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Pennzoil Place Cuts Energy Costs by $2.2 Million
Houston’s Pennzoil Place, originally constructed in 1975, has implemented a number of strategies to cut energy costs by $2.2 mil- lion since 2008. Consisting
of two 36-story, glass-walled buildings
with a combined 1.8 million square feet,
the complex received a multi-million
dollar capital investment by its owner
Metropolis Investment Holdings.
Metropolis has been able to cut its
electrical costs by 50% and pass the
savings along to its tenants. In 2008,
when Pennzoil Place was approximately
98% occupied, electrical cost totaled
$4.3 million. In 2013, when the
occupancy rate was the same and capital
improvements had been completed,
electrical cost dropped to $2.1 million.
Roger Vasquez, director of engineering
at Pennzoil Place, outlines programs
used to cut energy consumption
and increase financial return. The
improvement plan includes measures
that any existing building can leverage to
increase energy efficiency.
1) System Upgrades
The mechanical, electrical, plumbing,
heating, air conditioning, and ventilation
systems all went through a major
overhaul. Fiber optic backbone, which
provides Internet of Things connectivity,
was also installed. It allows all of the
existing and future technologies in
the buildings to be tied together and
controlled remotely from a tablet or
smartphone. This IP technology also
ensures occupant and building issues are
addressed quickly to save time, improve
service quality, and increase tenant
satisfaction.
2) In-House Services
Transwestern, which manages
the property, was able to provide
services in-house that were previously
outsourced due to the new technology
and improvements. For example, the
fiber optic backbone allowed security
to be moved in-house and away from an
external monitoring service, which saves
Metropolis $80,000 a year. Tenants are
also saving resources by tapping into the
backbone for Internet service, which
created a new revenue stream for the
building owner.
3) Rebate Programs
Metropolis secured a number of
rebate incentives to save money on the
improvements and shorten payback
periods. A rebate of approximately
$650,000 was used on a $5 million multi-chiller replacement, which reduced
the payback period from nine to seven
years. Another rebate of approximately
$170,000 cut the payback on an $800,000
lighting project to 2.6 years.
4) Demand Response
Demand response is a program
that pays buildings to reduce energy
consumption and share their capacity
with the nation’s three power grids
during peak usage times to prevent
blackouts. Pennzoil Place has found
innovative ways to achieve significant
power reductions without turning off
equipment.
Metropolis realized three financial
benefits from participating in demand
response: energy costs are lower when
capacity is diverted, ownership was
paid $40,000 during the first year of
participation, and the lower anticipated
demand capacity resulted in reduced fees
from the energy provider.
PENNZOIL PLACE CUT ENERGY COSTS BY 50% with a number of retrofits that replaced outdated
mechanical and electrical systems. The buildings also participate in a demand response program.
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