AT-84-17-3 -- Are You Keeping Up with the Investment Opportunities at Your Plant? PDF

The purpose of this paper is to stress the importance of the investment opportunities that exist in all heating-cooling plants regardless of age. The central utility plant located at the Dallas/Ft. Worth Airport is used as an example. It has been in operation approximately ten years during which many capital improvements have been initiated and completed. Documented cost avoidances resulting from these improvements have exceeded $12,500,000 as of December 31, 1983. New capital requirements for energy-saving improvements during this same period of time were less than *$500,000 and were financed by long-term bonds with average, yields approximating 7 percent.

The outstanding investment opportunities at the DFW plant are unique to that plant, but similar opportunities are certain to exist at most plants, because they were created by disproportionate increases in the cost of source energy - in the case of DFW, a 5001 increase in the cost of electrical service and a 16001 increase in the cost of natural gas from what existed during the planning and engineering phase of the project.

*$1,200,000 chiller drive conversion added during 1983.