Impact evaluation of an induction furnace replacement under the Energy $avings Plan at Mackenzie Specialty Castings, Incorporated

This impact evaluation of an induction furnace replacement that was recently installed at Mackenzie Specialty Castings, Incorporated (Mackenzie Castings) was conducted for the Bonneville Power Administration (Bonneville) as part of an evaluation of its Energy Savings Plan (ESP) Program. The project consists of replacing old power supplies and induction furnace with new, more efficient supplies and equipment. The objective of this impact evaluation was to assess how much electrical energy is being saved at Mackenzie Castings as a result of the ESP and to determine how much the savings cost Bonneville and the region. The impact of the project was evaluated with a combination of engineering analysis, financial analysis, interviews, and submittal reviews (Mackenzie Castings`s proposal and completion report). Based on this impact evaluation, energy savings from this project are expected to be 425,257 kWh/yr at minimum annual production, 647,037 kWh/yr at typical annual production, and 1,294,074 kWh/yr at maximum annual production, or 0.05, 0.07, and 0.15 average megawatts, respectively. On a per-ton basis, this project will save 608 kWh/ton or 31% at minimum production and 431 kWh/ton or 39% at typical and maximum production. The project cost $277,110 to install, and Mackenzie Castings received payment of $102,551 (in 1993more » dollars) from Bonneville for acquisition of the energy savings. The real levelized cost of these energy savings to Bonneville is 22.9 mills/kWh at minimum production, 15.1 mills/kWh typical production, and 7.5 mills/kWh at maximum production (in 1993 dollars) over the project`s assumed 15-year life. The real levelized cost to the region is 59.1 mills/kWh at minimum production, 38.8 mills/kWh at typical production, and 19.4 mills/kWh at maximum production in 1993 dollars, not including transmission and distribution effects.« less