CT 005 Project Implementation

Project Implementation Plan: Achieving Successful Chilled Water Plants
A Product of the CoolTools Project CoolTools Report #CT-005 - 1998
For more information about this guide, contact: Marlene Vogelsang PG&E Energy Center 851 Howard Street San Francisco, CA 94103 Internet MXV6@pge.com
Project Implementation Plan: Achieving Successful Chilled Water Plants

July 1998
Abstract. Achieving Successful Chilled Water Plants offers guidance on the successful implementation of chilled water plants. It addresses the overall process of implementing a project, from concept definition through design, installation, verification, performance testing, and operation. The guide is a best practice manual that highlights important issues to consider and questions to ask, and provides direction in resolving those issues and questions. The primary audience is facility managers and project managers in the owners organization. The manual should also be useful to design engineers and operating and maintenance staff. CoolTools Project. PG&E is developing an integrated set of tools and application guidelines for the design and operation of chilled water plants. They are intended to inform owners, design professionals, and operators about achieving the most cost-effective and efficient equipment selection, system design, and operating scenario for new construction and retrofit applications. This market transformation project, known as CoolToolsTM, includes development of pertinent project implementation and design documents, software, software tools, and support services. The products are available through the CoolToolsTM web site at www.hvacexchange.com/cooltools.
Prepared by: James S. Elleson, P.E. Elleson Engineering 4671 Highway JJ Black Earth, WI 53515 608-767-3553
1997, 1998 by Pacific Gas and Electric Company. All rights reserved. This document may be copied for purposes of review and comment.
Bruce Jones Bruce Jones and Associates 2305 SE 35th Pl. Portland, OR 97214 503-232-7036
Notice To All Persons Receiving This Document

Some of the product names mentioned herein are used for identification purposes only and may be trademarks and/or registered trademarks of their respective companies.
Legal Notice
Reproduction or distribution of the whole or any part of the contents of this document without written permission of PG&E is prohibited, except that limited reproduction, with attribution to PG&E and CoolTools, is permitted for educational purposes within an academic institution. Neither PG&E nor any of its employees makes any warranty, expressed or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any data, information, method, product or process disclosed in this document, or represents that its use will not infringe any privately owned rights, including, but not limited to, patents, trademarks, or copyrights. .
Contents
1 Overview ............................................................................................................ .... 1-1 Introduction....................................................................................................... .... 1-1 Background ...................................................................................................... .... 1-1 Purpose and Scope ......................................................................................... .... 1-2 Availability......................................................................................................... .... 1-2 Using the Document ........................................................................................ .... 1-3 Additional Information ...................................................................................... .... 1-4 Related Resources - CoolTools ...................................................................... .... 1-5 Computer-Based Tools ...................................................................... .... 1-5 Information Resources ....................................................................... .... 1-5 References ....................................................................................................... .... 1-6 2 Implementation Issues....................................................................................... .... 2-1 What Went Wrong?.......................................................................................... .... 2-2 The Required Resources Are Not Made Available........................... .... 2-2 Management Does Not Understand Cooling Plant Requirements and Issues................................................................................................... .... 2-2 The Focus Is on Short-term Considerations ..................................... .... 2-3 Planning Is Incomplete or Nonexistent.............................................. .... 2-3 The Owner Doesnt Communicate Needs and Expectations........... .... 2-3 Operating Staff Are Not Part of the Planning Process...................... .... 2-3 Contractual Procedures Hinder Successful Implementation............ .... 2-3 The Importance of High-quality Design Services is Not Recognized ... 2-4 Performance Benchmarks are Not Established................................ .... 2-4 What Can I Do to Ensure Success?................................................................ .... 2-4 Define and Document the Plant Requirements................................. .... 2-5 Commit the Necessary Resources and Plan for Success ............... .... 2-6
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998
Contents
Evaluate, Test, and Monitor Performance......................................... .... 2-8 What Are the Characteristics of a Successful Plant?..................................... .... 2-8 Meets the Cooling Load ..................................................................... .... 2-9 Operates Reliably............................................................................... .... 2-10 Operates Cost-effectively................................................................... .... 2-10 Operates Efficiently ............................................................................ .... 2-13 Minimizes Negative External Impacts ............................................... .... 2-14 Requires an Appropriate Level of Operational Expertise ................. .... 2-14 Minimizes Risk.................................................................................... .... 2-15 Project Types ................................................................................................... .... 2-16 Retrofit and New Construction........................................................... .... 2-16 Commercial, Institutional, and Industrial Applications ...................... .... 2-16 Size of Cooling Plant .......................................................................... .... 2-17 Owner-occupied and Rental Occupancies ....................................... .... 2-17 Size of the Owners Organization ...................................................... .... 2-17 Contractual Arrangements............................................................................... .... 2-18 Design-Bid-Construct ......................................................................... .... 2-18 Design-Build ....................................................................................... .... 2-22 Outsourced Chilled Water.................................................................. .... 2-23 Performance-based Contracting........................................................ .... 2-24 Comparing Contractual Arrangements.............................................. .... 2-25 Financial Analysis ............................................................................................ .... 2-30 Equivalence ........................................................................................ .... 2-31 Simple Payback.................................................................................. .... 2-32 Present Worth..................................................................................... .... 2-33 Uniform Annual Costs ........................................................................ .... 2-34
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998 ii
Contents
Rate of Return .................................................................................... .... 2-34 Benefit-Cost Ratio .............................................................................. .... 2-35 Uncertainty and Risk .......................................................................... .... 2-35 Design Issues................................................................................................... .... 2-36 Determining Loads ............................................................................. .... 2-36 Chiller Selection.................................................................................. .... 2-39 Chiller Efficiency ................................................................................. .... 2-42 Number and Capacity of Chillers....................................................... .... 2-45 Cooling Towers................................................................................... .... 2-47 Free Cooling ....................................................................................... .... 2-48 Heat Recovery.................................................................................... .... 2-49 Cool Thermal Storage ........................................................................ .... 2-50 Pumping and Distribution Systems.................................................... .... 2-51 Air-side System Design...................................................................... .... 2-52 Control Systems ................................................................................. .... 2-53 Instrumentation ................................................................................... .... 2-54 References ....................................................................................................... .... 2-55 3 The Implementation Process ............................................................................ .... 3-1 Project Phases ................................................................................................. .... 3-1 Program Phase ................................................................................................ .... 3-2 Assemble the Project Team............................................................... .... 3-2 Develop the Owners Program........................................................... .... 3-6 Develop a Statement of Design Intent............................................... .... 3-8 Evaluate System Options (Feasibility Study) .................................... .... 3-9 Modeling Issues.................................................................................. .... 3-13 Develop the Preliminary Commissioning Plan.................................. .... 3-17
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998 iii
Contents
Design Phase ................................................................................................... .... 3-17 Refine the Statement of Design Intent............................................... .... 3-18 Refine the Schematic Diagrams ........................................................ .... 3-18 Apply Safety Factors With Care......................................................... .... 3-18 Plan for Performance Monitoring ....................................................... .... 3-19 Develop a Detailed Description of the Control Strategy ................... .... 3-20 Design Review Criteria....................................................................... .... 3-21 Update Construction Cost Budget ..................................................... .... 3-22 Update the Economic Analysis as the Design Progresses .............. .... 3-23 Update the Commissioning Plan ....................................................... .... 3-23 Produce Complete Design Documents ............................................. .... 3-23 Construction Phase.......................................................................................... .... 3-26 Equipment Submittals......................................................................... .... 3-26 Construction Meetings ....................................................................... .... 3-27 Change Orders and Addenda............................................................ .... 3-28 Commissioning Plan........................................................................... .... 3-28 Observations of Construction Progress ............................................ .... 3-28 Construction Phase Issues Specific to Chilled Water Plants ........... .... 3-29 As-built Documentation ...................................................................... .... 3-29 Operation and Maintenance Manuals ............................................... .... 3-30 Startup................................................................................................. .... 3-30 Acceptance Phase ........................................................................................... .... 3-31 Verification .......................................................................................... .... 3-31 Functional Performance Testing........................................................ .... 3-32 Use of Trend Logs.............................................................................. .... 3-32 Training ............................................................................................... .... 3-33
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998 iv
Contents
Systems Manual ................................................................................. .... 3-34 Operation.......................................................................................................... .... 3-34 Management Support......................................................................... .... 3-35 Ongoing Training ................................................................................ .... 3-35 Preventive Maintenance..................................................................... .... 3-35 Documenting Operating Procedures................................................. .... 3-36 Updating System Documentation ...................................................... .... 3-36 Establishing Performance Goals ....................................................... .... 3-36 Monitoring Performance..................................................................... .... 3-36 Ongoing Functional Performance Tests............................................ .... 3-37 References ....................................................................................................... .... 3-37 Annotated Bibliography....................................................................................... .... B-1
Figures and Tables
Figure 2-1 2-2 2-3 2-4 2-5 2-6
Page Design-Bid-Construct - Single Prime Contract........................................ .... 2-19 Design-Bid-Construct - Multiple Prime Contracts ................................... .... 2-20 Design-Bid-Construct - Prepurchased Equipment.................................. .... 2-21 Design-Build.............................................................................................. .... 2-22 Outsourced Chilled Water ........................................................................ .... 2-23 Performance-Based Contract .................................................................. .... 2-25
Table 1-1 2-1 2-1 2-3
Page Summary of Equivalent Units .................................................................. .... 1-4 Typical Capacity Ranges by Chiller Type .............................................. .... 2-41 ARI Standard Chiller Rating Conditions .................................................. .... 2-43 Typical Chiller Efficiency Ratings............................................................. .... 2-44
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Acknowledgments
This document could not have been produced without the assistance of numerous individuals. Project managers Ken Gillespie and Mark Hydeman provided the vision and guidance to extend the concepts developed under ASHRAE RP-850 to all chilled water plants. The input of many reviewers of various drafts improved the document tremendously. In particular, thanks go to Bill Bahnfleth, Ted Cohen, Don Gatley, Ron Kammerud, Steve Taylor, Al Utesch, and Fred Wajcs for their careful reviews and insightful comments. John Andrepont, Tom Hartman, John Kettler, Soheil Loghmanpour, Bob Miller, Don Punwani, Burt Rishel, William Ryan, and Craig Schuttenberg also provided helpful comments. Robert Brower, Scott Duncan, Ron Kammerud, Steve LeBlanc, Steve Taylor, and Al Utesch assisted in refining the initial concept and defining the approach for the guide. Chris Egle assisted with identifying, gathering, and organizing reference material. Kyle Manske developed the initial draft and illustrations for the contractual arrangements section. Finally, technical editor Susan Vogt provided invaluable service in formatting the document, and in improving its organization and writing style.
The concepts presented in this document are an extension of work performed for the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) under research project RP-850. That work resulted in the publication Successful Cool Storage Projects: From Planning to Operation (Elleson 1997), which provides detailed guidance to decision makers who seek to successfully design, install, and operate cool storage systems. Readers are encouraged to consult this reference for additional information. This and other ASHRAE documents are available from ASHRAE Customer Service at: ASHRAE, 1791 Tullie Circle, NE, Atlanta, GA 30329-2305, Telephone: 1-800-527-4723, Fax: 404-321-5478, or on-line at www.ashrae.org.
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Overview
Introduction
This document is intended to help facility owners maximize performance benefits and economic returns when they upgrade existing chilled water plants or install new plants. Because of phase out and regulation of certain refrigerants, many new and replacement chillers will be installed during the coming decade. The turnover in existing stock presents an opportunity to improve energy efficiency, while providing chilled water plants that more effectively meet their owners needs. This document is one of an integrated set of tools and application guidelines for the design and operation of chilled water systems. These tools, which include implementation and design documents, software, and support services, are developed under a market transformation project known as CoolTools. The goal of CoolTools is to facilitate improvements in the efficiency of chilled water plants. The premise of the project is that such improvements will be realized if facility owners, design professionals, and operators can identify and implement the equipment, design, and operating options that meet the owners needs in the most cost-effective manner.
Background
Professionals involved with design, installation, and evaluation of chilled water plants know that while many plants are reliable and efficient, many other plants operate at a less-than-optimal level. There are obvious problems of which some owners are well aware, such as inability to meet cooling loads, frequent breakdowns, and high operating costs for energy and maintenance. There are also less obvious problems that owners may not recognize. Many plants have unnecessarily high first costs because equipment is oversized, or the systems are not appropriate for the facilities they serve. Many plants operate inefficiently, but their owners never know that better performance is possible. These problems of unreliability, high first cost, high energy cost, and high maintenance cost are generally avoidable, if facility owners, design professionals, and operating personnel follow the recommendations contained in this guide.
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Purpose and Scope

The purpose of this document is to offer guidance on the successful implementation of chilled water plants. It addresses the overall process of implementing a project, from concept definition through design, installation, verification, performance testing, and operation. The guide is a best practice manual that highlights important issues to consider and questions to ask, and provides direction in resolving those issues and questions. It identifies practices that lead to less-than-optimal performance of chilled water plants and provides recommendations for modifying those practices. The primary audience for this manual is facility managers and project managers in the owners organization. It should also be useful to design engineers and operating and maintenance staff. This guide will also be valuable to those striving to change traditional ways of procuring and operating chilled water plants. Individuals within an owners organization, design engineers, design-build firms, energy service companies, and other consultants seeking to market their services to owners, can use the information contained herein to justify the benefits of changing existing procedures. Because there is a wide range of skills, experience, and responsibilities within the target audience, this document is somewhat broadly focused. Some sections are at an introductory level; others may contain too much detail for some readers. Users of the guide are encouraged to make use of those sections that are most pertinent to their particular situation. The information in this document is targeted to plants serving cooling loads ranging from 1,000 kWT (300 tons) to several thousand kWT (tons). The boundaries of the plants considered correspond to the walls of the mechanical room or central plant, although the effects of distribution and air-side systems are also taken into account. This manual does not provide all of the detailed information needed to plan, design, construct, and commission an optimized chilled water plant. Instead, it offers guidelines and helps the user find that information. The user must provide common sense and a certain amount of experience to select and apply the guidelines to any given situation.
Availability
The current version of the Project Implementation Plan is available on the CoolTools web site, www.hvacexchange.com/cooltools, as a downloadable Acrobat document. The document may also be obtained in hard copy at little or no charge from the address listed on the front cover.
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Using the Document

The remainder of this document is divided into two major chapters. Chapter 2, Implementation Issues, discusses important issues facing those who seek to implement successful chilled water plants. These issues include common pitfalls that afflict chilled water plants, strategies to avoid the pitfalls, characteristics of a successful plant and guidance on setting priorities for project requirements. In addition, Chapter 2 discusses contractual arrangements for project delivery, financial analysis, and design considerations. Chapter 3, The Implementation Process, provides recommended steps for success in all phases of a project: program, design, construction, acceptance, and operation. Consistent with the standard set by ASHRAE, the U.S. government, and other organizations, this document expresses units of measurements in metric (International System of Units or SI) units, followed by inch-pound (IP) units in parentheses. Because many readers may be unfamiliar with the SI units associated with cooling plant design and operation, Table 1-1 provides a summary of many of the units used in this document. Many readers may be confused by the SI systems use of the kilowatt (kW) as a unit of both electric power and rate of heat transfer. To help readers distinguish between these two uses, this document uses the designation kilowatt-thermal (kWT) to refer to a heat transfer rate. A heat transfer rate of one kWT is equal to 3,413 Btu/hour, or 0.28 tons; one ton is about 3.5 kWT.
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Table 1-1 Summary of Equivalent Units IP Unit Measurement Temperature Temperature difference Fluid flow rate Rate of electrical energy use Rate of thermal cooling energy use Quantity of electrical energy Quantity of thermal cooling energy Chiller efficiency* Name degrees Fahrenheit degrees Fahrenheit gallons per minute kilowatt ton kilowatt-hour ton-hour kilowatts per ton Abbreviation F F gpm kW ton kWh TH kW/ton Name degrees Celsius degrees Celsius liters per second kilowatt kilowatt kilowatt-hour gigajoule coefficient of performance SI Unit Abbreviation C C L/s kW kWT kWh GJ COP Conversion C = (F - 32) / 1.8 C = F / 1.8 L/s = 0.0631 x gpm kW = kW kWT = ton x 3.517 kWh = kWh GJ = 79.0 x TH COP = 3.517/ (kW/ton)
* Note that in IP units, a more efficient chiller has a lower kW/ton rating. In SI units, a more efficient chiller has a higher COP rating.
Additional Information
The concepts presented in this document are an extension of work produced by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). ASHRAE Guideline 1: The HVAC Commissioning Process (ASHRAE 1996) describes a process for quality control in implementing HVAC systems to ensure that the systems conform to the design intent. The book Successful Cool Storage Projects: From Planning to Operation (Elleson 1997) provides detailed guidance to decision makers who seek to successfully design, install, and operate cool storage systems. The information contained in these ASHRAE documents forms the basis of the recommendations presented here, and readers are encouraged to consult these references. ASHRAE publications may be purchased by contacting ASHRAE Customer Service at: ASHRAE, 1791 Tullie Circle, NE, Atlanta, GA 30329-2305, Telephone: 1-800-527-4723, Fax: 404-321-5478, or may be ordered on-line at www.ashrae.org.
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Each chapter of this guide concludes with a list of pertinent references. A bibliography lists additional references relating to the selection, design, installation, and operation of successful chilled water plants.
Related Resources - CoolTools

A number of tools and information resources to facilitate improved planning, design, and operation of chilled water plants are being prepared as part of the CoolTools effort. Detailed descriptions and currently available CoolTools products can be found on the CoolTools web site, www.hvacexchange.com/cooltools. A summary of CoolTools resources, including computer-based tools and information resources, is provided below.
Computer-Based Tools
CoolTools computer-based tools will include an Equipment Library, a Cooling Load Library, and a Simulation Engine and Interface. The Equipment Library tool will be a stand-alone software program that develops customized cooling equipment models calibrated to either manufacturer or field performance data. The Electric Chiller Module will be the first element of the Equipment Library. Additional modules to be added include cooling towers, gas chillers, and cool storage equipment. The Cooling Load Library tools will develop cooling load profiles for evaluating alternative plant configurations in simulations. These routines will provide three classes of load profiles representing a range of accuracy and analysis effort. Prototype models, which provide generic profiles for various building types, are least accurate but provide reasonable results with minimal effort. Hybrid approaches use mathematical techniques combined with data from various sources to provide increased accuracy with some additional analysis effort. Measured Profiles and Customized Simulations are the most accurate but require technical expertise and analysis effort that are available only for a limited number of projects. The Simulation Engine and Interface will allow a complete cooling plant simulation using the Equipment Library and Cooling Load Library tools, in conjunction with the DOE-2 simulation engine.
Information Resources
In addition to this Project Implementation Plan, the CoolTools project is producing several publications to provide information to help improve the efficiency of chilled water plants. These publications will include a Decision Makers Guide, a Design Guide, a Monitoring Protocol, a Modeling Guide, and a Performance Specification Guide. The Decision Makers Guide will introduce and summarize the concepts and recommendations contained in the Project Implementation Plan. The document
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998 1-5
will be targeted to financial decision makers who influence the procurement of chilled water plants. The Decision Makers Guide will summarize the key concepts and strategic recommendations and offer a bottom-line rationale for changing the way chilled water plants are procured and operated. A Design Guide that addresses technical issues in detail will also be available. It will provide specific information needed to design an optimized chilled water plant. The Monitoring Protocol will provide guidelines and minimum requirements for monitoring existing equipment and cooling loads. The DOE-2 Central Cooling Plant Modeling Guide will detail the treatment of chilled water plant equipment and systems in DOE-2 (version 2.1E). The guide will contain equations to convert between commonly specified engineering units and the units used by the program. The guide will also contain tricks and tips to overcome limitations in the DOE-2 engine, such as treatment of primary/secondary pumping energy and current-limiting of chillers. The Performance Specification Guide will detail methods for equipment specifiers, including engineers and purchasing agents, to request and analyze performance data on chilled water plant equipment.
References
ASHRAE. 1996. Guideline 1-1996: The HVAC commissioning process. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Elleson, J.S. 1997. Successful cool storage projects: From planning to operation. Atlanta: American Society of Heating, Refrigerating and AirConditioning Engineers, Inc.
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Implementation Issues
This chapter examines what makes a system successful; describes current standard practice and important issues in the implementation of chilled water plants; points out areas where those practices result in less-than-optimal performance; and provides recommendations for actions that owners, design professionals, and others can take to improve the performance of chilled water plants. The following topics are discussed: What went wrong? Common pitfalls that afflict chilled water plants. What can I do to ensure success? Strategies to avoid the pitfalls. What are the characteristics of a successful plant? Guidance on setting priorities for project requirements. Project types. Contractual arrangements for project delivery. Financial analysis. Design issues.
Benefits of Planning for Success Installing a chilled water plant involves evaluating tradeoffs between first costs and operating costs. For a new plant, the total installed cost typically ranges from $200 to $570 per kWT ($700 to $2000 per ton). For a retrofit to an existing plant, the installed cost might be $85 to $200 per kWT ($300 to $700 per ton). Overall plant efficiency is generally in the range of 4.4 to 1.4 COP (0.8 to 2.5 kWh/TH). With an average energy cost of $0.06/kWh, and an average annual plant utilization of 33% of total capacity, the annual energy cost amounts to about $40 to $120 per kWT ($140 to $420 per ton) of installed capacity. The annual energy cost represents a substantial fraction of the initial installed cost, in some cases more than the construction cost. The difference in the annual energy cost between the most and least-efficient plants is $80 per kWT ($280 per ton), which amounts to 14% to 93% of the installed cost. In addition, typical annual maintenance costs are $8.50 to $20 per kWT ($30 to $70 per ton) of installed capacity. This example clearly shows that a chilled water plant's operating cost is significant relative to its installed cost, and that owners can benefit by planning for reduced energy and maintenance costs in addition to controlling first costs.
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What Went Wrong?

Facility owners who are not satisfied with their cooling plants generally complain about one or more of the following: unreliability, high first cost, high energy cost, and high maintenance cost. These common problems have complex and interrelated causes that combine differently in each individual application. For example, an unreliable chilled water plant that does not consistently meet the cooling needs of the facility may have been designed inappropriately, the installation may have been improper, or operation and maintenance may be at fault. Unnecessarily high first costs are often due to a design that isnt appropriate for the facilitys needs. High energy costs can stem from design, installation or operation. High maintenance costs may also be related to the design, installation or operation of the plant. Identifying and assigning blame for these problems after the fact can be difficult, and is generally not very productive. A more effective approach is to be aware of potential problems, understand how they come about, and take specific steps to prevent them before they occur. Unreliability, high first cost, high energy cost, and high maintenance cost are not simple problems, but they are also not mysterious. The causes are readily identifiable, and they can be avoided through appropriate planning and management. The paragraphs below describe common causes of unsatisfactory performance in chilled water plants. The following section describes strategies that owners can follow to avoid these pitfalls.
The Required Resources Are Not Made Available

A chilled water plant project is successful only when adequate resources are committed to the project at the appropriate time. The project budget must be adequate for the needs that have been identified. An unrealistically low budget requires that some or all performance, reliability, and efficiency goals be compromised. If staff and budget resources for planning and project implementation are not adequate, the implementation process suffers, and the system is less likely to meet the owners needs. Adequate physical space in which to install the plant equipment, and sufficient time for planning, design, construction, and commissioning, are also important to a projects success. Lack of space or time can be overcome by special effort in planning, design, and installation, to avoid compromises that undermine the likelihood of the plant meeting its requirements.
Management Does Not Understand Cooling Plant Requirements and Issues

Managers who make decisions on capital and operating budgets for chilled water plants need to have a fundamental understanding of their facilitys cooling system
requirements, and the design and operational considerations that affect the plants performance. Many managers dont have the time or the technical background to gain a good understanding of these issues. In such cases, a trusted, competent advisor, either a consultant or staff member, is essential. A manager responsible for procuring and operating a chilled water plant simply cannot achieve success without the benefit of the appropriate technical information.
The Focus Is on Short-term Considerations

A short-term focus that neglects long-term considerations invariably results in greater difficulties in the long term. A focus on short-term costs results in increased costs in the future for energy, maintenance, troubleshooting, and rework. A focus on quickly completing the design results in redesign, change orders, and unforeseen operational problems. A focus on quick installation results in missed details, callbacks, and systems that dont work properly. A focus on operation for the short term results in increased energy costs, decreased reliability, and shorter equipment life.
Planning Is Incomplete or Nonexistent

Without proper planning, a chilled water project can be successful only by sheer luck. Few facility owners completely neglect planning. But many are unaware of all the steps they must take to ensure success. Buying a chilled water plant is like buying any other large-ticket item, and buyer beware is the watchword. A planned procurement process for each phase of the project allows designers, contractors, and suppliers to provide quality products while making a fair profit. A facility owner who doesnt plan carefully risks ending up at the mercy of organizations and individuals who hope to increase their profits by providing lesser-quality products.
The Owner Doesnt Communicate Needs and Expectations

It is not uncommon for owners to emphasize the importance of cost in defining the plant requirements and to neglect other issues such as reliability, efficiency, flexibility, and maintainability. A typical outcome of this approach is a plant with a low first cost that does not reliably meet the facilitys loads and has high energy and maintenance costs.
Operating Staff Are Not Part of the Planning Process

Operating staff can provide valuable input regarding existing plant operation, equipment maintenance requirements, and past experience with various design options. If this input is not solicited, owners and designers run the risk of applying an inappropriate system for the facility. Another common result is that operators do not buy into the design concept, and do not feel they have a stake in successful plant operation.
Contractual Procedures Hinder Successful Implementation

The procedures that owners use to govern construction projects can be counterproductive to the goals of successful installation and operation. Ideally,
projects are organized to encourage communication, cooperation and teamwork among the various parties. Procedures that seek to create win/win situations profitable jobs for designers and contractors and efficient, reliable plants for ownersare more likely to result in successful plants. When designers and contractors are selected primarily for low cost, rather than experience and ability, it is usually done at the expense of quality. If the procedures do not provide adequate channels for information flow between team members, essential communication and feedback is lost. Contractual procedures that foster adversarial relationships between the owner, designer, and contractor lead to the parties working against each other rather than all working for the common goal of providing a successful plant.
The Importance of High-quality Design Services is Not Recognized

Some owners view engineering services as a commodity and select designers based primarily on cost. In fact, there is a wide range among design consultants in the type and level of services provided. A cut-rate design fee generally results in a standard design with which the firm is familiar. Some services that are typically not included in this low-end fee include: Taking time to thoroughly understand the owners needs. Carefully evaluating all options, performing a detailed system simulation to accurately assess energy performance, and selecting the system best suited to the application. Producing a complete, well-documented design. Following up during the construction and acceptance phases to ensure that the design intent is met.
The money saved by eliminating these services is a false economy.
Performance Benchmarks are Not Established

Establishing benchmarks, such as annual energy cost, energy input per unit of cooling delivered, number of discomfort complaints, or amount of equipment downtime, provides goals for achieving success and improving performance. Without performance criteria, there is no basis on which to judge a plants success. A lack of goals implies that the performance of the plant is not important to management and undermines any incentive to achieve or improve success.
What Can I Do to Ensure Success?

The key factor in a successful chilled water plant project is an owner who recognizes the value of a reliable, efficient plant. The owner is committed to planning for success. The implementation process is designed to encourage communication and high quality work. Planning, analysis, and design are emphasized, so that rework, troubleshooting, and corrections are minimized. Requirements for the plant are clearly defined early in the implementation process.
Flexibility to accommodate future changes is considered when defining those requirements. Owners can use several proven strategies to avoid the pitfalls described above and improve the success of chilled water plants. The basic strategies for success can be described as follows: Define and document the plant requirements. If the requirements are not defined, there will be no clear basis on which to judge success. Commit the necessary resources and plan for success. This strategy involves taking specific actions to achieve the desired results. Evaluate performance. Again, without evaluation, there is no basis on which to judge success.
Each of these strategies includes a number of elements, which are described below, and discussed in more detail in Chapter 3.
Define and Document the Plant Requirements

Success in a chilled water plant project depends on clearly defining what the completed plant is required to do. By defining and documenting these requirements, the owner establishes a benchmark against which project team members can judge their respective products. With this benchmark established, team members clearly understand that the objective of the project is to provide a plant that meets the stated goals. The plant requirements are defined and documented through the following activities:
Owners Program. In the program phase, the owner provides a description of the
facility, occupancy schedules, and specific cooling requirements. Tentative budgets are outlined, and goals for efficiency, reliability, and maintainability are defined. This information becomes the basis of the owners program, as discussed in Chapter 3 under Program Phase.
Statement of Design Intent. Early in the program phase, possibly before the design
concept is fully defined, the project team produces the initial statement of design intent. This document, which is expanded and refined through the course of the project, describes the major components of the plant, its intended operation, and its performance goals. The design team updates the design intent statement as the design progresses, and the document becomes part of the system manual when the project is completed.
Economic Goals. A key element of defining the plant requirements is to establish
economic goals. The planning process includes comparisons of the costs and benefits of various plant options, and the economic guidelines should be accurately defined to truly represent the owners needs. The lifetime of a chilled water plant may be 20 years or longer. Owners can improve the financial success of chilled water plants by assessing design options for their impact over the long term. A complete economic criterion for evaluating
alternatives considers all present and future costs, including first costs, lifetime energy costs and maintenance costs, as well as the value of reliability. The section entitled Financial Analysis, which appears later in this chapter, describes various economic analysis methods for evaluating the long-term benefits of design options.
Project Documentation. Producing complete documentation during the design and construction process is an investment in successful operation of the facilityin both the short and long term. Documents produced during earlier phases of the project, such as the owners program, the statement of design intent, and the basis of design, should be kept up to date as the project evolves. Documentation such as detailed construction drawings, thorough specifications, complete as-built drawings, and a comprehensive system manual, all contribute to a common understanding of the plant on the part of all team members. This common understanding results in an improved design, a higher quality installation, and more effective operation.
Commit the Necessary Resources and Plan for Success

Achieving a successful chilled water plant requires a commitment to a process that will deliver the desired results. The chilled water plant is an investment that provides value to the facility. Owners can maximize the value of that investment by making a commitment to an appropriate level of funding, and to an implementation process that is designed to ensure success. In such a process, the facility owner takes an active role in the project. Resources are reallocated to the early phases of the project, to emphasize thorough planning, detailed analysis, and careful design rather than troubleshooting, callbacks, and repairs. The remainder of this document offers detailed recommendations for planning and implementing a chilled water plant project. A complement to these recommendations is offered by ASHRAE Guideline 1: The HVAC Commissioning Process (ASHRAE 1996), which describes a process for implementing HVAC systems to ensure quality control and conformance to the design intent. Owners will realize particular benefits from committing resources to the following: Selecting qualified team members. Designing contractual procedures to facilitate communication and cooperation. Taking a systems engineering approach. Committing to ongoing operation and maintenance of the plant.
Each of these important items is discussed further below.
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Select Qualified Team Members. The success of the chilled water project is highly dependent on the capabilities of the project team members. In successful projects, designers are selected on the basis of their experience with similar types of projects, and their willingness and ability to produce a complete design that is tailored to the specific requirements of the application. The design team includes members with experience or training in the operation and maintenance of chilled water plants. Contractors are screened through a prequalification process to identify those firms that are committed to work in a cooperative spirit with other team members, and to deliver a fully functional plant that meets the requirements outlined. Consultants are selected for their expertise with a specific technology or role in the implementation process, as well as their ability to work with other team members. The owners operating and maintenance staff also has the opportunity to provide input into planning and design. Design Contractual Procedures to Facilitate Communication and Cooperation. In
successful projects, contractual relationships and procedures are designed to facilitate communication and cooperation among all parties. Although the process of installing a new chilled water plant need not be a popularity contest, adversarial relationships among team members are not conducive to achieving an optimal system. Successful projects are those in which all parties win, the designer and contractor each make a profit, the plant functions well from the beginning, and each team member can point to the installation with pride.
Take a Systems Engineering Approach. A systems engineering approach views the
chilled water plant, the distribution system, and the load as a complete system, rather than a collection of independent parts. No components are outside the scope of consideration for the design solution. A plant designed using such an integrated approach is often smaller, more efficient, and simpler to operate and maintain than one designed without attention to optimization opportunities. An integrated approach to plant design begins with reducing cooling loads as much as possible. Measures such as efficient lighting, high-performance glazing, and spot venting of contaminant sources reduce the size of chilling and pumping equipment, and provide annual operating cost savings. A systems-oriented design might also reduce loads by using exhaust air heat exchangers to precondition ventilation air. Supply air and chilled water temperatures are selected to minimize the total energy use of chillers and air and water distribution systems. Designers might incorporate thermal storage to increase operating flexibility and take advantage of low off-peak electric rates. Reducing the supply air temperature allows ductwork to be downsized, and the resulting reduced space requirements allow structural designers more latitude in optimizing joist and beam sizes. A systems-oriented approach typically requires an increased investment in design fees. However, the resulting optimized plant is less expensive to operate and maintain, and often to install.
Commit to Ongoing Operation and Maintenance of the Plant. After installation,
successful plants are characterized by a program of regular preventive maintenance of equipment and sensors. Operators are motivated and empowered
to monitor and continually improve plant performance. A portion of the demonstrated operating cost savings is retained to fund future capital improvements. Operating personnel are trained for the specific requirements of the plant, and they receive ongoing training. Investment in operation and maintenance, and particularly in a well-trained and highly-motivated operating and maintenance staff, more than pays for itself through reliable cooling plant operation, increased efficiency, and reduced energy and maintenance costs. A well-trained staff that can perform regular tasks competently and efficiently, and make informed decisions in unexpected situations, is a valuable asset to management.
Evaluate, Test, and Monitor Performance

Testing and evaluation are necessary to properly install, operate and manage a complex system such as a chilled water plant. Acceptance testing verifies that operation and performance of the plant are satisfactory. In particular, todays complex control systems must be thoroughly commissioned. If acceptance testing is not carried out, errors in installation or design may go undetected. Such problems are best identified early, before problems with reliability, breakdowns, and excessive energy and maintenance costs undermine the long-term success of the plant. Ongoing evaluation involves defining performance goals for the plant, and monitoring to determine how well the goals are met. Monitoring and evaluation can help identify operational changes that will improve efficiency and effectiveness. Monitoring of equipment performance also allows early identification of potential problems before they become serious. For example, a decrease in chiller efficiency may indicate fouling and a need for tube cleaning.
What Are the Characteristics of a Successful Plant?

The definition of success is different for each owner and each individual application. The bottom line is that a successful plant meets the functional criteria that are defined for it during the planning phases of a project. The typical goals for any chilled water plant are to meet the cooling load, to operate reliably, and to operate cost-effectively. Cost-effectiveness is determined by the owners specific economic criteria, and is affected by first costs, energy costs, and maintenance costs. Additional goals that are important for many installations are to be energy-efficient, to have minimal negative external impacts, and to require an appropriate level of operational expertise. Finally, an important goal in most projects is to minimize risk. The relative importance of each of these goals depends on the owners priorities. The owner must define these priorities during the program phase and clearly communicate them to the project team. The criteria for success and their relative
priorities become part of the owners program (see Program Phase in Chapter 3) and the statement of design intent for the project. These criteria for success are discussed in more detail below, along with considerations for assigning priorities to the criteria..
Meets the Cooling Load

The primary function of a chilled water plant is to meet the cooling load of the facility. A successful plant meets the load over the entire range of daily and seasonal variations in load conditions. In some installations, the plant must serve a few small loads that occur at night or during cold weather, when the bulk of the cooling load is off. A plant may also be required to handle increased future loads or short-duration load spikes that result from unusual internal or external conditions. In some applications, it may be acceptable for the cooling plant to not meet the load for some number of hours or days per year. By factoring this possibility into the planning process, facility owners may realize significant savings in capital costs and ongoing operating costs. Owners should plan for possible future load growth if such growth is likely. Ideally, this future growth should be accommodated while avoiding the drawbacks of an oversized plant. If excess capacity is provided by simply oversizing a single chiller and its associated pumps and cooling tower, the plant's operating costs are unnecessarily high. The chiller and its auxiliaries operate for many hours at very low partial loads, with low efficiency. An effective way to build in excess capacity is to install multiple chillers and auxiliaries. This approach increases efficiency and lowers operating costs, because the plant can match its capacity to the load. Ideally, a plant that is expected to experience increased loads should be designed to expand by adding equipment as the load increases. Capital investment for excess capacity is minimized, and the plant capacity can be increased as needed as the future load materializes. This approach may incur additional design fees, but it defers the excess capital investment until the actual need is more clearly known. Owners and designers can provide reserve capacity that reduces operating costs by incorporating cool storage in their plants. The excess capacity available from a cool storage system allows chiller operation to be shifted to periods of low energy costs. As loads increase, additional direct cooling is provided as needed, but storage continues to reduce operating costs. See the section on Cool Thermal Storage under Design Issues for further discussion of cool storage. Owners may tend to leave decisions regarding oversizing, future load increases, and safety factors to the design engineers. However, these decisions have
important impacts on first cost and operating cost, and an owner who understands and participates in the decision making is more likely to achieve a successful plant.
Operates Reliably
The owners program should address the desired level of reliability. Owners and operating staff want a reliable plant that can be counted on to meet the loads under all conditions. A successful plant operates without unplanned shutdowns and is relatively easy for operating staff to run and maintain. The quality of equipment specified, the number of chillers and pumps installed, and the degree of redundancy provided all affect the plants reliability. The definition of reliable operation varies with the nature of the facility. A plant serving a critical application, such as a computer center, must operate without interruption regardless of possible failure of individual components or loss of primary electric service. The needs of this facility require a high degree of redundancy. However, most applications do not have such critical needs, and adequate reliability can be provided with much less expense. For example, a plant that contains three chillers, each sized for one-third of the peak load, can meet the load for most hours of the year even if one chiller is down. Some facility owners may place the highest priority on reducing first cost, and accept the risk of not meeting the load for a period of time if some piece of equipment fails. Whatever the priority, the expectation for reliability should be documented in the owners program.
Operates Cost-effectively
A successful chilled water plant minimizes overall costs according to the specific economic criteria determined for the project. The relative importance assigned to short-term and long-term costs depends on the owners financial situation and the facilitys intended use.
Economic Criteria. A successful project includes an accurate evaluation of the
tradeoffs between short-term costs for design, construction, commissioning, and capital equipment, and long-term costs for energy and maintenance. The economic criteria that are used to evaluate these tradeoffs are generally established by the owners organization based on specific financial goals and requirements. Some common methods for evaluating the economics of a project are discussed in the section on Financial Analysis, appearing later in this chapter. The economic criteria should be selected carefully, to reflect the real needs of the organization, so that the project team is working toward a goal that will truly make the project successful. (See sidebar.) Normally, estimates of the various costs are made during the program phase and refined during the design phase. The economic analyses performed at these stages are used to establish a design intent and develop a design that meets the owners economic criteria. In a successful project, the actual short-term and long-term costs are equal to or less than those projected in the design phase.
Choose Economic Criteria Carefully Establishing economic criteria without properly considering all costs can result in inefficient use of available funds. For example, a commonly used criterion is to minimize first cost. However, applying this criterion without regard to operating costs may result in a financial disadvantage for the owner. Consider two hypothetical owners planning chilled water plants to serve identical 14,000 m2 (150,000 ft2) facilities. To save first cost, the first owner selects a design engineer who quotes a fee $10,000 lower than any other design firm. The engineer sizes the plant for a 1750-kWT (500-ton) capacity, based on a quick estimate of the load and a generous safety factor. To minimize first cost for the remainder of the plant, and to simplify the design process, the engineer designs a plant with a single constant-speed pumping loop serving the chiller and the load. The engineer specifies a full-load chiller efficiency of 5.0 COP (0.70 kW/ton). The second owner interviews several design firms, and selects a firm with an excellent track record of designing efficient chilled water plants. The design fee is $30,000 higher than that paid by the first owner. The engineer performs a detailed load calculation, and determines that the probable peak load is 1450 kWT (410 tons). To allow for uncertainty in the load calculation and possible future increases, the engineer sizes the plant for a 1600-kWT (450-ton) capacity. To minimize operating costs, the engineer designs the plant with variable speed pumps and cooling tower fans. The engineer specifies a chiller with an integrated part-load efficiency of 6.7 COP (0.52 kW/ton). The resulting costs for the two systems are summarized below. The example shows that the owner who attempted only to minimize first cost reduced the first cost by $35,000. However, the owner who also tried to minimize operating cost regained the additional investment within one year. Summary of Example Costs Item Additional design fee Plant capacity Cost per kWT (ton) Total installed cost Total first cost Annual operating cost* Owner 1 $0 1750 kWT (500 tons) $375,000 $375,000 $53,000 Owner 2 $30,000 1600 kWT (450 tons) $380,000 $410,000 3.90 COP (0.9 kW/ton) $26,500
$215 per kWT ($750 per ton) $240 per kWT ($850 per ton)
Overall average plant efficiency 1.95 COP (1.8 kW/ton)
* 2000 hours annual operation, 60% average loading, $0.06/kWh average energy cost
A thorough evaluation of design options generally identifies cost-effective measures to improve efficiency and maintainability. Even when short-term cash flow is critical, economic analysis typically demonstrates that savings in operating and maintenance costs justify some additional initial expenditures.
First Cost. First cost includes construction and equipment costs plus fees for design,
commissioning, and any other consultants. First cost is generally financed, either internally or from outside sources. Options that affect the first cost are evaluated
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in terms of the applicable discount rate or interest rate, and the effect on future operating costs.
Energy Cost. Energy, typically electricity or natural gas, comprises the bulk of a chilled water plants operating cost.
Minimizing a plants energy costs requires designers to closely examine the available options. In some cases, the engineering effort associated with improving energy efficiency results in more appropriately sized equipment or more elegant designs that also have lower first cost. In other cases, improved energy efficiency is accompanied by increased first cost. There are a number of types of energy price schedules that can apply to chilled water plants and affect energy cost. These include flat rates, time-of-use rates, and real-time pricing. Many rate schedules also include demand charges of various types. Flat rates have the same charge for energy regardless of when it is used, and the energy cost is directly proportional to the energy use. With other price schedules, the energy charge depends on when it is used, so the system with the lowest energy cost is not necessarily the one with the lowest energy use. Time-of-use and real-time price schedules reflect variations in the cost to deliver energy with the time of day and time of year. A time-of-use schedule typically includes different rates for two or three time periods in each day, and may also differ for winter and summer seasons. With real-time pricing, the cost of energy varies from hour to hour. The hourly price variations are communicated by the energy provider to customers in advance, commonly one day ahead of time. Demand charges reflect the fixed cost of generation, transmission, and distribution capacity that must be available to supply a facilitys maximum demand for energy. Demand charges are typically based on the maximum energy demand for each month, although some ratchet rates include charges for the maximum demand over the past year. Demand charges often vary according to time of day and the season of the year. There are many possible variations and combinations of these basic types of energy price schedules. With deregulation of the electric utility industry, competition among energy suppliers will allow customers to shop or negotiate for the most advantageous rate. The changes in the utility industry also bring significant uncertainty in future energy costs. It is difficult to predict price levels or price structures for the purpose of evaluating future cash flows. This situation favors plants that are designed for operational flexibility to accommodate different rate structures, as well as those that offer the ability to use different energy sources.
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Maintenance Costs. Maintenance costs commonly comprise 7 to 25% of a plants
total operating cost. Maintenance costs are partly determined by the facilitys approach to maintenance, including the level of training provided for staff, and whether a preventive maintenance program is in place. Maintenance costs are also partly determined by the design and layout of the plant. Goals for maintainability, including the number of personnel required to operate the plant and their required skill levels, should be established and documented during the development of the owners program and the design intent. Maintenance costs for each option should be accounted for as realistically as possible and incorporated in the feasibility study. Input from operating staff at these stages, as well as during the design phase, is valuable to realistically evaluate maintenance issues. Maintenance costs can be reduced substantially by designing for ease of maintenance and ease of replacement. Ease of maintenance is improved by design decisions such as: Allowing adequate clearance for access to equipment. Providing valves to isolate components for repair or replacement. Including instrumentation and logging capabilities to monitor equipment performance.
Most equipment will be replaced at least once and possibly more in the life of the building. Ease of replacement is improved by providing a path from outside the building to the equipment for motors, tubes, and other large components. For very large chillers overhead rails for chain falls may be appropriate. If these items are not accounted for during design and construction, the cost of replacement could easily double.
Operates Efficiently
Energy-efficiency is typically associated with low energy costs, but the two are not always directly linked. Because of demand charges, time-of-use rate schedules, and differences in fuel costs, the plant with the lowest energy cost is not always the most efficient plant. Many organizations and individuals place a high priority on energy efficiency in and of itself, apart from low energy costs. This priority typically comes from a desire to take actions that will benefit society, future generations, and the long-term health of the natural environment. Improving energy-efficiency helps to conserve finite energy resources for future use, and helps reduce the amount of greenhouse gases and other harmful pollutants released into the environment. Organizations often wish to put a high priority on energy-efficiency if they: Are committed to energy-efficient and environmentally-friendly actions. Have a specific environmental mission.
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Can realize public-relations or employee-relations benefits from installing an energy-efficient plant.
An owner who puts a high priority on efficiency should include specific efficiency goals in the owners program, and retain a design engineer with a commitment to efficiency and a record of producing high-efficiency designs. This owner may favor low energy costs over low first costs when setting economic criteria. In addition, the efficiency-minded owner recognizes that a well-trained operating staff and a well-maintained plant are important for maintaining a continuing high level of efficiency.
Minimizes Negative External Impacts

Possible external impacts include noise, undesirable visual appearance, and plumes from cooling towers. Where these impacts may be an issue, or where neighbors may be sensitive, they should be addressed in the owners program. Noise impacts from cooling towers and from chillers located outdoors may affect the location of equipment, or the requirement for sound barriers. Visual impacts can be controlled by location and screening. If visual impacts must be minimized, a compact design is favored, and efforts to reduce the required equipment size will have increased value. Cooling tower plumes are not generally visible in plants that serve systems using air-side economizer cycles. For plants that incorporate water-side economizers, or that serve systems without economizers, the cooling tower will operate in cold weather. The plume will be visible and condensation or fog may occur near the tower. The tower location should be selected to minimize impacts on neighbors. Particularly in large plants, air pollution from combustion equipment, thermal pollution from cooling water, and containment of fuel are other possible impacts that should be considered.
Requires an Appropriate Level of Operational Expertise

The complexity of the plant should be appropriate to the training and capabilities of the operating staff. Complex configurations require higher levels of expertise to effectively operate. Some owners may desire a simpler plant that matches the skill level of current operating staff, so greater expertise and higher salaries are not required to operate the new plant. However, outsourcing maintenance is often a viable alternative to in-house maintenance, so owners should not discard complex options too hastily if they offer other advantages such as energy efficiency. Owners should also understand that complexity is not always synonymous with efficiency. Plants and control systems can be designed to operate very efficiently while minimizing the number of operations personnel required, and their required skill levels. To ensure that plants are designed for ease of operation, the design team should include members with experience in plant operations.
Minimizes Risk
An owner making an investment in a cooling plant wants to avoid risk. The owner's goal is to reduce the various possible risks to an acceptably low level. The relative importance of risk factors varies with the type of project and the owners particular needs. Some examples of risks that owners seek to avoid include: The plant does not meet the cooling load of the facility. The plant breaks down at a critical time. The plant requires excessive maintenance expense. The cost of procuring the plant exceeds the budget. The plants operating costs are higher than expected. The plant is not installed properly and requires extensive call backs and troubleshooting to operate correctly.
Each of these risks can be reduced by appropriate planning and attention during the project. The amount of risk reduction should be balanced against the resources required to achieve that reduction. The allocation of resources to reduce each risk factor varies according to the importance of that factor to the owner. During the program phase, the owner defines and prioritizes the requirements for the plant. As a part of this process, the risk of not meeting each requirement is explicitly or implicitly evaluated. In many projects, the risk factors listed above are not understood or adequately considered in the planning process. Some owners, particularly those without previous experience procuring cooling plants, lack an understanding of the complexity of matching the plant to the facilitys requirements. More experienced and knowledgeable owners understand that risk is reduced by thorough planning, precise definition of requirements, and enforcement of procedures to see that those requirements are fulfilled. Some risks are out of the control of owners and design teams. For example, the risks associated with changes in economic conditions and their effects on interest rates, discount rates and property values cannot be analyzed away. Similarly, uncertainty in future energy prices should not be disregarded. While these risks cannot be completely eliminated, changes in these factors can be evaluated by considering a range of possible future values in economic analyses. Designers of chilled water plants also want to minimize risks. Many engineers are reluctant to use advanced designs rather than their standard designs due to perceived risks with unfamiliar approaches. Additionally, appropriate analysis tools are not necessarily available, or used, by the design community to evaluate potential advanced design options. One of the goals of CoolTools is to address the lack of tools available to the design community, and reduce the risks of applying high-performance options.
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Project Types
Chilled water plants are installed in many types of facilities, and the implementation process varies with the project type. New construction carries different considerations than retrofit projects. Commercial, industrial, and institutional facilities differ in their requirements. Large plants, especially those serving multiple buildings, have different needs than smaller plants. A plant that serves an owner-occupied building is evaluated differently than one for a rental space. The implementation process also varies depending on the size of the owners organization. Issues relating to these project types are discussed below.
Retrofit and New Construction

A chilled water plant retrofit typically occurs for one or more of the following reasons: Eliminate obsolete refrigerant. Upgrade aging or poorly-functioning equipment. Meet increased cooling loads.
A retrofit project generally requires an interface to existing cooling equipment, and many operating parameters are fixed. The size and location of equipment are often constrained, and access to existing mechanical rooms for removal and replacement of equipment may be limited. In contrast, a new construction project typically offers more flexibility in designing the chilled water plant. Designers can select from a wider range of options for plant layout and operating parameters, and for the use of innovative technology. Retrofit projects offer the opportunity to measure the existing cooling loads and load profiles. Designers of new projects must use load estimates and predictions to size components. Because of the uncertainty in load calculations, designers often oversize equipment to be sure to avoid undersizing. Some projects, such as the expansion of an existing facility, combine elements of new construction and retrofit. Many of the cooling system parameters are determined by the existing plant, but there is still flexibility in designing the new plant.
Commercial, Institutional, and Industrial Applications

Chilled water plant requirements for commercial, institutional, and industrial applications differ in several respects: The nature of the loads; the economic evaluation criteria; and the importance attached to a reliable, high-quality cooling plant. Commercial occupancies often have load profiles that follow weekday, eight-tofive schedules. Load profiles for institutional facilities vary with the specific
installation. Classroom buildings commonly have profiles similar to commercial occupancies, possibly with shorter duration. Dormitory buildings, hospitals, and research labs have substantial overnight loads, and the profiles tend to be flatter overall. Load profiles for industrial applications also tend to be relatively flat, especially where process loads predominate. Chilled water plants for commercial applications, particularly rental property, are typically evaluated in terms of low first cost and short-term cash flow. Institutional facilities often put greater emphasis on minimizing long-term energy and maintenance costs. In industrial applications, competing alternative options are often evaluated in terms of return on investment. Even within a given facility type, the value placed on a reliable, high-quality cooling plant varies widely. Some commercial owners treat cooling like a necessary evil and seek to simply minimize the cost. Others view a top-notch cooling plant as an important benefit to employees or tenants. A similar range of attitudes is found in institutional facilities. In addition, institutional owners often value a plant that provides ease of maintenance over the long term. In industrial applications, reliability is highly valued where cooling plants must meet process loads. However, plants for comfort cooling may not be given the same priority.
Size of Cooling Plant

The economies of scale associated with larger plants allow more resources to be devoted to up-front planning and engineering. Large plants often benefit significantly from small percentage increases in efficiency. In addition, applications with special requirements for reliability tend to be those with larger plants. Larger facilities are also more likely to have facility managers on staff to guide the implementation process as well as operation and maintenance (O&M) personnel who are capable of running sophisticated systems. In smaller projects, the resources for planning and analysis are often limited. The magnitude of savings from efficiency improvements may also be smaller. Optimization efforts are typically focused on minimizing loads, selecting properly sized equipment, and developing simple, reliable operating sequences.
Owner-occupied and Rental Occupancies

In owner-occupied facilities, emphasis is commonly placed on ease of maintenance, low energy costs, and equipment life. For rental properties, the emphasis is more often on low first cost. However, many owners and tenants recognize that a high-performance cooling plantone that reliably provides comfortable spacecan be an important factor in negotiating rents.
Size of the Owners Organization

A large organization is more likely to have experience with previous cooling plant projects. This experience often brings an understanding of the need for a planned
implementation process. Many larger organizations have centralized engineering personnel who can fill some or all of the owners project management role. The experience of such a staff can be beneficial if the central office staff has a good understanding of the needs of the local facility. A smaller organization is more likely to have limited experience installing cooling plants. However, smaller organizations may find it easier to use innovative implementation approaches without resistance from the central office.
Contractual Arrangements
Contractual arrangements for implementing chilled water plants define the responsibilities of and the relationships among the various members of the project team. The contractual arrangements are an important part of the overall implementation process, which has as its goals to define, design, install, commission, and operate a successful chilled water plant. The goal of any consultant, contractor, or supplier involved in a chilled water plant project is to maximize profit. Ideally, this translates to meeting the specified requirements as efficiently as possible. However, in the absence of specific requirements, the incentive tends to be to provide the least amount of product or service for the highest possible price. The contractual arrangements and the owner's implementation process should be designed to align the incentives of the contracted parties with the goal of the owner to achieve a successful plant. Specific contract arrangements differ for each project, and vary according to the needs and resources of the owner. There are several common contract types that encompass most projects: Design-bid-construct. Design-build. Performance-based contracting. Outsourced chilled water.
These general classifications are given primarily for convenience. They differ in the allocation of responsibilities and the lines of contractual authority. There are many possible permutations and combinations of these approaches, and they are not necessarily mutually exclusive. These arrangements are described below, followed by a comparison of their characteristics.
Design-Bid-Construct
Design-bid-construct, or plan and spec, is the most common arrangement for structuring construction contracts in most parts of North America. As a result, many standard operating procedures are well established and commonly used. Design-bid-construct projects are typically organized with a single prime contract,
although some projects are completed with multiple prime contracts. These approaches are organized as shown in Figures 2-1 and. 2-2. The organization of both types of design-bid-construct projects is centered around the owner. The owner defines the scope of the project, secures financing, and engages a design firm to produce a design. The design documents are made available to prospective bidders, through open advertisement or distribution to selected contractors. The owner selects one or more contractors to construct the project, usually through a competitive bidding process.
Single Prime Contract. In a project with a single prime contract, the owner contracts
with one general contractor to carry out the work. The general contractor typically uses one or more subcontractors to perform parts of the work, but has overall responsibility for the installation.
Owner Design Firm Financial Institution
General Contractor
Subcontractor
Subcontractor
Subcontractor
Figure 2-1. Design-Bid-Construct - Single Prime Contract.
Multiple Prime Contracts. In a project with multiple prime contracts, the owner
contracts separately with individual contractors who perform various parts of the work. The owner takes responsibility for overseeing and coordinating the work of the individual contractors. As shown in Figure 2-2, the owner is involved with every aspect of the project. The multiple prime contracts method is appropriate for a highly motivated, well organized owner with construction management experience and a project that has well defined areas of work. Good planning and organizing allow the owner to fast track the project and do some of the design and construction work concurrently. The multiple primes method requires extensive management effort on the part of the owner and, in return, offers close control over a project.
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Subcontractor
Subcontractor
Subcontractor
Figure 2-2. Design-Bid-Construct - Multiple Prime Contracts.
Responsibilities and Incentives. The design-bid-construct contract arrangement
places the responsibility for design on the design engineer, and the responsibility for construction on the contractor(s). The contractors also are responsible for supplying equipment. Each of these parties contracts separately with the owner. The design engineer often has some responsibility for observing construction to determine conformity with the contract documents. However, the engineer has no contractual relationship with the contractors. The owner is responsible for operation of the completed plant. Ideally, the design engineer develops a design that meets the needs of the owner, and produces contract documents that fully describe the construction requirements. Contractors prepare bids that reflect their cost to install the plant as designed, and make an adequate profit. The contractor who can meet the requirements at the lowest cost is awarded the contract. The design engineer assists the owner in evaluating bids, reviewing shop drawings, and observing construction to determine conformity with the contract documents. The competitive bidding process results in the lowest cost to the owner, and the engineer's oversight ensures that a highquality plant is installed. In reality, there are many possible pitfalls in this process. If the owner has not fully defined the needs for the plant, the designer cannot prepare an appropriate design, and the project is flawed from the outset. If the design engineer has not been carefully selected for the experience and ability to produce a complete, highquality design, or if the owner has not allocated sufficient fees for comprehensive design and oversight services, several problems result. The design may not be appropriate to meet the owner's needs. Contractors may base their bids on incomplete information, resulting in later change orders and cost increases, or in efforts to cut corners. The above pitfalls are the result of the owner neglecting the planning responsibilities in the program phase. Other pitfalls can be caused by the division of responsibilities that is inherent in design-bid-construct projects. At its worst, this division can lead to poor coordination among the parties, and an "it's not my problem" attitude. To prevent this from occurring, the owner's implementation
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process should seek to encourage teamwork and communication between the owner, designer, contractors, and operating staff.
Prepurchase of Equipment. A variation of the design-bid-construct approach is prepurchase of equipment by the owner. The owner directly purchases large equipment such as chillers, cooling towers, and pumps, rather than including them in the construction contract. The equipment can be ordered before the design is complete and bids are let, reducing the impact of equipment lead time on the construction schedule. This approach is shown in Figure 2-3.
General Contractor
Equipment Supplier
Subcontractor
Subcontractor
Subcontractor
Figure 2-3. Design-Bid-Construct - Prepurchased Equipment.
Equipment costs may be reduced because contractors mark-ups are avoided. However, the actual cost reduction may be less than might be anticipated. Contractors often have better buying power than owners because they do a high volume of regular business with equipment vendors. In addition, some or all of the avoided markup may be added in to the contractor's installation bid. This method may reduce the designers ability to optimize the design because equipment parameters are determined when the design is at a preliminary stage. However, prepurchasing can work in favor of optimization if the economic formula on which the bids will be evaluated is provided to the bidders. For example, a dollar value is assigned to each increment of chiller efficiency improvement and pressure drop reduction beyond a base level. In this way each manufacturer can life-cycle optimize their bid. Prepurchasing shifts the responsibility for purchasing equipment from the contractor to the owner. Many owners include assistance with equipment selection and coordination of installation requirements as part of the design firm's scope. Contractors bidding on the installation contract should be made aware of the prepurchase so that they can include necessary labor, materials, overhead, and profit in their bids. Owners can shift the responsibility for coordinating installation
details to the installing contractors by assigning the equipment purchase order to the successful contractor who then issues a superseding purchase order. The objective of this procedure is to get the owner the best buy without circumventing the contractor's normal responsibilities and profit.
Design-Build
In a design-build project, the owner selects one company to be responsible for both design and construction. The owners responsibilities include defining the scope of the project, arranging financing, and selecting a design-build contractor. In many design-build projects, the owner hires a consultant to assist with defining the project requirements and selecting the contractor. Figure 2-4 illustrates this method.
Owner Financial Institution Design-Build Contractor
Subcontractor
Subcontractor
Subcontractor
Figure 2-4. Design-Build.
Ideally, the design-build approach benefits from having a single organization responsible for both design and construction. Communication among project team members is enhanced. The interaction of design and construction personnel working as a team results in designs that are practical and that can be efficiently built. Designers are able to optimize their designs because they have access to detailed information on expected costs. The design team does not have to allow for the requirements of the competitive bidding process. The time to complete a project is often minimized. Because there is a single point of responsibility for delivering the project, there is an incentive to prevent problems rather than to try to blame others. However, design-build projects also have potential pitfalls. They require significant effort by the owner in the program phase to carefully define plant requirements and performance criteria, and in the acceptance phase to verify that the requirements and criteria have been met. When owners do not thoroughly define their requirements and verify performance, there is an incentive for designbuild contractors to cut costs by compromising on quality. Contractors have little incentive to analyze alternative options, provide improved energy efficiency, or include operator-friendly features unless these items are specifically called for in the contract and enforced by the owner.
Outsourced Chilled Water

Outsourcing of chilled water supply is a simple option for owners who want to minimize the internal resources devoted to supplying cooling to their facilities. Outsourcing is often accomplished by purchasing chilled water from a district energy company, or by contracting out the operation of an existing or newly constructed on-site chilled water plant. As illustrated in Figure 2-5, an owner who chooses this method purchases chilled water from an outside supplier, who is in the business of supplying chilled water and possibly other energy sources, such as electricity and steam.
Owner
Chilled Water Supplier
Figure 2-5. Outsourced Chilled Water.
A key advantage of outsourced chilled water is that the owner need not be concerned with design, construction, operation, or maintenance of the chilled water plant. All energy, maintenance, and other costs are consolidated into a single, regular, predictable payment. Capital costs are also typically included in the payment to the supplier, although for some projects the owner may provide financing. A chilled water supplier with the appropriate resources and experience can provide chilled water very efficiently, often with significant economies of scale. The owners payment to such a supplier may well be less than the cost of constructing and operating his or her own plant. An owner who purchases chilled water from a district cooling system also benefits from a reduction in floor space dedicated to cooling equipment. However, owners should consider long-term costs when entering into an outsourcing agreement. Increases in operation and maintenance costs as the plant or the district distribution system ages, or as fuel prices change, may change the economics of the project in future years. At that point a district system customer may have limited options because of the lack of floor space for on-site cooling equipment. Even where the total cost is higher than that of an in-house plant, outsourcing may be attractive to owners who prefer to concentrate their resources on their core businesses.
In any case, an owner who intends to purchase outsourced chilled water must carefully define the loads, schedules, temperatures, and other requirements that the chilled water supply is to meet. The outsourcing option may not be available for all facilities. District chilled water is available only to facilities located near a district cooling planttypically those in downtown areas of larger cities or other areas with concentrations of large cooling loads.
Performance-based Contracting
The term performance-based contracting covers a range of contracts in which the implementation cost is linked to the projects performance. Performance is generally measured in terms of operating costs, although other criteria such as energy efficiency, capacity, or construction schedule may also be used. Performance-based methods can be combined with any of the contract types described above. The key elements of a performance-based contract are: A baseline performance model to which the actual performance will be compared Verification of performance after the project is completed An agreement that defines the sharing of benefits and risks
Some performance-based projects are performed on a turnkey basis by energy services companies (ESCOs), who take responsibility for all aspects of the projects including design and construction. The ESCO may also provide financing, as shown in Figure 2-6. Alternatively, the owner may obtain financing separately. Payments to the ESCO are typically determined by the reduction in operating costs compared to the baseline. The energy services contract shifts some of the risk for the project's performance from the owner to the ESCO. In return, the ESCO also shares in the operating cost savings. Such projects are often undertaken by owners who seek to improve the operation of their plants but have limited capital available. This approach is also used by owners with limited resources or expertise to manage a cooling plant project. In such cases, owners should protect their interests by seeking knowledgeable advice on structuring the ESCO agreement. In particular, owners should ensure that the agreement defines the baseline performance fairly, makes reasonable provisions for verification of performance, and allows for recourse if the projected performance is not achieved.
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Owner
Energy Services Company
Financial Institution
Energy Consultant
A&E Firm
General Contractor
Figure 2-6. Performance-Based Contract.
The following references provide useful information on energy services contracts: How to Hire an Energy Services Company (CEC 1997) The ABCs of ESCO Contracts (PG&E Energy Center 1997) North American Energy Management and Verification Protocol (DOE 1996) The Energy Services Industry: Revolutionizing Energy Use in the United States (Lefevre, 1996)
Another performance-based approach, the performance-based fee contract, provides a linkage between a cooling plant's energy use or operating cost and the fee paid to the designer or contractor. This type of project is typically structured with a base fee plus an incentive or penalty that depends on the project's performance relative to a predetermined goal. The publication Performance Contracting for New Construction (Eley et al. 1997) discusses performance-based fee concepts and describes some example projects.
Comparing Contractual Arrangements

The above contractual approaches differ in their assignment of responsibility for various elements of the implementation process and in the contractual relationships between the various parties. The methods also differ in their costs and benefits to the owner in each phase of the project, and in the incentives affecting the actions of the various parties. The owners overall approach to implementing a project generally has a greater impact on success than the contracting method selected. For example, developing a detailed description of the requirements for the plant is essential for any project. Although some contracting methods have special requirements for a carefully defined scope, any project will suffer if this area is neglected. Likewise, the success of all projects depends on good communication between the parties. An implementation process that fosters good communication contributes to success regardless of the particular contracting method used.
Even so, some contracting arrangements are more suitable for specific owners situations and applications than others. Criteria that can be used to compare these contractual arrangements include the following: Allocation of costs: programming, design, construction, and operating Owners contract management requirements Incentives to deliver a successful project Time required Financing
The following discussions compare the contractual arrangements in terms of these criteria.
Allocation of Costs. For any project, there is the possibility to shift costs between
programming, design, construction, and operation. Increasing the investment in one of these areas can allow decreases in others, while reducing the allocation to one area may result in increases in the other costs. To some extent, the different contracting arrangements differ in how these costs are allocated, and in the amount and type of shifting that can take place. The four types of costs can be described as follows: Programming costs are the owners expenses associated with defining, administering, and managing the project. These include items such as Staff time and consultants fees for defining the scope and requirements of the project and evaluating alternative options Staff time for contract administration and project management
Design cost, or engineering cost, includes all expenses to the owner associated with problem analysis, design calculations, and the assembly of project drawings and specifications. Design costs are largely proportional to the quality of design. Design costs for the various methods differ primarily in how they are paid by the owner, although some methods do offer true economies in design costs. Construction cost includes the cost of labor, equipment and material for installation of the plant. Quality control activities and acceptance testing are also included in this category. Construction costs are proportional to the quality and quantity or size of equipment and materials used. Construction costs are also affected by the quality and completeness of the design documents, and the number and nature of change orders during the construction phase. Operating costs include expenditures for energy and for maintenance after the project is completed. Operating costs are primarily determined by the owners stated efficiency requirements, and the owners efforts to ensure that the requirements are met.
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Programming Costs Regardless of the contract method selected, the owner must invest time and resources in programming to define the projects scope, the criteria for success and the implementation process. The owners allocation of time and resources to the program phase builds the foundation for the success of the project. Without a solid foundation the project cannot be successful. Reducing the investment in programming almost always results in additional expense in design, construction, or operation. Each of the methods has slightly different requirements for programming. Programming costs vary depending on how much of the project requirements must be defined up front, and on how much the contract arrangement involves the owner with the day-to-day implementation of the project. Programming for a design-bid-construct project includes defining the requirements of the plant, evaluating design alternatives and selecting the preferred option. Design-build projects require increased effort by the owner in the program phase. System requirements and performance criteria must be very carefully defined, because any changes or additions made after the design-build agreement is finalized can have a significant impact on construction costs and schedule. Some owners engage a consultant to perform a feasibility study and produce a conceptual design and performance specification before selecting a design-build firm. Programming for outsourced chilled water includes carefully defining the required loads, temperatures, and schedules, and comparing long-range costs with those of other plant options. For each approach, selection of team members is a critical part of the program phase. Designers, design-build contractors, and chilled water suppliers should all be evaluated based on reputation, past performance, and the demonstrated ability to deliver high-quality projects. Design costs, construction costs, and operating costs are interrelated, and owners can influence the relative magnitudes of these costs through their approach to project implementation. To some extent, the contracting arrangement selected affects the size of each cost category, but for any contracting arrangement these costs are strongly influenced by the priorities set during the program phase. Reducing the budget for design tends to increase operating costs, because designers have limited opportunity to optimize energy performance. Construction costs may also be increased, because equipment sized by rough estimates with safety factors rather than by careful calculation is more likely to be oversized. Reducing the budget for construction costs also tends to increase operating costs, because high-performance options may not be affordable. Reducing the operating cost goal tends to increase construction costs. However, with adequate design
fees, engineers can often produce optimized designs that are very efficient while still meeting construction cost limitations. Design, Construction, and Operating Costs Design, construction, and operating costs are separate budget items only in designbid-construct projects. In design-build projects, design and construction costs are lumped together. As with design-bid-construct projects, operating costs are determined by the owner's specified efficiency criteria. If design-build contractors are selected using a competitive bidding process rather than through interviews and negotiations, low first cost tends to be favored at the expense of long-term operating cost. Design-build projects offer the opportunity to trade off design and construction costs. With any contract method, construction costs can often be reduced by applying more effort to design. Design-build contracts facilitate this tradeoff because one entity is responsible for both cost categories. Design-build projects also allow cost savings in producing design documents. In a design-bid-construct project, design details must be explicitly defined to ensure that the scope of work is adequately described. In a design-build project, the drawings and specifications will only be utilized within the same company so many details can be completed by construction personnel using in-house standards.. Performance-based contracts provide inherent incentives to reduce operating costs. Outsourced chilled water projects generally include design and construction costs in the operating cost payments. There may be small additional design and construction costs associated with the interconnection to the plant.
Owners Contract Management Requirements. Contract management requirements
include the technical, administrative and project management expertise required to successfully complete the project. With any of the contract methods, an owner without the appropriate project management expertise may elect to retain one or more consultants to ensure that the owners requirements are being met. Commissioning agents, construction managers, energy consultants, and other advisors can provide valuable assistance in implementing a project. However, the owner has ultimate responsibility for defining and enforcing the project requirements. In design-bid-construct projects, the design engineer's scope often includes some assistance to the owner in evaluating bids and observing construction, but the owner is generally responsible for managing the construction contract and coordinating between the designer and contractor. Projects with multiple prime contracts require the most owner involvement. Owners using this method should have a staff with appropriate construction management experience.
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Turnkey methods, such as outsourced chilled water, design-build, and some performance-based projects, require extensive effort on the owners part when initially defining the requirements and negotiating the scope of work and fees. After these activities are completed, owners require little construction management expertise.
Incentives to Deliver a Successful Project. A successful project provides incentives for
engineers and contractors to apply the effort necessary to deliver a plant that truly meets the owners needs. These incentives take the form of cost structures that reward success and penalize poor performance. The contract methods differ in where the incentives to the various parties lie, and in what steps owners should take to align these incentives with the goal of achieving a successful plant. Whatever the contract method, a clear definition of requirements and a process for verifying that the requirements have been met are the best means to achieve this goal. Contract methods that use competitive bidding procedures, such as design-bidconstruct and some design-build contracts, offer incentives to install projects efficiently with minimum first costs. Owners should ensure that their requirements are carefully defined and enforced to eliminate any incentive to save money by cutting corners. Contract methods that combine multiple functions under one party's responsibility, such as design-build and outsourced chilled water, tend to provide better coordination, and an incentive to prevent problems before they arise. Where responsibilities are divided, such as in design-bid-construct projects, there may be an incentive to point fingers and avoid responsibility when problems arise. Owners should clearly define each party's responsibilities, and ensure that the appropriate fees are provided. Performance-based contracts provide direct incentives by linking payments to the plants performance. Owners using these methods should take care that performance criteria and verification methods are clearly defined, and that all parties understand and agree to the performance requirements.
Time Required. The time required to complete a project, from conception to the
owners use of the plant, can be affected by the choice of contract method. Although any contract method can incorporate fast-track construction, methods that allow portions of the job to be done concurrently generally allow for faster completion. The design-bid-construct approach typically results in the longest delivery time. However, schedules can be shortened using phased design and construction. The use of multiple prime contracts and prepurchase of equipment can help reduce completion time. These methods require careful coordination to ensure that the completed project meets the owner's needs.
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The design-build approach allows some of the design and construction to be done concurrently, thus reducing overall delivery time. Performance-based contracts can be structured to minimize time-to-completion by linking payments to timely achievement of milestones. Outsourced chilled water can often be provided with very little lead time if the supplier's plant and distribution system is already in place. This approach only requires design and construction of the interface to the owner's internal distribution system. An accelerated construction schedule typically has significant value to owners, but there are also significant associated costs. The accelerated schedule requires increased effort in coordination of design and construction with any contract method, and owners should expect to pay accordingly.
Financing. Owners typically must secure financing for chilled water plant projects
by traditional means. However, performance-based contracts often offer financing as part of the project package. Financing for outsourced chilled water is the responsibility of the chilled water supplier, and the capital costs are included in the delivery cost.
Financial Analysis
Every chilled water plant project has financial implications for the owner. Significant amounts of money are required to pay consultants fees, equipment costs, installation costs, and, in most cases, the interest on project financing. There are also operating and maintenance costs, which occur over the life of the plant and are likely to be much greater than the initial cost. For the plant sizes addressed in this document, particularly for large plants of 3,500 kWT (1,000 tons) or more, the total first cost and operating cost is millions of dollars over the 20-year or longer lifetime of the plant. Because a chilled water plants lifetime operating costs are higher than the initial cost, it is important to evaluate total lifetime costs when comparing alternatives. Frequently, the plant with the lowest first cost has highersometimes significantly higherlifetime energy and maintenance costs. It is often preferable to invest more money initially on a plant with lower lifetime costs, than to minimize the initial cost and end up spending the difference many times over. Various financial analysis methods are used to compare the relative value of the first costs and future cash flows for all alternatives. These methods express the attractiveness of each alternative in terms of a common evaluation parameter. The simple payback method is a very simple and very common analysis method. More sophisticated methods that account for the time value of money and cash flow in future years include discounted payback, present worth, uniform annual cost, rate of return, and benefit-cost ratio methods. These more advanced methods use the concept of equivalence to evaluate and compare various alternatives.
More information on these and other cost analysis methods can be found in many engineering economics texts, including Newnan (1983), Johnson (1990) and Marshall and Ruegg (1980). The NIST handbook on life cycle cost analysis (Ruegg n.d.) is an excellent reference. Also, the ASHRAE Handbook Applications (ASHRAE 1995, Chapter 33, Owning and Operating Costs) discusses financial analysis considerations. Various software programs are also available to perform economic analysis calculations, including the Building LifeCycle Cost (BLCC) program from NIST (NIST 1993). The following subsections discuss the concept of equivalence in financial analysis, a number of financial analysis methods, and approaches to handling uncertainty and risk.
Equivalence
The concept of equivalence is used to convert unequal cash flows to a common basis for comparison. Depending on the analysis method, this common basis might be the present value, the value at some future time, an equivalent uniform annual cash flow, or some other parameter. The conversion is accomplished by accounting for the time value of money, using an appropriate interest rate (or discount rate). This interest rate represents the return that could be obtained by investing a sum of money elsewhere, or the rate that must be paid to borrow the money. The equivalence calculations reflect the fact that a sum of money in hand at the present time is more valuable than the same sum of money promised at some point in the future. The higher the interest rate, the more the value of the future sum is discounted. The basic principles and calculation of equivalence are presented below.
Single Payment Present Value. The future value F, at n years in the future, of a
present sum of money P, with an interest rate i, can be calculated as:
F = P(1 + i )n
and conversely, the present value P of a future sum of money F is:
P = F (1 + i )
or
P = F PWFsgl (i , n)
where the single payment present worth factor PWFsgl (i,n) is defined as:
PWFsgl (i , n) = 1 (1 + i ) n
Series of Equal Payments. The present value P of a series of future equal payments
A is:
P = A PWFser (i , n)
where the series payment present worth factor PWFser (i,n) is defined as:
(1 + i ) n 1 PWFser (i , n) = i (1 + i ) n
The series payment present worth factor is useful for describing the present value of future operating costs. The future equal payments A required to repay a present value of money P are:
A = P CRF (i , n)
where the capital recovery factor CRF(i,n) is the reciprocal of the series payment present worth factor:
CRF (i , n) =
i (1 + i ) n (1 + i ) n 1
The capital recovery factor can be used to determine uniform loan payments, or the equivalent uniform cash flow corresponding to a given present value.
Calculating Equivalent Cash Flows. The present worth factors and capital recovery
factor are used to convert unequal cash flows associated with the first costs and operating costs of various chiller plant options to equivalent values. Other factors, not presented here, are used similarly to calculate equivalent values for steadily increasing or steadily decreasing cash flows, such as might be associated with future changes in energy costs or maintenance costs (Newnan 1983). All of these factors are tabulated in many economic analysis references, and are also available as preprogrammed functions in many electronic calculators and computer spreadsheet programs. The discussion of financial analysis given here is intended to illustrate the fundamental concepts, and is somewhat simplified. A detailed analysis would also include the effects of inflation, depreciation, taxes, equipment replacement costs, salvage value or disposal cost, and other factors.
Simple Payback
The simple payback for a given system relative to a base case is calculated as the incremental cost for the system divided by the annual operating cost savings.
SPB = Incremental cos t Annual savings

Owners using this method typically establish a minimum payback period for a project to qualify for consideration. The simple payback method does not account for the cost of borrowing money, the future value of money, or cash flow in future years. It does not consider any economic activity that occurs after the payback period, such as changes in operating costs, replacement costs or salvage value. It is used primarily because it is extremely simple to calculate and to understand. Its usefulness is that it describes the length of time needed to recover the cost of an investment from the benefits of the investment. However, the speed of the return of an investment is not the same as profitability, and confusing the two may lead to unwise investment decisions (Newnan 1983). An improved payback calculation that considers the time value of money is presented in the ASHRAE Applications Handbook (ASHRAE 1995, p. 33.7). However, this method still has the other drawbacks of the simple payback analysis.
Present Worth
A present worth or present value analysis provides a more complete evaluation of the economic impacts of relatively long-lived investments. The present worth analysis converts all of the costs of ownership over a given time period, including first cost, energy costs, maintenance costs, and salvage values, into their equivalent present values. The present worth of the project is the sum of these present values.
PW = P(cos t ) k
k
where the P(cost)k terms are the present values of each of the k individual costs considered in the analysis. The life cycle cost of an investment is the present worth calculated over the expected lifetime of the project. The incremental life cycle cost of a project compared to another alternative, also called the net present worth or the net benefit, is computed by expressing the costs on an incremental basis. The incremental cost in each category is the difference between the cost of the options to be compared. The net present worth is the sum of the present values of all the incremental costs.
NPW = P(cos t1k cos t 2 k )

k
where the cost1k and cost2k terms are the k individual costs for options 1 and 2 respectively. If option 1 is more attractive than option 2, the resulting negative NPW value can be expressed as a positive net benefit.
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NB = NPW
The NPW can also be calculated as the difference of the present worths of the options
NPW = PW1 PW2

or by calculating the present values of the net cash flows for each year of the period.
NPW = P( Net cash flow1 ) + P( Net cash flow2 ) + ... + P( Net cash flown )
where there are n years in the analysis period. Each of the above calculations of NPW is mathematically and economically equivalent. The most economically attractive option is the one with the lowest present worth, the lowest net present worth, or the highest net benefit.
Uniform Annual Costs

It may be useful to express the cost of a project in terms of a uniform cost paid every year throughout the analysis period. This equivalent uniform annual cost is calculated by determining the present value of all of the individual cost components, then applying the capital recovery factor to find the equal payments over the analysis period.
EUAC = CRF (i , n) P(cos t ) k

k
The most economically attractive option is the one with the lowest equivalent uniform annual cost.
Rate of Return
The rate of return is that interest rate for which the present value of all costs over the analysis period is equal to the present value of all benefits (or the net present worth and the net benefit are zero). This analysis method is based on the incremental costs and savings of one option compared to another. The rate of return is determined by iteratively calculating the present values of costs and benefits for various interest rates, until the correct rate is found. Many organizations establish a minimum attractive rate of return, or MARR, for allocating funds. Any project whose estimated rate of return falls below this minimum is rejected. If more than two options are to be compared, an incremental analysis is required. For example, when several alternatives are to be compared to a base case, the alternative with the highest rate of return relative to the base case is not necessarily the most profitable. The best alternative is selected by evaluating each increment of investment, by the following procedure:
1. Discard any options whose rate of return is below the MARR. 2. Rank the remaining options in order of increasing present worth of cost. 3. Compare the two lowest-cost alternatives. Compute the incremental rate of return ROR on the cash flow representing the differences between the alternatives. If ROR > MARR, reject the lower-cost alternative. If ROR < MARR, reject the higher-cost alternative. 4. Take the preferred alternative from step 3. Perform another two-alternate comparison, with the next higher-cost alternative. 5. Continue until all the alternatives have been evaluated and the best option has been identified. This procedure selects the most attractive option by evaluating the return on the incremental investment for each option in turn.
Benefit-Cost Ratio
The benefit-cost ratio is the ratio of the present worth of benefits or savings to the present worth of costs. Typically, the savings and costs are expressed relative to a base case.
B / C = P(benefits) / P(cos ts)

A B/C ratio greater than one signifies an attractive investment. For selecting among several alternatives, an incremental analysis is required, as follows: 1. Discard any options whose B/C ratio is less than 1. 2. Rank the remaining options in order of increasing present worth of cost. 3. Compare the two lowest-cost alternatives. Compute B/C from the incremental savings and the incremental investment for the second option compared to the lowest-cost option. If B/C > 1, reject the lower-cost alternative. If B/C < 1, reject the higher-cost alternative. 4. Take the preferred alternative from step 3. Perform another two-alternate comparison, with the next higher-cost alternative. 5. Continue until all the alternatives have been evaluated and the best option has been identified. As with the incremental rate of return analysis, this procedure identifies the alternative for which the added investment provides the greatest benefit.
Uncertainty and Risk

Financial analysis relies on predictions of future events, and therefore inherently involves some uncertainty. Energy cost savings are based on energy usage estimates that are subject to uncertainty in many of their inputs. Maintenance cost estimates are often based on limited data. Future inflation rates, interest rates, tax rates, and other economic parameters are all subject to uncertainty. These
uncertainties, and the risks resulting from their impacts on the financial analysis, are normally accounted for in the selection of the economic criteria by which alternatives are judged. Organizations that evaluate investments using the simple payback method may implicitly assume that the uncertainties associated with more elaborate methods are too great to justify the additional analysis effort. A requirement for a maximum simple payback period of, for example, three years may be based on the presumption that costs and savings are so difficult to accurately predict that any predictions beyond the three-year horizon have limited value. Organizations that assume that they can obtain reasonable predictions by investing appropriate analysis effort can also account for uncertainty by their selection of economic criteria. The discount rate, which reflects the future value of money, may be increased to devalue future cash flows. This accounts for uncertainty whether the predicted cash flows will occur as estimated. The minimum attractive rate of return may be increased, either by probability analysis or in a more arbitrary fashion, to provide a margin of safety against uncertainty and risk (Newnan 1983). Similarly, the minimum acceptable benefit-cost ratio may be increased. For example, rather than accepting any alternative whose incremental B/C ratio is above 1, an organization may require a higher B/C ratio to eliminate marginal options.
Design Issues
The performance, reliability, and efficiency of a chilled water plant are largely determined by decisions made during design. The chiller plant configuration, the type and size of equipment, and the design operating parameters all affect the ability of a system to meet its goals. However, in many projects these decisions are made without considering the full range of options available. System types, plant configurations, and operating parameters often are selected based on what the designer has done before, rather than what is best to meet the owners program. As a result, many designs do not provide an optimal level of plant performance. The following sections discuss several design issues, including factors that affect design decisions and the relative value of committing extra effort to specific areas. A CoolTools Design Guide for Chilled Water Plants, which will address optimization and design issues in detail, is under development.
Determining Loads
A fundamental task in chilled water plant design is to determine the loads that the plant must meet. Designers need to know the peak load at design conditions to size equipment. They need information on load profiles throughout the year to maximize efficiency on an annual basis. In many situations, measuring existing loads provides significant benefits. Each of these considerations is discussed below.
Peak Loads. Peak loads are often difficult to determine with certainty. For new
construction, the load calculation must be based on the best available estimates of occupancy, internal heat gains from lighting and equipment, and envelope heat gains. Actual peal loads often turn out to be significantly different from these estimates. For retrofit projects, designers can measure the existing loads. However, possible future increases or reductions in loads still may represent a significant uncertainty. Understandably, design engineers seek to avoid undersizing equipment, to avoid dissatisfied clients and lawsuits. When faced with uncertain loads and quality of construction, designers tend to oversize equipment to ensure that their selections are not blamed for failing to meet the owners requirements. Some designers reduce the cost of their services by sizing equipment based on quick estimates combined with safety factors rather than careful calculations. This approach typically also leads to oversizing. Oversizing always increases capital costs. Oversizing of pipes and cooling towers generally reduces operating costs, while oversizing of chillers and pumps generally increases operating costs. The key to sound decision making is to balance the increased capital costs against the risks of undersizing and resultant changes in operating costs. Owners can reduce the risks of undersizing by applying appropriate effort in the program phase. Owners should: Insist on a detailed, rigorous load calculation as part of the design engineer's scope, and provide the associated fee. Estimate occupancy, schedules, equipment type and density, and other loadrelated factors as accurately as possible. Provide realistic projections for future changes in the factors that affect the cooling load. Provide for measuring existing cooling loads, if applicable.
These steps reduce the uncertainty in the load estimate, and thereby reduce the need for designers to arbitrarily oversize equipment. Owners can also help avoid unnecessary capital costs by selecting appropriate design weather conditions. Some plants serving critical loads cannot afford to be short of capacity for even one hour in the year. However, most facilities can tolerate small increases in indoor temperatures for short periods during extremely hot weather. By sizing plants for outdoor temperatures below the annual extreme levels, owners can avoid paying for plant capacity that is used for only a few hours per year.
Load Profiles. Load profile data provide information on the variation in loads
throughout the year. Designers use load profiles to help evaluate the risks of undersizing, to select equipment and operating parameters to maximize annual efficiency, and to design plants that incorporate thermal storage.
Data on the magnitude and frequency of peak loads are useful for sizing equipment. A peak load that occurs only once or twice in a year has a built-in safety factor, and offers the opportunity to save capital costs by sizing equipment at or slightly below the calculated peak. Annual load profiles allow designers to maximize efficiency over the entire year, rather than at the peak load. Annual simulation tools are an invaluable aid for determining the operating costs for various design options. Even a simple profile of the number of hours at each fraction of full load is valuable for optimizing plant efficiency. An hourly peak load profile is required to size a plant incorporating thermal storage. Thermal storage systems should be sized to meet the load on the day with the highest hourly load as well as the day with the greatest integrated 24-hour load.
Measuring Existing Loads. In existing facilities, owners and designers can reduce the
uncertainty in the load calculation by measuring the loads. Monitoring loads for a year, or at least one cooling season provides valuable information on the actual peak load, the number of occurrences of the peak load, and the variation of partial loads during the cooling season. Monitoring can also identify problems in secondary systems that directly impact the performance of the plant. Measuring existing loads does not eliminate uncertainty in the load estimate. Differences in weather conditions, changes in plant operation, and changes in occupancy schedules and other load factors from one year to another still must be taken into account. However, measuring loads with informed analysis is almost always more accurate than calculating loads. Measured peak load data allows designers to size the new plant for the actual loads in the facility, rather than simply matching the capacity of the existing chiller(s). Because existing chillers may be oversized, this approach avoids continued oversizing, and resulting excess capital cost and reduced efficiency. It also prevents undersizing, in projects where the existing capacity is being reduced. Even if the existing load represents only a portion of the load to be met by the new plant, using monitored data greatly reduces the uncertainty in the overall load
Benefits of Measuring Existing Loads Depending on the size of the plant, and the extent and quality of existing instrumentation, the investment to monitor loads may be between $5,000 and $20,000. In most cases, this expenditure will provide information that allows designers to confidently reduce the capacity of the replacement chiller(s), and to optimize their designs for increased overall annual efficiency. As an example, consider a plant with a presumed chiller capacity requirement of 2,500 kWT (710 tons). The owner spends $12,000 to monitor the load for one year, and determines the actual requirement to be only 2,250 kWT (640 tons). The marginal cost for the last increment of chiller, pump, and cooling tower capacity is determined to be $70/ kWT ($250/ton). The resulting savings in first cost is approximately $17,500 (250 kWT x $70/ kWT, 70 tons x $250/ton). The cost of monitoring is paid back in less than one year, and the operating cost reductions will accrue for the life of the plant.
calculation. Measured data is almost essential for determining loads in district cooling systems. Calculating the total system load by adding up design day load profiles for many buildings often results in huge errors, because of diversity in the occurrence of peak loads, and the accumulation of uncertainties in the individual calculations. Measured load profile data provides a reliable basis for evaluating the actual operating costs of replacement plants, as well as the baseline operating cost for the existing plant. At a minimum, load monitoring should include regular logging of chilled water flow rate and supply and return temperatures for the entire plant, as well as total plant electric demand, and other primary fuel input if applicable. Data on loads and energy inputs for individual chillers, pumps, and cooling towers are also valuable for optimization, particularly in large plants. Most plant automation systems have the capabilities to perform this logging with little or no additional hardware or programming.
Monitoring Protocols A CoolTools document, Plant Monitoring Protocols, will assist users with defining the minimum requirements necessary to adequately monitor existing plant operation.
Owners should be logging data for diagnostic purposes even when they are not contemplating a plant modification. Monitoring specifically for the purpose of supporting a design effort is then unnecessary because the data is already logged. If a monitoring program is not already in place, owners should begin logging cooling loads as one of the first steps in preparing for a possible chiller replacement. Ideally, monitoring begins at least one year before design is begun. At the same time, a complete survey of the existing HVAC system operation should be carried out. In many cases, a plant's inability to meet the cooling load is caused not by insufficient capacity but by inadequate secondary distribution or terminal unit performance. Such deficiencies should be addressed at the same time as, or instead of, modifying the plant. The load measurements and HVAC survey also often identify low-cost or no-cost opportunities for improving the operation of the plant and the secondary systems.
Chiller Selection
Owners planning to build a new chiller plant or upgrade an existing one have a wide range of chiller options available. The type of chiller, the primary fuel, the rated efficiency, and the number, capacity, and redundancy of chillers are all important factors in the cost and efficiency of a chilled water plant. The various options are evaluated as part of the feasibility study, preferably in the program
phase. The preferred option should be selected to support the goals and priorities defined in the owners program. Most chillers for commercial cooling applications use a vapor-compression refrigeration cycle, and are powered by electricity. Other options include natural gas- or steam-fired absorption chillers, natural gas engine-driven chillers, and steam turbine-driven chillers. In addition, water-cooled and air-cooled chillers differ in how they reject heat from the refrigeration cycle. A brief summary of chiller selection considerations is provided below. Additional information on chillers is available from several sources. The ASHRAE HVAC Systems and Equipment Handbook (ASHRAE 1996, Chapter 34, Compressors) provides detailed information on the construction and operation of the various compressor types. The ASHRAE Refrigeration Handbook (ASHRAE 1994, Chapter 42, Liquid Chilling Systems) discusses equipment, application, selection, operation, and control considerations for reciprocating, screw, and centrifugal chillers. Extensive information on selecting chillers is also provided in the following references. Readers are encouraged to consult these sources for additional detailed information. ACEEE Guide to Energy-Efficient Cooling Equipment (Suozzo et al. 1997) E SOURCE Commercial Space Cooling and Air Handling Technology Atlas (Shepard et al. 1995) E SOURCE Gas Chiller Buyer's Guide (Cler 1997)
Electric Chillers. Electric vapor-compression chillers use centrifugal, rotary-screw,
scroll, or reciprocating compressors. Applications requiring cooling capacities exceeding 1,000 kWT (300 tons) commonly use centrifugal chillers, which are available in capacities up to 32,000 kWT (9,000 tons). Screw chillers range in size from 350 to 3,900 kWT (100 to 1,100 tons), but are most common in the 350 to 1,000 kWT (100 to 300 ton) range (Suozzo et al. 1997). Scroll chillers are generally used for capacities below 350 kWT (100 tons). Reciprocating chillers have been used for capacities from 70 to 550 kWT (20 to 150 tons), but scroll and screw chillers are replacing reciprocating chillers in this size range. Table 2-1 lists the capacity ranges in which these various chiller types are commonly applied.
Natural Gas- and Steam-driven Chillers. Absorption chillers are heat-operated machines that may be direct-fired with natural gas, or indirect-fired with steam or hot water. Absorption chillers are available in capacities from less than 350 up to 6,000 kWT (less than 100 tons up to 1,700 tons) although they are most commonly applied with capacities greater than 700 kWT (200 tons).
Engine-driven chillers use natural gas-fired internal combustion engines to power standard vapor-compression chillers. Engine-driven chillers are available with
reciprocating, screw, or centrifugal compressors, in capacities from 70 to 10,000 kWT (20 to 3,000 tons) (Cler 1997). Additional information on absorption and engine-driven chillers is available from the following sources: The ASHRAE Refrigeration Handbook (ASHRAE 1994, Chapter 40, Absorption Cooling, Heating, and Refrigeration Equipment) addresses the theory, components, and operation of absorption chillers. Gas Chiller Buyer's Guide (Cler 1997) provides an extensive discussion of absorption and engine-driven chiller technology and application, and a list of available products. Natural Gas Cooling Equipment Guide (AGCC 1996) includes data sheets for available absorption and engine-driven chiller product lines.
Table 2-1. Typical Capacity Ranges by Chiller Type Chiller Type Centrifugal Screw Scroll Absorption Direct-fired Absorption Indirect-fired Engine-driven Steam turbinedriven Capacity Range kWT 700 - 32,000 350 - 1,000 70 - 350 550 - 3,900 700 - 6,000 70 - 10,000 1,800 - 32,000 Tons 200 - 9,000 100 - 300 20 - 100 150 - 1,100 200 - 1,700 20 - 3,000 500 - 9,000
Sources: Dorgan and Elleson 1993, Cuozzo et al. 1997, Shepard et al. 1995, Cler 1997.
Steam turbines can be used to drive vapor-compression chillers. Turbine drives have generally been used with very large chillers. A line of steam turbine-driven packaged chillers, with capacities from 1,800 to 7,000 kWT (500 to 2,000 tons), has recently been introduced in the market. In facilities with steam available year-round, steam absorption or steam turbinedriven chillers can improve overall annual plant efficiency by increasing steam usage during the cooling season when steam loads are very low.
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Natural gas- and steam-driven chillers can often meet heating loads directly or by heat recovery. Direct-fired absorption units are available with the ability to produce cooling, heating, or heating and cooling simultaneously. These units are limited in their part-load capabilities, and are most applicable to large facilities with multiple chillers (Thies and Bahnfleth 1998).
Water-Cooled and Air-Cooled Chillers. Water-cooled and air-cooled chillers differ in
how they reject the heat from the refrigeration cycle. A water-cooled chiller uses a heat exchanger (condenser) mounted on the chiller to transfer heat from the refrigerant to a condenser water loop. The heated condenser water is cooled externally, typically by evaporation in a cooling tower. An air-cooled chiller rejects heat to ambient air that is blown across a refrigerant-to-air heat exchanger by condenser fans. Water-cooled electric chillers are available over the entire capacity range of less than 350 kWT to 32,000 kWT (less than 100 tons to 9,000 tons). Air-cooled electric scroll chillers are available in capacities up to 350 kWT (100 tons), and air-cooled screws are available up to 1,400 kWT (400 tons). Absorption chillers are produced only in water-cooled models, except for capacities below 90 kWT (25 tons). Most engine-driven and steam turbine-driven chillers are also water-cooled, although air-cooled engine-driven models are available in sizes up to 900 kWT (250 tons). Water-cooled chillers are more efficient than air-cooled chillers because they operate at lower condensing temperatures. Efficiency ratings for air-cooled chillers include the energy used by condenser fans, while condenser water pump and cooling tower fan energy must be considered separately for water-cooled chillers. However, even including this additional energy, water-cooled chillers are 20 to 40% more efficient than air-cooled chillers (Suozzo et al. 1997). Air-cooled chillers do not require maintenance of water treatment, cooling towers, condenser water pumps, and related equipment. They also need no make-up water supply, which in some areas may be expensive or unreliable. Air-cooled chillers must be located outdoors, generally on a rooftop or at-grade. Air-cooled equipment is generally applied in chilled water plants with relatively small loads where the budget or available expertise for maintenance is limited. Some larger plants use air-cooled chillers if make-up water is not available or is expensive.
Chiller Efficiency
Chiller efficiencies vary depending on the operating conditions, the design of a particular model, and whether they are water-cooled or air-cooled. Full-load chiller efficiencies are normally rated at ARI (Air-Conditioning and Refrigeration Institute) standard test conditions, summarized in Table 2-2. Efficiencies at other operating conditions differ from the standard full-load ratings. The Integrated Part-Load Value (IPLV) is a standardized measure of part-load
chiller efficiency. This rating is a weighted average of a chiller's efficiency at 100%, 75%, 50% and 25% of full load, at standard conditions, based on an assumed distribution of loads. The Application Part-Load Value is calculated with a similar load distribution, but with user-specified operating conditions. Some chillers are not covered by standard rating test procedures, so it is important to understand the conditions to which a particular efficiency rating applies.
Table 2-2. ARI Standard Chiller Rating Conditions Leaving chilled water temperature Chilled water flow rate Entering condenser water temperature (water-cooled) Condenser water flow rate (water-cooled) Vapor compression Indirect-fired doubleeffect absorption Direct-fired doubleeffect absorption Ambient air temperature (air-cooled)
Sources: ARI 1995, 1994; 1992.
7C (44F) 0.04 L/s per kWT gpm/ton) 29C (85F) (2.4
0.05 L/s per kWT gpm/ton) 0.07 L/s per kWT gpm/ton) 0.08 L/s per kWT gpm/ton) 35C (95F)
(3.0 (4.0 (4.5
Table 2-3 summarizes typical efficiency ranges for the various chiller types. Detailed listings for specific manufacturers and models are provided in Guide to Energy-Efficient Cooling Equipment (Suozzo et al. 1997), and Commercial Space Cooling and Air Handling Technology Atlas (Shepard et al. 1995). Gas Chiller Buyer's Guide (Cler 1997) lists efficiencies for many absorption and engine-driven chillers. Efficiency ratings for absorption and engine-driven chillers are lower than those for electric chillers, because generation and other losses associated with electricity are accounted for separately. Indirect-fired absorption chillers are more efficient than direct-fired units, because the ratings for the indirect-fired units do not include burner losses. The operating costs of absorption and engine-driven chillers
are often competitive with those of electric chillers because the fuel, typically natural gas, is less expensive on a unit energy basis. In particular, the gas-fired chillers allow owners to avoid high electric demand charges.
Table 2-3. Typical Chiller Efficiency Ratings Chiller Type Centrifugal Screw Water-Cooled Screw Air-Cooled Scroll Water-Cooled Scroll Air-Cooled Absorption Direct-fired double effect Absorption Direct-fired single effect Absorption Indirect-fired Engine-driven Full-Load Efficiency COP 5.4 - 7.0 5.0 - 5.6 2.7 - 2.9 3.9 - 4.4 2.9 - 3.1 1.0 kW/ton 0.65 - 0.50 0.70 - 0.63 1.3 - 1.2 0.90 - 0.80 1.2 - 1.15 --COP 5.4 - 7.8 5.4 - 6.4 3.2 - 3.5 4.5 - 5.6 3.5 1.1 - 1.2 IPLV Rating kW/ton 0.65 - 0.45 0.65 - 0.55 1.1 - 1.0 0.78 - 0.63 1.0 ---
0.70
---
0.70 - 0.77
---
1.2 1.2 - 2.2
-----
1.3 1.2 - 2.2
-----
Sources: Cuozzo et al. 1997, Shepard et al. 1995, Cler 1997, manufacturers' data.
A chiller's actual overall annual efficiency is quite different from its full load rating. The IPLV and APLV provide information on a chiller's overall annual efficiency under an assumed set of conditions. For a more accurate evaluation of annual chiller performance, users may wish to calculate weighted average efficiency based on the expected annual distribution of partial loads and the chiller efficiency at each load condition. This application-specific weighted average efficiency is useful for comparing design options at the feasibility study stage. The load parameters can also be included in bid documents for the purpose of defining a minimum acceptable annual performance, or for comparing bid proposals.
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Although the chiller is the most significant energy-using component in a chilled water plant, it is not the only determinant of overall plant efficiency. The cost of operating pumps and cooling towers can be 30% or more of the total plant energy cost, so owners and designers should use a systems approach when evaluating plant options. For example, some chillers achieve very high efficiency at the expense of increased pressure drop in the evaporator and condenser shells, which results in increased pumping energy. The Commercial Space Cooling and Air Handling Technology Atlas (Shepard et al. 1995) cites an example where increasing the chiller efficiency actually increased the overall plant energy use, because of this increased chiller pressure drop.
Evaluating Chiller and Plant Efficiency The CoolTools Equipment Library Electric Chiller Module will allow users to develop performance curves for a given chiller, based on manufacturer-supplied data or field data. These curves can be used to determine efficiencies at various operating conditions. The tool will also produce a model that can be combined with other plant component models in simulation programs to simulate overall plant performance. The CoolTools Integrated Cooling Plant Simulation Tool will allow simulation of various chiller, cooling tower, and control alternatives to compare the performance of plant options.
Number and Capacity of Chillers

The number and capacity of chillers that are needed to best meet a given load is determined by the annual distribution of partial loads and the desired redundancy in capacity. The magnitude of the load and the product offerings of specific manufacturers, along with the owners preferences, also influence selection of chiller sizes. The appropriate selection is normally determined by comparing the first cost and operating cost of various options. This analysis should consider the load distribution and the overall plant efficiency at various fractions of full load.
Matching the Load Distribution. The most efficient operation is achieved when the
plant capacity closely matches the load. Chilled water plants typically operate at full capacity for only a few hours every year, but loads may be below 25% for a significant number of hours. A single large chiller sized for the maximum load loses efficiency when meeting very low loads. In addition, when constant volume auxiliaries such as condenser pumps and cooling towers are sized for the full load, their energy use per unit of cooling load increases substantially at partial-load operation, decreasing overall plant efficiency. It is common practice to improve overall efficiency by using a combination of smaller chillers that operate closer to their full-load conditions for a greater number of hours. Two equal-sized chillers, each sized for 50% of the peak load, are often provided. The optimum selection depends on the annual distribution of partial loads. For many plants, a 60/40 or 70/30 split is more efficient.
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In very large facilities, the magnitude of the load may dictate that several units be used, simply because of the maximum capacities available. If the owner opts for a single chiller, plant equipment should be selected for efficient part-load operation. Chiller performance requirements should be specified at partial-load conditions. Auxiliaries should be provided with multiple speed or variable speed capabilities, to maximize part-load efficiency.
Redundancy Requirements. Some facilities require 100% backup capacity, others need a minimum of one redundant chiller (commonly called n+1 redundancy), and still others have little or no need for redundancy. If 100% backup or no backup is required, chiller sizes are determined by other considerations. A requirement for one redundant unit tends to favor sizing on the order of four chillers at 33% or five chillers at 25% capacity.
When establishing requirements for redundancy, owners should be aware that cooling loads can often be reduced significantly for short periods in emergency situations. For example, operators can run cooling systems 24 hours per day at lower than normal temperatures to precool conditioned spaces, terminate cooling to non-essential areas, and drastically reduce lighting loads. These reductions could enable one 50%-sized chiller to carry the load, even at peak conditions, if one chiller fails. On the other hand, owners should also be aware that in systems with large diversity, where design loads are significantly less than the sum of the individual peak zone or building loads, certain conditions such as extended periods of hot humid weather can cause loads to increase greatly. This is one good reason for providing at least one spare chiller above the design load. When establishing redundancy requirements in the program phase, owners should evaluate the likelihood of equipment failure or extended extreme weather against the first cost of redundant equipment and the possibility of short-term load reductions.
Manufacturers' Product Offerings. Chiller manufacturers commonly have sweet spots in their product lines, where a particular combination of compressor, evaporator, and condenser sizes meets a given load at a relatively low cost per kWT (ton) of cooling capacity. Designers can often significantly reduce equipment costs by taking this into account when selecting chiller sizes. Other Considerations. Other considerations that may affect the sizing of chillers
include Space available. Capacity of existing electrical switchgear. Owner preferences for maximum or minimum chiller size or for a particular manufacturer.
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Cooling Towers
Most chilled water plants with capacities greater than 1,000 kWT (300 tons) use water-cooled chillers with cooling towers for heat rejection. In a cooling tower, spray nozzles or other devices distribute condenser water from the chiller over a series of baffles, and the water flows down to a sump by gravity. Ambient air is circulated through the water flow, generally by fans. The condenser water is cooled by evaporation, typically to within 3 to 8C (5 to 15F) of the ambient wetbulb temperature. The ASHRAE HVAC Systems and Equipment Handbook (ASHRAE 1996, Chapter 36, Cooling Towers) provides detailed information on cooling tower equipment, operation, and performance. Cooling tower selection has a great impact on a chilled water plant's operating costs. The Guide to Energy-Efficient Cooling Equipment (Suozzo et al. 1997) states: In water-cooled systems, the cooling tower is the Achilles heel of the central plant. Cooling tower capacity is purchased at one-tenth to onetwentieth of the installed cost of chillers yet it is often limited to the bare minimum required to get the job done. This is an unfortunate economic choice when you consider that a larger cooling tower can reduce chilled water plant operating costs by 10 to 20 percent.
Condenser Water Flow Rate. Condenser water circuits in chilled water plants are commonly designed for a flow rate of 0.05 L/s per kWT chiller capacity (3 gpm/ton) with 29C (85F) condenser water. Although these are the ARI standard conditions for rating chillers, they are not necessarily optimum operating conditions. The optimum design for a particular plant depends on the performance characteristics of the chillers, cooling towers, and pumps, and on incremental equipment costs and savings. The design of the condenser water circuit should consider the interactions of these effects.
Reducing the condenser water flow rate reduces the capital cost and the energy use of cooling tower fans, pumps, and piping, but increases chiller energy use. Designing for optimal condenser water temperature and flow rate can result in significant capital and operating cost savings compared to a non-optimized plant. Various authors give different recommendations for the best design point (Hensley 1981, Kintner-Meyer and Emery 1995, Shelton and Weber 1991, Shelton and Joyce 1991, Waller 1988). In general, designers should select the design point based on an analysis of the first cost and operating cost for a given installation rather than designing for a standard condition.
Condenser Water Temperature. A lower condenser water temperature increases
chiller capacity and efficiency. Increasing the cooling tower capacity allows for a reduced condenser water temperature. The optimum tower capacity is determined by evaluating the incremental first cost relative to the reduction in chiller operating costs.
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With a given tower capacity, operators can reduce operating costs by reducing condenser water temperatures at non-peak outdoor conditions. Many plants are controlled to maintain 29C (85F) condenser water even when lower temperatures are possible during cool weather. Substantial energy savings can be achieved by allowing the condenser water to be cooled to a lower temperature. The optimum setpoint depends on: the increase in chiller efficiency at reduced condenser water temperatures the cooling tower fan energy use as a function of load, condenser water temperature, and wet-bulb temperature the chillers minimum acceptable condenser water temperature, typically 1521C (60-70F).
The Guide to Energy-Efficient Cooling Equipment (Suozzo et al. 1997) provides several suggested strategies for controlling condenser water temperatures. Designers and operators should be aware of any water-cooled equipment sharing condenser water with the chiller plant. If this equipment cannot tolerate reduced cooling water temperatures, it may force the entire plant to operate at an inefficient condition. Such equipment should be specified with head-pressure control, or it should be served by a secondary circuit whose temperature can be controlled separately from that of the main plant circuit.
Fan Energy. Cooling tower operating costs can be minimized by selecting towers
with propeller fans rather than centrifugal fans, and by using two-speed motors. Propeller fans use an average of 50% of the energy of centrifugal fans (Suozzo et al. 1997). However, propeller fans are not appropriate if static pressure is required for intake or discharge ducts, or if there are strict noise limitations. Significant energy savings can be achieved by using variable-speed drives, twospeed motors, or separate pony motors for low-speed operation. In multiple-cell towers, the speed-control devices should be installed on each cell.
Free Cooling
Water-side free cooling, the rejection of heat directly to the ambient air without compressor operation, is a design option that provides significant operating cost savings in many applications. It is often used in facilities with significant yearround cooling loads where the use of an air-side economizer is not possible or not practical.
Free Cooling Approaches. Free cooling can be provided by a heat exchanger in the
condenser water circuit, or by a chiller equipped with the free cooling option. Both free cooling approaches use condenser water cooled by a cooling tower to meet all or part of a facility's cooling load. They differ in how they transfer heat from the chilled water circuit to the condenser water circuit. With the heat exchanger approach, a plate-frame heat exchanger cools the chilled water by transferring its heat to the cool condenser water.
With the chiller free cooling option, the chiller provides cooling without compressor operation when condenser water temperatures are lower than the desired chilled water temperature. Refrigerant migrates from the condenser, where it is cooled by water from the cooling tower, to the evaporator, where it cools the chilled water. This option can provide up to 45% of the nominal chiller capacity.
Free Cooling With Chiller Operation. If a free-cooling cycle is to operate
simultaneously with one or more chillers, the tower providing free cooling should be isolated from those serving the operating chillers. This allows the free-cooling tower to operate at its lowest possible temperature.
Free Cooling With Cool Storage. In many facilities, free cooling can meet part or all
of the cooling load during several months of the year. Facility owners can extend the benefits of free cooling by combining it with cool thermal storage. This combination allows the system to store chilled water generated by free cooling at low nighttime ambient temperatures. The stored cooling then meets the next days loads. Hatten and Johnston (1989) and Dorgan et al. (1995) each describe applications that combine cool storage with free cooling. Cool thermal storage is discussed later in this chapter.
Economic Evaluation. The additional first cost of free cooling includes the cost of a
heat exchanger, some additional piping, and appropriate controls. The free cooling chiller option is controlled by the on-board chiller controller, and no additional piping or floor space is required. In many installations, a water-side free-cooling cycle is less expensive to install and maintain than air-side economizer dampers on all of the air-handling units. Evaluation of the operating cost savings should consider the annual distribution of loads and wet-bulb temperatures, and the energy use of chillers, condenser water pumps, and cooling tower fans.
Additional Information. The Bibliography lists several references that provide additional discussion of the free cooling option.
Heat Recovery
Owners of facilities with consistent year-round heat loads, such as laundries, health clubs, residential facilities, and some industrial applications, should consider recovery of condenser heat from chillers. Heat recovery may also be advantageous where there are simultaneous space heating and cooling loads.
Heat Recovery Configurations. Heat recovery systems typically provide the option to recover condenser heat for use in the heat recovery loop, or to reject it to a cooling tower. Most heat recovery chillers use separate condensers, or separate circuits within a single condenser shell, to provide these capabilities. Other possible configurations include a single condenser with a heat exchanger to isolate the heat recovery loop from the cooling tower loop, or a single circuit that can provide either heat rejection or heat recovery. In multiple-chiller installations, the heat recovery chiller can be operated with its capacity controlled by the heating load, so that no heat is ever rejected to the atmosphere.
Heat Recovery and Cool Thermal Storage. Facilities that have nighttime heating loads and daytime cooling loads during much of the year can benefit from heat recovery combined with cool thermal storage. With this approach, chillers operate at night to store chilled water or ice, and the recovered condenser heat meets nighttime heating loads. Dorgan and Dorgan (1995a) describe a facility that uses this approach, along with free cooling from the cooling tower loop, to reduce operating costs. Heat Recovery and Gas-Fired Chillers. Absorption and engine-driven chillers offer
increased opportunities for heat recovery because they reject more heat than electric chillers, often at higher temperatures.
Economic Analysis. An economic analysis of heat recovery considers:
The distribution of heating and cooling loads. The avoided cost of heat from another source. The value of an additional heat source, and possible downsizing of conventional heating equipment. The first cost of the heat recovery condenser and piping. The increased chiller energy needed to operate at an elevated condenser water temperature. The cost of meeting cooling loads from chiller operation rather than from an air-side economizer.
Cool Thermal Storage

Cool thermal storage separates the generation of cooling from its use. Downsized cooling equipment that operates during times of low cooling demand stores cooling for later use when cooling loads are higher.
Benefits. A cool storage system reduces operating costs by substituting
inexpensive off-peak power for expensive on-peak power. The cost of cool storage capacity is partially offset by reductions in the required size of chillers, cooling towers, and electric service equipment. In some applications, particularly in large plants, incorporating cool storage can reduce the total first cost of the plant. Cool storage can provide backup cooling capacity, extend the capacity of an existing plant, and provide increased flexibility in plant operation. A cool storage system can be sized with reserve cooling capacity to accommodate future load increases, and the excess capacity can be used from day one to reduce plant operating costs. Ice storage systems can provide chilled water temperatures as low as 2C (36F), allowing significant reductions in pump and pipe sizes.
Design and Operation. Cool storage systems have specific requirements for design
and operation that differ from nonstorage plants. A cool storage system must be sized to meet the total integrated load over its entire storage cycle. The thermal
performance must be matched to the expected load profile. The system cannot be sized by its nominal capacity rating. A cool storage system can meet cooling loads from storage, from direct chiller operation, or both. With this flexibility comes the requirement to carefully define how the plant is to be controlled at any given time.
Additional Information. The ASHRAE Design Guide for Cool Thermal Storage
(Dorgan and Elleson 1993) provides a comprehensive overview of cool storage technology and design requirements. The ASHRAE publication Successful Cool Storage: From Planning to Operation (Elleson 1997) offers guidance for each phase of a cool storage project. Additional cool storage references are listed in the Bibliography.
Pumping and Distribution Systems

Chilled water distribution can account for a significant portion of the total energy cost of a chilled water plant. A complete design considers the opportunities to optimize the distribution system through the use of optimum supply-to-return water temperature difference, various pumping configurations, variable-speed pumping, and appropriate controls.
Configurations. The simplest pumping configuration is a primary-only system, in
which the same pump(s) circulate chilled water through the chiller(s) and the load. A primary-secondary system provides two separate loops, and allows constant flow through the chiller(s) and variable flow to the load. Other configurations, such as primary-secondary-tertiary and others, are also possible. In general, variable flow pumping is preferred because of the large reductions in pumping energy at reduced flow rates. Modern chillers are increasingly able to tolerate variable flow rates, which allows designers to select pumping configurations with very low operating costs. Hydronic System Design and Operation (Hansen 1985) provides comprehensive, detailed information on water distribution systems. The ASHRAE Handbook Systems and Equipment (ASHRAE 1996) discusses chilled water distribution systems in Chapter 11 - District Heating and Cooling Systems, and Chapter 12 Hydronic Heating and Cooling System Design. Additional references on pumping and distribution systems are listed in the Bibliography.
Temperature Differential. For a given cooling load, the difference between the design
supply and return temperatures determines the required pump flow rate and pipe sizes, and also impacts the chiller selection. In practice, the actual operating temperature differential often falls well below design levels even for variable flow systems, adversely affecting pumping energy, chiller efficiency, and the ability of the plant to effectively meet its loads. The Bibliography lists several references that address strategies for increasing the temperature differential in a chilled water distribution system.
Cooling Coils. The heat transfer characteristics of the cooling coils have a direct
effect on the temperature differential at which the distribution system operates.

The cooling coil characteristics also determine the chilled water temperature required to effectively meet the space load. The cooling coil selection affects fan energy use, which should also be considered in the design optimization analysis. Ask (1995) and Tamblyn (1992) discuss evaluation and selection of cooling coils. Mirth et al. (1993, 1995) discuss inconsistencies in the ARI chilled water cooling coil rating procedures at low water flow rates and provide an alternative method for predicting the performance of chilled water cooling coils at low flow conditions.
Air-side System Design

A detailed discussion of air-side distribution system design is beyond the scope of this guide. However, the air distribution system does affect the efficiency and operation of the chilled water plant. The entire air distribution system should be included in the scope of the optimized design process. Designers can incorporate load-reduction strategies and efficient equipment selections that are more costeffective than increasing the capacity in the chiller plant. Optimizing on the airside generally benefits the water-side with smaller equipment needed, reduced capital cost, better efficiency, and reduced operating costs. In existing systems, poor performance of air-side systems may contribute to the inability of the central plant to meet the loads. Owners and designers should address these problems beginning in the program phase. Several air-side technologies are available to reduce cooling loads on the central plant and increase overall plant efficiency.
Desiccant dehumidification. Desiccant dehumidification systems remove moisture
directly from the air by an adsorption process. The desiccant is recharged by heating it to evaporate the moisture. In a facility with large dehumidification requirements, a desiccant system can substantially reduce loads on the central plant, especially if the air would otherwise be overcooled and reheated to remove humidity. Desiccant technology is especially cost-effective if waste heat is available to recharge the desiccant.
Evaporative Cooling. Direct or indirect evaporative cooling is often used to precool outside ventilation air or makeup air. This technology makes use of the cooling effect obtained by evaporation in relatively dry outside air or building exhaust air. The evaporatively cooled air can be supplied directly to the space or to a heat exchanger that indirectly cools building air. In dry climates, evaporative cooling can reduce central plant loads significantly. Heat Recovery. An exhaust air heat recovery system uses a heat exchanger to
recover some of the useful heating or cooling from exhaust air before discharging it from the building. The heat exchanger typically preheats or precools incoming ventilation or makeup air, reducing the load on the central plant. Exhaust air heat recovery is generally cost-effective for facilities that require large amounts of outside air, such as laboratories and hospitals.
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Cold Air Distribution. Cold air distribution systems supply air to conditioned spaces
at temperatures around 7C (45F), rather than the 13C (55F) that is typical. Reducing the supply air temperature decreases the size and cost of fans and ductwork. It also provides a lower, more comfortable relative humidity level in the conditioned spaces. This approach is often used with ice storage systems, which can easily produce the lower supply air temperatures. Designers of cold air distribution systems should address the possible reduction in air-side economizer cooling, possible increase in reheat energy, and the provision of required ventilation air in variable air volume systems. Dorgan and Dorgan (1995b) and Kirkpatrick and Elleson (1996) discuss applications and design considerations for cold air distribution systems.
Control Systems
The primary function of the automatic control system is to match the capacity of the plant to the load. A second function is to meet the load while using only as much energy as necessary. The control system has an enormous effect on the overall efficiency of a chilled water plant. Designers can improve efficiency and reduce operating costs by incorporating efficiency goals in the development of the plant configuration, distribution system design, and control sequences.
Role of the Designer. Nearly all chilled water plants today include automatic control
systems. However, many plants are operated manually with some or all of the automatic controls overridden, typically because the operating staff was not able to achieve the desired operation using the control system. This inability is often caused by deficiencies in the control system itself, inadequate operator training, incomplete system commissioning, or a combination of the three. Designers can avoid these problems by carefully defining the intended control sequences for all possible operating modes and conditions, by designing control systems that are compatible with the capabilities of the operating staff, and by specifying appropriate control system commissioning and training for operators. Note that the inability to properly control a chilled water plant may also stem from shortcomings in design, in the equipment, or in installation. These problems should be avoided by following the appropriate recommendations in other sections of this guide. Manufacturers supply chillers with on-board controls that regulate equipment capacity and provide safety limits. The designer must define an automatic control system that provides appropriate signals to the on-board chiller controls, and coordinates the control of other plant equipment. This coordination includes Sequencing multiple chillers. Operating pumps and cooling towers as required. Modulating valve positions and motor speeds. Adjusting setpoints.
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Optimal control. Optimal control systems use sophisticated control algorithms to
minimize operating costs by continually adjusting equipment setpoints according to current and predicted load conditions. However, designers and operators can achieve much of the benefit of these complex systems, at less expense, by taking an optimized approach to defining control sequences and parameters. Such an approach views the chilled water plant as an integrated system, and seeks to minimize the energy use and operating cost of the plant over its entire range of operation. Some techniques for optimization include: Selecting setpoints for condenser water, chilled water, and supply air temperatures to minimize the total energy use for chillers, pumps, and fans. Selecting the most inexpensive source of cooling at a given time from the available sources, such as electric chillers, gas chillers, cool storage, free cooling. Resetting setpoints based on outside temperature, load, or other appropriate parameters to minimize energy use over a wide range of operating conditions. Using models of equipment performance, based on measured data if possible, to determine optimum control sequences and setpoints. Monitoring plant operation to provide feedback for possible revisions to control parameters.
The ASHRAE Handbook--HVAC Applications (ASHRAE 1995a) discusses control considerations for chiller plants (Chapter 42, Automatic Control) and for optimal control (Chapter 38, Building Operating Dynamics and Strategies).
Control of Cool Storage. Plants that incorporate cool storage require control
strategies that manage the inventory of stored cooling in addition to meeting the instantaneous load. Control systems for cool storage require explicit definition of control modes for all time periods and load conditions.
Combining Control Systems. The BACnet communications protocol (ASHRAE
1995b) is a standard set of rules and procedures by which control systems and devices from different manufacturers can communicate with each other. Using this standard, owners and designers have increased flexibility to combine systems from various vendors.
Instrumentation
Instrumentation in a chilled water plant provides information and feedback to the control system and allows operators to monitor performance of the plant. Instrumentation typically includes devices that measure temperature, flow, pressure, and electric power. Owners should define their requirements for instrumentation functions in the program phase, and designers should include appropriate specifications in the design documents.
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A well-instrumented chilled water plant includes sufficient sensors and meters to monitor the load on the plant, the cooling capacity of the plant and of each chiller, and the energy input to the plant. Operators should also be able to read: Entering and leaving temperatures of chillers, towers, and heat exchangers Flow rates to chillers, cooling towers, and load On/off status of chillers, pumps, and towers Suction and discharge pressures of pumps Pressure drops across system components
These capabilities, which most modern digital control systems can provide, go beyond the minimum functions required for basic chiller plant control. However, they help reduce operating costs and maintenance costs by allowing operators to monitor and troubleshoot the function of plant components and the plant as a whole. Readings from electronic instruments that are wired to the automatic control system are typically available at the control system's operator workstation. Manual-reading instruments such as thermometers and pressure gauges are also useful because they give operators local indication of operating parameters, and verification of electronic readings.. Sensor accuracy should be selected to provide the desired level of uncertainty in measured and calculated data. Calculations of cooling loads and capacities, which are determined from measurements of entering temperature, leaving temperature, and flow rate, should provide an uncertainty of less than "10%. Typically, this requires temperature sensors with accuracy of "0.1C (0.2F), and flow meters accurate to within 5% of their reading.
References
AGCC. 1996. Natural gas cooling equipment guide. Arlington, VA: American Gas Cooling Center. ARI. 1992. ARI Standard 560-92, Absorption water chilling & water heating packages. The Air-Conditioning and Refrigeration Institute. ARI. 1994. ANSI/ARI Standard 590-92, Positive displacement compressor water-chilling packages. The Air-Conditioning and Refrigeration Institute. ARI. 1995. ANSI/ARI Standard 550-92, Centrifugal & rotary screw waterchilling packages. The Air-Conditioning and Refrigeration Institute ASHRAE. 1994. 1994 ASHRAE Handbook--refrigeration. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.
ASHRAE. 1995a. 1995 ASHRAE Handbook--HVAC applications. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1995b. ANSI/ASHRAE Standard 135-1995, BACnet - A data communication protocol for building automation and control networks. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1996. 1996 ASHRAE Handbook--HVAC systems and equipment. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1996. Guideline 1-1996: The HVAC commissioning process. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Ask, A.C. 1995. Check the cooling coils before you condemn your chiller. Engineered Systems, April, 12(4):3pp. CEC. 1997. How to hire an energy services company. P400-97-001E. Sacramento, CA: California Energy Commission. Cler, G.L.. 1997. Tech update: Gas chiller buyers guide. TU-97-11. Boulder, CO: E-Source. DOE. 1996. North American energy measurement and verification protocol. Washington D.C.: Department of Energy, March. Dorgan, C.E. and J.S. Elleson. 1993. Design guide for cool thermal storage. Atlanta GA: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Dorgan, C.E., J.S. Elleson, S.S. Dingle, S.P. Leight, and C.B. Dorgan. 1995. Field evaluation of a eutectic salt cool storage system. EPRI TR-104942. Palo Alto: Electric Power Research Institute. Dorgan, C.E. and C.B Dorgan. 1995a. Case study of an ice storage system with cold air distribution and heat recovery. EPRI TR-105858. Palo Alto: Electric Power Research Institute. Dorgan, C.E. and C.B Dorgan. 1995b. Cold air distribution design guide. EPRI TR-105604. Palo Alto: Electric Power Research Institute. Eley, C., G. Hernandez and G. Hubbard. 1997. Performance contracting for new construction. PG&E Energy Center, March 21.
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Elleson, J.S. 1997. Successful cool storage projects: From planning to operation. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Gatley, D.P. 1988. Simplified life cycle costing of chilled water plants. Heating/Piping/Air Conditioning, September, 60(9):55-68. Hansen, E.G. 1985. Hydronic system design and operation: A guide to heating and cooling with water. New York: McGraw-Hill Publishing Company. Hatten, M.J. and T.W. Johnston. 1989. Evaporative chilling and thermal storage. Heating/Piping/Air Conditioning, January, 61(1). Johnson, Robert E. 1990. The economics of building: A practical guide for the design professional. New York: John Wiley & Sons, Inc. Kirkpatrick, A.T. and J.S. Elleson. 1996. Cold air distribution system design guide. Atlanta GA: American Society of Heating,Refrigerating and AirConditioning Engineers, Inc. Lefevre, J.S. 1996. The energy services industry: revolutionizing energy use in the United States. Washington, D.C.: National Association of Energy Service Companies (NAESCO). Marshall, H. E., and R. T. Ruegg. 1980. Simplified energy design economics. Washington, D.C.: U.S. Department of Commerce. Mirth, D.R., S. Ramadhyani, and D.C. Hittle. 1993. Thermal performance of chilled-water cooling coils operating at low water velocities. ASHRAE Transactions, 99(1). Mirth, D.R. and S. Ramadhyani. 1995. Chilled-water cooling coils for cool storage: Experimental studies and mathematical modeling. EPRI TR102930, Palo Alto: Electric Power Research Institute. Newnan, D.G. 1983. Engineering economic analysis. San Jose: Engineering Press. NIST. 1993. Building life-cycle cost (BLCC) computer program, version 4.1. NISTIR 4481. Gaithersburg, MD: National Institute of Standards and Technology. PG&E Energy Center. 1997. The ABCs of ESCO contracts. PG&E Energy Center Seminar, May 20. Ruegg, R.T. n.d. Life-cycle costing manual for the federal energy management program. NIST Handbook 135. Gaithersburg, MD: National Institute of Standards and Technology.
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Shepard, M. et al. 1995. Commercial space cooling and air handling technology atlas. Boulder, CO: E SOURCE, Inc. Suozzo, M. et al. 1997. Guide to energy-efficient commercial equipment. Washington D.C.: American Council for an Energy-Efficient Economy & New York State Energy Research and Development Authority. Tamblyn, Robert T. 1992. Common sense cooling coils. Heating/Piping/Air Conditioning, December, 64(12):49-57. Thies, R. and W. Bahnfleth. 1998. Gas-fired chiller/heaters as a central plant alternative for small office buildings. Heating/Piping/Air-Conditioning, January, 70(1):103-112.
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The Implementation Process
Project Phases
The implementation process for a new chilled water plant is commonly divided into a number of distinct phases and activities. The specific activities associated with each phase may differ somewhat from one project to another, but the overall process typically follows the following progression (ASHRAE 1996): 1. Program 2. Design 3. Construction 4. Acceptance 5. Operation Each of these phases is discussed in detail below, including relevant activities, information to be developed, and responsibilities of various parties. For the purposes of this document, the project phases are defined from the perspective of the facility owner. From the design professionals perspective, design phase activities are typically subdivided into separate elements. For example, the ASHRAE Air-Conditioning Systems Design Manual (Lorsch et al. 1993) describes the schematic design, preliminary design, and final design stages. Some consultants use the terms schematic design, design development, and construction documents. In this document, the activities associated with these subphases are divided between the program and design phases, according to how they serve the owners functional needs. Much of the information presented in this chapter is based on material contained in the ASHRAE publication Successful Cool Storage Projects: From Planning to Operation (Elleson 1997). That document provides detailed guidance to decision makers who seek to successfully design, install, and operate cool storage systems. The information presented in that ASHRAE publication also applies to chilled water plants in general, and pertinent recommendations are adapted throughout this chapter. Readers are encouraged to consult the ASHRAE document for additional information.
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Program Phase
The program phase is the first step in a chilled water plant project. The primary goals of the program phase are to define and document the plant requirements, and to plan an implementation process that will guide the design, installation, and operation of the plant. Information developed during this phase forms the foundation of all later phases of the project. If the planning activities of the program phase are not carried out carefully and conscientiously, the chances of achieving a system that truly meets the owners needs are substantially decreased. The program phase begins when an owner recognizes the need for a new or modified chilled water plant. During the program phase, the owner assembles the project team and works with team members to define and clarify the requirements and characteristics of the chilled water plant and to establish a budget. At the conclusion of the program phase, the project team has produced a statement of design intent and a preliminary commissioning plan or implementation plan. In some projects, a feasibility study is performed during this phase to evaluate system options and select the preferred configuration. In other cases, the feasibility analysis is performed during the design development portion of the design phase. The program phase includes the following activities, which are discussed further below: Assemble the project team. Develop the owners program. Perform a feasibility study. Select the desired system configuration. Develop a preliminary statement of design intent Develop the preliminary commissioning plan.
Assemble the Project Team

The timetable for selecting project team members is different for each project. Preferably, most or all of the project team is assembled early in the program phase, so all members can contribute their unique expertise and perspectives to the planning process. Assembling the project team at the beginning of the program phase helps ensure later success in the project. Establishing a formal team-building process early in the project can help foster a spirit of cooperation among team members, and a sense of working towards the common goal of producing an excellent completed project. Project team members may include the following:
Owners representative. Commissioning authority. Design engineer. Architect. Contractors. Energy consultant. Energy provider. Manufacturers representatives. O&M personnel.
Depending on the type and size of project, some team members could assume multiple roles. For example, the design engineer could have the qualifications and experience to also act as the energy consultant. Combining roles can help reduce consultants fees, especially in smaller projects. However, owners should be careful to retain independent outside review of the project to maintain open and honest evaluation of alternate ideas, and to avoid any potential conflicts of interest or system deficiencies. Differences of opinion regarding design issues often arise within the project team. Typically, these differences can be resolved through reasonable debate. In cases where resolution is not accomplished, the owner, who has ultimate project responsibility, and the design engineer, who has legal liability for the design, must make the final decision.
Owners Representative. The owners representative must represent the interests of
the owner by: Clearly communicating the owners requirements for the system. Ensuring that the owners requirements are met as the project proceeds. Providing leadership during project implementation.
The owners representative ensures that the requirements of the owners program are carried through design and installation of the project. He or she is responsible for clearly identifying and communicating the criteria that will guide the project and be used to judge its success. The owners representative provides leadership and oversight during the program phase so all project team members understand what is expected of them. The representative reviews proposed changes impacting system capabilities, and ensures that any approved changes are properly communicated, coordinated, and documented. In larger organizations, construction projects are often handled by the facilities management department, with one or more individuals serving as owners representative(s).
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In organizations without facilities staff, or without extensive construction experience, the owner may delegate some responsibilities to other team members. For example, a construction manager could be hired to serve in a project administration role. A commissioning authority could be given responsibility for enforcing the requirements of the owners program, or leading the implementation process. However, all projects must have an individual in the owners organization who has the authority to make decisions, approve or reject recommendations of other team members, and resolve any differences of opinion. Regardless of team members who are assigned various responsibilities, it is the owner who has final responsibility to define project requirements and administer the project so these requirements are met. In some projects, other groups within the owners organization may serve on the project team. For example, because chilled water plant projects affect the users of the space, this group might have valuable input. These different groups can have different agendas or points of view. Users of the space, the financial department, and operations staff do not always see eye-to-eye. The owners representative may function as a liaison between these groups to ensure their interests are balanced in an equitable manner.
Commissioning Authority. The commissioning authority is responsible for ensuring
that the owner's requirements are documented in the statement of design intent, and that the plant functions properly according to the design intent after it is installed. The commissioning authority plans, coordinates, and implements the commissioning activities of the team members throughout the project. The commissioning authority helps develop the owners program and the statement of design intent, and may also help select design professionals. The commissioning authority should also have responsibility for design review, construction observation (in addition to the normal observation duties of the design engineer), O&M staff training requirements, and testing and documenting the performance of the plant. The owner should select the commissioning authority early in the program phase. The commissioning authority is normally an independent consultant, although in some projects the design engineer or someone in the owner's organization may fill the role. If the design engineer acts as the commissioning authority, the owner should provide a separate fee for this service. The owner should also ensure that there is no conflict between the design engineer's responsibility to keep the cost of the design within the budget, and the commissioning authority's responsibility to see that the design meets the owner's requirements. The individual or agency serving as the commissioning authority must be experienced with design, operation, and testing of many chilled water plants, and have excellent oral and written communication skills. ASHRAE Guideline 1, The HVAC Commissioning Process (ASHRAE 1996), provides additional information on the responsibilities of the commissioning authority and describes the commissioning process in detail.
Design Engineer. The design engineer is responsible for project design as well as
associated documentation and standard construction observation tasks. Design engineers are sometimes responsible for the feasibility study, although an energy consultant or other party may perform that task. If not directly responsible, the design engineer should work closely with the consultant who performs the study. During the program phase, the design engineer provides information on chilled water plant concepts for consideration by the project team. He or she may help the owners representative develop the owners program, ensuring that information pertinent to the system design is included.
Architect. In new construction projects, the architect provides overall concept
development and space planning for the facility. The architect also works with the owner and design engineer to provide adequate space for mechanical equipment. In retrofit projects, an architect may plan space for mechanical equipment and coordinate any structural or floor plan revisions. Architects are usually not involved in projects that are limited to replacement of chilled water plant components.
O&M Personnel. Staff members who are responsible for operating and maintaining
the facility should be an integral part of the project team starting in the program phase. Experience shows that input from O&M staff can help reduce headaches and unforeseen expenses in the long run. O&M personnel can provide valuable insight into how various options could affect the operability and maintainability of the system. Participation on the project team also helps O&M staff better understand the design intent and gain a sense of ownership in the system.
Contractors. Contractors are responsible for installing the plant components. They
may also provide personnel who perform system testing as directed by the commissioning authority. It can be beneficial to have a contractor serve as a project team member during the program and design phases. The contractor can provide insight into design issues that affect constructability and construction costs.
Energy Consultant. An energy consultant can provide the project team with
expertise not available through other team members. An experienced energy consultant can offer knowledge about cooling systems, building simulation techniques, monitoring methods, interactive effects of building systems (lighting, envelope, etc.) on the cooling system, efficient equipment choices, and other facets of the project. An energy consultant who sits on the project team is often best suited to perform the feasibility study. Many design engineering firms do not have the skills and expertise to perform in-depth comparisons of alternative system options. The methods and tools commonly used in system design are not necessarily the best tools for energy analysis. In addition, the typical structure of design fees does not provide sufficient budget for the design engineer to perform detailed energy
analyses, making it difficult for many designers to become proficient in energy issues.
Energy Provider. Owners may wish to involve energy providers in project planning
for several reasons. Competing energy suppliers may offer special incentives for plants using high-performance equipment, load management capabilities such as cool storage, or particular cooling technologies such as gas cooling. These incentives may include special rate schedules or technical assistance. The energy provider can also coordinate service connection requirements.
Manufacturers Representatives. Manufacturers representatives and equipment
vendors can be a source of information on equipment considered in the feasibility study and the design. Vendors know their products costs and performance, and can help optimize selections. For example, a designer of a chiller plant may decide to use two chillers sized at 35% and 65% of the total capacity. But with feedback from the supplier prior to final bids, the designer might find that chillers sized for 30% and 70% offer considerable first cost saving, with little or no performance penalty, simply because of where the selections fall within the manufacturers equipment lines.
Develop the Owners Program

The owners program establishes and documents the goals, objectives, desired characteristics and performance requirements, as well as costs and any other requirements of the chilled water plant. Construction industry research indicates that facility owners are more satisfied with construction projects when their expectations are well defined before design and construction begins. When an owner only emphasizes cost criteria without stating other requirements, further expectations frequently develop after cost objectives are met (Chase and Federle 1992). Developing a comprehensive owners program helps ensure that all the owners requirements are reflected in design and installation. The owners project staff should begin developing the owners program when they first recognize a need for a chilled water plant project. After the project team is assembled, its members further develop and refine the program document. The information in the owners program is incorporated into the statement of design intent. The owners program typically includes the following basic information: Building utilization. User needs. Occupancy requirements. Operating schedules. Environmental requirements (temperature, indoor air quality, humidity, etc.). Reliability requirements.
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Energy-efficiency requirements. Environmental compliance requirements. Acoustical requirements. Staffing and scheduling limitations. Project budget limitations.
In many projects, particularly those where the owner has little previous chilled water plant procurement experience, the other members of the project team provide guidance and assistance in identifying and evaluating the project requirements. The specific information included in the owner's program varies depending on the type of project, as described in the subsections below.
New Construction/Major Renovation. These projects contain the greatest amount of
information in the owners program. The document should outline the overall vision of the facility, and how it will be used and operated. The information is not limited to the chilled water plant. It also includes information about the structure, other building systems, aesthetics, spatial requirements and space utilization, and type of building construction.
District Cooling. For campus-type or urban scale projects with a district cooling
system, developing a master plan is an important first step in the programming process. A long-range master plan guides the development of the district system and its individual subsystems over the 20 to 30 years they may take to completely build-out. The master plan is really a super-owners program, that applies to many projects over its life. The project team for each individual project that occurs during the build-out then develops an owner's program for that project. For existing campuses, it is important to work with O&M personnel when developing the master plan. They can be a source of valuable information regarding the existing conditions, and offer insight into how things could be improved. They also may know where documents such as plans and operating logs that could be useful to the process are hidden in offices or other places. For urban systems, end users can also provide useful information on loads, schedules, and experience with the existing operation. In addition to planning for the chilled water plant itself, a master plan for a district cooling system should address the distribution network. Particularly if the system is serving end-users within the same organization, the master plan should consider how chilled water is being utilized in the buildings. Specific considerations include: Ensure proper distribution system design and control for the entire system. Establish design standards so that different parts of the system, completed at different times, all function together properly.
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Perform thorough hydraulic analysis for each project, with the impacts on the system as a whole. Maintain minimum return water temperature from each load. Incorporate provisions for meeting off-season cooling needs. Determine if centralized or distributed chilled water generation is preferred. Determine if the use of thermal storage is beneficial. Evaluate the use of alternative primary fuels.
Retrofit. In retrofit or replacement projects, it is important to develop an accurate
annual facility load profile to evaluate the match between equipment and load at different times of the day and year. Because the equipment to be replaced is running, it is possible to monitor its operation to establish the facility load profile. Monitoring facility energy use for at least a full year before performing the feasibility study helps identify oversizing and other issues that might impact the design. For additional information, refer to Determining Loads in Chapter 2.
Develop a Statement of Design Intent

The statement of design intent defines, in detail, the performance and operating requirements of the chilled water plant. A preliminary document is developed as early as possible in the program phase using information from the owners program. The design intent is updated as the feasibility study progresses, and continues to be updated as the design progresses, allowing more detailed information to be included. Items contained in the design intent include the following:
Owners Requirements.
Temperature and humidity control, and acceptable variations for daily and seasonal conditions. Occupancy schedules and outside air ventilation requirements. Reliability and/or redundancy. Operational flexibility. Siting criteria Financial criteria. Staffing requirements/limitations. Commissioning requirements. Documentation requirements. Performance monitoring requirements.
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Performance Criteria
Cooling load parameters. Equipment operating parameters Energy performance. Compatibility with other equipment, systems and controls. Noise criteria.
Operating Strategy
Part-load operation. Seasonal operation. Demand limiting. Daily and seasonal energy cost criteria.
Evaluate System Options (Feasibility Study)

The primary purpose of a feasibility study is to evaluate the available options, enabling an informed decision on the best option for the given situation. A second important function is to provide a starting point for the system design. The feasibility study develops preliminary design parameters, installation costs, and operating costs for a number of alternative systems that can meet the requirements contained in the owners program. A thorough feasibility study includes an annual energy simulation of each of the chilled water plant options. This simulation provides estimates of each options electric demand, energy consumption, and operating costs. Information from the simulation output provides the basis for cost analysis of each option. For some projects, the feasibility study is performed during the schematic design or design development portion of the design phase. In some cases, the feasibility study is performed prior to assembling the project team, with the results used to set preliminary project budgets. The extent of the feasibility study process varies with the size and type of project, along with the owners requirements. However, in all cases, the study must accurately represent the chilled water plant options under consideration. Those options must meet the requirements contained in the owners program, and the costs and performance parameters for each option must be defined realistically. A detailed feasibility analysis typically requires information that is developed in the early stages of the design phase. Therefore, a feasibility study that is performed in the program phase must be based on assumptions and estimates that are not yet finalized. The feasibility study report should clearly state the
parameters and assumptions on which the study is based. The design team must review and verify these assumptions as they develop the design. A design based on undocumented or unverified assumptions runs an increased risk of not meeting the loads or the owner's other requirements. When detailed information on loads and equipment performance becomes available, assumptions carried over from the study are replaced with actual data. First cost and operating cost calculations are updated during the design phase to ensure that the original economic goals are met. The following items are necessary steps in a thorough feasibility study. If these steps are followed carefully, the results from the study should provide reliable estimates to use in decision making, and in guiding further work in the design phase.
Understand the Owner's Requirements for the Plant. Before beginning the study, it is
important to understand all of the attributes that are important to the owner, such as occupant comfort, system flexibility, maintainability, reliability, energy efficiency, redundancy, and first cost. The party performing the feasibility study should work with the owners representative to determine financial criteria for the project. This includes arriving at a discount rate for capital investments, and selecting a time horizon over which to view the investment.
Evaluate a Full Range of Plant Options. Consider all options and technologies that
may offer benefits to the owner, such as high-efficiency equipment, various combinations of equipment capacity, thermal storage, innovative configurations and control strategies, alternative primary fuels. Investigate the availability of beneficial energy pricing that might be advantageous with particular technologies or operating strategies.
Define Options Realistically. Define each plant option using realistic configurations
and performance parameters, to best meet the owners requirements. Take into account space requirements for the equipment, including space required for maintenance. In some projects, some member of the project team may have a preference for a particular technology or plant configuration. In such cases, there may be a tendency to assign optimistic cost or performance factors to this option, or to define competing options pessimistically. Owners should be alert to this type of manipulation, which works against the owner's interests. The definition of competing options is especially important in performance-based contracting arrangements. With such contracts, payments are based on the installed plant's performance relative to a "base case" plant. The base case should not be the least efficient option available, but should be a reasonably optimized plant that would otherwise be installed in the absence of the performance-based
arrangement. For existing plants, the base case should include all no-cost or lowcost operational improvements that could reasonably be implemented.
Determine Loads Accurately. As discussed in Chapter 2 under Determining Loads,
an accurate load calculation is essential for proper sizing of equipment, and for comparing the annual energy costs of each option. For existing facilities, use monitored data if possible, with defined adjustments. Load calculations are discussed below under Modeling Issues.
Determine Required Chiller Plant Capacity. The plant capacity is normally matched to
the load, often with an allowance for backup capacity and for future increases. Considerations for sizing equipment are discussed in the Design Issues section in Chapter 2 under Determining Loads, and Number and Capacity of Chillers, and in the Design Phase section below under Use Safety Factors with Care.
Simulate Each Option Carefully. For some evaluations, simplified spreadsheet
analyses are adequate to identify the differences in performance between plant alternatives. For example, Gatley (1988) presents an example of a simplified analysis for comparing an all-electric chiller plant with various combinations of gas-fired absorption and electric chillers. For selecting among equipment alternatives with significant differences in performance, such a simplified evaluation may be appropriate. However, more sophisticated tools are often required to accurately evaluate the energy tradeoffs of various technology alternatives, equipment selections, and control strategies. In particular, accurate simulations are necessary to optimize specific equipment selections and sequencing. Simulation programs are discussed under Modeling Issues below. It is important to use a consistent method for evaluating each plant option. Some engineers make the mistake of comparing an hourly simulation with energy bills or a spreadsheet model. It is difficult in such cases to separate differences due to system performance from differences due to methodology.
Define Control Strategies. Most simulations require knowledge of the intended
control strategies to accurately model the performance of chilled water plants at various loads and operating conditions. Definitions of control strategies are especially important for evaluating plants that supply cooling from different sources at different times. For example, the performance of plants that incorporate thermal storage, or that utilize multiple primary fuels, cannot be modeled without information on how the source of cooling is selected. Currently available simulation programs are limited in their abilities to model customized control sequences for these types of systems. In many cases, analysts may need to supplement the program output based on additional analysis of the performance of these plants.
Account for Future Changes in Loads and Economic Parameters. Changes in loads,
schedules, energy costs, interest rates and discount rates are difficult to predict accurately. However, in some cases, it may be prudent to perform a sensitivity analysis on one or more of these variables to evaluate the effects of possible changes. Such an analysis might show that the benefits of a particular plant option
are less sensitive to these changes. This can help the owner minimize risks, or at least account for potential risks that might affect the project.
Prepare Schematic Diagrams. Prepare schematic diagrams of each plant option, to
describe the intended layout and operation, and help differentiate between the options. Schematic diagrams are extremely valuable for presenting design concepts. They allow better understanding of the plant operation and help identify potential problems with the layout. Schematic diagrams are an excellent way to communicate the basics of the design intent. Specifically, schematic diagrams: Can help the designer better understand the plant and help prevent problems from being designed into the system. (If you cant draw a picture of the system, you dont understand it.) Illustrate potential problems such as reverse flow, pumps mistakenly piped in series, unbalanceable systems, etc. Indicate locations where components such as isolation valves and monitoring points are needed. Serve as a visual aid to help owners, architects, and others understand the plant. Are useful training tools and reference for operation and maintenance personnel.
Evaluate the Economics of Each Option. The economic analysis includes evaluation
of first costs, energy costs, and maintenance costs, according to the owner's preferred economic criteria. Whenever possible, use quotes from suppliers and estimates from contractors for estimating first costs. Energy costs are calculated by combining the monthly energy consumption and demand results from the energy simulation with the appropriate utility rates. The effects of possible future changes in utility rates can easily be evaluated using an expected range of energy prices. Some energy simulation programs calculate energy costs if the applicable rate information is supplied to the program. Maintenance costs can be difficult to determine accurately. The owner's experience with other systems can often be used as a starting point. In many cases, maintenance costs will be nearly the same for several options, and the differences can be ignored. If maintenance costs are expected to differ among options, the best source for data is usually service contractors. Equipment vendors can also provide information, although their input is often influenced by marketing considerations.
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Gatley (1988) provides checklists summarizing many components of first cost, energy cost, and maintenance cost that should be considered when comparing plant options. Accounting for all costs over a systems entire operating life yields the best information for making decisions about long-term investments. An economic analysis method that takes into account the time value of money is preferred. Methods for comparing the short-term and long-term costs of each option are discussed in Section 2 under Financial Analysis.
Provide a Complete Report. The feasibility study report should include the following
information: An executive summary, giving an overview of the project and findings from the study. A description of the facility, with discussion of the chilled water plant requirements outlined in the owners program. Estimates of the peak cooling load and the load profile, with a listing of the data and assumptions used as the basis of the estimates. A description of each system option considered in the study, including sizes of chiller and auxiliaries, air and water system temperatures, and schematic diagrams. A discussion of differences in the options analyzed, including operating and maintenance costs, operating flexibility, and control requirements. Economic analyses, including demand and energy consumption by month, installed cost, operating costs, input data, and assumptions.
Modeling Issues
There are two classes of simulations that should be performed to determine the optimal size and configuration of chilled water plant equipment: Load calculations for determining the required equipment capacity at design conditions; and annual energy simulations to analyze the performance of design alternatives. Load calculations are a standard part of the design procedure. Energy simulations are not commonly performed, but they are essential to optimize a plant design for minimum operating costs. A reliable energy simulation depends on the selection of the simulation program and the skill of the modeler. The energy simulation is an added service to the owner that should be reflected in the designer's or consultant's fee. Each of these issues is discussed in the following subsections.
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Additional detailed information on the use of computer programs for HVAC load and energy calculations is available in the following references: ASHRAE Handbook - Fundamentals, Chapter 30, "Energy Estimating and Modeling Methods" (ASHRAE 1997). ASHRAE Handbook - HVAC Applications, Chapter 36, "Computer Applications" (ASHRAE 1995). Air-Conditioning Systems Design Manual, section 2.5 (Lorsch et al. 1993). "Historical Development of Building Energy Calculations" (Ayres and Stamper 1995).
Load Calculations. A load calculation should consider the cooling load in the
occupied spaces, the response of the air and water distribution systems to the load, and the resulting load on the central plant. The load is determined at design weather conditions, with the maximum expected occupancy and heat gains from lighting and equipment. The diversified peak, or block load, is the maximum coincident total of the individual loads. In large systems serving many zones or many buildings, the diversified peak load is generally 70-90% of the total of the individual maximum loads. A load calculation program should be able to: Select design weather conditions Specify anticipated or worst-case internal loads coincident with these conditions Distinguish the operating schedules for weekends and weekdays Simulate the thermal mass effects that impact the loads Calculate each zone load on an hourly basis and determine the maximum total coincident load
Programs with these capabilities can estimate the desired equipment capacities under the design conditions.
Energy Simulations. To determine the impacts of oversizing, equipment staging,
part-load equipment performance, and control strategies on annual energy costs, an annual energy simulation is required. For such a simulation, the load is estimated for each hour of the year, using average rather than peak values for occupancy schedules and heat gains. The performance of the plant components in meeting the plant loads is modeled, and their energy demand and usage is calculated. An annual energy simulation program should be able to: Simulate the load conditions for each hour of the year Use either actual, or standardized average weather data
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Allow creation of calibrated performance models of equipment such as chillers, cooling towers and pumps Simulate variations in operating conditions, such as hydronic coupling Model control sequences for equipment staging
There are two basic approaches to energy simulation: hourly analysis, and the "bin" method. Hourly analysis, which calculates the loads and the system and plant performance for each hour of the year in sequence, is generally considered to provide the most accurate results. A modified hourly analysis method doesnt model the full 8,760 hours. Instead, the modified method performs hourly calculations for each of several typical daytypes (weekday and weekend/holiday) for each month, and multiplies the results by the number of daytypes in the month. The bin method calculates loads and system performance for each of several outdoor temperature ranges ("bins"), and multiplies the results by the number of hours at each condition to determine total energy use. The modified bin method (Knebel 1983) uses bin weather data sorted by hour of occurrence (ASHRAE 1994) to account for time-dependent loads. Bin methods can provide reasonably accurate simulations of systems whose performance in a given hour is independent of conditions in previous hours. An hourly analysis is more appropriate for thermal storage and other systems for which simulation depends on a sequential calculation of previous hours' performance. Bin analysis lends itself to application with computer spreadsheets. If an hourly analysis program with the appropriate plant models is not available, it may be possible to model the plant at each outdoor temperature condition using an external routine, a regression model based on measured data, or a simplified performance model implemented in the spreadsheet. For existing facilities, monitored data can be used to determine equipment model inputs, and as a check on simulation results. Some programs allow users to input measured or adjusted load profiles rather than simulating the loads. Using measured data can improve simulation accuracy and provide more accurate projections of costs and savings for various plant options.
Simulation Programs. Several simulation tools are commercially available. Hourly
programs include DOE-2.1E, its newer Windows version, PowerDOE, BLAST, MicroAXCESS, and HAP from Carrier Corporation. A commonly used modified hourly program is TRACE from the Trane Corporation. Bin method programs include ASEAM and Trakload. The comprehensive and rigorous public-domain simulation programs, BLAST and DOE-2, are generally considered to provide the best simulations, but they require significant time and effort by skilled analysts to develop the model inputs. These
programs have options to determine design equipment capacities, but they have generally been viewed by the HVAC industry as research tools, and are seldom used for design. The private-sector programs, such as TRACE and HAP, are more commonly used to determine design capacities. They were designed for use by practicing HVAC system designers, who are continually pressed for time and need quick and often shortcut solutions to complex calculations (Ayres and Stamper 1995). These programs provide energy simulation capabilities, but their simulations are not as rigorous as those performed by BLAST and DOE-2.
CoolTools Simulation Products The CoolTools package of products will include an integrated set of software tools to be used for design and operation of chilled water plants. These tools will help users to optimize the equipment selected for the chilled water plant, as well as the plants operation. The Equipment Library Tool will allow users to develop equipment performance curves for chillers and cooling towers which can then be used as inputs to commonly used simulation tools. The Thermal Cooling Load Library Tools will allow users to develop facility load profiles from either prototypical models, actual measured data, or a hybrid method that combines statistical and mathematical techniques with a variety of other data sources. The Plant-Only Tool will allow users to import measured loads and weather data as a basis for evaluating design alternatives in existing facilities. This tool includes routines to assist the user in calibrating models of chillers and cooling towers from either site-measured or manufacturer's data. The Integrated Cooling Plant Simulation Tool, a stand-alone simulation tool, will use inputs from the other CoolTools products, as well as field-measured data and load profile inputs from other simulation tools, to evaluate alternatives for chilled water plants.
Simulation Accuracy. The quality of any simulation depends on:
The ability of the simulation tool to model the actual equipment and control strategies, The suitability of the selected model inputs, and The validity of any assumptions incorporated in the model and in the selection of inputs
Clearly, the skills of the analyst determine the reliability of a simulation. The analyst must: Understand the components and the operation of the plant to be modeled. Select an appropriate simulation tool.
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Understand the abilities and the limitations of the simulation tool. Understand the significance of each of the model inputs, and how they are used in the model. Be able to make reasonable assumptions when necessary, and know how they will affect the results.
Most design engineers use energy calculation programs primarily for energy code compliance, and only infrequently for detailed comparative energy studies (Lorsch et al. 1993). Many design firms do not have the appropriate analysis tools or experience to compare the energy performance of alternative system options. Owners should select design engineers based on their demonstrated ability to perform complex, detailed simulations, or consider hiring specialized consultants for this task. Owners should also recognize that such simulations are not typically included in many designers' fees. A design firm that normally performs detailed simulations to optimize equipment selection and operation provides a higher level of service to the client, and this service will likely be reflected in an increased fee.
Develop the Preliminary Commissioning Plan

The commissioning plan defines the commissioning process at various stages of project development. The objective of the commissioning process is for the plant to function according to the design intent at the completion of the construction phase. The intent of the acceptance phase is to verify proper operation, not to reveals shortcomings in design and construction. The commissioning process can be considered successful if no such shortcomings are discovered during the acceptance phase. The preliminary commissioning plan, developed during the program phase, outlines the process required to commission the systems. It includes the anticipated scope of the process, time required for completion, members of the commissioning team and their roles, and operator training requirements. This plan is expanded and updated as the project progresses.
Design Phase
The design of a chilled water plant proceeds from general to specific, beginning with fairly broad concepts and requirements and ending with a detailed system design. The basic design concept, including issues such as the number of chillers, the type of pumping distribution system, etc., is established in the feasibility study. In current practice, the design phase is typically divided into three portions: schematic or conceptual design (which we have included in the program phase), design development, and construction document development. The purpose of the design phase is to develop and complete the details. This includes making final equipment capacity calculations and selections, and
sufficiently defining the system in drawings and specifications (e.g. sizing piping, defining piping materials and accessories, etc.) so that it can be properly constructed. While many designers select design parameters based on standard practice and rules of thumb, there are significant opportunities for optimization in the design phase. For instance, pipe sizes can be optimized against changes in pump energy on a life cycle cost basis. The selection of design chilled water supply temperature and temperature differential involves trade-offs of cooling coil cost against pump and pipe size, and fan, chiller and pump energy. The selection of cooling tower capacity and condenser flow rate affects the first cost and operating cost of towers, pumps, and chillers.
Design Guidance The CoolTools Chilled Water Plant Design Guide will address design and performance issues, and provide guidance to designers in optimizing chilled water plant design.
Refine the Statement of Design Intent

The design intent prepared in the feasibility stage is preliminary and general in nature. As the design develops, it is refined and expanded to provide a detailed description of the intended configuration, operation, and control of the system. At the completion of the construction and acceptance phases, the statement of design intent is updated to reflect as-built conditions. The final document becomes a part of the system manual, which is discussed in the Construction Phase section later in this document
Refine the Schematic Diagrams

The schematic diagrams produced for the feasibility study are updated and additional details, such as locations of valves, sensors, etc., are added. Although not a required feature of piping diagrams, listing design flow rates along with the pipe size in each piping section is recommended because it can be very useful when diagnosing problems, and making future revisions.
Apply Safety Factors With Care

Chilled water plant designers generally apply safety factors at multiple points during the design process where there is uncertainty in the actual requirements, to ensure that equipment is not undersized. Liberal use of safety factors can lead to gross equipment oversizing. As discussed in Chapter 2 under Determining Loads,
oversizing always increases capital costs, and it often results in inefficient operation and higher operating costs. The use of safety factors can be limited by reducing the uncertainties in the plant requirements, by proper definition in the program phase, and by application of sound engineering principles and analysis in design. To the extent that these uncertainties cannot be eliminated entirely, some reasonable level of safety factor must be applied to prevent undersizing, and minimize potential liability to the design engineer. The key to sound decision making is to balance the increased capital costs against the risks of undersizing and resultant changes in operating costs. Annual simulation tools are an invaluable aid for determining the operating cost impacts of oversizing on the entire system.
Plan for Performance Monitoring

The most successful projects are those in which the owners and operators understand the need to measure system performance over the entire operating life. Performance testing begins during the acceptance phase to ensure the system is functioning as intended. Ongoing performance monitoring during system operation helps diagnose system problems and keeps the system running optimally. Remote monitoring capabilities allow operators, as well as design engineers or others, to assist in diagnosing plant operation from a distance. Modern control systems allow information from controlled points to be recorded at set intervals and logged to memory. Accommodations for performance monitoring should be incorporated into the design. When developing performance monitoring requirements, the designer should work with facility operators to identify the data they wish to collect and the preferred formats. Designers should include locations of required instrumentation and accuracy requirements in the design documents. Data needs for acceptance testing, as dictated by the commissioning specification, should also be part of the instrumentation specification. Data for performance testing and monitoring can be collected using sensors installed as part of the control system. However, performance testing and monitoring often require more sensors, more accurate hardware, and more data reporting features than is typically provided solely for system control purposes. For example, accurate performance testing and monitoring requires temperature and flow sensors of higher quality than those generally provided with HVAC control systems. Higher quality sensors are readily available, and the cost above standard sensors is often nominal. The added expense of these sensors is generally offset by the benefit they provide in terms of continuous performance feedback and monitoring The control systems selected should be able to: Provide dial-up access to real-time or logged system data
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Provide trend log reports in custom formats to suit user needs. Collect and store the required trend log data without interrupting system control functions. Report averages of measured quantities over selected intervals. Calculate the amount of cooling provided to the load, and the energy used by plant equipment to deliver the load..
Control system specifications should include required trend log functions, calculations, and report formats. Installation requirements, including sensor locations, must be detailed in the design documents. In particular, piping layout drawings should include requirements for straight piping runs upstream and downstream of flow sensors, and any limitations of intrusive elements in the flow path.
Develop a Detailed Description of the Control Strategy

Controls may be the most important component of the chilled water plant. A clear description of intended control sequences ensures proper understanding by the control system programmer and allows the sequences to be translated into specific programming language. The description of the system control strategy serves to: Verify that the system can be controlled as intended. Provide specific details to the controls contractor for selection and installation of control devices. Act as a reference for operating staff.
Failure to adequately describe the control strategy results in any or all of the following: The designer sets up the control hardware based on an inadequate understanding of the control strategy, leading to a system that cannot be controlled as intended. The controls contractor develops a control strategy based on an incorrect interpretation of the design intent, or on strategies used in similar past projects. This strategy may be unsuitable for the current project. Acceptance testing indicates that the system is not working correctly. But without a control strategy specified by the designer, resolution of the problem is difficult. With no documentation, operators modify or override control sequences based on a lack of understanding of the intended control strategy.
Any of these consequences can lead to improper system performance and higher costs.
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The control strategy description becomes part of the design intent, and is updated as the design intent is refined. It is maintained as a reference for system operation and must be revised when changes are made to control strategies. Most designers put control sequences in specifications, rather than on drawings, because the sequences are rather long and cumbersome. But specifications often cant be found after a project is built. It is common to require that the sequence of controls be repeated on control system shop drawings, but even these tend to get lost after a few years. However, the value of final design drawings is generally recognized and they are often retained for the life of the building. Hence, it is recommended that the final sequence of controls, once fully defined, be printed on a drawing in the mechanical drawing set.
Design Review Criteria

An independent design review performed by an experienced engineer on the project team offers many benefits to the owner and the designer. Primarily, it provides oversight (a second pair of eyes), which can help prevent expensive design errors. Design review requires thorough documentation of all design assumptions and calculations. This helps uncover inconsistencies, errors, and omissions. The process of preparing for a review also helps improve quality control of the design by promoting conformance with the design intent. The design reviewer should be independent and work directly for the owner. Potential reviewers include one or more of the following: the owners in-house engineering staff, the commissioning authority, a mechanical contractor, or an independent mechanical engineering consultant. The reviewers goal is to support the design team in developing a system design that meets the design intent. The reviewer checks the following: Is the statement of design intent complete and consistent with requirements of the owners program? Does the load calculation include all critical factors? Is the control strategy described completely, and does it meet the design intent? Is the system layout shown completely and consistently in the drawings? Is there a schematic diagram? Will the system as shown meet the design intent? Is appropriate equipment called out in the specification, as well as the installation requirements? Do the drawings and specification adequately describe the instrumentation required for performance monitoring? Are acceptance testing requirements defined properly? Does the commissioning specification adequately describe the process, and the roles and responsibilities of the parties?
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Has the economic analysis been updated to match the current design?
The following information should be provided to the reviewer: Copy of the statement of design intent Load calculations for the facility, with sufficient detail to aid in understanding the factors affecting the load. Load analysis of the chilled water plant, accounting for all system effects including: - outside air - plenum loads - heat gains from fans and pumps - heat gains to ducts and piping Detailed design calculations, showing pump head, and chiller and cooling tower sizing. Hydraulic analysis including pump head and pressure drops in piping, valves, heat exchangers and chillers under various load conditions. Detailed drawings, including schematic diagrams, plan drawings, control diagrams, piping and instrumentation diagrams, service clearances, equipment schedules, and construction details. Description of the control strategy, control specification, ladder logic diagram, and energy management system (EMS) interface specification. Detailed equipment specifications. Commissioning plan and specification.
To be effective, the design review process requires open lines of communication and cooperation between the reviewer and design team. The process should begin early in the design phase, with input to the design team throughout the design process. This allows any needed modifications to be incorporated with minimal disruption to the schedule and minimal duplication of work.
Update Construction Cost Budget

At each phase of design (schematic, design development, and construction documents), estimates of system cost are updated to ensure budgets and economic goals are maintained. In many cases, a project found to be over budget when bids are received is almost randomly stripped of design features until the budget is met. This approach usually compromises the design intent, and results in a system that does not meet the original performance and operating cost goals. Maintaining a realistic estimate of probable construction cost throughout design helps avoid this pitfall.
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Update the Economic Analysis as the Design Progresses

It is important to update the economic analysis, especially if the costs or performance of the system as designed differ from the assumptions in the feasibility study. This helps ensure that the owner bases economic decisions on accurate and current information. Updating the economic analysis is particularly critical for performance-based contracts, which rely on system performance as a means of determining incentives to the project team.
Update the Commissioning Plan

The preliminary commissioning plan, developed in the program phase, is somewhat general in nature. During the design phase, the plan is updated and expanded to include: activities of all participants in the process; a more detailed scope of work; and the equipment and types of testing to be included in the commissioning process. The plan at this stage should include sufficient detail to guide the preparation of the commissioning specification.
Produce Complete Design Documents

The final product of this phase is a set of design documents that thoroughly describes the requirements contractors and equipment suppliers must meet to provide a system that functions according to the design intent. The design documents must provide adequate detail for the contractors and equipment suppliers to understand the project requirements without having to make assumptions about what is intended. The documents must also define the standard that will be used to judge the work for success. If the design documentation lacks adequate detail in any area, implementation of the project is likely to be disrupted. At best, the contractor requests clarification, which causes additional work by the designer. Often, contractors make assumptions about the intentions, or they adhere to the specification using the least costly solution possible. Lack of detail in the design documents may result in a system that is installed as specified, but that doesnt meet the design intent. Many design firms use master specification documents that are edited to match specific projects. If the editing is not done carefully, the specification may contain information that is either inconsistent or does not apply to the project at all. This situation is confusing to contractors and suppliers, and may reduce the credibility of the specification so that contractors and suppliers may not take them seriously. This could lead to problems enforcing other parts of the specification. It can also lead to abuse by parties who hope to gain from taking advantage of inconsistencies. Thorough contract documents clearly define procedures for administering the project and enforcing the specification. They address progress meetings, documentation requirements, and project scheduling. They also define orderly procedures for processing and communicating change orders and addenda and for contractors to request interpretations of design documents.
The above discussion is geared toward the typical design-bid-construct project delivery method. Other methods, such as design-build or performance-based contracting, may not require all of the contractual general conditions, and specifications may only list model numbers without performance requirements. However, the design intent statement, schematic diagrams, detailed drawings, and control sequence descriptions are all still needed. For all project types, it is important to have a complete set of design/construction drawings to provide a record that can be used for future reference. The following subsections discuss requirements to be included in the project documents.
Commissioning Specification. The commissioning specification defines the activities
that occur during the construction and acceptance phases of a project to fulfill the commissioning requirements. The commissioning specification is a part of the contract documents, and is an important element of the project implementation process. The specification defines contractual relationships that will be used to bring the installed system into conformance with the design intent, and describes the roles and responsibilities of each party in the commissioning process. It must also specify requirements for construction observation, startup, and acceptance testing, and define how the performance of the system will be evaluated. The commissioning specification must describe the commissioning requirements in sufficient detail for contractors to competently submit bids to perform the required work. The specification should include the following information: Lines of communication and reporting requirements. Roles and responsibilities of all parties. Requirements for team meetings. Relationship between completion of commissioning tasks and release of payments to contractors. Criteria for acceptance of the system, including how failure is defined. Recourse if required performance is not achieved. Project documentation requirements, including control submittals, equipment submittals, test results, as-built documentation, and system manual. Description of test methods to be used.
ASHRAE Guideline 1-1996, The HVAC Commissioning Process (ASHRAE 1996) provides additional information on the commissioning specification.
Design Intent. The statement of design intent is included in the project specification
to give contractors an understanding of the intended system operation. It also provides a contractual basis for ensuring the design intent is met. As noted previously, because design drawings tend to remain with the project long after
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specifications have been lost, it is recommended that the design intent statement be printed on the mechanical drawings.
Sequence of Control. The detailed description of the control strategy should be
included in the specification section for the automatic control system. This provides the controls contractor with the information needed to submit a bid for a control system that meets the design intent. It enables the contractor to install a system without having to make assumptions about what was intended.
Drawings. Construction drawings must have sufficient detail to clearly and
completely document the chilled water plant and all of its components. The following information should be included in the construction drawings: Flow diagram, schematic. Design intent. Control diagrams. Piping and instrumentation diagrams. Sequence of control. Equipment schedules. Complete plan and elevation views. Sections and details. Service clearances.
Performance specifications. Performance specifications define acceptable levels of
equipment or system performance that must be met to fulfill project requirements. Penalties are usually assessed if the performance specifications are not met.
Performance Specification Guide The CoolTools Performance Specification Guide will present methods for requesting and analyzing performance data of chilled water plant equipment
The following are examples where performance specifications might be used: 1. For a design/build project, the owner or the owners consultant prepares a performance specification for design/build contractors to use as the basis of their design. Rather than listing specific equipment models or capacities, the specification defines the level of performance of the system. It may specify a fullload plant efficiency, including all components such as pumps and towers as well as chillers. It might also specify an annual efficiency or efficiency at some partload/off-peak condition.
2. Chillers and other components can often be bid using performance specifications rather than specifying a certain size and model number. This usually requires that the equipment be pre-bid, prior to completion of the design. For instance, a chiller performance specification might define the total capacity to be provided, and assign a dollar value to each increment of chiller efficiency improvement and pressure drop reduction beyond a base level. The specification might also include a reserve capacity requirement, such as n+1 redundancy, meaning the system must be capable of meeting the load even when one component has failed. In this case, each supplier optimizes the number, capacity, and performance of chillers in their bid proposals, and the owner selects the proposal that best meets their needs. Some examples of performance requirements are: Chiller efficiency of 6.4 COP (0.55 kW/ton) or better. Chilled water plant total energy efficiency of 5.0 COP (0.70 kWh/ton-hour) or better.
Construction Phase
Successful chilled water plant installations require open communication among members of the project team during the construction phase. Team members are aware that it benefits everyone to install a properly functioning system and that cooperation and teamwork are important aspects to facilitate that goal. In typical design-bid-construct projects, the construction phase begins when the successful bidder enters into a contract with the owner. In this document, the construction phase ends after equipment has been started; testing, adjusting, and balancing (TAB) work has been completed; and the TAB report submitted. This section covers the following elements: Equipment submittals. Progress meetings. Change orders and addenda. Commissioning plan. Observations of construction progress. As-built documentation. Operation and maintenance manuals. Startup.
Equipment Submittals
At the beginning of the construction phase, contractors submit performance and dimensional documentation on equipment to be installed, and shop drawings that
illustrate installation details. The design engineer reviews the documentation to ensure that the installed system will conform to the design intent. If a commissioning authority is on the project team, that persons scope of work should include assistance with submittal review. The reviewer(s) verify that all proposed equipment meets the specification requirements, and that any substitutions will provide acceptable, equivalent performance. Sufficient funds must be budgeted to allow the engineers and consultants to thoroughly analyze any proposed equipment substitutions. If a complete and thorough design has been prepared, with material and equipment requirements clearly defined, submittal review should be limited to verifying that the proposed equipment meets the stated requirements. However, pressure to cut costs, or unfamiliarity with the type of system (cool storage for example), can cause contractors to propose equipment that is not capable of meeting the design intent. Control system submittals are of particular concern in this review process. In terms of overall system functionality, the control system is probably the most critical part of a chilled water plant. Control system submittals must be carefully reviewed to ensure the system will meet the design intent. Proposed control sequences must be consistent with the control sequence description provided in the project specification. Appendix B contains an example of control system submittal requirements. The submittal review verifies details of equipment performance and configuration that are necessary for proper system functioning. This includes such items as: Verifying correct equipment voltage. Confirming that pressure drops of chillers, heat exchangers, and accessories are within specified ranges. Ensuring that instrumentation is selected for appropriate measurement ranges and accuracy. Verifying that pump head and flows are as specified.
Construction Meetings
Progress meetings are the principal communication channel during the construction phase. It is important that all key project team members are present at these meetings. Minutes should be taken at each meeting and distributed to the team in a timely manner.
Kickoff Meeting. The kickoff meeting is an opportunity for the parties to become
acquainted and review project requirements. Design intent, documentation requirements, scheduling, and commissioning responsibilities are reviewed and clarified as needed. This helps ensure that contractors and all team members thoroughly understand project requirements.
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Progress Meetings. Progress meetings typically occur each week during
construction of the system. These meetings facilitate communication of updates on installation progress and any changes to the construction schedule. They also present a chance to resolve any issues or problems with the installation.
Change Orders and Addenda

Change orders and addenda are revisions to the original design specifications that result in modifications to the contract documents. These modifications typically impact the project cost. If the design has been done well, with complete and thorough documentation, and the submittals have been carefully reviewed, change orders and addenda should not be necessary. However, modifications might be needed due to changes in system requirements, errors or omissions by the contractor or design engineer, or improvements to the original design made during construction. Orderly procedures for processing and communicating change orders and addenda should be defined in the project specification. All communications should be documented, and all modifications recorded in the as-built documentation. The design engineer, and possibly the commissioning authority, must review all changes for potential impacts on other parts of the system, and on the overall design intent.
Commissioning Plan
During the construction phase, the commissioning plan is updated to incorporate the on-site activities necessary to implement the commissioning specification. At this point, the actual equipment to be installed has been selected, and specific information regarding the equipment is used to develop test procedures. The commissioning plan outlines inspection schedules. It also describes tests to be performed, who is responsible for them, and the sequencing and scheduling of the testing. The plan also should include a schedule of any training sessions for operating personnel that occur during this phase. For more information regarding requirements for the commissioning plan, refer to ASHRAE Guideline 1-1996, The HVAC Commissioning Process (ASHRAE 1996).
Observations of Construction Progress

Construction observations verify that construction is proceeding in conformance with the contract documents, the design intent, equipment manufacturers installation requirements, and the established construction schedules. If the project team is working in a cooperative manner, construction observations are treated as an opportunity to clarify project requirements rather than to simply catch mistakes. All parties should understand that everyone benefits when the design intent is clearly understood and all system components are installed correctly the first time.
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Construction observation is typically performed by the design engineer, the commissioning authority, and owners personnel. However, it is the design engineers responsibility to verify that equipment is installed as required by the design. On-site observation tasks must be clearly incorporated in the design engineers scope of work and fee. The personnel assigned to perform construction observations should be knowledgeable about the system design intent and general installation practices. Contractors will match the level of expertise they assign to the project to that of the supervisor. Construction observations should help prevent independent interpretation of design documents by the installers. A thorough and well documented design minimizes the need for such interpretations. Incomplete design documentation can cause contractors to make decisions out of necessity. The project specification should provide procedures for contractors to obtain clarification from the design engineer, and the engineer must be readily available to provide this guidance. Construction observations typically include: Verifying that the correct components and equipment are installed in the specified locations, with proper connections, and appropriate workmanship. Observing procedures such as flushing, cleaning, pressure testing, and leakage testing. Verifying that applicable codes and standards are being met.
Construction Phase Issues Specific to Chilled Water Plants

The following items are especially important for chilled water plants. Efforts directed towards these items help ensure that the system is installed and operates properly. Piping connections are correct. Debris, large objects, excessive dirt is kept out of pipes before installation. Instrumentation, especially flow meters, is installed correctly. Water treatment is applied as soon as the system is filled, after flushing and cleaning is complete.
As-built Documentation
During the construction phase, contractors must update the contract drawings to accurately reflect the system as installed. This as-built documentation must be kept up-to-date throughout the construction phase. At final project completion, the as-built documentation is submitted to the owner as the record of system installation.
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Operation and Maintenance Manuals

The traditional O&M manual is divided into two separate manuals: the operations manual, and the maintenance manual.
Operations Manual. The purpose of the operations manual is to provide all relevant
information needed by operating staff for day-to-day operation and management of the plant. The operations manual contains information such as System descriptions Control sequences Schematic diagrams Wiring and control diagrams Performance standards Operating procedures Troubleshooting procedures
Maintenance Manual. The maintenance manual includes all information necessary to
fully overhaul and repair each piece of equipment. This information includes performance data, specifications, manufacturers maintenance instructions, parts lists, and disassembly/reassembly instructions. Information provided by manufacturers should focus only on the model actually installed. This data should be supplemented by project-specific information pertinent to the installation. For more information on documentation requirements for the operation and maintenance manuals, refer to ASHRAE Guideline 4-1993, Preparation of Operating and Maintenance Documentation for Building Systems (ASHRAE 1993). The operations and maintenance manuals become part of the systems manual, which is discussed in the Acceptance Phase section.
Startup
After installation is complete, all equipment, including chillers, pumps, and cooling towers, must be started up according to manufacturers recommendations. Typically, the manufacturers representative is present for startup of major equipment. Before equipment is started up, inspections should verify that: Components are installed in accordance with project specifications and manufacturers requirements. Piping configuration is correct. Flushing, cleaning, and pressure and leakage testing have been completed.
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Glycol concentration is correct, if applicable. Alignment, direction of rotation, and lubrication of rotating equipment are correct. Electrical equipment is properly fused and grounded. Control valves have correct travel stop, speed control, and positioner adjustments. Sensor calibration is correct.
Acceptance Phase
The purpose of the acceptance phase is to ensure that all components, systems, and subsystems in the plant function together properly, comply with the contract documents and fulfill the design intent. The purpose of the acceptance phase is not to identify shortcomings in the design and installation of the plant, although such shortcomings are often found. The presence of such defects at this stage indicates a failure of the commissioning process to identify and head off problems in earlier phases. During the acceptance phase, verification and functional performance tests are carried out. At the completion of the acceptance phase, documented test results, along with other information, are given to the owner demonstrating that the system is functioning properly and is ready for acceptance. Training of operation and maintenance staff also takes place in this phase. This training gives the staff a thorough understanding of the system and its various modes of operation.
Verification
Verification ensures that all components, equipment, systems, subsystems, and interfaces between systems function in accordance with contract documents, and manufacturer specifications. Verification is also referred to as pre-functional testing, static testing, or static commissioning. Verification begins after all equipment has been started up and is fully operational, with testing and balancing (TAB) completed and the TAB report submitted. Verification progresses from checking component level functions (valves, actuators, sensors, dampers, etc.), to equipment level functions (pumps, chiller, cooling tower, etc.), to system level functions (controls, chiller, pumping). This includes checking functions in all modes of operation. The TAB report is also verified. Verification includes checking the following: Chillers maintain correct temperature setpoint. Chiller capacity meets the specification.
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Chillers, pumps, and valves sequence correctly in all modes, from zero load up to full load, and back to zero load. Control valves maintain temperature or pressure setpoints. Flow switches operate properly. Flow rates match the readings in the TAB report. Control sensors report accurate readings. Variable frequency drives ramp up and down correctly. Valve and damper actuators are sequenced to the correct spring ranges, and beginning, end, and extent of damper actuator travel are correct. Remote reset operation from operator console to field devices functions properly.
The tests of these functions should be designed to verify operation under actual conditions. For example, a control valve operating with no fluid flow does not demonstrate that the valve closes properly under full system pressure.
Verification of Sensor Accuracy. The operation and performance of the chilled water
plant is very dependent on the control system. For proper performance, all sensors must be calibrated correctly, and the calibration must be verified during installation. When the results of performance tests have contractual and/or financial implications, field verification of sensor accuracy is especially important. Although many control specifications call for sensor calibration, standard practice often ignores this step. These calibration tests should be accomplished with test instruments that are reliable and have been calibrated within the past year. The error rating of test instruments should be half of that desired for the sensor to be calibrated. Reference standard instruments (primarily for temperature) should be used when appropriate.
Functional Performance Testing

The goal of functional performance testing is to demonstrate that the performance of the system as a whole satisfies the design intent and the contract documents. Functional performance testing determines if the systems produce the intended effect at the point of use, while meeting projections for electric demand and energy consumption. Functional performance testing should progress from tests of individual systems (chillers, pumping, heat rejection, air handling), to tests with all systems operating together.
Use of Trend Logs

Current building control systems have the capability to record values of selected control points at selected intervals. This trend log data can be extremely useful during acceptance phase testing, as well as for performance monitoring and maintenance tracking during normal building operation.
Trend logs allow simultaneous recording of multiple operating parameters for a piece of equipment, or a system, and provide a record of the operating profile over time. These capabilities provide data with less effort than manual recording of readings from multiple instruments. The data are available in electronic format, allowing input to a spreadsheet or other program for further analysis. Many acceptance test specifications require trend log reports demonstrating proper automatic operation of all normal system functions for a specified time period. This time period, typically one to four weeks, must be sufficient to prove reliable, stable operation.
Training
Thorough training for operating and maintenance personnel is critical to ensure the long-term success of chilled water plants. A detailed training plan and agenda should be developed that includes both classroom and hands-on time. Videotaping training sessions is highly recommended. Manufacturers should be informed that training sessions will be videotaped, and encouraged to provide top flight trainers. These videotapes can be used in the future to train new employees and refresh existing staff on operation and maintenance procedures. When training is overlooked, and operating staff dont completely understand the system, the probability of improper system operation increases. Some of the possible consequences include: System control sequences are overridden, either intentionally or unintentionally. Staff fail to recognize abnormal system operation. Unnecessary demand and energy charges are incurred due to inefficient system operation. Some equipment or features are never used, or are disabled. For example, a heat exchanger for free cooling is bypassed in favor of a chiller at all times.
Classroom training should provide operating staff with knowledge of: System design intent. Operating modes and schedules. Control sequences, temperature setpoints, reset schedules. Seasonal changes in operation. Methods to optimize performance. System performance criteria. Utility rate structures and schedules. Maintenance, including preventive maintenance, requirements. Location of equipment data and maintenance information.
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Hands-on training should begin with operator involvement in construction observations, equipment startup, and acceptance testing. Specific instruction should include: Adjusting control setpoints and schedules. Modifying control programs and updating control documentation. Manual operation in all operating modes. Procedures for emergency operation.
Systems Manual
The systems manual provides the owners facility staff with the information needed to understand, operate, and maintain the system as well as to inform others about the system. The systems manual expands upon the traditional operations and maintenance manuals (discussed in the Construction Phase section), to provide additional information developed throughout the implementation process. The systems manual should include the following information: Operations manual and maintenance manual (often bound separately) Initial and final statements of design intent Description of the plant, its subsystems, and its capabilities and limitations Complete as-built documentation, including sequence of operations as implemented Data gathered during acceptance phase verification and performance testing
A detailed listing of information to be included in the systems manual is given in ASHRAE Guideline 1-1996, The HVAC Commissioning Process (ASHRAE 1996).
Operation
A competent, well-trained, and empowered operating staff is one of the most important factors for successful operation of chilled water plants. These staff members thoroughly understand the system and work to keep it running optimally. Achieving a high level of operational success requires: Management support. Ongoing operating staff training. Comprehensive preventive maintenance. Documentation of operating procedures. System performance goals. Continuous system performance monitoring.
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Ongoing functional performance testing.
Management Support
Philosophical and material support from management is essential to the success of a chilled water plant. Operating staff respond when management clearly values efficiency and reliability and provides the resources to achieve them. Resources invested in supporting the operating staff generally provide good payback through energy savings and increased system reliability.
Ongoing Training
An ongoing training programbeyond the initial training that occurs in the acceptance phasebenefits new personnel as well as experienced staff members. All staff should understand the fundamental concepts of chilled water plant operation and the systems theory of operation. Staff should also understand the performance goals of the system, the basics of the utility rate structure, and financial impacts of correct and incorrect system operation. Ongoing training in both operation and maintenance of the various system components rounds out the training program. The information should be both theoretical and practical. A comprehensive training program results in operators who can carry out their daily tasks competently and efficiently and can make informed decisions in unexpected situations. Management sometimes perceives a dilemma in providing extensive training to operating staff. Well-trained operators may require additional compensation or seek employment elsewhere. But managers at successful facilities view welltrained and qualified operating staff as a valuable resource to the organization, and regard appropriate compensation as an investment in profitable operation. Facilities using outsourced operating and/or service personnel should also consider necessary training requirements. Contracts for these services should stipulate that any personnel assigned to the facility meet training standards for chilled water plant fundamentals and the systems design intent and operating procedures.
Preventive Maintenance
A well-planned preventive maintenance program enables maintenance to be performed in an orderly, scheduled manner, rather than when an emergency or breakdown occurs. Using a scheduled approach helps reduce maintenance costs by addressing maintenance needs before they escalate into major problems. It also allows for planned, efficient allocation of maintenance resources and helps increase system reliability by reducing or eliminating unplanned shutdowns. Trend logging functions of automatic control systems can be used to notify operators of required maintenance. Monitoring accumulated hours of operation, pressure drops through filters, motor current, or other operating parameters can indicate when maintenance is due. Some control systems offer built-in capabilities
to alert operators when maintenance procedures are due on specific pieces of equipment.
Documenting Operating Procedures

Documentation of system operating procedures is important for training as well as for regular reference by operators. In particular, procedures for abnormal or emergency situations should be documented. Operating procedures, including schematic diagrams, control sequence descriptions, and checklists for manual operation, should be posted in a convenient location in or near the equipment room. As-built drawings should be readily accessible. Operating procedures are also included along with other system documentation in the system manual. A copy of this manual is kept on hand for easy reference by operating personnel, and a second, back-up copy is stored in another location.
Updating System Documentation

When operating procedures, control sequences, equipment, or the system's physical layout are changed, these changes must be documented in the system manual. This is critical for future reference, ensuring that when needed, the documents match the current situation in the facility. Documenting changes in the plant is also useful for evaluating the effects of the changes, for tracking changes in performance, and for identifying possible causes of performance problems.
Establishing Performance Goals

Performance goals are established by the design intent and results of acceptance testing, and are refined during ongoing system operation. Typical performance goals include: Maintain on-peak demand or energy consumption below a target. Maintain energy consumption per delivered ton-hour (GJ) below a target. Keep total energy cost of the central plant below a target. Limit the number of hours that the cooling supply temperature exceeds the setpoint. Limit the number of discomfort complaints from building occupants.
Monitoring Performance
Monitoring of system performance is necessary to determine whether the comfort, economic, and other goals are being met. Performance monitoring is usually accomplished through the trend logging functions of the automatic control system. Many systems provide the ability to calculate and directly report cooling rate, accumulated cooling load, demand, and energy consumption over a given period. Analysis of utility bills also provides a performance feedback mechanism.
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Comparing measured performance with the goals allows operators to identify areas for improvement. Ongoing monitoring of plant performance helps operators to identify required maintenance, as discussed above under Preventive Maintenance. Monitoring also provides a means for diagnosing the causes of inadequate performance.
Ongoing Functional Performance Tests

The functional performance tests should be repeated at regular intervals so that degradation of the system can be monitored and corrective action planned and initiated.
References
ASHRAE. 1993. Guideline 4-1993, Preparation of operating and maintenance documentation for building systems. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1994. Bin and degree hour weather data for simplified energy calculations. Atlanta: American Society of Heating, Refrigerating and AirConditioning Engineers, Inc. ASHRAE. 1995. 1995 ASHRAE Handbook--HVAC applications. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1996. Guideline 1-1996, The HVAC commissioning process. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1997. 1997 ASHRAE Handbook--Fundamentals. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Ayres, J.M. and E. Stamper. 1995. Historical development of building energy calculations. ASHRAE Transactions, 101(1). Chase, G. and M.O. Federle. 1992. Implementation of TQM in building design and construction. Journal of Management in Engineering, 8(4):329-339 Elleson, J.S. 1997. Successful cool storage projects: From planning to operation. Atlanta: American Society of Heating, Refrigerating and AirConditioning Engineers, Inc. Gatley, D.P. 1988. Simplified life cycle costing of chilled water plants. Heating/Piping/Air Conditioning, Sept. 1988, pp. 55-68. Knebel, D.E. 1983. Simplified energy analysis using the modified bin method. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.
Lorsch, H.G. et al. 1993. Air-conditioning systems design manual. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.
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Annotated Bibliography
This bibliography lists references that provide information on planning, design, installation, and operation of chilled water plants, along with brief summaries of each item. The references are divided into the following topic areas: Project Implementation and Commissioning Contractual Arrangements Project Management Economic Analysis General Design Reference System Analysis Case Studies Pumping Distribution Systems Cooling Towers Operation and Maintenance Control Chilled Water Temperature Differential Cool Storage Free Cooling
Project Implementation and Commissioning

ASHRAE. 1996. Guideline 1-1996: The HVAC commisioning process. Atlanta GA, USA: American Society of Heating,Refrigerating and Air-Conditioning Engineers, Inc. Describes the commissioning process that will ensure that HVAC systems perform in conformity with design intent. Burdon, J.P. 1994. Implementation of a medium-scale CHP scheme. Power Engineering Journal, December, 8(6):265-271. A typical medium-scale CHP project of about 50 MWe capacity, located on an industrial site which has a large heat and electricity load, is considered from a commercial and contractual standpoint. The essential elements of the
Project Implementation Plan: Achieving Successful Chilled Water Plants July 1998 B-1 1
scheme are identified and the role of the various parties who will need to become involved in the implementation and future operation are discussed. Coad, William J. 1989. System commissioning: a concept whose time has come. Heating/Piping/Air Conditioning, Part I, May, 61(5):155-156. Part II, July, 61(7):107-108. Discussion of the importance of commissioning in the construction process. Damlani, P.J., and R.J. Teachout. 1993. Pittsburgh International Airport midfield terminal energy facility. Proceedings of the 1993 Industrial Power Conference. Denver, CO, USA: ASME Power Division, 20:77-83. The purpose of this paper is to present the conceptual thought process and the Project Management methodology for the Pittsburgh International Airport Midfield Terminal Energy Facility. The primary objectives were to design a facility with optimum efficiency, high safety standards, high reliability, on schedule, within budget parameters, and in compliance with all environmental regulations. The conceptual engineering analyses that precedes full scale preparation of engineering documents is fundamental to the success of any new facility project, particularly those that involve energy intensive processes. This Basis of Design Phase planning often requires close scrutiny of fuel options and long term fuel availability, major equipment alternate selections, environmental concerns, and operations/maintenance requirements over the expected life of the facility. When the Basis of Design is complete, the Owner/Engineer Project Management Strategies play a major role in the success of the project. Key elements of the project management program include proper budgeting/scheduling of the engineering design, construction, and start-up phases, proper communication between all parties interfacing with the Facility, availability of certified information during the design phase, and the Engineer's degree of detail in the contract documents to minimize cost contingencies from the Contractor. Elleson, J.S. 1997. Successful cool storage projects: From planning to operation. Atlanta GA: American Society of Heating,Refrigerating and Air-Conditioning Engineers, Inc. Provides detailed guidance to decision makers who seek to successfully design, install, and operate cool storage systems. Elovitz, Kenneth M. 1994. Design for commissioning. ASHRAE Journal, October, 36(10):40-47. Discusses factors that system designers should consider to facilitate the commissioning process. Tseng, P.C., S.E. Batterden, W.A. Appenzellar. 1994. Assessment criteria for commissioning and construction quality control- assessing the effectiveness of total building commissioning. ASHRAE Transactions, 100(2). This paper documents the evaluation of results of the effectiveness of a total commissioning program called Construction Quality Control (CQC). CQC places HVAC commisioning within, not outside, the construction process. The
program focuses on the total quality assurance of a project by covering every major component and system in the building or facility.
Contractual Arrangements
CEC. 1997. How to hire an energy services company. P400-97-001E. Sacramento: California Energy Commission. Hiring an Energy Services Company (ESCO) is one way to identify and implement energy efficency projects in your facility. Rather than hiring multiple consultants, an ESCO can provide experenced personnel to handle all aspects. This guide will help you decide whether you need an ESCO and how to select the best one for your facility. Coad, William J. 1994. Design/build- an option not a panacea. Heating/Piping/Air Conditioning, March, 66(3):48-53. The author's views on how a design/build project team can design an HVAC system that meets the environmental control needs of a building without sacrificing energy efficiency. Eley, C., G. Hernandez and G. Hubbard. 1997. Performance contracting for new construction. PG&E Energy Center, March 21. Discusses concepts of performance-based fee contracts, and gives examples. Lefevre, J.S. 1996. The energy services industry: revolutionizing energy use in the United States. Washington, D.C.: National Association of Energy Service Companies (NAESCO). The intent of this booklet is to depict various ways of saving energy while maintaining or improving the services the energy provides. Many case studies are provided as examples. Peterson, A. & Eley, C. 1997. New building performance contracting: lessons learned and new ideas. American Council for an Energy-Efficient Economy, March 25,:5.199-5.208. This paper investigates how costs were minimized and efficiency maximized on a 525,000 sq.ft. office building in Oakland. PG&E Energy Center. 1997. The abcs of ESCO contracts. PG&E Energy Center Seminar, May 20. Provides background information and recommendations for those considering entering into an ESCO contract.
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Project Management
Abdou, O.A. 1996. Managing construction risks. Journal of Architectural Engineering, March, 2(1):3-10. Many risks are involved with construction projects. Generally, there are three kinds of construction risks. They relate to construction finance, construction time, and design. The present paper addresses the risks of the different contractual relationships existing among th functional entities involved in the design, development and construction of a project and identifies the proper steps to be taken in the analysis and management of these risks. Burati, J.l. and T.H. Oswald. 1993. Implementing TQM in engineering and construction. Journal of Management in Engineering, 9(4):456-470. Chase, G. M.O. Federle. 1992. Implemention of TQM in building design and construction. Journal of Management in Engineering, 8(4):329-339. Gilbreath, R.D. 1992. Managing construction contracts: operational controls for commercial risks. 2nd ed.. New York: Wiley. This book pertains to the roles and relationships that drive construction projects. More specifically, this book is focused on the risk in those roles and relationships that involve contracts. Unlike like circumstances of war where some win and others lose, all parties win or lose together in contracting. The objective of this book is to make commercial risk manageable and the contract experience satisfying. Hart, R.H. 1993. Leadership in quality systems of design and construction. ASQC 47th Annual Quality Congress Transactions,:628-637. Jackson, J.P. 1992. Today's "total quality" challenge on major construction projects. ASQC 46th Annual Quality Congress Transactions,:661-668. Jardine, Glenn M. and Adams, Stephen G. 1994. Master planning for flexibility in large facilities. Heating/Piping/Air Conditioning, September, 66(9):34-41. Discusses development of master plans for HVAC and other utilities serving large campus-type facilities. Kane, C. 1994. Managing project risks through a teambuilding approach. Energy Engineering: Journal of the Association of Energy, 91(5):6-17. New efforts are sought to build and to maintain more effective contractual relationships, with an emphasis on avoiding disputes and win/win thinking. These tools cannot work in isolation, rather a systematic approach is required to ensure cost effective, successful projects and to keep the parties out of litigation. A series of activities that rely heavily on Teambuilding are required in managing contract risks. Teambuilding on projects emphasizes a spirit of trust, respect and mutual goals among all the participants.
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Kluenker, C.H. 1996. Construction manager as project integrator. Journal of Management in Engineering, March-April, 12(2):17-20. A good construction manager (CM) can be invaluable to project delivery as a project integrator. The CM can work with the owner up front to define risks and issues, develop the project-delivery strategy and contractual relationships, structure the project, select participants and put things in order. Two projectdelivery methods, design-build and a variation of design-build called bridging, provide opportunity for the CM to assist in this manner. Kohnen, J.B. 1993. Design engineering and TQM- a powerful union. ASQC 47th Annual Quality Congress Transactions,:119-125. Sozen, Z. 1996. Management of transactions: the design/construction interface. Journal of Architectual and Planning Research, Spring, 13(1):43-49. This paper treats the relationship between strategic orientations and make/buy decisions pertaining to design /construction services for firms operating in the construction sector. The firm defines and redifines its boundaries within a network of contractual relationships, facing choices between market contracting, integration, and 'quasi-firm' arrangements. The paper argues that the firm's strategic posture will influence the perceptions of contractual hazarads associated with each option. Swinson, S., G.J. Hofmann, and D.R. Bahnfleth. 1987.Campus central chilled water plant plan 1. Heating/Piping/Air Conditioning, November, 59(11):5155. Planning for growth and planning to optimize mechanical systems to increase efficiency and hold the line on fuel and energy costs can have a significant financial impact on a large institution. This paper describes the concept and development of a master plan for a 13,000 ton chilled water system at a major university. Auburn University, founded in 1856, is in the midst of a largescale program to convert the campus air conditioning loads from individual building installations to a central plant/chilled water distribution system. Existing chilled water plants will be integrated into the new central chilled water loops when economically feasible. Trauner, T.J. 1993. Managing the construction project: a practical guide for the project manager. New York: Wiley. U.S. Army Materiel Command. 1995. The best value approach to selecting a contract source: a guide to best practices. Alexandria VA. Source selection is the process used in competitive, negotiated contracting to select the proposal offering the most advantageous alternative to the Government. The two approaches which can be used to select the most advantageous alternative are the lowest cost, acceptable proposal or best value. The source selection approach used should be more commensurate with the acquistion's evaluation needs. More frequent use of the best value approach and the resulting lessons learned have established the need for this guide. The stated principles apply to formal source selections using a best
value approach as well as to best value acquisitions which use other than formal source selection procedures. Young, C.W. and D.R. Cogley. 1991. Managing for quality in environmental projects. Managing for Quality Proceedings of the Project Management Institute,:724-729. The objective of this paper is to illustrate by example the principles that govern successful project management in the areas of environmental consulting and engineering. Drawing on experiences in managing projects and programs addressing hazardous waste management, this paper shows cost effective ways of assuring project quality and satisfying clients by means of: planning, communication, project team direction, project controls. For each of these elements, common sense approaches are highlighted because they work; they are simple, they are not easily ignored or forgotten, and they are routinely applicable regardless of the circumstances of the project. Following presentation of these concepts, examples drawn from actual project and program experience are provided to illustrate how these procedures work.
Economic Analysis
Gatley, D.P. 1988. Simplified life cycle costing of chilled water plants. Heating/Piping/Air Conditioning, September, 61(9):10pp. This article provides a simplified method for evaluating alternatives in chilled water plants. The hypothetical examples in the article include centrifugal and double-effect gas-fired absorption chillers. The methodology can also be applied to other types of chilled water generation. The article does not recommend one method of water chilling over another, but provides a methodology and factors to consider. Checklists are provided for evaluating all components of first costs, operating costs, and maintenance costs. Contrary to the title, the economic analysis presented is based on a simple payback evaluation and does not take into account the time value of money. Johnson, R. 1990. The economics of building: a practical guide for the design professional. New York: John Wiley & Sons. This book is both an introduction to economic principles and theories as they relate to building design decisions, and a practical reference guide on how to use economic principles when making design decisions. Application of economic principles to improve decision making in the early stages of design is the special focus of this book. Evaluating the economic performance of an evolving building design is difficult because not all design decisions have been made. The application of economic evaluation methods within this dynamic decision-making environment requires an alternative view of how these methods are used, which this book will elucidate. Park, W.R. and D.E. Jackson. 1984. Cost engineering analysis: a guide to economic evaluation of engineering projects. New York: Wiley. This book was produced in hopes of accomplishing the following objectives.
1. Provide practicing engineers with the necessary economic tools for analyzing projects and for preparing sound, easily understood investment proposals and business plans. 2. Provide management with the economic background necessary to thoroughly understand and properly evaluate investment proposals for engineering projects, so as to establish a more objective and realistic basis for decision-making. 3. Promote a better understanding among the various disciplines essential to the successful completion of engineering projects: engineers, accountants, sales and marketing specialists, and other managers. Stevens, G.T. 1989. The analysis of capital expenditures for managers and engineers. Needham Heights: Ginn Press.
General Design Reference

ASHRAE. 1995. ASHRAE Handbook--HVAC applications. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ASHRAE. 1996. ASHRAE Handbook--HVAC systems and equipment. Atlanta: American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. Gatley, D.P. and Mackie, E.I., 1995. Cool storage open hydronic systems design guide. EPRI TR-104906. Palo Alto: Electric Power Research Institute. Comprehensive discussion of design considerations for open hydronic systems, some of which also apply to closed systems. Includes flow diagrams, pump head optimization, pump application, heat exchangers, control valves, interface arrangements, and strategies for increasing the temperature differential. Hansen, E.G. 1985. Hydronic system design and operation: A guide to heating and cooling with water. New York: McGraw-Hill Publishing Company. Provides comprehensive, detailed information on design, analysis, control, and operation of water distribution systems. Shepard, M., J. Gregerson, D.J. Houghton, et al. 1995. Commercial space cooling and air handling technology atlas. Boulder,CO: E Source, Inc. Characterizes equipment used for space cooling, and discusses alternatives available today and in the future. Addresses opportunities for reducing cooling loads, and discusses central cooling systems, gas cooling, and thermal storage, as well as other cooling technologies. Emphasizes a whole-system approach to efficient space conditioning. Suozzo, M. et al. 1997. Guide to energy-efficient commercial equipment. Washington D.C.: American Council for an Energy-Efficient Economy & New York State Energy Research and Development Authority. Provides information on how to reduce building energy consumption, improve
building system performance, and increase worker comfort and productivity through the appropriate application of energy-efficient equipment.
System Analysis
Anzoategui, F.J. 1996. Energy analysis for retrofit of chilled water plants. Energy Engineering, 93(2):12-29. A method is presented for determining the load profiles of an existing chiller plant with an Energy Management System. The method performs better than traditional computer modeling in providing the hourly plant load in tons and where the energy conservation measures under consideration concern only the plant. Bellenger, L.G., and J.D. Becker. 1996. Selecting high-efficiency centrifugal chillers: a system approach. Heating/Piping/Air Conditioning, July, 68(7):7pp. There is a much wider variety of choices in chiller performance than is typically included in the selection process. Recognizing this, a chiller optimization spreadsheet to evaluate manufacturers' data and narrow equipment choices has been developed Beyene, A. 1995. Performance evaluation of conventional chiller systems. ASHRAE Journal, June, 37(6):5pp. An optimization technique to reduce chiller energy use is described by evaluating energy saving strategies. It is known that the number of chillers at a given site, the weather profile, and the load distribution/management have profound influence on chiller energy consumption. The penalty factor (PF) suggested here for the first time can be used to quantify the influence of these variables on chiller performance, and hence be used to optimize chiller systems. Davenport, M. 1985. Analysis and performance of a central chilled water distribution system. Proceedings of the Annual Conference of the International District Heating Association, 77:211-220. A common approach to district cooling employs a primary assembly of chillers, pumps and piping, which interfaces multiple secondary systems that include circulation pumps and several terminal units. An approach is presented that results in mathematical models which are relatively simple compared to the apparent complexity of the systems. These models can be used to improve design or to operate existing chilled water distribution installations to attain maximum performance. The method was applied to an actual chilled water distribution problem in a medical center. Element parameters were determined from operating data and manufacturer's performance specifications. As a result of predictions obtained from the model, operating procedures were developed and implemented which significantly extended the utilization of capacity, improved the allocation of
chilled water to meet user demand and reduced operating costs. The results of the analysis are presented and compared to observed operating data. Gatley, D.P. and Mackie, E.I., 1995. Cool storage open hydronic systems design guide. (See listing under General Design Reference.) Gilbert & Associates. 1992. CFCs and electric chillers: selection of largecapacity water chillers in the 1990s. TR-100537. Palo Alto, CA: Electric Power Research Institute. Offers information on CFC and HCFC phaseout issues and selection of largecapacity water chillers. Covers hardware, function, performance, and installed costs for electric and gas-fired chillers. Hydeman, M. 1997. Weaning ourselves from cfcs: how to avoid penalties and improve cashflow. Proceedings of PG & E Workshop, June. This publication examines how refrigerant changeovers can benefit their owners. McKew, H. J. 1994. Chilled water management using all the tools. Engineered Systems, September, 11(9):6p. Gas and electric utility financial incentives, a growing recognition of the hazards of CFC refrigerants, an awareness of the equipment service life of old chillers, and a move toward better building management, ddc, and computerized programmed maintenance have spurred chiller retrofits. The author offers some guidelines for facility managers and consultants. McLain, H. A. MacDonald, J. M. Hamblin, D. M. Maddigan, R. J. 1991. Energy and economic benefits of gas cooling options in large office buildings. ASHRAE Transactions, 97(1). Looks at the energy and economic impacts of various gas cooling options in large office buildings Purtell, R.F. 1989. Cogeneration, chillers and cool storage. ASHRAE Journal, February, 31(2):26-29. Absorption chillers are normally selected for serving cooling loads in facilities with central cogeneration systems. Many options exist in the design of a power generating, heating and cooling systems. The article discusses various combinations, especially steady heat projects, cool storage, in particular electrically driven chillers. The annual sequence of operations, engine load stabilization, and water usage problems are considered. Proper design of a building's heating, cooling and power generating system involves the careful weighing of many different options. A user with large heat loads and a continually expensive electric rate would benefit most from the engine/generator/absorption chiller while the user with large cooling loads and a wide differential between day and night electrical rates would benefit more by using an engine/generator/vapor-compression chiller in conjunction with cool storage. Most real projects will fall between these two extremes.
Robertson, C., J. Stein, J. Wolpert, and B. Jones. 1994. Turning the CFC phaseout into energy and dollar savings. E SOURCE, Tech Memo.Boulder: E SOURCE, Inc. Discusses benefits of incorporating improvements in other building systems in conjunction with chiller replacement to enable cooling load reductions and the savings in capital cost from equipment downsizing. Rosen, M.A., and M.N. Le. 1996. Efficiency analysis of a process design integrating cogeneration and district energy. Proceedings of the ASME Advanced Energy Systems Division, 36:473-480. An efficiency analysis, accounting for both energy and exergy considerations, is reported of a design for cogeneration-based district energy proposed for the city of Edmonton, Canada, by the utility Edmonton Power. The original concept using central electric chillers, as well as two variations (one considering single-effect and the other double-effect absorption chillers), are examined. The energy- and exergy-based results differ markedly (e.g., overall energy efficiencies are shown to vary for the three configurations considered from 83 to 94%, and exergy efficiencies from 28 to 29%). For the overall processes, as well as individual subprocesses and selected combinations of subprocesses, the exergy efficiencies are generally found to be more meaningful and indicative of system behavior than the energy efficiencies. Scanlon, Paul W. 1992. Economic impact of HVAC system selection. Heating/Piping/Air Conditioning, September, 64(9):32-44. Discusses methodology involving all project team members to increase understanding of the selection process and develop an integrated design approach. Stein, J., C. Robertson, and J.S. Wolpert. 1993. HVAC retirement: a new demand side management program strategy. 16th World Energy Congress, October. The authors designed a new Demand Side Management (DSM) strategy to achieve comprehensive energy efficiency improvements in commercial buildings. The HVAC Retirement strategy targets buildings with HVAC systems that are expected to undergo major maintenance or repair procedures within two years or less. Examples of targeted HVAC systems include rooftop units with compressors 8 years old or older, or chillers targeted for replacement, compressor rebuilding, or refrigerant conversion. Syed, A. 1986. Energy economics in operating a large chilled water plant. Federal Conference and Exhibition, Australian Institute of Refrigeration, Air Conditioning & Heating,:45p. Energy economics in plant operation are examined and analysed. The study is directed at developing and evaluating strategies for manipulating plant operating variable to achieve optimum performance, using computer modelling to quantify various strategies. The use of chilled water storage systems for energy management is also explored.
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Trane. 1996. Evaluating and improving chiller plant efficiency. #CTV-S-41., La Crosse, WI: The Trane Company. Discusses evaluating the entire system rather than just the chiller when designing or analyzing a chilled water plant. Trane. 1987. Multiple chiller system design and control. La Crosse, WI: The Trane Company. Applications Engineering Manual for designing multiple chiller systems Urrea, J., and C.G. Parsons. 1996. JCPenney's CFC program. (See listing under Case Studies.) White, T.L. 1994. Winter cooling tower operation for a central chilled-water system. (See listing under Cooling Towers.) Wilson, L. V. and B. Nugent. 1993. Primary cooling systems: a comparative analysis. ASHRAE Journal, January, 35(1):19-25. Study of two cooling systems using different heat rejection methods to determine their proper application.
Case Studies
Dorgan, C.E. and C.B Dorgan. 1995a. Case study of an ice storage system with cold air distribution and heat recovery. EPRI TR-105858. Palo Alto: Electric Power Research Institute. The research team gathered data from an ice storage system and compared its energy performance to three alternative systems. Dorgan, C.E., J.S. Elleson, S.S. Dingle, S.P. Leight, and C.B. Dorgan. 1995. Field evaluation of a eutectic salt cool storage system. EPRI TR-104942. Palo Alto: Electric Power Research Institute. The project team monitored a phase-change-material cool storage system with heat exchagers to provide free cooling from cooling tower operation. They compared the measured energy performance to two nonstorage approaches, and evaluated the benefits of a system modification implemented late in the monitoring period. Hattemer, T. 1996. Chilled water distribution system for an urban university campus. (See listing under Distribution Systems.) Kent, H.S. 1996. Thermal energy storage increases research center's cooling capacity. Heating/Piping/Air Conditioning, September, 68(9):81-83. The management at Rohm and Haas was very concerned with the environmental impact of the refrigerant that was to be used for cooling, because additional refrigeration capacity was required. The existing four chillers' refrigerant is either CFC-11 or R-114, which mandated replacement. Another concern was the ever-increasing electric summer peak demands, largely derived from the chillers and their auxiliaries, with the corresponding
increase in operating cost. Many options were evaluated, including absorption refrigeration, high-efficiency centrifugal chillers, and cogeneration. After investigation and evaluations, a thermal energy storage system was chosen, which produces ice during off-peak hours and, if elected, chilled water during the peak hours. The conclusion was reached based on the capability to shave in excess of 50% or more of the electric peak demand resulting from operating the chillers and auxiliaries. Lizardos, E. J. 1996. Industrial central chiller facility upgrade for greater system capacity and tighter process control. Energy Engineering, 93(2):6-11. An existing 3,000 ton single-stage central chilled water system at a WyethAyerst pharmaceuticals plant could not balance and deliver required chilled water flow rates in an energy efficient manner, especially so when considering planned expansions Pearson, R.J. 1987. Simplified retrofit of a large chilled water system. Conference on Information Strategies for Energy Efficient Plants and Intelligent Buildings,:599-602. A large medical center chilled water system was converted from a form of primary-secondary, constant volume pumping to only primary, variable volume pumping. Implementation consisted of (1) Conversion of three-way valves to two-way valves; (2) Wholesale readjustment of controls; and (3) Stopping of all secondary pumps. The results were a significant improvement in cooling performance of air-handling equipment, postponement of a plan to purchase an additional 1000 ton chiller, and substantial energy savings. Total implementation cost, including fees, was $32,000. First-year pumping energy savings were $45,000. Siverling, A. M. Kressler, and J.Karl. 1995. Ice storage system assures data center cooling. Heating/Piping/Air Conditioning, April, 67(4):35-39. A data center that houses the data processing needs of a telephone company is served by a central chilled water plant containing four 500-ton chillers. The critical function of this facility requires it to remain operational 24 hours a day, 7 days a week. In the event that the chillers are unable to function, such as in a maintenance shutdown or power failure, the loss of cooling would be sufficiently long to cause a dangerous rise in temperature within the watercooled mainframe equipment and computer spaces. The potential for a temperature increase of this sort is prevented by a new emergency backup cooling system containing an expandable 550-ton-hr ice storage plant placed in parallel with the existing chillers. This system provides temporary cooling for a 30-min period, which is sufficient time for the chillers to recover. Synder, G.C. 1992. Renovating the Pentagon's heating and refrigeration plant. ASHRAE Journal, July, 34(7):5p. The Pentagon heating plant originally burned coal, but has since been converted to natural gas and oil. Fifty years of services have caught up with the facility and now none of the five original boilers remains operational. In
the mid-1960s, a chilled water plant was added adjacent to the heating plant to bring centralized cooling to the Pentagon. Urrea, J., and C.G. Parsons. 1996. JCPenney's CFC program. Strategic Planning for Energy and the Environment, Winter, 15(3):57-63. As a reaction to the imminent CFC production phaseout, JCPenney's reduced their dependence on CFC refrigerants but the company was very careful not to overlook the additional economic benefits that they could realize with a correctly engineered HVAC upgrade. Utesch, A.L. 1986. High tech hvac saves millions at airport's central plant. Heating/Piping/Air Conditioning, November, 58(11):97-104,109-110. The central utility plant at Dallas/Fort Worth Airport is a facility that was first placed in operation during the fall of 1973 and has continuously operated since that time. The original plant produced steam for heating and for chilled water generation via three condensing turbine type centrifugal chiller drives. Its original service area was 1.4 million sq. ft. The original utility costs were 27 cents per thousand cu ft for natural gas and 0.85 cents per kWH for electricity. The 1974 energy budget was slightly less than $500,000. A presentation is given of the design of high tech HVAC which reaps the benefits of sound planning, good design, and new technology, including DDC and variable frequency electric drives.
Pumping
Haines, R.W., D.R. Bahnfleth, K.R. Luther, W.J. Landman, and W. Kirsner. 1997. Primary-secondary pumping. Heating/Piping/Air Conditioning, March, 69(3):67-73. Responses to "The Demise of the Primary-Secondary Pumping Paradigm for Chilled Water Plant Design" (Kirsner 1996). Hansen, E.G. 1995. Parallel operation of variable speed pumps in chilled water systems. ASHRAE Journal, October, 37(10):34-38. The interaction between multiple speed pumps operating in parallel and their interface with the hydronic system they serve are explored. It will be determined whether a pump can be operated at varying speed in parallel with another pump at fixed speed. The most economical method of applying variable speed pumping in a given chilled water system is also determined. Finally, it is shown that in a correctly engineered and analyzed system, the number of parallel pumps can be reduced and not all need to be provided with speed control. This can be achieved by running at the same speed, all pumps in parallel operation. ITT. 1968. Primary secondary pumping application manual. Morton Grove, IL: ITT Fluid Handling Training & Education Department. December. Fundamentals of applying primary-secondary pumping in hydronic systems.
ITT 1985. Variable speed/variable volume pumping fundamentals. Morton Grove, IL: ITT Fluid Handling Training & Education Department. August. Fundamentals of applying variable speed and variable volume pumping in hydronic systems. Kirsner, W. 1996. The demise of the primary-secondary pumping paradigm for chilled water plant design. Heating/Piping/Air Conditioning, November, (68)11:73-78. Rishel, James B. 1994. Basic principles for HVAC pump application. Heating/Piping/Air Conditioning, April, 66(4):45-48. Reviews the basic considerations involved in the selection and application of pumps. Rishel, J.B. 1991. Control of variable-speed pumps on hot- and chilled-water systems. ASHRAE Transactions, 96(1):746-750. The control of variable-speed pumps on hot- and chilled-water systems must be based upon a hydraulic analysis of the water system. This hydraulic analysis enables the control manufacturer to select and program the variablespeed and pump addition and subtraction controls to achieve the maximum system (wire-to-water) efficiency. Unit responsibility is secured by requiring the control manufacturer to furnish the variable-speed drives. Control of these pumps is achieved through the use of differential pressure transmitters and continuous interrogation of them; this eliminates system hunting, continuous variation in pump speed, and inefficient pump operation.
Distribution Systems
Avery, G., W.C. Stethem, W.J. Coad, R.A. Hegberg, F.L. Brown, R. Petitjean. 1990. The pros and cons of balancing a variable flow water system. ASHRAE Journal, October, 32(10):30-59. The multiple authors each present their differing views on balancing variable flow water systems. Gatley, D.P. and Mackie, E.I., 1995. Cool storage open hydronic systems design guide. (See listing under General Design Reference.) Guldenzoph, D. E. 1994. Phased distribution system decoupling and refrigerant management for a multi-plant district cooling system. ASHRAE Transactions, 100(1):1144-1151. Important benefits, such as enhanced pressure control and pump energy savings, may be derived from utilizing a variable-volume, hydraulically decoupled pumping system rather than a direct-pumping system for chilledwater distribution. However, converting large, direct-pumped distribution systems to decoupled systems is not always practical due to excessive capital cost requirements and the design of the existing equipment. This paper presents one approach to dealing with these factors, where it was not only
beneficial but essential to decouple certain additional cooling loads that were atypical of existing loads served by a large district cooling system. Legislation and environmental factors regarding chlorofluorocarbon and hydrochlorofluorocarbon refrigerants are major considerations in the design, management, and maintenance of district cooling systems. This paper also reviews chiller selection and refrigerant management for district cooling system plants. Hansen, E.G. 1985. Hydronic system design and operation: A guide to heating and cooling with water. (See listing under General Design Reference) Hartman, T.B. 1996. Design issues of variable chilled-water flow through chillers. ASHRAE Transactions, July, 102(2). This paper discusses the penalties associated with a chilled water system containing two chilled water circuits. It discusses single circuit variablechilled-water-flow systems and control strategies to provide safe, stable, and reliable chiller operation over the entire operating range employed in typical HVAC applications. Hattemer,T. 1996. Chilled water distribution system for an urban university campus. ASHRAE Journal, December, 38(12):55-57. The conversion of the chiller system in an urban university campus from constant flow to variable flow is discussed. Two chronic problems associated with the system, low differential pressure and low system delta-T, are also presented. Three system system pumps were employed to distribute chilled water through the entire system and a two new way modulating valves were installed per unit to provide trim between coil stages. It also includes the removal or bypassing of 44 chilled water pumps and removal of one R-11 chiller. The new system resulted to the improved performance of many of the air handler systems, indoor air quality (IAQ) and thermal comfort and reduced the pump operation costs. Hegberg, R.A. 1997. Selecting control and balancing valves in a variable flow system. ASHRAE Journal, June, 39(6):53-62. The paper discusses pressure distribution analysis, valve characteristics, and selection of control and balancing valves for variable flow hydronic systems. Pearson, R.J. 1987. Simplified retrofit of a large chilled water system. (See listing under Case Studies.) Phillips, D. 1987. Conserving energy with central plant chillers. Heating/Piping/Air Conditioning, November, 59(11):79-81. During the 1950s and 60s, it was common to find chillers sized for 2. 4 gpm per ton with a 10 F temperature difference(DELTA T) at the evaporator. Then system design began to change in the 70s. Pipe diameters and cooling coil face areas were reduced, and as a result, chillers were found to have less flow per unit of cooling capacity than was required by the coils. Many central plants that were designed to be more effective during this era were found to consume
more energy than intended. The paper discusses advances in central plant chiller design and the introduction of the flow control valve which have made HVAC system balance and high efficiency possible. Coil loading and its role in heat transfer are also discussed in some detail. Potratz, S.J. 1991. Design considerations of a central variable-flow chilled-water plant. ASHRAE Transactions, 97(1):759-762. The results of a five-year effort at correcting the operational deficiencies of a 4,000-ton central chilled-water plant are presented. The results show what primary considerations need to be taken to reduce pumping costs, maximize the use of existing tonnage, and increase the overall temperature difference of the system. The system discussed uses primary/secondary variable-speed pumping systems combined with a global direct digital control (DDC) system. Comparisons are made with other systems, and the function of key hydronic components is described. Modifications to the system reduced the number of distribution pumps required and improved the operational efficiency of the chillers by raising the water temperature differential from 6 degree F (3.3 degree C) to 15 degree F (8.3 degree C). Control problems were reduced, and increased system flexibility was observed. Past changes, as well as future installations, are presented. Redden G.H. 1996. Effect of variable flow on centrifugal chiller performance. ASHRAE Transactions, July, 102(2). This research was conducted to determine the effect of varying chilled and condenser water flows on centrifugal chillers. Three methods were used: (1) theoretical heat transfer equations were applied, (2) extensive computer modeling was used, and (3) the chiller was run on an ARI-certified test stand. Rishel, J.B. 1997. Use of balance valves in chilled water systems. ASHRAE Journal, June, 39(6):45-51. Balance valves can impose considerable losses on a chilled water system. With the advent of variable volume systems with two-way control valves it becomes difficult to determine the benefits of installing balance valves in those systems.The paper discusses suggests where aand how to use balance valves in different chilled water systems. Utesch, A.L. 1995. Chilled water distribution re-examined. Heating/Piping/Air Conditioning, April, 67(4):53-55. This article compares two methods- pump speed controlled blending station and system decoupled blending station- of dealing with a system requirement to elevate the chilled water supply temperature at a single load or group of loads within the confines of a large chilled water distribution system. An energy usage analysis performed on both revealed that the pump blending system only supplements the amount of energy available from the primary system whereas the decoupled system always wastes all energy supplied from external pumping. The pump blending system never consumes more energy
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than the decoupled blending system. Thus, the pump blending system is the more cost-effective method. Zhang, Z. John. 1993. Another look at traditional control valve sizing practice. ASHRAE Journal, February, 35(2):38-41. Discusses how hydronic systems with variable speed pumping and DDC controls can successfully use control valves with reduced pressure drop.
Cooling Towers
Becker, Bryan R. Burdick, Larry F. 1993. Drift eliminators and cooling tower performance. ASHRAE Journal, June, 35(6):28-36. Discussion of how the evaluation of cooling tower components must be done in the context of the total cooling tower system. Burger, Robert. 1993. Wet-bulb temperature: the misunderstood element. Heating/Piping/Air Conditioning, September, 65(9):29-34. Discusses how design wet-bulb temperature is important to ensure that towers produce the intended leaving water temperature. Hensley, J.C. 1981. Cooling tower energy. Heating/Piping/Air Conditioning, October, 53(10):51-59. From the time that use of mechanical draft cooling towers began to become noteworthy in the 1930s, much of the effort devoted to their research and development went toward achiveing reductions in pump head and fan power. This effort resulted in the development of the induced draft, crossflowcooling tower in 1938, establishing a new standard against which all other cooling towers would be (and still are) compared. The purpose of this article is to make those comparisons in a straightforward manner and to make the reader aware of new devices and techniques for using the immutable physical laws to reduce energy consumption in existing as well as new installations. Leary, W.M. 1987. Optimizing cooling tower selections. Heating/Piping/Air Conditioning, August, pp. 29-34. Presents an example showing that careful analysis of service conditions can lead to both installation and operating cost savings. Kintner-Meyer, M. and A.F. Emery. 1995. Cost-optimal design for cooling towers. ASHRAE Journal, April, 37(4):8p. The saving potentials of an optimally sized cooling tower as stand-alone system and as an integrated component in a chiller-cooling tower system is discussed. Two significantly different operating cost characteristics and cost savings potentials are revealed based on the scope of optimization. While the stand-alone cooling tower optimization does suggest to a cooling tower manufacturer great potentials for optimizing the cooling tower, these results may not be of great interest to a designer who is concerned with the overall system performance. From a global optimization perspective, it may be more
effective for the reduction of the total lifecycle cost to improve the chiller's efficiency than to optimize the cooling tower systems. Kirsner, W. 1996. 3 gpm/ton condenser water flow rate: Does it waste energy? ASHRAE Journal, February, 37(2):63-69. Examines the question of optimum condenser water flow rate. Mirsky, G. R., J.-P. Libert, and K. Bryant. 1992. Environmental considerations for cooling towers. ASHRAE Journal, June, 34(6):27-34. Discusses design criteria and resultant costs for environmentally acceptable cooling towers. Pannkoke, Ted. 1996. Cooling tower basics. Heating/Piping/Air Conditioning, February, 68(2):137-155. Basic discussion of cooling tower operation, components, materials, and control. Shelton, S. V. and C.T. Joyce. 1991. Cooling tower optimization for centrifugal chillers. ASHRAE Journal, June, 33(6):28-36. Discusses alternative condenser water schemes including using less than the "standard" 3 GPM/ton, with comparison of chiller energy, pipe sizing, and pumping energy Shelton, S. V. and E.D. Weber. 1991. Modeling and optimization of commercial building chiller/cooling tower systems. ASHRAE Transactions, 97(1):12091216. Investigates the effect of reduced condenser water and cooling tower airflow rates on peak power demand, annual energy use, and capital costs for teh overall system. Waller, B. 1988. Various flow rates in condenser water cycle. ASHRAE Journal, January, 30(1):30-32. Evaluation of capital costs and life cycle costs for different condensser water flow rates. White, T.L. 1994. Winter cooling tower operation for a central chilled-water system. ASHRAE Transactions, 100(1):811-816. Lower cooling tower water supply temperature, higher chilled-water supply temperature, building system's economizer air cycle and free cooling are just some of the few methods used for energy saving during cold weather. The aim of this study is to review the operating experience and to present some advantages and disadvantages of using cold tower water to reduce the operating costs of a central chilled-water system during cold weather operation.
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Zhang, Z. John. 1992. Keep your cooling tower? ASHRAE Journal, June, 34(6):22-26. Discusses some of the factors to consider regarding replacement of cooling towers when replacing old absorption chillers with new electric chillers.
Operation and Maintenance

Haider, S.I.; R. L. Webb and A. K. Meitz. 1991. Survey of water quality and its effect on fouling in flooded water chiller evaporators. ASHRAE Transactions, 95(1):55-67. A program involving field sampling and analysis was conducted to determine the water quality used in water chiller evaporators. We then interpreted the data to infer the possibility for water-side fouling resistance in the evaporator tubes. The problem involves the tube-side fouling in copper tubes with 5-10 ft/s waterflow at 42 degree -52 degree F. The water-quality tests were conducted to determine the potential for precipitation, biological, corrosion, and particulate fouling. Water samples were taken from 71 chillers located in 31 cities across the continental U.S. A questionnaire was filled out for each sampling site. It provided information regarding the chiller installation, chilled-water system, operating profile, and maintenance practices. The collected samples were analyzed by water treatment companies. The results were then entered into a computer data base. The water-quality data were analyzed to infer the fouling potential as a function of building use, winter heating, use of corrosion inhibitor, geographic location, and water softening. Important statistical parameters of all the fouling indicators were tabulated. A statistical model was developed for the data interpretation. The model was applied to assess the potential of chilled water for various fouling mechanisms. Threshold values, which indicate the potential for fouling, were defined. Rossi, T.M., and J.E. Braun. 1996. Minimizing operating costs of vapor compression equipment with optimal service scheduling. HVAC and R Research, January, 2(1):3-26. Dynamic programming was used to obtain optimal service schedules and costs for cleaning the condensers and evaporators of air-conditioning equipment. Results were obtained for a range of service and energy costs, characteristic fouling times, and equipment sizes for a single building and location. Minimum operating costs were compared with regular service intervals (representative of current practice) and a strategy where service is only performed when a constraint is violated (e.g., a comfort violation). It was found that optimal service scheduling reduced lifetime operating costs by as much as a factor of two over regular service intervals, and by 50% when compared to constrained only service. For practical implementation, a simple near-optimal algorithm for estimating optimal service scheduling was developed that does not require on-line forecasting or numerical optimization and is easily implemented within a micro-controller. Over the wide range of cases tested, the near-optimal algorithm gave operating costs that were within
1% of optimal. This technique could also be applied to other systems where performance degradations are important such as large chillers and power plants. Sterrett, R. H. 1992. Operator influence on the performance of chillers and thermal energy storage systems. Energy Engineering,:66- 72. Summarizes the operator influence on their results. The systems, which were efficiently operated, had a high degree of commitment from both the operator and the facilities' management. The commitment was demonstrated in the level of training, maintenance procedures and support for the building engineer.
Control
Austin, S.B. 1991. Optimum chiller loading. ASHRAE Journal, July, 33(7):40-43. Substantial electrical cost savings are achievable by operating the most efficient combination of lead and lag chillers. In multiple chiller plants, optimum scheduling can often be accomplished with paybacks ranging from 0 to 2 years. A lag chiller should be started only when two chillers can operate more efficiently than one. This should be based on efficiency ratings at constant condenser water temperature, not the ARI chiller curve. In most situations, this point is at full-load. In plants where a chiller is never fully loaded, a smaller, more efficient chiller that would operate more hours at its optimum loading point may be cost justified. These projects have varied in the 3.5 to 6 year payback range. When purchasing a new chiller, the facility's annual cooling load profile should dictate the optimum loading point. Knowing the optimum loading point of a specific chiller is critical in optimizing operating efficiency. It is not always easy to determine a chiller's part-load performance curve for a specific set of conditions. Sometimes field testing is necessary and in every case, the right questions must be asked. Nonetheless, the rewards - significant increases in chiller plant operating efficiency - often justify the effort. Avery, G. 1987. Microprocessor control for large chilled water distribution systems. Heating/Piping/Air Conditioning, October, 59(10):59-61. The author reviews how to design real-time control for chilled water systems serving multiple loads and supplied by several separate chilled water sources. Central chilled water systems are generally designed using a primary system pump, secondary zone pumps, and in some instances, tertiary building pumps. These systems may operate satisfactorily. However, two exceptions limit their optimum performance. Pumping costs are high because normally more water is circulated in the primary loop than is required for the load. Chiller load optimization is difficult to implement due to limitations of the chiller and/or system piping. Hartman, Thomas. 1995. New horizons for HVAC control. Heating/Piping/Air Conditioning, March, 67(3):75-85. Discusses how installation and operating costs of HVAC systems can be
dramatically reduced by extending the opportunities afforded by controls integration. Jones, J.R., K. Brandle, and W.N. Verge. 1993. Development of a control strategy for electrical demand limiting using absorption cooling. ASHRAE Transactions, 99(1):223-230. Often a major portion of the monthly electrical bill for nonresidential consumers is for demand charges. If large differences exist between a consumer's peak and average levels of consumption, very high demand charges may result. On a major university campus, a large absorption chiller was installed to limit electrical consumption levels by offsetting demand from centrifugal compression chillers. Unfortunately, specific control strategies (start/stop times) were uncertain for the absorption unit. This was due to the complexity in determining the operating cost difference between the absorption and centrifugal chillers for various hours of the day, days of the week, and ambient weather conditions. For this reason, a detailed study was conducted to determine these operating costs and develop a strategy for controlling the absorption unit. This paper summarizes the development of this strategy. Nordeen, Howard. 1995. Fundamentals of control from a systems perspective. Heating/Piping/Air Conditioning, August, 67(8):33-38. Examines control loops and the factors that affect their controllability.
Chilled Water Temperature Differential

Fiorino, D.P. 1996. Twenty-five ways to raise your chilled-water temperature differential. ASHRAE Transactions, 102(1):567-572. This paper recommends practical methods of achieving high chilled-water temperature differentials in variable-flow hydronic cooling systems. After high chilled-water temperature differentials are realized, more Btus of cooling will be accomplished per gallon of chilled-water distributed, and pressure losses and pumping energy will decline considerably. Also, water chiller capacities no longer will be limited by maximum evaporator flow rates and chilled-water storage tanks will store many more ton-hours of cooling. This fundamental approach provides significant, enduring improvements in the performance of variable-flow hydronic cooling systems with great leverage. Gatley, D.P. and Mackie, E.I., 1995. Cool storage open hydronic systems design guide. (See listing under General Design Reference.) Lizardos, E.J. 1994. Optimizing delta T., September,:7p. Efficient operation of central chilled-water air conditioning systems depends on achieving maximum temperature differential between chilled-water supply and return. The author describes his design for maximum temperaturedifferential efficiency in central chilled-water air conditioning systems. The new design is based on chilled-water recirculation loops at building air handler
locations. The design achieves maximum delta-T and minimal gallons-perminute pumping. Sauer, J.M. 1989. Diagnosing low temperature differential. ASHRAE Journal, June, 31(6):32-36. This paper describes different causes of of low temperature differential for chilled water systems. Taylor, S. 1997. Low delta-T in new and existing chilled water plants. Proceeding of the Cool $ense National Forum on Integrated Chiller Retrofits. San Francisco, CA, September 23-24. Variable-flow chillled water plants are designed to maintain a relatively constant "delta-T", the difference between return and supply chilled water temperature. But in almost every real chiller plant, delta-T falls well short of design levels, and both pump energy and chiller energy increase accordingly. In most plants there is no way to avoid low delta-T. This paper explains why this is and discusses some design and retrofit measures that will allow the plant to operate as efficiently as possible in spite of low delta-T. Utesch, A. L. 1996. Using blending pumps to increase individual facility supply water temperatures and total system differential temperature. ASHRAE Transactions, 102(2). This paper addresses the appplication requirements for utilizing blending pumps to increase supply water temeratures in individual buildings or zones. For pumps, it makes recommendations relative to the flow rate, head, impeller characteristics, speed and best efficiency point. Also for pumps, it addresses motor selection, variable-frequency drive selection, and control requirements. For system load control consideration, it address the need to increase supply pressure in the primary systems, and the benefits of blending pumps when used in conjunction with existing constant-flow hydronic systems.
Cool Storage
Bahnfleth, W.P. and W.S. Joyce. 1994. Energy use in a district cooling system with stratified chilled-water storage. ASHRAE Transactions, 100(1). Thermal storage clearly benefits cooling system owners by reducing electric demand charges. However, the use of thermal storage is widely believed to increase overall cooling plant energy consumption. Data from the first full season of operation of a 4.4-million-gallon(16,676-m super 3) stratified chilled-water storage addition at a U.S. university demonstrates that a welldesigned and operated system can actually improve plant efficiency. Energy penalties associated with thermal storage were offset by more efficient chiller operation. Design features and operational procedures that tend to minimize energy consumption in stratified chilled-water storage systems are discussed and illustrated with data from the university system.
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Bahnfleth, W.P., and W.S. Joyce. 1995. Stratified storage economically increases capacity and efficiency of campus chilled water system. ASHRAE Journal, March, 37(3):46-49. The addition of stratified chilled water storage to the Cornell chilled water system has increased its capacity and efficiency and reduced its operating costs for less than the cost of a conventional chilled water plant expansion. The other new component of the storage facility - two variable speed drive thermal storage transfer pumps - saved energy by allowing adjustment to the lower system head without throttling. The first-year operating cost savings exceeded $300,000, of which $235,000 was due to demand shift and time of use savings, and the remainder from the impact of thermal storage on overall system performance. Dorgan, C.E. and J.S. Elleson. 1993. Design guide for cool thermal storage. Atlanta GA: American Society of Heating,Refrigerating and Air-Conditioning Engineers, Inc. A comprehensive overview of cool storage technology and design requirements. Dorgan, C.E. and C.B Dorgan. 1995a. Case study of an ice storage system with cold air distribution and heat recovery. EPRI TR-105858. Palo Alto: Electric Power Research Institute. Dorgan, C.E., J.S. Elleson, S.S. Dingle, S.P. Leight, and C.B. Dorgan. 1995. Field evaluation of a eutectic salt cool storage system. (See listing under Case Studies) Fiorino, D.P. 1993. Energy conservation with chilled-water storage. ASHRAE Journal, May, 35(5):22-32. Discusses how thermally stratified chilled water storage can reduce cooling electricity use as well as shift cooling electrical demand. Kent, H.S. 1996. Thermal energy storage increases research center's cooling capacity. (See listing under Case Studies) Purtell, R.F. 1989. Cogeneration, chillers and cool storage. (See listing under System Analysis.) Schiess, K. 1997. Effect of real time pricing (RTP) on thermal energy storage (TES) systems. Strategic planning for energy and the environment, Winter 1996-1997, 16(3):14-26. The effect of Real Time Pricing (RTP) on Thermal Energy Storage (TES) systems is discussed. For an accurate comparison between the time-of-use rate schedule and the Real Time Pricing rate schedule, it is essential that the costs are calculated on an hourly basis just as the original bill is being calculated. A spreadsheet is required to calculate the costs on an hourly basis with the RTP costs per hour as given by the utility for the last twelve billing periods. The electric load profile determines if there is an advantage to change RTP. Each
facility is different and only a customized rate comparison can predict the advantages of Real Time Pricing. The critical factor influencing the design of TES systems changes from the on-peak period or Window to the thermodynamic property of the melt-down capability of the system or the peak flow capacity in case of a chilled water storage system. Siverling, A. M. Kressler, and J.Karl. 1995. Ice storage system assures data center cooling. (See listing under Case Studies) Williams, C.D. 1996. Thermal energy storage chiller management. ASHRAE Transactions, 102(1):578-582. This paper addresses chiller applications that are designed to get the maximum benefit from a chiller plant every day of the year. It treats all chillers as variable-capacity devices and applies them in thermal storage system configurations that efficiently take advantage of that capability. It also recognizes that a chiller operating temperature differential is always a variable to which a chiller must always adjust. All the applications addressed vary the flow and in some situations the operating temperature differential to maximize or optimize each chiller's capacity. It is done in such a manner that the safety and reliability of the chiller are improved rather than jeopardized. Williams, C.D. 1996. Optimizing TES chiller management. ASHRAE Journal, April, 38(4):4pp. Optimizing overall chiller performance is a matter of maximizing the chillers capacity under all load conditions. This requires a flexible control system which can adjust itself to compensate for the numerous changes that occur within the chiller over time and the wide variance in its capacity throughout the season. Controlling chillers in this way yields significant results.
Free Cooling
Dorgan, C.E., J.S. Elleson, S.S. Dingle, S.P. Leight, and C.B. Dorgan. 1995. Field evaluation of a eutectic salt cool storage system. (See listing under Case Studies) Gray, J.A. 1986. How to make free cooling reliable. Official Proceedings Annual Conference of the International District Heating Association, 77:185-197. Free cooling involves the flow of condenser cooling water through the chilled water system while bypassing the out-of-service condenser and chilled units. The condenser cooling water from the chilled water system is then discharged over the cooling tower where the absorbed heat is removed. Free cooling was introduced as a unique energy savings development for comfort cooling, air conditioning systems. The energy savings features of free cooling are: Electrical power consumption is reduced by not having to operate the refrigeration compressor; recirculating water head pressure is reduced since condenser and chiller units with their high pressure differential are not required; power and maintenance costs are reduced as fewer recirculating
pumps are required; and reheat requirements are reduced as a result of warmer condenser water being used in the chilled water system. Hatten, M. J. and T W Johnston. 1989. Evaporative chilling and thermal storage. Heating/Piping/Air Conditioning, January, 61(1). Evaporative chilling, the use of cooling towers to remove heat from a chilled water system directly, is an energy saving strategy that works particularly well in dry, cool climates with low average wet bulb temperatures. Because wet bulb temperatures are generally lower during the winter and at night, evaporative chilling has enjoyed use as a 'free cooling' measure in meeting continuous cooling loads such as computer or industrial process cooling needs. Its use with building air conditioning systems, however, has been limited. HVAC designers have favored outside air cooling economizers when seeking to reduce typical building air conditioning energy use. In 1986 the company where the authors work designed evaporative chilling and thermal energy storage into the cooling system of a 72,000 sq ft manufacturing and office building for the Grass Valley Group located in northern California. This application is discussed in this article and provides a cogent example of the economic synergy and expanded opportunities that exist when these two cooling technologies are combined. Hensley, J.C. 1994. Application of cooling towers for free cooling. ASHRAE Transactions, 100(1):817-823. Free-cooling systems(also known as tower cooling systems) can generate significant savings for the owners of such systems. However, the amount of potential energy savings available depends almost totally on the overall system design and on the selection of equipment for use in the system. In general, the designer must balance higher equipment cost with greater opportunity for energy savings. Fortunately, these savings - and their associated costs - are reasonably quantifiable so that designers can make intelligent choices guided by reliable information. Kelly, David W. 1996. Free cooling considerations. Heating/Piping/Air Conditioning, August, 68(8):6p. This article discuss the application of water-side free cooling utilizing plateand-frame heat exchangers (HX). Free cooling is the production of chilled water without the use of chillers. The heat removed from the building's cooling coils is transferred through the HX to the cooling towers for rejection to the atmosphere. Free cooling is not really free; even though the chiller is off, chilled and tower water pumps and cooling tower fan(s) are required to operate. This article is broken into three sections that present considerations on how to design the building's cooling system(s) to get the most out of free cooling, considerations for the chilled water side of the free cooling system, and considerations for the cooling tower water side of the system.
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Murphy, Dan. 1991. Cooling towers used for free cooling. ASHRAE Journal, June, 33(6):16-26. Describes some of the basics of free cooling and factors to consider in analysis. Ocejo, J. 1994. Enhancement of free-cooling opportunities through tertiary pumping. ASHRAE Transactions, 100(1):824-827. An alternative approach for the multiple-chiller applications is to incorporate a tertiary, or free-cooling, loop with common piping with the distribution piping for heat transfer but hydraulically decoupled from the rest of the system.
B-26 26

CT 005 Project Implementation

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Project Implementation Plan: Achieving Successful Chilled Water Plants

A Product of the CoolTools Project CoolTools Report #CT-005 - 1998

Project Implementation Plan: Achieving Successful Chilled Water Plants

Notice To All Persons Receiving This Document

Figures and Tables

Figure 2-1 2-2 2-3 2-4 2-5 2-6

Table 1-1 2-1 2-1 2-3

Purpose and Scope

Using the Document

Related Resources - CoolTools

What Went Wrong?

The Required Resources Are Not Made Available

Management Does Not Understand Cooling Plant Requirements and Issues

The Focus Is on Short-term Considerations

Planning Is Incomplete or Nonexistent

The Owner Doesnt Communicate Needs and Expectations

Operating Staff Are Not Part of the Planning Process

Contractual Procedures Hinder Successful Implementation

The Importance of High-quality Design Services is Not Recognized

The money saved by eliminating these services is a false economy.

Performance Benchmarks are Not Established

What Can I Do to Ensure Success?

Define and Document the Plant Requirements

Commit the Necessary Resources and Plan for Success

Each of these important items is discussed further below.

Evaluate, Test, and Monitor Performance

What Are the Characteristics of a Successful Plant?

Meets the Cooling Load

Overall average plant efficiency 1.95 COP (1.8 kW/ton)

Maintenance Costs. Maintenance costs commonly comprise 7 to 25% of a plants

Can realize public-relations or employee-relations benefits from installing an energy-efficient plant.

Minimizes Negative External Impacts

Requires an Appropriate Level of Operational Expertise

Retrofit and New Construction

Commercial, Institutional, and Industrial Applications

Size of Cooling Plant

Owner-occupied and Rental Occupancies

Size of the Owners Organization

Owner Design Firm Financial Institution

Figure 2-1. Design-Bid-Construct - Single Prime Contract.

Owner Design Firm Financial Institution

Figure 2-2. Design-Bid-Construct - Multiple Prime Contracts.

Responsibilities and Incentives. The design-bid-construct contract arrangement

Owner Design Firm Financial Institution

Figure 2-3. Design-Bid-Construct - Prepurchased Equipment.

Owner Financial Institution Design-Build Contractor

Figure 2-4. Design-Build.

Outsourced Chilled Water

Chilled Water Supplier

Figure 2-5. Outsourced Chilled Water.

Energy Services Company

Figure 2-6. Performance-Based Contract.

Comparing Contractual Arrangements

present sum of money P, with an interest rate i, can be calculated as:

SPB = Incremental cos t Annual savings

NPW = P(cos t1k cos t 2 k )

NPW = PW1 PW2

Uniform Annual Costs

EUAC = CRF (i , n) P(cos t ) k

B / C = P(benefits) / P(cos ts)

Uncertainty and Risk

Electric Chillers. Electric vapor-compression chillers use centrifugal, rotary-screw,