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Energy Efficiency At the Farm Level



               Interstate Power and Light Co.
               (IPL), an Alliant Energy Company


               Kent Mowrer




               February 11, 2009
Alliant Energy – who are we?




Alliant Energy serves over
 1,000 cities and towns
 within its territory
 boundaries.



2
Alliant Energy – who are we?


We are an energy-services provider.
Our customers…

Wisconsin Power and Light (WP&L)
    – 453,000 electric
    – 179,000 natural gas customers


Interstate Power and Light (IP&L)
    – 538,000 electric
    – 239,000 natural gas customers


4
IPL Ag Program
     Agriculture Account Rep.

     Free, whole-farm electrical
      energy audits

     Ag-specific prescriptive rebates

     Specialized energy audits, e.g.,
      USDA Section 9007 Energy
      Program

     Energy Consulting
       – New equipment comparisons
       – Recommendations of higher
         efficiency equipment
5
Farm Electrical Use

     Agriculture is a major user of energy.

     Accounts for about 15% of total farm
      cash expenses (includes electricity,
      fuel, & fertilizer)

     Electricity is important to agriculture

     > $2 Billion spent for on-farm use in
      the U.S.
6
Energy Uses




7
When to invest in Energy Efficiency?

     Equipment needs to be replaced

     Expansion

     New construction

     Favorable economics (good times)

     Change in needs or processes

     Unfavorable economics (bad times)


8
What Equipment to look at on the farm?
     Lighting & Heat lamps     Automatic milker
                                 takeoffs
     Ventilation fans
                                Milk precoolers
     Circulations fans
                                Heat reclaimers
     Thermostat /
                                VSD Vacuum pumps
      environmental controls

                                Livestock waters
     Feed systems

                                Irrigation equipment
     Motors & VFD

                                Water heaters & cloths
     Grain dryers & grain
                                 washers
      monitoring equipment

9
Good Place to Start: Farm Energy Study
      Document past energy use

      Pinpoint energy waste in the operation

      Evaluate costs per unit – purchase options

      Identify energy-efficient technologies

      Provide summary report on energy savings
       potential.

      Identify rebate or grant opportunities: i.e.
       USDA 90-07 Federal Energy Efficiency Grants.
10
Key Elements in Energy Management


 Horsepower/wattage of equipment

 Hours of use

 Timing of use

 Electric rate




11
Tools for Energy Efficiency – New Construction
                  Proposal For:
                                                                                             New Construction Efficiency Comparison
                          Date: August 5, 2005
            Project Description: 2,400 hd new finisher

         Recommended Energy Efficient Measures:


                                                                                                                              Total         Total
                                                                                                                            Available
                                                                           Estimated                       Available                    installed cost                                                                Annual
                                                                                                                                                                       Annual   Estimated
                                                                                                                          Incentive per
                                                              No. Of       installed   Total installed   Incentive per                                    Total kWh                                 Total kWh
                                                                                                                                            minus                                                                      Dollar
                                                                                                                                                                       Cost of kWh Saved
                           Measure                                                                                          Measure                                   Operation  per unit
                                                              Units        cost/unit        cost          animal/unit                                       Used                                     Saved
                                                                                                                                          incentive                                                                   Savings
                 Std./Existing
                           Lighting
     1               Incand. Fixt. - Rm-Lighting               60      $        15.75 $       945.00                                    $     945.00           6,570 $ 591.30
     2                CFL Fixture - Nite Lights                 8      $        38.20 $       305.60 $      20.00 /lght   $      160.00 $     145.60             981 $ 88.30
     3
     4
     5
                         Ventilation
     1                   Pit Fan -                             12      $       500.00 $     6,000.00                                      $ 6,000.00          35,962 $3,236.59
     2             End Wall Fans -                              4      $       500.00 $     2,000.00                                                          11,987 $1,078.86
     3
     4
     5


                Recommended
                          Lighting
                                                                                                                                                                                                                  $     480.92
                     CFL Fixture - Rm-Lighting
     1                                                         60      $        38.20 $     2,292.00 $      20.00 /lght   $    1,200.00 $ 1,092.00             1,226 $ 110.38                        5343.6
                                                                                                                                                                                                                  $          -
     2               CFL Fixture - Nite Lights                  8      $        38.20 $       305.60 $      20.00 /lght   $      160.00 $   145.60               981 $ 88.30                          0.0
     3
     4
     5
                         Ventilation
                                                                                                                                                                                                                  $     793.07
     1                   Pit Fan -                             12      $       600.00 $     7,200.00 $      75.00 /fan    $      900.00 $ 6,300.00            27,150 $2,443.52                       8811.9
                                                                                                                                                                                                                  $     264.36
     2             End Wall Fans -                              4      $       600.00 $     2,400.00 $      75.00 /fan    $      300.00 $ 2,100.00             9,050 $ 814.51                        2937.3
     3
     4
     5




                                            $      9,250.60                                                               $   12,197.60                                                               $2,547.00
         Total Standard Project Cost:                                  Total Recommended Project Cost:                                                   Rec. Project Incremental Cost:
         Incentive Amount:(If Any)                                     Incentive Amount:(If Any)
                                            $       160.00                                                                $    2,560.00
         Net Standard Project Cost:                                    Net Recommended Project Cost:                                                     Total Annual kWh Savings:                                kWh
                                                                                                                                                                                                        17,093
                                            $      7,090.60                                                               $    9,637.60
         Total Annual kWh Usage:                                       Total Annual kWh Usage:
                                                    55,501    kWh                                                              38,408     kWh

         Total Annual kWh Cost:                                        Total Annual kWh Cost:                                                            Total Annual Dollar Savings:           $ 1,538.35
                                             $ 4,995.05                                                                   $   3,456.70

                                                                       Est. kWh Savings:(If Any)                                          kWh                                                   $       0.090 $/kWh
                                                                                                                                17,093                           Based on Avg. Elec. Cost of:
12                                                                     Est. Cost Savings:(If Any)                                                        Energy Eff. Payback in Years:                    1.7
                                                                                                                          $   1,538.35
New Construction - Summary
        Standard building specs.           55,501kWh

                                          $4,995 @ $.09

        Energy Efficiency recommendations

                           38,408kWh

                          $3,457 @ $.09
             Compact Fluorescent Lights(@2hrs op./day)
            Fans w/better CFM/watt(24” fans 13 to 15)
            Incremental cost $2,547.00
            30% Energy Savings ($1538.00)
            Payback 1.7yrs.
13
9007 Grant Energy Audit - Existing




14
9007 Grant Energy Audit - Adjusted




15
9007 Grant Energy Audit - New




16
9007 Grant Energy Audit - Summary




17
Bottom Line Benefits
      Lower energy consumption = lower energy
       costs

      Rebates and grants provide money back for
       energy efficient equipment installations

      Pay for projects via positive cash flow from
       savings

      Reduce operating costs long-term

      Increase profits



18
Where do we go from here??

      Energy Efficiency does save $$ when done
       correctly.

      Energy Efficiency is one piece of the energy
       puzzle.

      Payback generally quicker, do first.

      Hasn’t been much emphasis in Ag market in the
       past. There is a lot of potential!!

      Challenges
         Change way of thinking. (Customers, builders,
          designers, equipment dealers)
19
Thank You!
      24 x 7 call center - 1-800-ALLIANT (255-4268)

      www.alliantenergy.com

      IPL Ag Reps

        – Steve Fredrick – energy efficiency and stray voltage
          Decorah, IA 563.382.1621

        – Tony Harvey – stray voltage and dairy industry
          Dubuque, IA 563.587.4553

        – Kent Mowrer – energy efficiency
          Ames, IA 515.268.3440

        – Adam Kramer – energy efficiency
          Cedar Rapids, IA 319.786.7293
20

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Energy Efficiency at the Farm Level

  • 1. Energy Efficiency At the Farm Level Interstate Power and Light Co. (IPL), an Alliant Energy Company Kent Mowrer February 11, 2009
  • 2. Alliant Energy – who are we? Alliant Energy serves over 1,000 cities and towns within its territory boundaries. 2
  • 3. Alliant Energy – who are we? We are an energy-services provider. Our customers… Wisconsin Power and Light (WP&L) – 453,000 electric – 179,000 natural gas customers Interstate Power and Light (IP&L) – 538,000 electric – 239,000 natural gas customers 4
  • 4. IPL Ag Program  Agriculture Account Rep.  Free, whole-farm electrical energy audits  Ag-specific prescriptive rebates  Specialized energy audits, e.g., USDA Section 9007 Energy Program  Energy Consulting – New equipment comparisons – Recommendations of higher efficiency equipment 5
  • 5. Farm Electrical Use  Agriculture is a major user of energy.  Accounts for about 15% of total farm cash expenses (includes electricity, fuel, & fertilizer)  Electricity is important to agriculture  > $2 Billion spent for on-farm use in the U.S. 6
  • 7. When to invest in Energy Efficiency?  Equipment needs to be replaced  Expansion  New construction  Favorable economics (good times)  Change in needs or processes  Unfavorable economics (bad times) 8
  • 8. What Equipment to look at on the farm?  Lighting & Heat lamps  Automatic milker takeoffs  Ventilation fans  Milk precoolers  Circulations fans  Heat reclaimers  Thermostat /  VSD Vacuum pumps environmental controls  Livestock waters  Feed systems  Irrigation equipment  Motors & VFD  Water heaters & cloths  Grain dryers & grain washers monitoring equipment 9
  • 9. Good Place to Start: Farm Energy Study  Document past energy use  Pinpoint energy waste in the operation  Evaluate costs per unit – purchase options  Identify energy-efficient technologies  Provide summary report on energy savings potential.  Identify rebate or grant opportunities: i.e. USDA 90-07 Federal Energy Efficiency Grants. 10
  • 10. Key Elements in Energy Management  Horsepower/wattage of equipment  Hours of use  Timing of use  Electric rate 11
  • 11. Tools for Energy Efficiency – New Construction Proposal For: New Construction Efficiency Comparison Date: August 5, 2005 Project Description: 2,400 hd new finisher Recommended Energy Efficient Measures: Total Total Available Estimated Available installed cost Annual Annual Estimated Incentive per No. Of installed Total installed Incentive per Total kWh Total kWh minus Dollar Cost of kWh Saved Measure Measure Operation per unit Units cost/unit cost animal/unit Used Saved incentive Savings Std./Existing Lighting 1 Incand. Fixt. - Rm-Lighting 60 $ 15.75 $ 945.00 $ 945.00 6,570 $ 591.30 2 CFL Fixture - Nite Lights 8 $ 38.20 $ 305.60 $ 20.00 /lght $ 160.00 $ 145.60 981 $ 88.30 3 4 5 Ventilation 1 Pit Fan - 12 $ 500.00 $ 6,000.00 $ 6,000.00 35,962 $3,236.59 2 End Wall Fans - 4 $ 500.00 $ 2,000.00 11,987 $1,078.86 3 4 5 Recommended Lighting $ 480.92 CFL Fixture - Rm-Lighting 1 60 $ 38.20 $ 2,292.00 $ 20.00 /lght $ 1,200.00 $ 1,092.00 1,226 $ 110.38 5343.6 $ - 2 CFL Fixture - Nite Lights 8 $ 38.20 $ 305.60 $ 20.00 /lght $ 160.00 $ 145.60 981 $ 88.30 0.0 3 4 5 Ventilation $ 793.07 1 Pit Fan - 12 $ 600.00 $ 7,200.00 $ 75.00 /fan $ 900.00 $ 6,300.00 27,150 $2,443.52 8811.9 $ 264.36 2 End Wall Fans - 4 $ 600.00 $ 2,400.00 $ 75.00 /fan $ 300.00 $ 2,100.00 9,050 $ 814.51 2937.3 3 4 5 $ 9,250.60 $ 12,197.60 $2,547.00 Total Standard Project Cost: Total Recommended Project Cost: Rec. Project Incremental Cost: Incentive Amount:(If Any) Incentive Amount:(If Any) $ 160.00 $ 2,560.00 Net Standard Project Cost: Net Recommended Project Cost: Total Annual kWh Savings: kWh 17,093 $ 7,090.60 $ 9,637.60 Total Annual kWh Usage: Total Annual kWh Usage: 55,501 kWh 38,408 kWh Total Annual kWh Cost: Total Annual kWh Cost: Total Annual Dollar Savings: $ 1,538.35 $ 4,995.05 $ 3,456.70 Est. kWh Savings:(If Any) kWh $ 0.090 $/kWh 17,093 Based on Avg. Elec. Cost of: 12 Est. Cost Savings:(If Any) Energy Eff. Payback in Years: 1.7 $ 1,538.35
  • 12. New Construction - Summary  Standard building specs. 55,501kWh  $4,995 @ $.09  Energy Efficiency recommendations  38,408kWh  $3,457 @ $.09  Compact Fluorescent Lights(@2hrs op./day)  Fans w/better CFM/watt(24” fans 13 to 15)  Incremental cost $2,547.00  30% Energy Savings ($1538.00)  Payback 1.7yrs. 13
  • 13. 9007 Grant Energy Audit - Existing 14
  • 14. 9007 Grant Energy Audit - Adjusted 15
  • 15. 9007 Grant Energy Audit - New 16
  • 16. 9007 Grant Energy Audit - Summary 17
  • 17. Bottom Line Benefits  Lower energy consumption = lower energy costs  Rebates and grants provide money back for energy efficient equipment installations  Pay for projects via positive cash flow from savings  Reduce operating costs long-term  Increase profits 18
  • 18. Where do we go from here??  Energy Efficiency does save $$ when done correctly.  Energy Efficiency is one piece of the energy puzzle.  Payback generally quicker, do first.  Hasn’t been much emphasis in Ag market in the past. There is a lot of potential!!  Challenges  Change way of thinking. (Customers, builders, designers, equipment dealers) 19
  • 19. Thank You!  24 x 7 call center - 1-800-ALLIANT (255-4268)  www.alliantenergy.com  IPL Ag Reps – Steve Fredrick – energy efficiency and stray voltage Decorah, IA 563.382.1621 – Tony Harvey – stray voltage and dairy industry Dubuque, IA 563.587.4553 – Kent Mowrer – energy efficiency Ames, IA 515.268.3440 – Adam Kramer – energy efficiency Cedar Rapids, IA 319.786.7293 20