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SECTION 2• METHODOLOGY USED TO CALCULATE PROJECT SAVINGS <br />The methodology used for projecting swings resulting from the implementation of the proposed project is <br />summarized ill the following equation: <br />Annual Savings = Energy Savings f Operational Sayings <br />Operational Savings = Operational & Maintenance Savings (O&M) + <br />Capital CostAvoidance <br />\there: <br />Annual Savings: T7tc total annual savings associated uith implementation of this project. This is the <br />savings figure that will he used for comparison to the Guaranteed Savitilw <br />as part of the Guarantee Reconciliation. <br />£incig� Savings: 17e fatal ]inergv Savings associated omh reduction in energy consumption as x result <br />of implementation of this project. <br />Operational and \Iaintcn :utce SavinGs (0& \1): 'the total Operational and Maintenance <br />Savings (O &:11) savings associated vitith reduction in operations, <br />ntaintenanec and repair related c :.Npenses as a result of implerricntation of <br />this project. <br />Capital Cost: \voidance: 'lhis is defined as future capital expenditures (outlay) that the Customer should <br />have budgeted over a certain period of time ro eventually replace the <br />arstents / equipment / etc. that are included in the Scope of een-ices. This <br />is an annualized v'ahte and is also referred to as avoided capital. The MVs <br />included in the Scope of Services have been analyzed and the future capital <br />replacement expenditures that would otherwise be associated aitli each <br />hC \I have been estimated and redewed ,/ discussed with the Customer. <br />1-IVAC, Calculations — are derived from pan and Pump laws and are documented in: <br />A. pan Laws — 2003 AST IRAI' Handbook UV AC Systems & Itc�nnent 1'. 20.4 <br />b. Fan 7 ;nes —'I rally . \ir Conditioning \lanual — A-MCA Standard — 275 Test Code (Air <br />Moving and Couditiotilng. \ssociati(in) Bulletin 210 <br />Lighting Calculations — Wattages for all proposed lamps, ballasts, and Extures me based upon manufacturer's <br />dart which is determined in accordance wwitli: <br />C. ll:SN A LM -'9 and 1.\-311 standard (Illuminating Engineering Sociery of North America) <br />Roofing calculations arc derived from standard thermodvnamic and heat transfer equations in compliance <br />with .\SHR. \Ira and AHl? standard methodologies.. <br />Operational and Maintenance S;lvings (O& \I) are the result of a review of actual bills from the Clients location <br />and the savings that will he derived From the elimination or moderation of those expenses by implementation <br />of this project. As is conution in the industn,'Ihe O &dl swings numbers represents less than l W',- of the <br />energy savings, less than 4' 1/b of the total O & \I 13udgct and less 13"'0 of the lines itevns related to Lighting, <br />Controls, and Mechanical work. <br />Capital Cost Avoided Savin.gs arc based upon RS Means construction estimates and those calculations arc <br />located at the end of this attacbment. <br />5R <br />