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BowEn► GUARANTEE MANAGEMENT <br />6a) Explain how the Provider plans to address the guarantee for this type of <br />project and how it meets Indiana requirements of IC 36-1-12.5. <br />Bowen plans to address the guarantee for this project by utilizing the same process that we <br />have used on our past Guaranteed Savings Contracts for wastewater improvements. Steve Nutt, <br />Bowen's VP of Performance Contracting, has worked with the Indiana GSC code for over 28 years, <br />15 of those years have been with Bowen Engineering. Teddy Deahl, Bowen's Energy Engineer, has <br />been working with the same code for 10 years while at Bowen. Prior to that, Teddy worked for the <br />Indiana Department of Energy. South Bend can utilize Bowen's past experience to assist your team <br />in putting together a final GSC agreement with the associated conservation measures. <br />Any wastewater Guaranteed Savings Contract needs to show that the amount that the governing <br />body would spend on the project will not exceed the amount of savings from energy, water, <br />wastewater and other operating costs over 20 years. <br />Operating costs savings includes reduction of future labor costs, future cost or revenues for <br />contracted services and future related capital expenditures. Based on our preliminary information <br />along with our Indiana Guaranteed Saving Contract experience, we are confident that we can <br />deliver a Savings Guarantee to South Bend that meets the requirements of 36-1-12.5. <br />6b) Describe the methodology used to compute the savings baseline. <br />Base year energy use is defined as energy consumption or demand during a period of any length <br />before implementation of a conservation measure. Electric bills from the current wastewater <br />system being impacted by the work will be collected. From there we would estimate a base usage <br />over the past two years. This would be the baseline when evaluating the Energy Conservation <br />Measures (ECMs) provided in the GMP phase of the process. Examples of wastewater treatment <br />plant baselines are available upon request. <br />Below is an example of one of the South Bend Pinhook WTP GSC calculations that Bowen <br />estimated the water savings from replacing aging backwash valves. <br />City of South Bend, IN ECM: Replace gaging backwash valves that leak, causing <br />finished water to be wasted and the backwash pumps to <br />run more. <br />Assumptions: <br />1.J {8I BBc kwash valves are 24" <br />2.] ESti mated 3% leakage from A not fu I ly c los d valve <br />3.] 3% leakage eq uates to rough ly 150 gal Ions per m i n ute of lost fl n ishd water <br />4.] Average cost of fi n ishd water=$0.24/1000gal (Based on 2015 data) <br />S.J Assumed total kWh rate of $0.10 <br />6.J m l Backwash waste pump/Q rai nage Wet Wel I =60 H P <br />7.J <br />Facility. Pinhook Water Treatment Plant <br />Drainage Wet Well Pumps - Electrical Savings <br />Current Motor Hours/Yr Motor Lead Annual <br />Operational <br />ID Motor HP Efficiency Operation Factor kWh $/kWh <br />Cost/Yr <br />Purls pill 60 70% 1E4.25 (1.91 9,557 $ c.09C $ <br />860.1E <br />z nnp,42 60 70% 164.25 (1.91 9,557 $ c.09C $ <br />860.1E <br />Elettricai5avings= FS <br />1,720.33 <br />Flnlshed Water Savings <br />Fin ishd Water xecoverd by fixing <br />I❑ the lea valves Ilons Price per 10M) gal ❑ erational <br />J8)24"Valves 788e0000 $ 0.24 5 <br />18,921.6c <br />Finished WaterSavings= $ <br />18,921.6c <br />Annual 5avingsfrom Backwash Valve Replacement= $ <br />2Q,641.99 <br />