ENERGY SAVINGS GUARANTEE PROCESS
Performance Verification Methods
POWERGEN conservatively guarantees energy cost savings in a customer's “Performance Specification” which is determined upfront in the due diligence phase.
When an XL System is operational, POWERGEN will verify energy cost savings using #1 and #2 methods below and #3 method if necessary:
- Instantaneous Verification: Timed Interval Sampling (TIS) performance testing shall be performed, according to NIST standards to establish the instantaneous Demand reductions. TIS performance testing is the best method for verify energy cost savings and XL System performance.
- Electric Bill Verification: New monthly electric bills shall be compared to the same month in the prior year, adjusting for changeable elements such as weather, occupancy, production volume and rates which will establish actual savings. The comparison period shall include at least three (3) full billing periods following XL System installation.
- ROI Period Verification: If necessary, actual kWh for the proposed pay back period can be compared against the same prior reference period, accounting for changeable elements to establish kWh and cost savings.
XL System Performance Specification
POWERGEN calculates energy savings and ROI payback periods for "Performance Specifications” which include (i) due diligence data (ii) 12 historical electrical bills (iii) and identifiaction of the primary energy impacting variables to be normalized during future performance periods.
Estimated energy savings contained in "Performance Specifications” will be estimated to be between apparent power (KVA) reduction and real power (KW and KWH) reduction as measured in TIS performance testing.
XL System Performance Remedies
The following Remedies shall apply to XL System performance issues:
- Remedy for Non-Performance: 100% refund upon the completion of all verification methods.
- Remedy for under performance: Should, after the verification process and due diligence performed by POWERGEN to correct an under performance circumstance, POWERGEN shall refund the Customer according to the percentage of reduction not provided as stated in the “Performance Specification”.
- When an XL System performs as proposed in a customer’s “Performance Specification” pursuant to any of the three (3) verification methods above, customers have an obligation to contractually perform and provide full payment including any retainage amounts that may have been held back until the completion of TIS performance testing or comparison of Baseline electric bills to performance period electric bills.
- XL Systems require no maintenance or servicing. Therefore, any tampering with XL modules after installation may void the product warranty and performance guarantee.
- Estimated energy cost savings and ROI payback periods contained in XL System “Performance Specifications” are based on customer (i) due diligence data (ii) recent 12 historical electric bills (iii) normalization of Baseline Year using energy impacting variables that can impact verified energy cost savings results.
In order to verify energy cost savings in customer electric bills, POWERGEN and customers agree that customers will make certain variables known to POWERGEN so Baseline electric bills can be normalized and compared to monthly performance period electric bills. Otherwise, in the absence of accurate energy impacting variables, POWERGEN shall rely upon instantaneous demand verification results obtained from Timed Interval Sampling (TIS) performance testing as the primary method to verify energy cost savings and ROI payback periods.
Due Diligence Information
XL System “Performance Specifications” are determined in part from the due diligence information below which is collected upfront:
- 12 consecutive historical monthly electric bills
- 24x7 metered recordings of actual electrical conditions
- 24x7 operational load profile of the entire facility
Customer Baseline Year
A “Monthly Baseline Year” that includes customer driven energy impacting variables will be agreed upon upfront so monthly baseline electric bills normalized to future monthly electric bills in the “Performance Measurement Period” can be compared for true energy cost savings that are attributed to an installed XL System.
The “Monthly Baseline Year” is comprised of 12 historical monthly electric bills inclusive of known quantifiable customer variables which will also be included in future monthly electric bills in the “Performance Measurement Period”.
Energy Impacting Variables
- POWERGEN will normalize the following customer driven variables below upon receipt of those variables from customers. Typical customer driven energy impacting variables that can impact monthly electric bills are outlined below.
- Monthly production volume (industrial)
- Major changes in facility occupancy (commercial)
- Extended facility downtime in days, scheduled or unscheduled (industrial/commercial)
- Production shift changes (industrial)
- Major equipment adds/deducts in amperage (industrial/commercial)
- Major facility space adds/deducts in sqft (industrial/commercial)
- Electrical service adds/deducts (industrial/commercial)
- Major changes to the electrical system (industrial/commercial)
- POWERGEN will normalize the following basic energy impacting variables which are not controlled by customer:
- # of billing days in monthly electric bills
- Changes is utility electric rates and tariffs