the booth to express their satisfaction with being on a district energy system while other conference attendees were educated about district energy for the first time.

IDEA would like to congratulate BOMA on a very successful 90th Annual Convention and Trade Show and thank our ????? members who helped us promote the industry.

AEE Study Shows 94.8% Would Switch Electric Suppliers for Lower Rates

The Association of Energy Engineers just released a 110 page study based on 710 responses indicating future trends of the energy marketplace. The survey showed that 15.2 percent of respondents would switch power suppliers if electric rates were lowered by 4 percent or less. Eighty-one percent would switch if electric rates were lowered by 14 percent or less and only 4.2 percent would not switch suppliers for lower rates.

This survey, which is divided into four sections: Member Opinion Survey Questions, Salary Results, Energy Services and DSM Results, and Cogeneration and Independent Power Production Results, is available for $95 from AEE Energy Books. For more information contact AEE at (770) 447-5083 ext. 210.

BOMA's President Testifies About Deregulation

G.A. "Chip" Julin III, RPA, president of the Building Owners and Managers Association (BOMA) International, the leading advocacy group for the commercial real estate industry, testified on June 12, 1997 before the United State Senate Committee on Energy and Natural Resources on the "Benefits and Risks of Restructuring to Consumers and Communities."

Speaking on behalf of BOMA International, Julin emphatically stated that the time for a competitive, deregulated electric market is now, and that the commercial real estate industry strongly support a federal approach to deregulating the industry.

"In the commercial real estate industry, building owners and managers spend ... more than $20 billion annually. Even a modest savings of 10 percent would equate to annual savings of $2 billion for the commercial real estate industry alone," Julin explained. "Lower electricity rates for the building directly equates to savings for building tenants -- America's small businesses," he added.

BOMA International, backed by its 16,000 members, has established itself as a leading supporter of this issue through consistent and strong action. Founded in 1907, BOMA International is a federation of 95 local associations whose members own or manage over 6 billion square feet of downtown and suburban commercial properties and facilities throughout the world.

For more information contact BOMA International at (202) 408-2662.

Trigen Energy Signs Contract with Housing Authority of Baltimore

Trigen Energy announced on June 4 that it signed a 20­year contract with the Housing Authority of Baltimore City (HABC), approved by the United States Department of Housing and Urban Development (HUD), which outsources the heating and domestic hot water needs of HABC's 1700 unit, low rise Cherry Hill Housing Development. HABC executed the necessary District Energy Service and Cherry Hill Heating Plant Lease Agreements required for the transfer of the heating system to Trigen Energy's Baltimore operating company. The transfer of service is expected to take place in early summer.

The federal government methodology for Life Cycle Cost Analysis, as published by the National Standards Institute, revealed that the Trigen approach represents a net present value savings of more than $2 million dollars over the life of the agreement when compared to self­generation.

Cherry Hill, located two miles south of center city Baltimore is a low rise, walk up housing development. It is comprised of recently refurbished living units consistent with HUD's desire to replace high rise structures with single family dwellings.

Steam is produced in three boilers using natural gas and #2 fuel oil as the energy source. This steam is converted into hot water for distribution to the 146 acre complex. HABC and HUD determined that responsibility for the heating plant would be better in the hands of a private concern with capital capabilities to upgrade the aging system and ensuring complex regulatory compliance. While Trigen most frequently hires existing plant personnel, HABC has elected to reassign manpower to other critical areas of service.

Committee Members Needed for Standard 90.1

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and the Illuminating Engineering Society of North America (IESNA) are cosponsoring Standard 90.1, Energy Code for Buildings Except Low Rise Residential Buildings. This standard and its predecessors serve as the basis for building energy codes throughout the country.

If you are interested in having input on this standard and meet the criteria below, the committee may want your assistance.

The prospective members should be technically qualified on some part of the standard; be generally knowledgeable about other parts of the standard; have adequate support for their participation in committee activities; be able to travel to attend committee meetings; be able to commit enough time to serve; and be able to meet the requirement for balance of interests within the committee. Appointments to the committee may be up to a four year commitment. Membership in ASHRAE or IESNA is not required.

Please contact IDEA for a copy of the application if you are interested in serving as a committee member.


Cogenerated District Energy Incentives Included in Restructuring Bill

IDEA was successful in modifying proposed power industry restructuring legislation to include incentives for cogenerated district energy.

In May Sen. Jim Jeffords (R-VT) introduced the "Electric System Public Benefits Protection Act of 1997" (S 687) in the U.S. Senate. The bill, one of several relating to power industry restructuring, includes a "Generation Performance Standard" which would establish an emissions cap and trading system for nitrogen oxides, sulfur dioxide and carbon dioxide. Power plants whose emissions per Mega-Watt-Hour are below the standard would receive tradable emission credits; those with emissions above the standard would be required to purchase credits.

As a result of IDEA action, this provision was modified so that cogeneration facilities would receive additional credits based on cogenerated thermal energy used for heating or cooling. The legislation establishes an important principle and increases the visibility of cogenerated district energy in the restructuring debate in the Congress.


IDEA to Participate in Task Force on Carbon Emissions Trading

Legislative Director Mark Spurr is participating in a task force to develop recommendations regarding tax shifting and/or carbon trading to meet greenhouse gas reduction goals. The task force, which grew out of the work of the President's Council on Sustainable Development, will convey its recommendations to the President, the State Department and other agencies. Tim Wirth, Undersecretary of the State Department and head of the U.S. climate change negotiation delegation, met with the group prior to their organizational meeting in June.

IDEA Past President Meets with Secretary of Energy Pena

Tom Casten, president and CEO of Trigen Energy and past president of IDEA, was part of a group of corporate leaders who have integrated sustainability into their business practices invited to a breakfast meeting in met in June with Secretary of Energy Federico Pena. Casten highlighted the enormous potential for emission reductions through combined heat and power and district energy systems. He urged Pena to look closely at what can be done to wring greater benefit from the fossil fuels we consume. It is hoped that there will be continuing dialogue between the Secretary and companies whose mission encompasses sustainable energy goals.

IDEA Meets with White House Climate Change Policy-Makers

This spring Legislative Director Mark Spurr met with Dirk Forrister, Chairman of the White House Climate Change Task Force (CCTF), and Judy Greenwald of the CCTF staff. The CCTF is a new group which will serve as a focal point for both outreach on the climate issue and "inreach" from outside groups into the administration policy development process. The CCTF staff welcomed IDEA's willingness to put forward information which will help clarify how the U.S. could reduce greenhouse gas emissions through district energy. Spurr walked them through the work IDEA has done to date to quantify the potential, and discussed elements for further policy analysis.

To date, the administration has concentrated on developing the U.S. position on the international protocol and, on the domestic side, establishing macro-economic models rather than examining specific opportunities for greenhouse gas reduction. (See article below "Administration Releases Initial Economic Forecasts on Climate Change.")

One of the likely key elements in a broad-based U.S. climate policy would be a carbon emissions trading system. Spurr stressed the importance of structuring a carbon trading scheme to account for emission reductions made possible by district energy systems. The White House staffers requested further information on district energy emissions benefits and related carbon trading issues, which was subsequently supplied. Additional follow-up will occur during the summer and fall.


Administration Releases Initial Economic Forecasts on Climate Change

In June the administration released the results of the initial climate change economic modeling by its "Interagency Analysis Team (IAT)." The IAT has used three macroeconomic models to establish a "base case" and examine the economic impacts of a variety of scenarios for reducing carbon dioxide emissions.

In the base case, U.S. carbon emissions are projected to increase from 1413 Million Metric Tons of Carbon (MMTC) in 1995 to 1693 MMTC in 2010 and 1805 MMTC in 2020. As a starting point for policy analysis, the IAT examined the implications of stabilizing emissions at 1990 levels by the year 2010. The core policy instrument would be a system of tradeable carbon emission permits initiated in the year 2000. Revenues from auctioning of the permits would be recycled in the economy through deficit reduction.

Key findings include:

· Estimates of permit prices are around $100 per ton in 2010, rising slightly thereafter (a carbon price of $100 per ton is the equivalent of $0.26 per gallon of gasoline).

· Emission reductions lead to small reductions in short-term economic growth, but growth later recovers because the emission reductions are achieved in large measure through increased investment in more efficient technologies.

· International trading of carbon permits among industrialized countries leads to sizable reductions in costs to stabilize emissions.

· Joint implementation, in which industrialized countries can achieve reductions through investments in developing countries, can reduce permit prices even further.

· Among fuels, coal bears the brunt of greenhouse gas stabilization.

· Policies to encourage substitution of capital for energy consumption are key.

IEA Releases Report on Advanced Energy Transmission Fluids

The International Energy Agency (IEA) has released a report entitled "Advanced Energy Transmission Fluids, Final Report of Research." The report is part of a series of research projects undertaken by the IEA's Programme of Research, Development and Demonstration on District Heating and Cooling" to develop and test additives which will reduce costs in district hot water and chilled water distribution systems. This latest report describes the results of four projects:

· "Modeling of the Location and Requirements for Heat Exchangers in District Heating Networks Using Friction Reduction Additives"

· "Experiments on the Effects of Friction Reduction Additives on Substations"

· "Survey of Environmental Restrictions to the Use of Additives in District Heating and Cooling Systems" and

· "Improving of the Heat Transmission Properties of Tube Bundle Heat Exchangers by Installing Obstacles Inside of Pipes"

Copies of the report (in English) are available free of charge from IDEA.


88th Annual Conference Provided a Global View

More than 400 district energy professionals attended IDEA's 88th Annual Conference and Trade Show in San Diego, California, June 14-17, 1997. In addition to attending the many technical presentations, conference-goers enjoyed a keynote address delivered by David Gardiner, Assistant Administrator for Policy, Planning and Evaluation, U.S. Environmental Protection Agency, on Monday June 16, 1997. Gardiner explained to the crowd the importance of the climate change discussions. He noted that if the provisions on the international agreement on climate change are approved and then ratified by the Senate, district energy systems could become very popular very quickly. He also stated, "District energy systems are a good example of the truism of what Hollywood made famous in the movie Back to the Future, sometimes you have to revisit yesterday to reach tomorrow."

On Sunday, June 14, attendees learned about many options for funding from Karl Jechoutek, Division Chief of the Power Development, Efficiency and Household Fuels Division of the World Bank and in an afternoon panel from professionals with Piper Jaffray, Credit Local de France, Leonard Street and Deinard, and Smith Barney.

Participants were able to enjoy one of California's most popular destinations, Sea World, on Sunday evening with dinner and fun for all at the aquatic park, the evening's activities were sponsored by Johnson Yokogawa. Monday evening's exhibitor reception, sponsored by York International, was a big hit with its international theme and ethnic foods.

During the Chairman's Banquet, Chairman Stephen Swinson conferred the following awards: System of the Year Award to University of California - Los Angeles; Public Service Leadership Award to Katheryn Shields, County Executive, Jackson County, Missouri; Norman R. Taylor Award to William Goodwin of Harrisburg Steam Works; Unsung Hero Awards to Dennis Ciemniecki of Elizabethtown Water Company and Hemant Mehta of Syska & Hennessy; Chairman's Awards were presented to the following: Steve Mueller of San Diego Power & Cooling; Jerry Pittman of Kattner/FVB District Energy; Cheryl Gomez of University of Virginia; Steve Mischissin of Stanford University; Harry Hawkes of Harvard University; Gordon Bloomquist of Washington State University Energy Program; Jon Wohl of Trigen-Philadelphia Energy; Jan Sockel of Harrisburg Steam Works; and Monica Westerlund of Westerlund Communications. The Best-in-Show Award was presented to Evantage: A Division of Virginia Power for its creative booth in the exhibit hall. Jack Kattner of Kattner/FVB District Energy Inc. was presented with a special award for his service as editor of District Energy magazine for almost ten years. The Chairman's Banquet was sponsored by Trigen Energy Western Region and the wine for the evening was sponsored by Trigen Energy.

This year's exhibit hall was also a great success with 50 companies showcasing their products and services.

IDEA would like to thank the following companies for their generous sponsorships of IDEA's 88th Annual Conference & Trade Show:

Atlantic Thermal Systems

Baltimore Aircoil Company

Carrier Corporation

CPF Underground

Gipe Associates

Johnson Yokogawa

Kattner/FVB District Energy Inc.

King & Spalding

KTM, Inc.

Nova District Energy Services Inc.

Perma-Pipe, Inc.

Rovanco Piping Systems

San Diego Power & Cooling

Thermal Ventures

The Trane Company

Trigen Energy

Trigen Energy Western Region

Whitney, Bailey, Cox & Magnani

York International


Classified Ad

Operations & Engineering Manager

District Energy St. Paul, Inc. is seeking an operations and engineering manager to plan, direct and manage plant, field and engineering operations for downtown St. Paul's district heating and cooling systems. Position is responsible for all aspects of plant and field operations and maintenance as well as engineering. Duties include development and implementation of standards and procedures related to labor relations, operations budgets, safety, reliability, efficiency and environmental compliance. Position is responsible to a staff of twenty-four employees.

Applicants must have a Bachelors Degree in Mechanical Engineering or closely related field plus course work in business management. A professional engineer's license is needed. Strong management and people skills are a necessity as well as strong fiscal management skills in budgeting, forecasting and cost control. An extensive background in management of heating plants, distribution systems or similar industrial or utility facilities is required.

District Energy St. Paul is an equal opportunity employer and encourages minority and women applicants. Please send a resume with a letter outlining skill, experience and salary expectations to:

Human Resources and Administration Manager
District Energy St. Paul, Inc.
76 West Kellogg Blvd.
St. Paul, MN 55102-1611


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