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Woodward Governor Company

Fort Collins, CO

Woodward Governor is an independent designer, manufacturer, and service provider of energy control and optimization solutions used in the aerospace, power generation and distribution, and transportation markets. Based in Fort Collins, Colorado, Woodward has numerous manufacturing, distribution and service facilities worldwide. The company reported $1.4 billion in sales during their 2009 fiscal year.

At their facilities in Fort Collins and Loveland, Colorado, about 1040 employees design, engineer and manufacture electronic and mechanical controls used in engine, turbine, and electrical power systems. The 234,000 square foot Fort Collins facility was built in the 1960s and 1970s, when energy prices were very low and energy efficiency was largely ignored. The Loveland facility was built in 1992.

Woodward's recent energy efficiency projects originated as a quest for maintenance efficiency in 2005. In an effort to streamline maintenance activities and reduce costs, Woodward implemented automated controls on some older equipment at the Fort Collins and Loveland facilities. The automated controls generated more thorough information on infrastructure and air handling units, and allowed staff to do preventive and proactive maintenance more effectively.

In addition to monitoring more accurately how the equipment runs, Woodward staff can now measure the efficiency of their equipment and optimize its performance. Consequently, Facilities Manager Jerry Becker decided to use similar technology to start measuring the energy efficiency of their buildings. "Among other things, that investigation led to the painful realization that almost half our electric bill for the year was for only 12 hours of use during peak demand and peak pricing periods," said Becker. He and his HVAC staff went looking for solutions.

The key to bringing down their electricity bills was to dramatically reduce peak demand and to predict and avoid steep peak demand prices. Woodward essentially implemented the equivalent of "smart grid" technology in their buildings, which enabled them to continuously monitor and adapt their energy use as needed. This also allowed them to track the utility peak demand, making it possible to quickly roll back their load from the grid during peak pricing periods.

While much of the work was completed by a contractor (Gecko Services), Woodward also sought the assistance of both the City of Fort Collins Climate Wise program, and the Colorado State University Industrial Assessment Center. Staff from each program brought fresh perspectives, which helped Woodward identify additional cost-effective efficiency and load management measures.

Other key measures implemented at the two facilities included:

  • Reduced boiler temperatures and installed a solar water heating system, which allowed for further reductions in boiler operation
  • Retrofitted energy-efficient lighting at both facilities
  • Installed a high-efficiency variable speed compressor
  • Reduced usage of 60 rooftop air conditioning units on weekends, holidays and at night when the buildings are unoccupied to realize substantial additional energy savings. Cutting back operation of the rooftop units during the peak demand periods is also an important load management response that helped Woodward avoid the highest utility rates during those periods.

In 2008 and 2009, Woodward invested a total of $250,000 to upgrade both sites with automated building controls, lighting retrofits, and new compressors. To date, the company has received approximately $120,000 in rebates from Fort Collins Utilities, Loveland Water and Power and Platte River Power Authority for multiple projects at both locations. This investment has already resulted in reducing Woodward reducing the annual electricity consumption at the two facilities by roughly 9%, saving about 2 million kWh of electricity each year.

Becker expects the company will spend a total of $450,000 over five years on energy efficiency and load management measures, including those already implemented. By the time the projects are completed in 2015, Becker estimates that Woodward will realize annual savings of approximately $400,000 on gas and electricity usage costs as well as avoided peak demand charges at the two facilities.

Within the company, Becker has been crusading to change the way the economic benefits of energy efficiency are perceived and accounted. Facility maintenance organizations within large corporations are typically considered an operating expense or liability, and are generally not regarded as profit-making centers. Reducing maintenance and operations costs is always encouraged, but not recognized or rewarded in the same way as other profit-making operations.

When he talks about energy efficiency, though, Becker reframes facility energy cost savings as contributing to the overall profitability of the corporation. Thus, through energy efficiency measures, the Woodward Fort Collins and Loveland facilities together can be seen as generating approximately $400,000 in additional profit for the company each year, along with the many tangible benefits resulting from better control of the working environment. In addition to benefiting the company, these projects are helping the municipal utilities in Fort Collins and Loveland meet their energy efficiency and peak demand reduction goals (City of Fort Collins Utilities, "2009 Energy Policy," January 6, 2009, click here).

According to Becker, this reframing has been well-received by Woodward executives, and the company is now planning to replicate what is being done in Colorado at other Woodward facilities.

Quick Facts

Fort Collins facility size: 234,000 ft2
Loveland facility size: 189,000 ft2

Initial investment (as of October 2009):
$250,000
Utility rebates (as of October 2009):
$120,000
Annual electricity savings (as of October 2009): 2 million kWh

Projected total project cost: $450,000
Projected total annual energy cost savings: $400,000
 

Contact Info

Woodward Governor Company Corporate Headquarters
P.O. Box 1519
1000 East Drake Road
Fort Collins, CO 80525

Jerry Becker, Facilities Manager
Jerry.Becker@woodward.com
(970) 498-3938