A company uses five 100hp air compressors at 90% average load (average efficiency as 95%) and two 50hp motors at 60% average load (average efficiency as 75%). After implementing energy savings recommendations, the company was able to shut down two of the compressors permanently and the total compressors energy consumption (kWh) was reduced to 50%, compared to the original consumption by all five compressors. In addition, VFD controls were installed on the two motors that increased their average efficiency from 75% to 90%. Note that at some point, all of the remaining compressors may be operating at full load and at other times, only few may operate. Assume that the company operates for 8,000 hours per year. The utility rates for the company are $0.05/kWh and $10.00/kW-month. The annual energy cost savings for this company is: .

Assumption unless provided o Use the following: o Electricity $10/kW-month $0.10/kWh Natural gas $5/MMBtu Labor rate $25/hr o Operating hours 8,760 per year Motor Efficiency 0.95 Assumption unless provided o Use the following: o Electricity $10/kW-month $0.10/kWh Natural gas $5/MMBtu Labor rate $25/hr o Operating hours 8,760 per year Motor Efficiency 0.95