New York City Housing Authority Smith House DSOM^® Installation

Excerpts from CY 2005 Annual Report

One of the apartment buildings at NYCHA's Smith House Complex

Background: On October 13, 1999, the New York City Housing Authority (NYCHA) and Battelle Memorial Institute entered into an agreement to install a Decision Support for Operations and Maintenance (DSOM^®) system at the Governor Smith Housing Project in Manhattan, New York.

Per contract requirements, Battelle conducted an initial assessment of the energy site and supporting infrastructure from November 29 through December 3, 1999. The major conclusions, issued in the characterization report dated March 7, 2000, were:

There is a major opportunity to improve the steam production efficiency of the boiler plant.
The steam distribution and condensate return systems were in good condition.
A second major improvement was identified in building energy management. Implementing an automatic feedback and control system to better regulate heat delivery to the apartments could dramatically reduce building steam demand.
By utilizing condition-based maintenance principles and advanced machinery diagnostics, a significant reduction in maintenance cost and improvement in life-cycle economics could be obtained.

NYCHA accepted Battelle's characterization report and authorized Battelle to proceed with the installation of DSOM at Smith House.

In support of the system installation, Battelle entered into subcontracts for instrument installation and electrical wiring for the installation and commissioning of the boiler controls system.

Project implementation proceeded in accordance with the installation plan. Initial functionality of the system was achieved early in 2001.

System Performance: During calendar year 2005, the overall system efficiency was a 19% improvement over the baseline period. Additional efficiency improvements are expected when effective O₂ trim can be accomplished to minimize the use of excess combustion air in the boilers. This improvement is dependent upon resolution of the stack draft issue (discussed in the ongoing efforts area).

Total Savings: In accordance with the Agreement NYCHA and Battelle, the total savings generated as a result of the DSOM system installation, and its supporting infrastructure, are determined annually and the savings are shared based upon a pre-agreed formula. The total savings are the sum of the fuel savings, personnel savings, and maintenance savings compared to the baseline, and normalized for variables, such as weather.

The total savings during 2005 were $275,168.

Personnel Cost Savings: The personnel cost savings for 2005 are $88,483.

Maintenance Cost Savings: Maintenance cost savings were determined to be $13,511.

An overview of the savings achieved during 2005, compared to previous years, is as follows:

Field	CY 2001	CY 2002	CY 2003	CY 2004	CY 2005
Therms Saved (normalized for weather)	376,666	478,794	397,062	358,766	333,090
Fuel Savings	$152,512	$181,224	$168,910	$161,660	$173,174
Personnel Savings	$0	$35,339	$70,678	$89,022	$88,483
Maintenance Savings	$19,759	$41,500	$47,149	$47,602	$13,511
Total Savings	$172,271	$258,063	$286,737	$298,284	$275,168