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A Few Words From FMC'S Brian Crafts and Joe Preble
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There is a lot happening in the utility markets these days, which is why we have dedicated almost 100% of
this newsletter to energy. In general, costs are increasing across the board, supply is still constrained in many
areas and most people will be choosing a new service provider in the near future. There are new pricing structures to
investigate and the cost per kWh can vary greatly depending on location, service, rate, etc. The utility companies
are promoting several incentive programs for new construction and retrofit energy conservation measures. We suggest
looking at these programs with your current system in mind to either modify or add to your current control strategies.
In spite of all the confusion regarding pricing/delivery, we need to remind ourselves that the cheapest kWh is the
one you do not use.
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Energy Market Programs
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In April we attended The Energy Market 2003, a seminar sponsored
by Mass Electric and New England Demand Response Summit presented
by ISO New England. These are seminars to inform those in the energy
industry about the options available to customers who want to save
energy and decrease costs.
As you may know, in general utility prices have increased as of May
1st. In addition, ISO New England has developed eight new pricing
zones, three of which are in Massachusetts, Northeastern, MA
(NEMA/Boston), Southeastern, MA (SEMA), and Western/Central, MA (WCMA).
Pricing is determined by power supply, location demand, and making
sure demand is satisfied as economically as possible. Wholesale power
costs are expected to vary among the pricing zones, with NEMA/Boston to
experience higher prices than the other two Massachusetts zones. Programs
are available to provide customers with rebates or to assist in reducing
energy costs. A few of the programs available include:
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Energy Rebate Programs
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National Grid (Massachusetts Electric)/ NSTAR Electric - offer energy
initiative programs on existing systems that are being replaced or
expanded. They will provide a rebate based on the square footage of the
building and the number of points controlled (heating, cooling, VAV's,
pumps). FMC can work with you to determine the amount of your rebate
based on the criteria in the Energy Initiative application. Once
submitted and approved the customer has not only updated their existing
system, but has done so at a considerable savings.
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Demand Response Programs
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ISO New England - ISO New England, an Independent System Operator, is a
private non-profit corporation created to administer and oversee the
wholesale electricity market.
Demand Response is when commercial and industrial electricity users
in New England can receive incentive payments if they reduce their
electricity consumption or operate generation in response to high
real-time wholesale electricity prices (as determined by the market)
or when the reliability of the region's electricity grid is stressed
(as determined by the ISO NE).Benefits to customers who participate in
Demand Response programs include not only immediate financial rewards,
but an understanding of their hourly energy profile and the ability to
manage their consumption in response to wholesale prices or reliability
events, becoming more attractive customers to competitive electricity
suppliers. That may translate into the customer negotiating a lower
retail electricity price.
ISO New England's Real-Time Price Response Program will notify
participants when wholesale prices in their region are forecasted to exceed
$0.10 per kWh for the next day. Any reduction made during those hours are
eligible for payment. Participants will be paid the greater of the wholesale
electricity price for that region or a minimum of $0.10 per kWh. If they
participate in the 30-minute demand program they can be paid the greater of
the regional wholesale price or $0.50 per kWh. Wholesale electricity prices
can reach as high as $1.00 per kWh.
Businesses that already have an hourly meter that is read every day may be
able to participate at no additional costs.
FMC Technologies can help in a variety of ways, including: 1) advise and
enroll your company in the program; 2) review the current demand response
options and help select which program is best suited for your facility; 3)
install the metering required (if not already available); 4) install/modify
your energy management system to incorporate Demand Response Events into the
program.
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Restructuring of the
Electric Industry
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Security Access
Control
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The Massachusetts restructuring law for the electric industry provides for transitional utility supply service
through March 2005. Those customers who are on the standard offer service will need to chose a competitive energy
supplier within the next couple of years to avoid paying the higher default service rates. Customers need to be
able to explore all opportunities to save money. Programs offered by ISO New England will help customers know
their hourly usage and best manage their consumption, making them appealing to suppliers. Now is the time for
customers to get a handle on energy consumption to be able to make an informed decision in the near future.
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Today more and more facilities are looking towards access control. They are looking for the peace of mind that a total security
solution can bring. This includes access-initiated control, CCTV, video badging and critical alarm monitoring. FMC Technologies
has the capability to bring this technology to its customers. Our customers security needs may range from a simple
card access system to a total security solution using TAC's I/NET Seven. Today's customers find themselves maintaining
different and vastly dissimilar building control systems and therefore demand the integration of dissimilar systems into one
user-friendly easy-to-understand user interface. If you would like to discuss the security access needs of your company,
please contact us.
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Thank you to all of you who took the time and completed our Customer Survey.
We appreciate your responses and your comments. The recipient of our drawing for a
$100 gift certificate went to Dave Osmond of Ralph S. Osmond Company. Thanks again to all!
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Spring Edition 2005
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FMC Technologies, Inc.
Suite 104 / 17 Bridge St
Billerica, MA 01821
Phone: 978-528-4630
Fax: 978-528-4634
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