Energy Efficiency & Utility Allowances 2014 MAHMA Regional Affordable Housing Conference Detroit, Michigan June 4 th, 2014
Portfolio Statistics # of properties in US and Puerto Rico 340 # of states with properties 28 # of residents served 24,000 Assets managed $1.4 Billion
Utility Billing Challenges Identifying the Need for Utility Invoice Management Large Portfolio Many locations in different regions High combined utility spend Billing Problems Unexplained increased costs Multiple late fees These are all issues that the National Church Residences Housing portfolio was experiencing Energy Initiatives Energy benchmarking Tracking savings
Utility Data Management CASS receives invoice from vendor Invoice is keyed for data, converted to electronic format, and a check is mailed to the vendor CASS provides a data feed to Ecova This includes bill image, consumption, dollars spent, and more Ecova provides a clean view of the CASS data which allows for data reporting and auditing services This is the end product for our utility management purposes
Utility Data Management Integrating Portfolio Data into Data Management System G/L Data (2007) Utility supplier name Invoice dollars Invoice date Required Utility Data (2008) Consumption Late fees Meter reading dates Utility rate Property Data (2008/09) Utility metering type (master, common) Type of HVAC & water heating Building type (high-rise, townhouse, etc.) Data Collection Past 12 months of invoices Property data collected through Site Maintenance Form Data Upload Submit data to Cass and Ecova electronically Historical data is loaded Billing information updated Data Management Invoices are automatically paid Data is audited on a regular basis Data is available for reporting and budgeting services
Utility Data Management Utility Accounts Overview # of Managed Utility Accounts 1,122 Annual Managed Utility Spend $15,174,352 Water/Sewer 337 Accounts $5,078,528 33% Electric 528 Accounts $7,731,746 51% Gas 257 Accounts $2,364,078 16%
Ecova Invoice Manager Property information uploaded from data form submitted to Ecova Accounts loaded into Ecova for the selected property History for an account can be viewed dating back to the first invoice that was loaded
Ecova Invoice Manager Ecova s auditing services validate billing accuracy and saves National Church Residences significant money by identifying the following billing issues: Inappropriate Rates Meter Inaccuracies/Leaks Meter Reading Errors Late Fees
Invoice Management Savings 16%
Invoice Management Savings $80,000 $70,000 Cost of Services: $75,000 12-Month Savings: $222,000 $70,000 $64,000 $60,000 $50,000 $51,000 $40,000 $37,000 $30,000 $20,000 $10,000 $0 Inappropriate Rate* Meter Inaccuracy & Water Leaks* Meter Reading Errors Late Fees* * Savings will continue to be realized ongoing
Lighting Retrofit Survey Properties Collected lighting data from properties to determine candidates Select Program Partnered with Utilities Dynamics to retrofit 105 properties (7,736 units) Retrofit & Evaluate Savings were evaluated by comparing preretrofit kwh to post-retrofit kwh Cost: $1.1 million Savings: $300k/Yr Payback: 3.6 Yrs Carbon reduction of 6.2 million lbs / year Same as emissions from o ~400 cars o ~500 acres of forest
Energy Benchmarking General Use NCR Responsibility for Tenant s Water Heating Space Heating Space Cooling NCR Properties 1 Y Y Y Y 100 2 Y Y Y 0 3 Y Y Y 0 4 Y Y 0 5 Y Y Y 19 6 Y Y 50 7 Y Y 0 8 Y 65 9 Y Y 0 10 Y 3 11 Y 0 12 93 Using utility data and property profile information, portfolios can be benchmarked for energy There are theoretically 12 property profiles depending on what tenant energy is provided by the owner as opposed to the tenant However, National Church Residences properties fall into 6 profiles NCR s benchmarking will be based on the 6 profiles to ensure appropriate comparison of properties
Energy Benchmarking
Energy Benchmarking Once benchmarking has been completed, energy outliers can be targeted for energy initiatives The best way to identify effective energy initiatives with a timely payback is to have an energy audit performed on the appropriate properties HOWEVER, it is highly recommended the auditing company commit to performing retrofits so that savings can be tied directly to the audit results
Energy Benchmarking
Energy Benchmarking Step One Develop Energy Audit RFP Step Two Distribute RFP to Proposers Step Three Review and select winner Step Four Award contract tying estimates to results
Water Benchmarking Standardize annual consumption into gallons per person per day Investigate significant anomalies for data errors The consumption benchmark is the average of all properties 2010 H20 Benchmark: 73.04 G/P/D
Identify Outliers National Church Residences Water Conservation Initiative Select Program Retrofit & Evaluate High water consuming properties should be targeted for water saving initiatives There are several retrofit options that can be evaluated based on portfolio characteristics Savings can be evaluated by comparing pre-retrofit data to post-retrofit data Minol surveys properties and evaluates 12 month s of water history to determine savings and payback Minol Water Conservation Retrofit If savings and payback are attractive, Minol retrofits toilets, showerheads, and sink aerators Minol offers flexible payment options and savings reports
Water Benchmarking Properties Implemented: 37 Total Project Cost: $287,195 Total Annual Project Savings: $458,693 Average Payback: 11 Months 2010 H20 Benchmark: 73.15 G/P/D 2012 H20 Benchmark: 64.04 G/P/D
Utility Allowance Adjustments If tenant pays utility bill Maximum allowable rent Less utility allowance Tenant Rent Maximum allowable rent - Actual utility cost Utility allowances are typically set higher than average consumption Most PHA s allow this, but Owner s should check before proceeding
Utility Allowance Valuations Typical Utility Allowance Adjustment Procedure Research PHA s to determine adjustment rules PHA will review and either approve, deny, or request more info If approved, utility allowance will be decreased for certain units Obtain authorization from tenants to collect utility data Submit required data, paperwork and fees to PHA for review Owner should request rent increase to offset UA decrease Remove any Section 8 units from data sample Enter data into format required by respective PHA Process should be repeated annually to maximize savings
Utility Allowance Valuations If utility allowance adjustment as well as the rent increase is approved Example: Current monthly utility allowance $82 (1BR) $101 (2BR) Actual average monthly consumption $42 $48 66 (1BR units) x $40/mo + $80 (2BR units) x $53/mo = $6,880/mo
Kirby Manor Tod s Crossing I Tod s Crossing II Abbey Church Village Soutwood Gardens Ravine at Central College Walnut Grove Hilltop Senior Village II Chestnut Grove East Valley Crossing Hilltop Senior Village I Lincoln Gardens Harvard Village Country Ridge Sprague Crossing Tschirley Crossing II McPherson Woods Woods on Country Club Road Woodland Crossing Tschirley Crossing Hayden Crossing Nueces Bend Coeur d'alene Senior Apartments Heartland Crossing Argus Green National Church Residences Utility Allowance Valuations $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Utility Allowance Annual Savings Properties Implemented: 25 Total Cash Flow Realized: $489,952
Utility Allowances and Energy Efficiency Using Energy Measures to Impact Utility Allowances Utility allowance adjustments can only be done on specific properties and unit types: Unit measures that can impact utility costs and ultimately utility allowances include: Lighting retrofits (CFL s and T- 8/T-5 overhead fluorescents) Energy Star-rated appliances Energy Star-rated exhaust fans PTAC s with heat pumps Water conservation measures
For further information or follow-ups, please contact: Alan Mileti Utility & Procurement Specialist Engineering, Energy, & Procurement Services National Church Residences 614-273-3776 amileti@nationalchurchresidences.org