Agenda Item
Meeting Date: 11/30/2017 - 6:30 PM
Category: Follow-Up Item(s)
Type: Info
Subject: Power Factor Correction Update
District Goals:
File Attachment:
Power Factor Correction Project Update PowerPoint.pdf
Summary: At the September 29, 2016 Board meeting, an energy savings project we referred to as the “Power Factor Correction Project” was approved.
The project was awarded to Hillhouse Power Solutions and included the installation of capacitors at 19 locations in the district where we are below the minimum 95% efficiency rating to avoid incurring a monthly “power factor” surcharge.
At that time, through a study of our electric bills, Hillhouse estimated that we are paying approximately $8,726 each month in surcharge fees (approximately $105,000 annually).
Attached is a short video that explains what power factor is, how it can cost us money and how to correct it.
Also attached is a spreadsheet detailing our savings-to-date. The project completed in its entirety in early August but each location was made “live” at different times since April 2017 so we have already experienced savings on recent invoices.
The estimated payback period for the project is approximately four (4) years with the average lifespan of an electrical capacitor being 18-20 years with no required maintenance.
Budgetary Impact: The total cost of the project was $418,534.
Savings-to-date as of October 2017 total $56,690.
Recommendation: Follow-Up Item – No action required.
Recommended By:
Signed By:
Dwayne Jones - Executive Director Business Services
Signed By:
Michael McFarland - Superintendent