Homework/Practice Problem The sample DALTS Grill restaurant property's annual electric and gas (primary energy) summary is shown on the last page of this hand out. Assume that the restaurant has a total of 7000 square feet (SF)/650 square-meters (SM) enclosed building area (both front-of-house (FOH) at 4500 SF/418 SM and "back-of-the-house (BOH) at 2500 SF/232 SM). As such DALTS Grill has 220 seats in various dining areas, including a private dining salon facility. The four year old restaurant is operated for 365 days per year and continuously under the ownership/management entity. 1. Determine the following facilities related management costs. Consumption and ratios: 1.1. Cost Ratios: 1.2. Consumption Ratios: Electricity: Electricity % Gas: Gas: % % % 1.3. Unit Costs: Electricity Gas Unit Costs comparison and related major comment(s); 2. What equipment-category load is like to appreciable differing for an equivalent restaurant located in Miami, Florida? 3. Determine the average daily operating period of the lighting (illumination) and the refrigeration systems/installation at the Rust Scupper as shown. 4. Determine the Building Energy Index (BEI) for the DALTS Grill" based on the Annual Energy Use Summary Shown" Btu/SF-Y kWh/SM-Y States) Focus kWh/SM-Y Compare that to an NRA Standard for BEI 500,000 btu/sqft 5. Assuming that the restaurant total energy cost per seat is $356/seat. 5.1. Determine the yearly and average quarterly water/sewer expense/cost for the restaurant. 2 6. If electricity amounts to 3.5 % of total revenue (from sales and income), and if repair and maintenance is 2.9 % of revenue, as such the total facilities management cost (FMC)/property operations maintenance and energy cost (POMEC) amounts to: /year $ /SF-Y $ /SM-Y 6.2. 5.2. Determine the Repair and Maintenance (R&M) cost per seat. $ /seat "DALTS Grill" ANNUAL ENERGY USE The following breakdowns of annual (12-months) primary energy use and related costs at the DALTS Grill Restaurant were developed from utility bills equipment sub metering records and other operational data during a Professional energy system audit done in June 200X States) Focus ELECTRIC Function Air conditioning Food Processing") Refrigeration **) Lighting Ventilation TOTALS Load (kw) 52 49 14 13 10 138kw kwh 64.200 146,900 98.500 54,700 43.800 408,100 kWh % 16 36 24 13 11 100% Cost ($) 5,939 13,588 9,111 5,060 4,052 $37.750 GAS Function Food Processing Water Heating TOTALS Some conversion factors that may be useful: Therms 23,300 4,600 27.900 Therms Cost ($) 16,124 3,183 $19.307 1 Btu 1 Therm 1 MMBtu (million Btu) 1,054.4 joules (1) 100,000 Btu 1,000,000 Btu 252 calories (cal) 29.31 Kilowatthours 293.1 Kilowatthours 1 Kilowatthour (kWh) 3,412 Btu 1 Megawatthour (Mwh) 3,412,141 Btu 1,000 Watthours (Wh) 1,000,000 Watthours 1 Kilowatthour (kWh) 3.6 Megajoules (MJ) 859.85 Kilocalories (kcal Natural Gas (NG) LP Gas (Propane") No. 2 fuel oil approx. 1,000 Btu per cubic foot (cf) approx. 92,000 Btu per US-gallon (gal) approx. 140,000 Btu per US-gallon (gal) States) Focus 7. The gas supply company (fuel-vendor") to the Dalts Grill restaurant has submitted kitchen equipment upgrading proposal to the owner(s). In this proposal, company/vendor recommends to replace the existing electric booster-heater" (auxiliary instantaneous water heater), rated 20kW, feeding the final rinse cycle of your automatic ware washing machine, with a gas-fired model of equal operating capacity and rating. The recommend gas-booster-heater is rated at 120.5 Mbtuh [120,500 Btu/h] LP gas. The new gas-fired unit costs $2,150 fully installed. Based on a detailed, validated review of relevant operations, the vendor reasonably estimates that the change from electric to gas-fueled heater would save you approximately 17,250 kWh per year, resulting in an "avoided energy cost in the estimated amount of $500.00". These estimates have been verified and approved by an independent expert/consultant. 7.1. Based on the above, determine the (simple) Payback period (years/months) and the Return on-Investment (ROI) for this recommended kitchen equipment retrofit. Payback is: ROI is: percent: 7.2. If, through effective negotiations, you were able to commit your fuel-vendor to provide you a guaranteed one-time incentive the amount of $700 for this fuel conversion (electric to gas) in to offset certain construction, installation and project close-out and clean up costs, with this secured (financial) incentive you would have (a) Payback is: ROI is: percent: 7.3 If the restaurant's IBIT (Income before Income Taxes) amounts, on a average, to 8.5 percent, then, the revenue impact of your decision to convert to gas from electric power for the auxiliary (booster) heater would amount to about: $ per States) Focus SUMMARY OF RECOMMENDATIONS This list of recommendations provided by Pacific Gas & Electric includes data on annual energy savings, annual cost savings and the estimated payback period for each piece of equipment purchased for energy savings. Recommendation Savings (kWh) Savings (S) ROI (%) Cost Payback 3,750 328 240 1.) Replace Fluorescent lights with energy-saving fluorescent. 2.) Replace incandescent lamps with 7,000 613 200 6,440 56 109 3.) Replace HVAC motors as they burn Our with high-efficiency motors 22,800 1,995 37.5 4.) Replace standard dishwasher with Low-temperature dishwasher. Determine the Cost and payback for each of the above recommendations. States) Focus Homework/Practice Problem The sample DALTS Grill restaurant property's annual electric and gas (primary energy) summary is shown on the last page of this hand out. Assume that the restaurant has a total of 7000 square feet (SF)/650 square-meters (SM) enclosed building area (both front-of-house (FOH) at 4500 SF/418 SM and "back-of-the-house (BOH) at 2500 SF/232 SM). As such DALTS Grill has 220 seats in various dining areas, including a private dining salon facility. The four year old restaurant is operated for 365 days per year and continuously under the ownership/management entity. 1. Determine the following facilities related management costs. Consumption and ratios: 1.1. Cost Ratios: 1.2. Consumption Ratios: Electricity: Electricity % Gas: Gas: % % % 1.3. Unit Costs: Electricity Gas Unit Costs comparison and related major comment(s); 2. What equipment-category load is like to appreciable differing for an equivalent restaurant located in Miami, Florida? 3. Determine the average daily operating period of the lighting (illumination) and the refrigeration systems/installation at the Rust Scupper as shown. 4. Determine the Building Energy Index (BEI) for the DALTS Grill" based on the Annual Energy Use Summary Shown" Btu/SF-Y kWh/SM-Y States) Focus kWh/SM-Y Compare that to an NRA Standard for BEI 500,000 btu/sqft 5. Assuming that the restaurant total energy cost per seat is $356/seat. 5.1. Determine the yearly and average quarterly water/sewer expense/cost for the restaurant. 2 6. If electricity amounts to 3.5 % of total revenue (from sales and income), and if repair and maintenance is 2.9 % of revenue, as such the total facilities management cost (FMC)/property operations maintenance and energy cost (POMEC) amounts to: /year $ /SF-Y $ /SM-Y 6.2. 5.2. Determine the Repair and Maintenance (R&M) cost per seat. $ /seat "DALTS Grill" ANNUAL ENERGY USE The following breakdowns of annual (12-months) primary energy use and related costs at the DALTS Grill Restaurant were developed from utility bills equipment sub metering records and other operational data during a Professional energy system audit done in June 200X States) Focus ELECTRIC Function Air conditioning Food Processing") Refrigeration **) Lighting Ventilation TOTALS Load (kw) 52 49 14 13 10 138kw kwh 64.200 146,900 98.500 54,700 43.800 408,100 kWh % 16 36 24 13 11 100% Cost ($) 5,939 13,588 9,111 5,060 4,052 $37.750 GAS Function Food Processing Water Heating TOTALS Some conversion factors that may be useful: Therms 23,300 4,600 27.900 Therms Cost ($) 16,124 3,183 $19.307 1 Btu 1 Therm 1 MMBtu (million Btu) 1,054.4 joules (1) 100,000 Btu 1,000,000 Btu 252 calories (cal) 29.31 Kilowatthours 293.1 Kilowatthours 1 Kilowatthour (kWh) 3,412 Btu 1 Megawatthour (Mwh) 3,412,141 Btu 1,000 Watthours (Wh) 1,000,000 Watthours 1 Kilowatthour (kWh) 3.6 Megajoules (MJ) 859.85 Kilocalories (kcal Natural Gas (NG) LP Gas (Propane") No. 2 fuel oil approx. 1,000 Btu per cubic foot (cf) approx. 92,000 Btu per US-gallon (gal) approx. 140,000 Btu per US-gallon (gal) States) Focus 7. The gas supply company (fuel-vendor") to the Dalts Grill restaurant has submitted kitchen equipment upgrading proposal to the owner(s). In this proposal, company/vendor recommends to replace the existing electric booster-heater" (auxiliary instantaneous water heater), rated 20kW, feeding the final rinse cycle of your automatic ware washing machine, with a gas-fired model of equal operating capacity and rating. The recommend gas-booster-heater is rated at 120.5 Mbtuh [120,500 Btu/h] LP gas. The new gas-fired unit costs $2,150 fully installed. Based on a detailed, validated review of relevant operations, the vendor reasonably estimates that the change from electric to gas-fueled heater would save you approximately 17,250 kWh per year, resulting in an "avoided energy cost in the estimated amount of $500.00". These estimates have been verified and approved by an independent expert/consultant. 7.1. Based on the above, determine the (simple) Payback period (years/months) and the Return on-Investment (ROI) for this recommended kitchen equipment retrofit. Payback is: ROI is: percent: 7.2. If, through effective negotiations, you were able to commit your fuel-vendor to provide you a guaranteed one-time incentive the amount of $700 for this fuel conversion (electric to gas) in to offset certain construction, installation and project close-out and clean up costs, with this secured (financial) incentive you would have (a) Payback is: ROI is: percent: 7.3 If the restaurant's IBIT (Income before Income Taxes) amounts, on a average, to 8.5 percent, then, the revenue impact of your decision to convert to gas from electric power for the auxiliary (booster) heater would amount to about: $ per States) Focus SUMMARY OF RECOMMENDATIONS This list of recommendations provided by Pacific Gas & Electric includes data on annual energy savings, annual cost savings and the estimated payback period for each piece of equipment purchased for energy savings. Recommendation Savings (kWh) Savings (S) ROI (%) Cost Payback 3,750 328 240 1.) Replace Fluorescent lights with energy-saving fluorescent. 2.) Replace incandescent lamps with 7,000 613 200 6,440 56 109 3.) Replace HVAC motors as they burn Our with high-efficiency motors 22,800 1,995 37.5 4.) Replace standard dishwasher with Low-temperature dishwasher. Determine the Cost and payback for each of the above recommendations. States) Focus