MINNEAPOLIS, MN, Feb. 14, 2014 -- Thanks to a partnership between Honeywell Building Solutions (NYSE: HON) and East Valley Water District (EVWD) of Highland, Calif., water distribution systems will be improved and utility costs will be reduced at the site through a combined energy conservation and automated demand response (ADR) program.
The first of its kind among municipal water authorities nationwide, the project is expected to reduce annual energy costs by $523,000 when complete and will be financed through a 10-year, $4-million energy performance contract with Honeywell. This will allow the water district to pay for the upgrades through the anticipated savings, which the company guarantees.
As a result, the program should provide the needed improvements without requiring EVWD to invest upfront capital. The local electric company, Southern California Edison (SCE), will also provide a $500,000 rebate for the district's involvement in the ADR program, which requires EVWD to trim energy use on days when the call for electricity puts significant stress on the utility grid.
According to a 2005 report by the California Energy Commission, 19 percent of the state's energy requirements and about 30 percent of natural gas consumption is water related, including water treatment and pumping and delivery, among other activities. EVWD's efforts and similar projects could have a considerable impact on the state-wide goal to reduce greenhouse gas emissions 20 percent by 2020.
As part of the program, Honeywell will improve the district's infrastructure by replacing older, inefficient water pumps with high-efficiency models and modifying pumping schedules so water reserves are replenished only during off-peak utility hours. Energy rates are typically highest from 1 p.m. to 5 p.m. daily.
During those times, EVWD will automatically shut down the majority of its pumping stations to reduce operating costs, while relying on stored water and a few key stations to continue to provide uninterrupted service to its 94,000 customers. In addition, EVWD is transitioning to a new electrical rate structure with SCE that provides incentives for off-peak consumption.
Honeywell will also upgrade outdated electrical switches and breakers at two facilities and install an emergency generator at another to provide backup power in the event of a disruption. The water district will further benefit by participating in the SCE ADR program. When the utility is facing a supply-demand imbalance or an overburdened grid, EVWD has agreed to automatically shed electrical load by further reducing the amount of pumping stations in use -- without impacting service to customers.
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Honeywell is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more information, visit www.honeywellnow.com.