District Energy Now
Volume 13 Number 10 May 1998
Welcome New Members!
We hope you will join us in welcoming the following new members of IDEA!
Michael Moore
Operations Coordinator
ABB Water Meters Inc.
35-1200 Aerowood Drive
Mississauga, Ontario L4W 2S7 Canada
905-238-9622
905-238-5640 fax
referred by: CDEAMatt White
Applications Engineer
ABB Water Meters Inc.
35-1200 Aerowood Drive
Mississauga, Ontario L4W 2S7 Canada
905-238-9622
905-238-5640 fax
referred by: CDEAJohn Rothamel
Virginia Department of Public Utilities
PO Box 1048
Virginia, MN 55792
218-741-0740
referred by: Karl Marietta, Kattner/FVB District Energy, Inc.Calendar of Events
Third Annual House Renewable Energy Expo
May 21, 1998, 11:00 am - 4:00pm
Cannon House Office Building, Washington, DC
Contact: Sustainable Energy Coalition, (301) 270-225889th Annual IDEA Conference & Trade Show
June 13-16, 1998
San Antonio Convention Center & Hilton Palacio del Rio Hotel, San Antonio, Texas
Contact: IDEA, (202) 429-5111Distribution Workshop
September 23-25, 1998
New York, New York
Contact: IDEA, (202) 429-511113th Annual IDEA Cooling Conference
October 7-9, 1998
Colonial Williamsburg, Virginia
Contact: IDEA, (202) 429-5111
Secretary of Energy Peña to Receive IDEA’s Public Sector Award
Secretary of Energy Federico Peña has been selected to receive the Public Sector Award which the association hopes to present to him at IDEA’s 89th Annual Conference & Trade Show, June 13-16, 1998.
Secretary Peña is receiving this award in recognition of his leadership in addressing critical energy-related issues facing the United States, including climate change and power industry restructuring. These interrelated issues present complex and contentious policy questions, and Secretary Peña has demonstrated an ability to craft substantive and balanced initiatives in these areas. Under his leadership, the Department of Energy and the administration have recognized the benefits of district energy systems and combined heat and power in addressing these critical issues. We congratulate Mr. Peña on his stewardship of the Department of Energy as we present him with the most prestigious award the association can confer upon a person outside the district energy profession.
Year 2000 Problem
The following is a brief introduction to the Year 2000 issues that should be understood by district energy system company managers. IDEA is grateful to Mark Costentino, Chairman of IDEA’s Measurements & Controls Forum and Business Development Manager, Energy Management Industries for Yokogawa Industrial Automation for writing this article for your benefit.
What is the Year 2000 Problem?
It wasn’t so long ago that computer memory was very expensive and programmers used many ways of coding data to minimize the memory storage requirements. The Year 2000 Problem is a technical problem created by the common practice of using the last two digits of the Gregorian calendar year to represent the date when entered, displayed and stored within computers.
Today, because of this practice, we all understand "December ‘99" to mean; "December 1999." As the clocks roll over on the last day of this century, many of the computer devices will not interpret the year "00" as "2000". The results and ramifications of this will vary widely from device to device.
What devices are affected?
Any computerized device that uses time and date information is a likely candidate for Year 2000 Problems. In the District Energy business this can mean devices such as:
· Test and calibration equipment
· Analyzers for emissions monitoring
· Strip Chart Recorders
· Imbedded Machine Control such as chillers, turbine controls, compressors, etc.
· Power Monitoring Equipment
· Computer based Control Systems
· Data Acquisition Systems
· Time Sync equipment
IX. Sequence of Events equipment
X. Gateways and Custom Drivers
· Business Systems
· Desktop PCs
Don’t assume that a new piece of equipment is free of Year 2000 Problems.
What should be done?
Assess the scope of the problem within your business. Assign a person or team with management’s support to identify and list all equipment in the business that is date aware.
This equipment will likely fall into two categories: The first is shrink-wrapped equipment that is unpacked, setup and placed into operation without programming or customization such as strip chart recorder. The second category is computerized equipment that can be extended or customized by programming such as a control system or personal computer.
With shrink-wrapped equipment the manufacturer should be able to identify if it is Year 2000 (Y2K) compliant and if not, what type of correction is required. Many manufacturers’ Web pages give this information on a product by product basis.
For the computerized equipment that is programmable, defining the problem is more difficult. These systems can be modified or extended through programming including the use of date information and date calculations. A custom database program used to generate EPA reports from historical process data would be an example. This type of custom application is likely to have Year 2000 Problems. The application code should be reviewed, changed if necessary and tested for compliance.
The manufacturer may not have been involved in the custom application development and deployment. The developer of the custom application would be the best place to find support. In many cases custom applications evolve over an extended time with more than one developer working on the code. There may be limited resources or expertise to even assess the problems.
Plan & Implement the tasks necessary for Y2K compliance based on priorities and resources.
One of the biggest concerns of manufacturers is having the resources to review and correct custom applications in programmable systems. It is expected the workload for these problems will increase at an ever faster rate as the year 2000 approaches.
If you assess potential problems with mission critical custom applications it is important to establish dialog with your vendors as early as possible to plan and implement the corrections necessary while resources are available.
In some cases it may be more cost effective or timely to replace some custom applications than to correct them.
Monitor the plan to insure it stays on track for completion before the year 2000.
Where is there more information?
Check the web site of your vendors for specific information about product Y2K compliance.
There are also some web sites and pages dedicated to this issue:
www.year2000.com In addition to the above, with so many companies seeking to solve or avoid the problem altogether, the Electric Power Research Institute (EPRI) has launched an effort to minimize duplicate efforts, take advantage of lessons learned by various participants, and distribute the information as effectively as possible to firms who want it.
While the project is geared toward utilities and power providers, such a clearinghouse for news and ideas should prove valuable as the century closes.
EPRI has established a web site at www.epri.com/y2k. The project’s program manager, Charlie Siebenthal, states, "We will be building a robust site as we put staff in place and the information gets into full gear."
Another new resource is Meeting the Year 2000 Challenge: A Guide for Property Professionals, published earlier this year by BOMA. It considers different ways the millennium issue applies to elevators, hvac systems, lighting, fire safety, telecommunications, and the people who manage them. For a copy of the book, call BOMA at 800-426-6292.
Continuation of the European Marketing Group
District Heating and CoolingThe European Marketing Group for District Heating and Cooling has announced a continuation of its promotional activities. The agreement is a result of the cooperation between a number of European district heating organizations, supported by the EU Thermie Program.
The objective is to ensure that district heating gets a more predominant position in Europe as an essential, environmental and energy efficient way of heating.
A large number of district heating promotional activities were implemented in the last two years, such as,
- preparation and start-up of an Internet Homepage as a forum for presenting information to the European district heating and cooling sector. Address: www.eu-dhc.org.
- preparation and distribution of an informative leaflet about the group and its work.
- elaboration of a comprehensive handbook about district cooling, which is to illustrate industry/technique (state of the art) and the sector world-wide by means of reference lists and cases.
New activities that will be implemented in 1998-99 include:
- an extended/updated version of the cooling handbook will be published at the end of 1999.
- the development of an advanced version of the European district heating trade’s Internet Homepage will be continued.
Tax Credit for District Energy Piping Proposed
IDEA recently met with staff for the Senate Minority Leader Tom Daschle to discuss tax credits for reducing greenhouse gas emissions. In February, the Clinton administration proposed a package of climate change tax credits including $0.94 billion in investment for Combined Heat and Power (CHP). However, the administration has yet to move legislation to the Congress to implement those proposals. Sen. Daschle is leading a bipartisan effort to prepare tax legislation.
IDEA voiced support for the Clinton administration’s CHP proposal and proposed that tax credits also be provided for investments in district energy distribution systems. Senator Daschle’s staff was receptive to considering such a proposal. IDEA followed-up with a proposal to establish a 20% investment tax credit for thermal distribution system investments, defined as the installed costs for equipment and facilities required to distribute and store hot water, steam or chilled water for the purpose of delivering heating or cooling to multiple buildings from a central plant. Along with the administration’s February package, the district energy distribution tax credit and other new ideas will be considered for possible inclusion in legislation to be introduced in the Senate.
If you have any questions about the tax credit proposals, contact Legislative Director Mark Spurr at 612-337-0104.
DOE Visits IDEA Board of Directors
Bill Parks of the Department of Energy Office of Industrial Technologies made a presentation to the IDEA board in April. Mr. Parks discussed how DOE views the role of Combined Heat and Power (CHP) in reducing greenhouse gas emissions and described key barriers and potential programs to reduce barriers.
Parks stated that DOE sees CHP as a key strategy for reducing greenhouse gas emissions, with a potential to provide 8-10% of the reductions which the US must make to achieve the goals in the Kyoto agreement. Key barriers include air quality permitting constraints, such as a need for streamlined permitting to allow highly efficient power plants to get on-line quickly, and need to move to output-based air quality standards. DOE sees restructuring as an opportunity to boost CHP, and proposes to work with states in Fiscal Year 1999 to describe restructuring provisions beneficial to CHP. Mr. Parks also provided an update on the status of state restructuring efforts. Parks stated that DOE has requested $2 million in FY 1999 for programs to address CHP barriers, implement demonstrations and provide information/education outreach.
IDEA Visits the Hill
Following the April IDEA board meeting, representatives of IDEA visited Congress to advocate tax credits and program appropriations for district energy and distribute the IDEA video. The IDEA representatives included President John Fiegel, Vice Chairman Rob Thornton, board member John Andrepont, Government Relations Committee Chairman Gordon Bloomquist, Legislative Director Mark Spurr, and Program Administrator Marie Williams.
The group met with staff for Senate Minority Leader Tom Daschle (See article in this issue "Tax Credit for District Energy Piping Proposed"), Sen. Gorton (R-WA), chairman of the Interior Appropriations subcommittee, Sen. Leahy (D-VT), member of the Interior Appropriations subcommittee and Rep. Nethercutt, member of the House Interior Appropriations subcommittee. IDEA is advocating FY 1999 appropriations of $5 million in programs to catalyze implementation of district energy systems through information/education/technology transfer programs. In addition, IDEA has proposed $5 million in related programs for reducing barriers to all types of CHP.
If you have any questions about the appropriations proposals, contact Legislative Director Mark Spurr at 612-337-0104.
UT Holdings: The Cutting Edge of Energy Services
Unicom Thermal Holdings (UTH), a subsidiary of Unicom Corporation, is providing innovative district energy services in markets across North America. In just three years of operations, UTH has grown, forming joint ventures to provide energy-related services in cities including, Houston, Boston, Las Vegas, and Windsor and Toronto, Ontario in Canada.
The company’s Chicago subidiary--Unicom Thermal Technologies (UTT)--operates the largest and fastest growing district cooling system in the world, servicing more than 20 million square feet of Loop building space. In addition, UTT has recently linked to Chicago’s Union Square Lofts, providing its first central chilled and heated water to a residential project.
Following outlines several recent and upcoming projects that demonstrate UTH’s national and international growth:
- Northwind Aladdin--a subsidiary of UT Holdings Inc.--has contracted to provide all energy requirements, i.e., heating, cooling and electricity, to the Aladdin Hotel in Las Vegas, Nevada.
- In March, the City of Chicago awarded UTT the contract to heat and cool the new Midway Airport terminal and concourse saving the city more than $500,000 annually. This project marks the company’s initial foray into the municipal services arena.
- A $22 million expansion of the third of four thermal stations in Chicago is underway with five more units coming onto service between June 7 and September 1, 1998. This additional capacity is necessary to serve a growing list of customers.
- In October 1997, UTH celebrated its first international project with the start-up of a thermal station which provides energy services to Casino Windsor. Teaming with Ontario Hydro to form Northwind Windsor has also resulted in the possible development of district cooling projects in Toronto.
National Oceanic and Atmospheric Administration Issues Report
The National Oceanic and Atmospheric Administration has issued a special El Nino weather summary noting that "this winter’s El Nino ranks as one of the major climatic events of this century. The country as a whole saw the warmest and wettest January and February in the past 104 years. This record-breaking El Nino is consistent with a worldwide trend over the last 40 years toward a warmer and wetter world. We can’t draw a causal link between El Nino and global warming, but our modeling tells us that global warming may first manifest itself in changes in weather patterns; in other words, this winter’s El Nino is a taste of what we might expect if the earth warms as we now project." The study can be found at <http://www.publicaffairs.noaa.gov>.
EIA Tracks DSM Spending
Utility demand-side management (DSM) programs have played a significant role in promoting energy-efficient building over the years. But, as most people in the industry know, deregulation and the search for cost savings have led many utilities to discontinue their DSM efforts.
A report released last month by the Energy Information Administration (EIA) provides an interesting snapshot of this trend. According to EIA’s "U.S. Electric Utility Demand Side Management 1996," 10 large and 40 small electric utilities either discontinued DSM programs or the tracking of program effects in 1996. Of the 3,199 electric utilities in the United States, 1,003 had DSM programs in 1996, compared with 1,053 in 1995.
Overall spending on DSM programs declined by $519.1 million from 1995 to 1996, a drop of 21%. EIA projects a further $90 million decine over the next five years.
CFCs Widely Used to Cool Buildings Despite 28-Month Ban on Production
At least 56,000 centrifugal and screw chillers still use ozone-depleting chlorofluorocarbon (CFC) refrigerants to provide comfort cooling in tens of thouands of buildings across America, according to a survey released in April by the Air-Conditioning and Refrigeration Institute (ARI).
Despite a ban on production of CFCs that went into effect on December 31, 1995, approximately 70% of the chillers which used CFCs in the early 1990s remain dependent on CFCs, leaving manufacturing the huge task over coming years of replacing chillers used in commercial buildings, hospitals, sports complexes, colleges, government buildings and factories.
Chiller manufacturers estimate that the slower-than-expected phaseout of the 80,000 CFC chillers will result in only 38,811 conversions and replacements by January 1, 2001-- a full five years after the ban on the production of CFCs.
With supplies of virgin CFCs dwindling and 52% of the CFC chillers needing refrigerants such as CFC-11 and CFC-12 to remain in service in 2001, demand is expected to increase markedly for used CFCs which are recovered from chillers taken out of service and reclaimed to ARI Standard 700 specifications for re-use.
For more information on the survey, contact ARI at 703-524-8800 or visit them on the net at www.ari.org
U.S. EPA Names The Trane Company Energy Star Ally of the Year
At a major recognition event Kathleen Hogan, Director of the Atomospheric Pollution Prevention Division of the U.S. Environmental Protection Agency (EPA), presented the 1998 Energy Star Buildings Ally of the Year Award to IDEA Member The Trane Company.
The Energy Star Buildings Program is a voluntary energy efficiency program for U.S. commercial and industrial buildings. The program emphasizes the profitable investment opportunities created by implementation of proven energy efficiency technologies. The Trane Company was recognized for its level of participation in the program by providing superior building upgrades, and by promotion and education in the possibilities inherent in the use of energy efficient technology.
"The Trane Company has shown energy efficiency to be a smart business strategy," noted Maria Tikoff Vargas, co-director of EPA’s Energy Star Buildings and Green Lights® Program. "Trane’s partnership with the EPA also serves as a remarkable example of environmental leadership," she said.
The award was presented at the Atmospheric Pollution Prevention Division Awards event in Washington on March 24. Accepting the award, James E. Wolf, Trane vice president of Government Affairs, stated, "We prize the award not only for the recognition, but for the ideals for which the Energy Star Building Program stands."
"Today, world wide, the challenge of climate change is growing in importance. From Trane’s perspective, one of the most logical ways to meet this challenge is the very essence of the Energy Star Buildings Program. Specifically, the program encourages owners to invest in energy efficiency upgrades that will return a 20% or better return on investment, year after year. How many Wall Street investments could promise this level of return, year after year, guaranteed?"
"These buildings improvements include lighting, building tune-ups, load reductions, air-handling system improvements, and heating and cooling plant upgrades."
Readership Survey In Second Quarter District Energy
We want to hear what you think of IDEA's District Energy magazine! Please take a few moments today to complete the readership survey that was distributed as an insert in the Second Quarter 1998 issue of District Energy magazine. Just fax to (202) 429-5113 or mail - no postage necessary if mailed in the United States!
Conference Update
Get the Power....
We’re only one month away from the International District Energy Association’s
89th Annual Conference and Trade Show
Community District Energy: Power to Change our World
San Antonio Convention Center, San Antonio, Texas
June 13-16, 1998
We would like to thank the following companies for their commitment to exhibit at the Annual Conference:
Advanced Thermal Systems, Inc. Paul Mueller Co.
Alfa Laval Thermal, Inc. Perma-Pipe, Inc.
Ashland Chemical Co./Drew Industrial Div. Pittsburgh Corning Corp.
Baltimore Aircoil Co. R.G. Vanderweil Engineers
BetzDearborn RMF Engineering, Inc.
Black & Veatch Rovanco Piping Systems
Carrier Corporation Spence Engineering Co.
Carter & Burgess, Inc. Thermacor Process, Inc.
CES/WAY Int’l, Inc. Thermo Power Corp.
Consolidated Energy The Trane Co.
Contrec-USA, LLC Trigen-Ewing Power
Controlotron Corp. Thermal Science Technologies
DriTherm, Inc. Tuthill Corp./Murray Turbomachinery Div.
Enron Energy Services Urecon, Ltd.
Evantage U.S. Department of Energy
Fisher-Rosemount Vanessa Valve Co.
Flow Control Industries, Inc. Washington State University
Honeywell, Inc. WSA Engineered Systems
Kattner/FVB District Energy, Inc. Yokogawa Industrial Automation
Marley Cooling Tower Co. York Int’l Corp.
Mycom America Corp.
Nalco Chemical Co.
Nationwide Boiler, Inc.
Nova District Energy Services, Inc.
If you have not yet received conference information, please contact IDEA at (202) 429-5111.
There are still exhibit and sponsorship opportunities available for this conference. To secure a sponsorship, please contact Marie Williams at (202) 429-5111. For information on exhibiting at IDEA's conference, contact Tammie Jackson at (301) 464-0059.