Lower Gwynedd Spending $22K For $7,500 in Yearly Energy Savings

Mark Grey saw the chiller, the furnace, all those heat pumps, that make Lower Gwynedd Township's building work.
The Lower Gwynedd supervisor knew that, when he put a value to each piece of the HVAC system in front of him, something didn't add up.
An original assessment from West Chester energy efficiency consulting firm Practical Energy Solutions of the township's HVAC was substantially lower than what they really needed to be, he said.
"They were guesstimates," he said. "I asked them to go back and see what they could do with a real number. They came back with a firmer number, a blue sky quote." 
After all, the HVAC services not just the township building, but also the adjacent Wissahickon Fire Co. station and a public works garage out back.
(Meanwhile, the township's water source heat pump system is very efficient, per Practical Energy Solutions' Energy Programs Director Dianne Herrin).
Grey was convinced it made sense to replace them now to save on labor costs and had recommended last month Practical Energy Solutions look into it.
"Do it right the first time," Grey said. "The system should last 20 years."
Thus, Practical Energy Solutions came back Tuesday with a $94,000-plus upgrade price tag, to be bid out and awarded to some lucky low-bidding contractor in the near future. A high-efficiency water source replacement is recommended by Herrin.
For its proposal of services in assessment, study and management, Practical Energy is being paid $22,300. Last month, Herrin said the firm was invited by the township to do an energy assessment in May 2013.
"(The $22,300) will do a load study for the building, a field study for this building, it will do the bid specifications to go out to bid, and they will do the project management for the HVAC services," said Assistant Township Manager Craig McAnally Tuesday night.  
The unanimous approval by supervisors Tuesday of the contract comes out of a recommendation from an ad hoc committee, whose formation was suggested by Chairwoman Kathleen Hunsicker last month. Practical Energy Solutions had presented then, but a vote on the proposal was tabled by supervisors.
What's more—a third-party consultant named Joe McHugh was brought in to review the assessments and proposal, according to Supervisor Dr. Richard Booth.
"We had a consultant look at the proposal. We concur with that," Booth said. "I think we should accept the proposal. The recommendation seems to be reasonable."
McAnally said McHugh looked at the proposal and assessment and "agreed with everything that we're doing."
"He had some comments that they said they would consider during their load study," McAnally said Tuesday.
The township wastes $44,000 a year in heating, cooling and lighting, according to the assessment results from Practical Energy Solutions.
The $94,000-plus upgrade is estimated to reap $7,500 in annual energy savings.
Herrin said the new system would have a 20-year service life.  
"The premium difference (of a high-efficiency over standard efficiency) will payback in savings in three years," Herrin said. "Over a 15-year lifetime, with a high-efficiency replacement system, the savings at today's prices are $112,000 versus the current system. That's $75,000 more than if we were to put a standard system in."