Conserving energy high on Timmins' list.

Rising energy costs have created a trend that is saving hundreds of thousands of dollars for large corporations across Northern Ontario.

Whether it is a large mining company or the daily operations required to run a city, the aim is simple: increase energy efficiency and save money.

Tom Hacquard, energy management coordinator at Goldcorp's Porcupine Joint Venture (PJV) in South Porcupine, just east of Timmins, says the company spends approximately $11 million annually on energy, the second highest operating cost besides manpower. A goal to save 10 per cent was initiated since the program kicked off in August 2005.

By incorporating "Watt Watchers," an initiative from the previous owner of Placer Dome, Hacquard says the company has saved (as of early June 2006) approximately $183,000, excluding implementation costs. He adds they are implementing projects on a weekly basis that will meet the 10 per cent goal in savings.

Funding incentive for the first quarter came from the Mining Association of Canada and Natural Resources Canada. Applications have been submitted to fund the remaining three-quarters, which is currently under review.

"All of our initiatives so far have been driven by the employees," he says.

Employees submit suggestions, which are read by a 10-per-son energy management committee chaired by Hacquard. If the suggestion appears feasible, it is brought to the department involved.

"I have to sell it to the department where the implementation may occur," Hacquard says, adding that everything has been done in-house.

With the backing of senior management, suggestions taken to the next level have been implemented, maintaining open communication with the employee who offered the idea.

[ILLUSTRATION OMITTED]

Some accomplishments include reduced lighting in unused portions of the mines, controlled photocells, motion sensors in rooms, disconnecting unneeded equipment, and automation of auxiliary fans at Hoyle Pond, to name a few.

As more cost-saving projects continue to unfold, Hacquard says the most challenging aspect of the program is to maintain high levels of employee awareness. Incentives are offered via a monthly draw for two $100 gift certificates, and after a year, the person whose suggestion results in the best net savings is given a $5,000 gift certificate/trip voucher.

From Sept. 2005 to early June 2006, more than 250 suggestions were submitted, with approximately 40 implemented.

Just next door, another energy-saving program was implemented in the City of Timmins, with Mark Jensen, the city's community development director for the planning and building division, at the helm.

One of the major reasons for considering the program was the 62 per cent increase in energy costs from 1998 to 2005.

"The vast majority of those increases relate directly to energy," Jensen says.

With a balanced budget the project was very low risk, with a payback in eight years. Siemens Canada Building Technologies was selected to be the energy partner for the project, with a guaranteed reduction in energy consumption by 3.5-million kilowatts.

The total project cost is $3.7 million, with a $480,000 reduction in utility costs and $50,000 reduction in annual operating costs. The city also saves 242,443-cubic metres of natural gas, 2,1980-cubic metres of water consumption and reduces its greenhouse gas emissions by 1,280 tonnes.

[ILLUSTRATION OMITTED]

"We save $500,000 a year and this more than pays back the loan with interest," Jensen says.

The city received funding from Union Gas, Natural Resources Canada, and the Federation of Canadian Municipalities, totalling $268,000. Scotiabank is the principal financier.

Of the 94 municipal facilities, 65 audits were performed showing potential measures that could be taken to conserve energy. Some examples are retrofits, updating systems and most significantly, training staff in energy saving, conservation, and proper use of equipment, resulting in more that $50,000 in savings.

Since the project's inception, it has taken two years to evolve to its present stage, with a 12 to 14-month waiting period for funding.

"The success of this project relied on leaders of the project, as well as commitment at all levels and strong partnerships with funding bodies, Siemens and city council," Jensen says.

www.city.timmins.on.ca

By ADELLE LARMOUR

Northern Ontario Business