Prisons: Prisons Can Reduce Energy Expense by 90% 7 Point System

PRISONS REPRESENT A HUGE USE OF ENERGY

New Concept Can Save Billions in Energy Expense of Prisons

A collaboration of energy and business experts, led by Environmental Solutions, Wind-Inc and CorPlan Corrections has created a coordinated system that combines solar water heating, wind power and 7 points that for many prisons can save 85% to 90% of their energy costs. This could be an important boon for the prison industry. "No one has created a coordinated system of energy saving concepts, with specific equipment in a customized format for prisons that truly will save this much energy cost, it could be a game changer." said Ben Boothe,Chair Of Wind Inc (http://www.wind-inc.com).

Considering that an average prison uses $36,000 per month in energy, THIS PROPOSAL CAN REDUCE THE BILL TO $3,000 PER MONTH. A 27% return on investment for business in renewable energy, makes near "net zero" electric bills possible. (Commercial and privately owned prisons have access to federal tax rebates while public facilities have access to public bond financing and community economic development grants).

Some of the larger prison facilities use larger amounts. David Brunet, Energy Management Coordinator for the Texas Department of Criminal Justice Said: "We have some prisons that use a megawatt or more." Put simply, large prisons are huge consumers of energy, and with this new "hybrid" approach, the savings potential runs into hundreds of millions.

The Bureau of Prisons cites, 150 Federal prisons, with 173,330 inmates, and 12 privately managed secure facilities with 22,406 inmates. They report 5 CCM facilities with 14,254 inmates. But in the broader sector, there are approximately142 private prisons or "detention" facilities, and 1250 public prisons in the USA. Numbers vary depending upon what reporting agency, but it is estimated that there are a total of 4,000 jails, prisons and holding facilities in the USA with an estimated 2,100,000 prisoners in 2010. This number has increased markedly since "9/11" and Homeland Security.

Utilizing an adjusted number of 1400 prisons, with an average of 580 inmates each, these will use monthly electric power, averaging a minimum of approximately $50,400,000 per month nation wide, or an average of $36,000 per month each. The number could be much higher for many of those prisons. A prison is similar to a hotel, or university, with lodging, showers, food preparation, creating above average energy use. It is estimated that 25% of a prison energy bill is for heating water. The average prisoner uses 75 to 100 gallons of water per day, with 40 to 50 gallons of that being hot water, for showers, food, laundry and other needs. 60% of a prison energy bill can be used for heating and cooling air.

The research study proposes a hybrid combination of 7 energy savings, using specific energy savings equipment, that can reduce the energy by 80% or more.

Allocation of energy expenses:

• 25% of a prison energy expense is heating water.
• 40% to 60% are for heating, cooling air.
• Other equipment, lighting, computers, cooking represent 12% to 20% of a prison energy bill.

Impact of savings on Value:

The APPRAISAL JOURNAL says: "For every $1 saved, because of energy savings upgrades, the value of a building goes up 20 times!" Therefore, an energy savings of $10,000 per year, results in a value increase of $200,000.

Real estate experts and valuation models prove that a facility that has a lower electric bill increases the value of the real estate facility substantially. "Our most conservative valuation model indicates that an immediate value increase occurs to a facility that does not have the overhead of high energy bills." said Ben B. Boothe, appraisal expert. "In most cases, $1,000,000 spent on renewable energy equipment, will indicate a value increase by a factor of 1.8 to 2.2 or $1,800,000 to $2,200,000, depending upon the specific application." For data and information on prison values contact: BBAR Inc. http://www.benboothe.com

NOTE THE REAL NUMBERS THAT A BUSINESS EXECUTIVE OR INVESTOR WOULD CALCULATE IN COST/SAVINGS FOR A PRISON FACILITY, WITH APPROXIMATELY 500 INMATES:

THESE ARE KEY ALTERNATIVES. A FACILITY CAN MIX AND MATCH OR SELECT THE ONES THAT ARE MOST RELEVENT TO THE UNIT. THIS UNIQUE "SYSTEM" APPROACH WILL UNIFY THE SOLAR WATER AND WIND SYSTEMS, PASSIVE HEATING SYSTEMS, WHILE STRONGLY RECOMMENDING KEY CONSERVATION MEASURES.

Prison with a monthly energy bill of $35,000 per month.

1. Install "Prison Adapted" hybrid passive solar water heating system............................................................20% savings = $7,000 per month
2. Utilize either or both, white roof coating, and radiant barrier.............................................................9% savings= $3,150 per month
3. Shading, awnings, angular screening strategic landscaping to provide sun heat shielding..........................................................4% savings = $1400 per month
4. Install one 250 kWh turbine, with Wind-Inc.'s sizing and modification for prisons,
will produce enough electricity to save..........................= $12,000 per month.
5. Exchange or upgrade lighting, appliances, cooking, laundry, components to optimize energy savings on all electric equipment, including Energy Star to save 3%= $1,050 per month
6. Increase insulation in ceilings and walls (recommend blow on material) 9%= $3,150 per month
7. Utilize dump load heat (free by product of energy conversion with wind turbine) and passive heat from hot water circulation lines of solar system to heat large areas of facility. This is free air conditioning, system concept by Wind-Inc and very efficient. saving.................................................................................15%= $5,250 per month

TOTAL SAVINGS PER MONTH............$33,000 per month

TOTAL SAVINGS PER YEAR..............$396,000 per year

TOTAL SAVINGS OVER 30 YEARS....$11,880,000 (NOT INCLUDING ANY ENERGY RATE INCREASES)

TOTAL SAVINGS OVER 30 YEARS INCLUDING RATE INCREASES....$17,800,000

Economic Model

Cost of implementing the above:

Solar water heating system including installation........$ 800,000

Roof Coating and radiant barrier.......................................$ 82,000

External heat shielding.............................................. ....$ 62,000

Wind Turbine including installation..................................$1,200,000

Upgrade internal electric devices and optimization......$ 93,000

Insulation upgrade...............................................................$ 49,000

Internal Heating "by product heat" from wind& solar $ 81,000

TOTAL COST.................................................................$2,367,000

IF COMMERCIAL OR BUSINESS 30% GRANT ...............($710,000)

DEPRECIATON EACH YEAR FOR 5 YEARS $473,400 (If in a 38% tax bracket then the actual cash saved per year is $179,892)......................(179,892)

NET COST AFTER GRANTS OR INCENTIVES IN FIRST YEAR..$1,477,108

Net annual income or savings in energy cost................$396,000

Net annual return $396,000/$1,477,108 = 27% ROI

YEAR TO PAY BACK WITH TAX INCENTIVES : 3.73 YEARS

NET ANNUAL RETURN WITH NO TAX INCENTIVES:= 17%ROI

YEARS TO PAY BACK WITH NO TAX INCENTIVES 5.98 YEARS

(Note: these are conservative energy consumption figures, many prisons use much more energy, and sizing to need is feasible, but Wind Inc offers declining costs as a percentage expense due to quantify of scale purchasing and savings on installation costs)

ON A NATIONAL LEVEL, ESTIMATE ENERGY SAVINGS TO PRISON BUDGET FOR 1400 PRISONS: ANNUAL SAVINGS: 1400 X 396,000 = $554,400,000

ON A STATE LEVEL, ESTIMATE ENERGY SAVINGS TO STATE TAXPAYERS of Texas FOR 90 PRISONS: 90 X $396,000 = $35,640,000

Over 30 years in Texas, as example could save the taxpayers: $1,069,200,000 (One Billion, Sixty Nine Million)

(not factoring energy increases. Factor in energy increases= $1,457,000,000, (One Billion, Four Hundred Fifty Seven Million)

NOTE:

PRIVATE OR BUSINESS OWNED FACILITIES HAVE THE ADVANTAGE OF TAX DEDUCTIONS AND INCENTIVES

PUBLIC FACILITIES HAVE THE ADVANTAGE OF PUBLIC FUNDING, AND BONDING PROGRAMS

FURTHERMORE, MUNICIPAL CAPITAL HAS FINANCING, BONDING, AND LEASE PURCHASE PROGRAMS AVAILABLE WORKING WITH THIS COLLABORATIVE TEAM

CONTACTS AND DATA

for more information or specific bids for a facility contact:

Environmental Solutions (http://environment-solutions.com)

BBAR Inc. and Boothe and Associates, Appraisers, Environmental Consultants: (http://www.benboothe.com)

Wind-Inc. (http://www.wind-inc.com)

CorPlan Corrections (http://www.corplancorrections.com)