Prices must be provided for all fuels being used in the buildings being modeled. In addition, prices may also be provided for fuels not currently being used for FEDS to consider those fuels in its economic calculations (e.g., to consider fuel-switching opportunities).
TIP—Watch units required for fuel price parameters! Electric energy prices are requested in ¢/kWh, while demand charges are in $/kW.
On the *.txs report, the electricity dollar values listed under the "Annual Installation Energy Use by Fuel Type" and "Annual Energy Use by Building Set and Fuel Type" pages include both energy and demand charges. To determine how much of that total cost is attributable to the energy vs. demand, the demand component (reported on the following page) may be subtracted from this total value.
Emissions factors are used and relate a quantity of pollutant emitted (e.g., tons of CO2) per unit of fuel burned. There are factors for each of the six pollutant types corresponding to each main fuel type. To estimate emissions, FEDS multiplies the consumption value for each fuel type by the appropriate emission factor. The emissions factors for certain fuel types, (for example electricity) can vary significantly depending on factors, such as plant type (coal, gas, nuclear, hydropower) and source fuel composition (e.g., sulfur content) such that state average values are applied based on the typical generation resource mix supplying that state.
Generally, it is best to specify the original purpose of the building as the building type, and then modify the use-area type to reflect its current use. Select building type = "Education", use-area type = "Office." The building's construction characteristics are inferred based on building type, while usage parameters (including occupancy, lighting and equipment use, and hot water demand) are based on the use-area type.
There is effectively no limit to the number of building sets allowed in a single case if there is enough hard drive space. Currently, each building set occupies approximately 4.3 megabytes of space across all file types. Given adequate storage space, FEDS can be—and has been—used to model an entire community, city, or utility service area.
There is no real limit to the number of buildings that can be modeled in a building set. However, building sets are designed to model buildings that share similar characteristics. The more similar buildings are within a given building set, the more accurate the results will be.
Use the building type or use-area designation that best fits regardless of which list it is on. The building set classes were grouped this way to aid in the selection of common types, but either list may be selected.
Attractive NPVs, payback periods, and SIRs typically fall within certain ranges, which should always be positive. However, negative values are possible in a couple of instances and do not necessarily indicate an error. The first possibility is that the project is recommended for a technology or building component you identified as "replacement required". As such, FEDS will recommend the most cost-effective replacement option, but not require that it be cost effective. So, while it may be the best replacement option, it may exhibit seemingly nonsensical economic figures of merit. Similarly, if a building retrofit occurs due to central plant or thermal loop abandonment, it may also exhibit negative savings criteria. That simply means that the retrofit (e.g., replacing central steam service with an in-building boiler) was not cost effective when looking just at the building energy use and costs. But the value of abandoning the central plant and/or distribution loop (due to the accompanying reductions in thermal losses and O&M costs) provided a net positive gain when added to the negative savings at the building level. Thus, at the site level, taking the central plant and thermal loop savings into account, the net benefit is positive—but purely from the building perspective (reflected in the TXD and CSV reports) the change from steam to dedicated boiler was not cost effective. Reviewing the central plant and thermal loops section of the TXS report and looking for a positive abandonment value will provide additional detail on just how much of a net positive gain accrues do the abandoning the plant and/or loop.
The index code in following the existing technology description for a heating or cooling technology represents the technology record number. For example,{H2} indicates a heating technology is actually heating record #2 (as input in the user interface). This information can be valuable when dealing with heat/cool pairs with several heating and cooling records in a single building set.
FEDS project costing algorithms account for any materials, taxes, and labor costs applicable to a given retrofit measure. Additionally, 15% contractor overhead, 10% design cost, and 6% site level supervisory, inspection and overhead factors are applied, along with any multipliers specified on the regional costs screen under the financial options. Note that many of the cost factors reflect real regional variation, including labor rates, materials cost multipliers, and sales tax rates—with differentiation driven by the specified zip code. Each of these parameters are also able to be modified by the user, if appropriate.
The non-annual maintenance cost is used by FEDS to account for costs recurring on a non-annual basis, such as incremental equipment replacements and replacing failed lamps and ballasts. For example, the present value of the non-annual maintenance cost for lighting represents the present value of the total cost (including materials and labor) to replace the burned-out lamps and ballasts of a particular lighting technology over the course of the study period (generally 25 years).
Typically, the "Other" fuel type represents liquid propane gas (LPG) or propane fuel. However, if you use another fuel type that is not listed (e.g., wood chips), you may use "Other" to represent this fuel type.
FEDS employs the same standard life-cycle costing methodology and algorithms as the building life-cycle costing computer program developed by the National Institute of Standards and Technology.
A minimum or contract demand is included in some commercial and industrial electricity tariffs. It specifies the minimum billing demand that will be charged each month. This is important to understand because implementing energy efficiency projects that reduce the site’s monthly peak demand below the contract demand will have limited return, as no additional savings in demand charges will accrue once the actual monthly demand falls below the minimum contract value. If that is possible for your site, it is best to review this with your utility and negotiate a lower contract demand.
A demand ratchet is a billing method commonly imposed by electric utilities on large commercial or industrial customers. It specifies that the billed demand level in kW be the larger of the actual peak demand for the billing period, or a percentage of the highest peak reached during the previous X months. A typical demand ratchet uses 80% of the peak demand occurring during the previous 11 months as the comparison point. Under this scenario, if your facility experiences a peak demand of 1,000 kW for one hour (or 15 minute interval) you will be billed for a minimum of 800 kW during the next 11 months, even if your actual demand is much lower. Demand ratchets are generally used by utilities to reduce the risks of serving certain types of customers who have potentially large swings in demand during the year—making them pay for the assurance of having the high capacity available when needed.
A marginal price is the price paid for the last increment of energy purchased. This should, therefore, exclude all fixed charges (e.g., the monthly customer or meter charge) and focus only on the costs that vary based on the amount of energy used. Some rate structures are more complex and require some analysis. For example, in a block electric rate structure where users pay a certain amount depending on how much electricity used during the month, the value of electricity would be the price corresponding to the amount the building generally consumes in a month (rather than the average cost over all kWh's used). The marginal rate is the value of a unit of energy saved (i.e., the value of a kWh saved by an efficiency measure).
Providing detailed marginal prices for electricity (including any time-of-day or seasonal variations, and the impact of demand charges and ratchets) is important as it can have a huge impact on the types and cost effectiveness of recommended efficiency measures, as compared with applying basic melded average rates.
Section 432 of the Energy Independence and Security Act of 2007 (EISA 432) requires U.S. federal agencies to perform energy and water evaluations of their covered facilities on a recurring basis and report their performance via the Compliance Tracking System (CTS). The FEDS CTS report is provided to help agencies compile and format results from their FEDS analyses to facilitate this reporting requirement. Measures identified with buildings modeled in FEDS are categorized and summarized into the CTS Evaluation Upload Template (in an Excel spreadsheet format).
Distillate oil is light fuel oil that has been further refined than heavier oils. Examples include #2 fuel oil and diesel fuel. Residual oil, as its name suggests, is the oil residue that remains after distilling out the lighter grade components. It is generally designated as #4, #5, or #6 fuel oil, is much more viscous than ordinary oils, and must be heated to allow it to flow and be burned.
The discount rate is the factor used to adjust (discount) future sums of money into the equivalent current year dollar amount. It can also be thought of as the interest rate or hurdle rate (i.e., the rate of return required by a company for it to undertake a project). FEDS uses the real discount rate, which has the effect of inflation removed. FEDS provides the current Federal real discount rate as the default, but the user may enter any discount rate appropriate for their projects. Energy service companies performing shared energy savings contracts typically require real rates of return in the neighborhood of 10 to 20%.
The Energy Resilience and Conservation Investment Program (ERCIP) report (*.ecp, otherwise known as the DD 1391) is a special form required by certain U.S. Department of Defense agencies in order to submit projects for ERCIP funding. The ERCIP report is designed to facilitate the form preparation and submittal process.
The global cost multiplier is an overall cost multiplier applied to the total project cost (including all materials, labor, taxes, overhead). It can be used to adjust all of the total project costs used in FEDS economic calculations. This could be used for such purposes as to account for special cost-impacting requirements of working at a facility with stringent security requirements or health and safety risks, or to assess the impact of varying costs on project economics.
The [Heating/Cooling] end use designation is used for existing heat pumps or heat/cool pairs. Because such technologies provide both heating and cooling, two rows are needed to describe them on the *.csv report. [HEATING/Cooling] indicates that the data on that row pertain to the heating technology (and overall economic impacts) while [Heating/COOLING] indicates that the data describes the cooling portion of the equipment (and no overall energy and economic data are shown).
On the bottom right of some input screens (windows, lighting, heating, cooling, hot water, and motors) is a check box labeled "replacement required". The purpose of this selection is to tell FEDS that this particular building component or technology must be replaced. Whether it has failed (for example, windows are broken, or the furnace has stopped working), or a replacement or upgrade is planned, checking this box will force a replacement to be evaluated and selected when the FEDS optimization analysis is run. If a replacement option is cost effective, FEDS will work as normal; however, if one is not, FEDS will still provide the recommendation even though it may not be otherwise cost effective. FEDS will still report the most cost-effective option and all of the standard details to help users make informed decisions. This option is also known as replace on failure economics.
FEDS project costs are based on industry averages and may not match the exact costs you will be charged. The end-use and technology multipliers are intended to enable the user to adjust for these discrepancies so that the costs used in the FEDS analyses are as close to actual as possible. The recommended approach would be to first enter any known cost data (such as, labor rates, tax rate, discount rate, etc.), and then run FEDS, generate reports, and see what types of projects are coming up. Compare the project costs to actual known costs or bids for similar projects of that type. If any of the technology costs are grossly high or low, adjust them appropriately with a technology multiplier. Rerun FEDS to see if the same technology is being selected, and make sure that the costs more closely represent what the anticipated cost to complete the project. Because of the complex nature of the FEDS cost data, this iterative multiplier approach is the best way for users to modify project costs.
Most fuels are valued in FEDS as delivered to the building or end-use. However, the value for district fuels at the building or end-use level are determined somewhat differently. For self-generated fuel types (e.g., central steam, hot water, or chilled water) FEDS calculates the value of the fuel from the inputs in the central plants and thermal loops module. For example, the average value of self-generated steam is calculated based on the energy price of the fuel consumed by the boiler at the central plant along with its conversion efficiency, value of auxiliary energy and chemicals and labor to operate the plant, plus thermal and leakage losses in the thermal loops that distribute the steam to the building. If the central steam plant has multiple distribution loops, the losses may be different and therefore each steam loop can have its own average value for the steam it delivers. For purchased central fuel types (purchased steam, hot water, or chilled water) the value of the fuel delivered to the installation boundary is entered on the "Non-Electric Energy Prices" screen, and then FEDS applies information on the efficiency of each distribution loop to determine the average value of the steam at the building level as delivered by each loop. Marginal values do not consider fixed O&M costs (i.e., those that do not vary with the quantity of central fuel produced/delivered) or distribution losses (which are fixed and do not vary with the amount of energy delivered). Marginal values are used to determine the value of each increment of energy consumed or saved.
For heat/cool pairs (separate heating and cooling technologies), information may be listed for both retrofits to new, more efficient equipment and to a heat pump. In some cases, it may be cost effective to replace the heating equipment (or cooling only, or both) with a newer unit of similar type, as well as replace both heat and cool simultaneously with a heat pump system. All cost-effective options will appear on the *.csv report. The best option can be determined by comparing the sum of the individual heat and cool annualized total life-cycle costing savings with that of the combined heat/cool system (i.e., heat pump).
The installed capital cost listed at the very bottom of the *.txd report represents the actual total cost including materials, labor, taxes, and overhead. It is the actual cost that would be paid to complete a project. The installed cost value listed under the life-cycle costs savings section displays both the present and annualized values of the installed cost as used in the life-cycle cost analysis. The present value of the installed cost may be less than the installed capital cost if the study period for the analysis is less than the life of the new equipment. This can occur when the remaining life of the existing technology is less than the life of the retrofit technology. In this case, the cost of the retrofit technology is annualized over its full rated life, but only the annualized costs occurring during the remaining life of the existing equipment is discounted back to the analysis year and used for a fair cost/benefit comparison.
No. Given the importance of energy prices on the analysis, as well as the significant variation in rates available within a given region, there are no default or inferred electric or non-electric fuel price data. Users should enter the value of all fuels available.