# Energy Mgmt. in Industrial, Commercial Facils. [IEEE Recomm.

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Restrictions apply. 35 IEEE Std 739-1995 IEEE RECOMMENDED PRACTICE FOR ENERGY Total: =\$78 000 present worth Alternate B Present: = \$100 000 PW Future: = 0 Total: = \$100 000 present worth In this case, there is a clear \$22 000 benefit in renovating the unit and paying a larger amount for a new machine in five years. Neglecting the time value of money would have led to the wrong decision. The present worth of an annuity factor (PAF) converts a series of future uniform payments to a single present worth amount.

MANAGEMENT IN INDUSTRIAL AND COMMERCIAL FACILITIES IEEE Std 739-1995 Figure 2-5 —Typical plant energy distribution This subclause will discuss the electric portion only. , figure 2-6). The anticipated monthly production run can be used in total and then an average daily figure can be calculated using average kWh/lb of daily product. The forecast can also be calculated by using the anticipated hours of machine use for the month and/or day. The calculation can be done on a form similar to that shown in figure 2-6.

The curve is a straight line with a slope of 1705 and an intercept at 139 500 kWh per month. The equation would be as follows: 1705 × M + 139 500 = kWh per month where M = thousands of pounds of net good product per day, where the plant produces product 24 hours per day for 31 days This analysis shows that the baseline portion of the energy bill is 139 500 kWh per month. The baseline is essentially fixed, but that does not mean that an energy audit of the baseline portion is not a place to reduce electric energy usage.