NYSERDA Press Releases

NYSERDA Provides Financial Incentive For Energy Efficiency Upgrades at Electro Abrasives Corp.
Steel City manufacturer to save $210,000 annually

Lackawanna, NY --The New York State Energy Research and Development Authority (NYSERDA) today announced it has entered into a partnership with the Electro Abrasives Corporation and Siemens Building Technologies, Inc. to implement a series of energy conservation measures that will save the Steel City manufacturing plant more than $210,000 annually in electrical energy costs.

"Governor Pataki and NYSERDA are committed to lowering the energy costs for all New Yorkers, and especially for important manufacturers like the Electro Abrasives Corporation," said NYSERDA President William M. Flynn. "Through our New York Energy Energy $mart^SM program, we are partnering with Electro Abrasives and Siemens to lower consumption, improve efficiencies in their manufacturing processes and save money."

"Energy costs were eating most of our profits, so our energy consultant introduced us to Siemens Building Technologies, Inc. It has been a good team effort and when combined with NYSERDA incentives, we expect to recover our investment in a few years," Allan D. Ramming, Electro Abrasives Corporation President said.

The total project cost is $1.046 million with NYSERDA providing $479,425 in financial incentives. This figure represents project construction and installation costs of $780,000 and a monthly maintenance charge. In addition, Electro Abrasives Corporation utilized the New York Energy $mart^SM Loan Fund to borrow $370,000 to purchase a natural gas fired compressor and energy management system.

The Loan Fund is available for qualified energy efficiency measures and reduces the cost of a loan by 450 basis points or 4.5 percent. Electro Abrasives Corp. will save more than $45,000 in interest expenses.

Electro Abrasives Corporation utilized financial incentives available through NYSERDA's Commercial and Industrial Performance Program (CIPP), to reduce the cost of the energy efficiency upgrades. Under the CIPP, financial incentives provided by NYSERDA go directly to energy service companies, such as Siemens. It has been Siemens practice to pass the financial incentive to the customer, less a small administrative charge and guarantees project outcomes in terms of performance and finances.

"At Siemens Building Technologies, our objective is to provide a unique performance solution making the customer energy efficient and environmentally compliant," said Bert Spaeth, Energy Engineer, Siemens Building Technologies, Inc. "Incentives from various sources, including NYSERDA, are passed on to our customers, less an administrative fee. We are pleased to play a part in helping Electro Abrasives Corporation with their energy needs."

Flynn said the project involves the installation of a natural gas fired 585 HP air compressor that is more efficient and yields substantial heat recovery for space heating than the existing units, controls to existing air compressors and air handlers, replacement of existing air vibrators with turbine type SST air vibrators, and replacement of air handler controls that will save 25 percent of the natural gas used by the existing units.

Once completed, the installation of new equipment and upgrades will result in a reduction of 511.9 kilowatts per month or $70,947 in reduced annual electric costs. In addition, the improvements will result in the saving of more than 2.6 million kilowatt hours of electric energy per year, resulting in a savings of approximately $214,549 annually. Total electric energy savings will be approximately $285,523 per year.

Funding for this project came from NYSERDA's New York Energy $mart^SM program, which is designed to lower electricity costs by encouraging energy efficiency as the State's electric utilities move to competition. The programs are available to all electric distribution customers (residential, commercial, institutional, and industrial) of Central Hudson, Con Edison, NYSEG, Niagara Mohawk, Orange and Rockland, and Rochester Gas and Electric.

Since 1998, NYSERDA has provided more than $26 million to support more than 500 projects in Erie and Niagara Counties. Combined with co-funding from NYSERDA's partners, the value of these projects is more than $65 million. Among some of the other customers NYSERDA is working with in Erie and Niagara Counties, are: State University of New York at Buffalo; Veridian Engineering, Inc.; Quebecor, Kreher's Poultry Farm; HSBC Bank USA; and Niagara Frontier Transportation Authority.

Additional information about these programs can be obtained at www.nyserda.org or www.getenergysmart.org, or toll-free at (877) NY-SMART.

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