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City of South Bend <br />Public Works Guaranteed Energy Savings Contract Qualifications <br />Life Is On Schneider <br />Electric <br />7. Measurement & Verification <br />a. Describe the methodologies used to calculate baseline utility consumption. <br />The City's ability to fund priorities by using energy savings is dependent on your facilities performing as promised. Establishing an <br />accurate estimate of savings on the front end is key to ensuring you can achieve your goals. <br />When you partner with Schneider Electric, you can count on accurate energy savings. Schneider Electric does not delegate the critical <br />task of energy analysis to a project manager. Instead, we have a dedicated team of energy engineers within our larger engineering <br />group who are charged with developing precise utility and energy baselines and determining reliable savings projections. <br />Once we have established your baseline, we will use a combination of modeling tools and calculations to determine energy and utility <br />savings. Our energy engineers will calibrate these models and calculations against actual utility bills to develop an accurate <br />representation of how your building is designed and operated. Please see Appendix H for visual of steps involved in establishing project <br />savings: surveying facilities, establishing utility baseline, performing utility rate analysis, and calculating savings. <br />b. Describe the methodologies likely to be used to verify annual savings. <br />a. Methodology to calculate savings guarantee <br />Like most ESCOs, Schneider Electric follows the guidelines established by the International Performance Measurement and Verification <br />Protocol (IPMVP). The IPMVP offers a framework and four M&V options for measuring, computing, and reporting savings. <br />For a solar project like the one at the Olive <br />Treatment Plant, we would recommend <br />Option B and not a stipulated savings. <br />In this way, Schneider Electric assumes <br />most of the risk for energy performance. We <br />can take on this higher level of risk because <br />our M&V department is second to none. We <br />If you don't save what we promised, we'll pay you the <br />difference. We have met or exceeded 99.7% of our <br />guaranteed savings over the past 3 decades. <br />have 94 energy professionals who are - <br />dedicated to measuring energy performance and troubleshooting issues as they arise. <br />This expertise will ensure your savings are accurately measured and transparently verified, no matter the scope of your project <br />figure below summarizes how the different IPMVP options are typically applied based on project scope. <br />b. Position on stipulated savings <br />The <br />Stipulated savings is a term unique to the ESCO industry. Stipulated savings are not tracked like guaranteed energy savings and are <br />"assumed" or "agreed upon" to occur. While the majority of projects that Schneider Electric implements include a real savings <br />guarantee, at times a small value of stipulated savings may be used only if they are reasonably valued and sustainable. If applicable, <br />any stipulated savings proposed would be presented for review and approval by the city. Some examples of savings that might <br />be stipulated include: <br />Savings difficult to quantify (ex: maintenance savings, material savings) <br />Savings too small to justify Measurement & Verification (M&V) costs (ex: small utility meters) <br />Non -energy savings (ex: operational savings) <br />c. Any non -utility cost savings that will be calculated or estimated (e.g.. staff time, materials, deferred maintenance) <br />Operational savings are calculated differently depending on the type of operational savings being used. For example, material cost <br />savings would be calculated by looking at historic maintenance records and costs and establishing a baseline of how much money is <br />spent in a typical year to maintain existing systems. As this is primarily a solar generation project, there are no non -utility savings that <br />are anticipated (unless South Bend instructs us otherwise). <br />Use or disclosure of data contained on this sheet is subject to December 10, 2024 <br />the restriction on the table of contents of this proposal Page 13 <br />