Page 305 - Mechanical Engineers' Handbook (Volume 4)

294 Energy Auditing

2. A review of the existing energy management program (if any) and recommendations
for improvement.
3. A description of the energy conservation measures being proposed and the means by
which they will save energy.
4. The cost of undertaking the measures and the net benefits the facility will receive
each year.
5. Any other effects the measure will have on the facility’s operation, such as changes
in maintenance requirements or comfort levels.
The auditor should be prepared to address these topics with clear explanations geared
to the interests and expertise of the audience. A financial officer, for example, may want
considerable detail on cash flow analysis. A maintenance foreman, however, will want in-
formation on the equipment’s record for reliability under conditions similar to those in his
or her facility. Charts, graphs, and pictures may help to explain some topics, but they should
be used sparingly to avoid inundating the audience with information that is of secondary
importance.
The financial analysis will be the most important part of a presentation that involves
recommendations of measures requiring capital expenditures. The complexity of the analysis
will vary, depending on the type of presentation, from a simple estimate of the installed cost
and annual savings to an internal rate of return or discounted cash flow calculation.
The more complex types of calculations involve assumptions regarding future fuel and
electricity price increases, interest rates, and other factors. Because these assumptions are
judgmental and may critically affect the results of the analysis, the more complex analyses
should not be used in presentations to the exclusion of simpler indices such as simple pay-
back time or after-tax return on investment. These methods do not involve numerous pro-
jections about the future.

REFERENCES
1. J. E. Kaufman (ed.), IES Lighting Handbook, Illuminating Engineers Society of North America, New
York, 1981.
2. M. Lokmanhekim et al., DOE-2: A New State-of-the-Art Computer Program for the Energy Utilization
Analysis of Buildings, Lawrence Berkeley Laboratory Report, LBL-8974, Berkeley, CA, 1979.
3. U.S. Department of Energy, Architects and Engineers Guide to Energy Conservation in Existing
Buildings, Federal Energy Management Program Manual, U.S. Department of Energy, Federal Pro-
grams Office, Conservation and Solar Energy, NTIS Report DOE/CS-1302, February 1, 1980.
4. L. W. Wall and J. Flaherty, A Summary Review of Building Energy Use Compilation and Analysis
(BECA) Part C: Conservation Progress in Retrofitted Commercial Buildings, Lawrence Berkeley Lab-
oratory Report, LBL-15375, Berkeley, CA, 1982.
5. F. C. Winkelmann and M. Lokmanhekim, Life-Cycle Cost and Energy-Use Analysis of Sun Control
and Daylighting Options in a High-Rise Office Building, Lawrence Berkeley Laboratory Report, LBL-
12298, Berkeley, CA, 1981.
6. California Energy Commission, Institutional Conservation Program Energy Audit Report: Minimum
Energy Audit Guidelines, California Energy Commission, Publication No. P400-82-022, Sacramento,
CA, 1982.
7. W. C. Turner (ed.), Energy Management Handbook, Wiley-Interscience, New York, 1982.