From Analysis to Action: Energy Management’s Cost-Savings Success

In April 2023, a comment at the State Energy Conference about a proposed rate change led NC State Energy Management to uncover a major opportunity for cost savings. By investigating the rate case Duke Energy Progress (DEP) had filed with the NC Utility Commission earlier that year and analyzing new rate schedules applicable to the campus, Energy Management discovered strategies that will ultimately save the university over $500,000 annually.

Energy Modeling for Change

To understand the impact of these changes, NC State’s Energy Management team developed energy cost models for the three university-owned substations under both the old and new rate structures. 

“Energy modeling using history from our substations is the best way to understand our usage patterns and how a change in rate schedules would impact our costs,” said Lib Reid McGowan, energy data analyst for NC State Energy Management. McGowan discussed these models with the Facilities Division in June 2023, preparing them for the potential adjustments required.

The new rate structure was approved and implemented in October 2023, and NC State immediately began considering operational changes to maximize cost savings. These changes included adjusting maintenance schedules for the combustion turbine generators and operation of building automation systems and the thermal energy and battery energy storage systems on Centennial Campus.

After receiving the first accurate invoices in February 2024, Energy Management validated their cost models and confirmed that switching the Sullivan substation, which serves main campus, from the Time-of-Use rate to the General Service rate under the new rate structure would reduce electricity costs by over $500,000 annually. This change was implemented on May 1, and within the first two months, NC State avoided $106,194.49 compared to what would have been charged under the Time-of-Use rate.

Teaming Up to Lower Costs

The shift in DEP’s rate structure required significant adjustments in how NC State manages its energy consumption. By staying proactive and developing detailed cost models, the university was able to adapt efficiently, ensuring substantial cost savings while continuing to optimize operations. 

This savings success also highlights NC State’s commitment to creating and preserving a physical environment that advances the university. 

“This case is an example where the collaboration among various groups within Facilities really shone through,” said McGowan. “Energy Management recognized the implications of the rate change and worked alongside other Facilities groups, including Building Maintenance and Operations, and Utilities and Engineering, to inform them and let each group be empowered to do what they do best. This includes providing exceptional service and stewardship of our natural and fiscal resources”.