Imagine. Downtown Akron 2025

Planning for Operations and Infrastructure

1. Review of the history and development of Akron’s thermal energy system
2. What are the current issues regarding Akron Thermal Energy?
   1. Stakeholders
      1. Customers
         1. Currently, Akron Thermal serves 87 customers for steam and 21 customers for chilled water. These organizations need an affordable, reliable, and safe energy source.
         2. Many of these customers do not have the ability to produce steam or chilled water except for short-term or emergency needs.
         3. There are thousands of downtown employees whose workplaces are heated by Akron Thermal. Interruption of service would cause significant disruptions to business, as well as serious health and safety concerns.
      2. City of Akron
         1. Since 1995, The City has had a lease with Akron Thermal to supply steam, hot water, and chilled water to downtown buildings.
         2. The City owns the plants and subsidizes their operations.
      3. Taxpayers
         1. Tax money is used to subsidize these plants.
         2. Environmental issues related to the burning of fuel and the safety of the both the plants and the infrastructure for steam delivery are of public concern.
   2. Financial Challenges for Akron Thermal
      1. When Akron Thermal took over the operation of the power plant in 1995, it was largely dependent on natural gas.
      2. The rising cost of natural gas caused deficits in the first several years of operation because there were no commensurate increases in rates charged to customers.
      3. Investments over the last several years have enabled the plant to use lower cost fuels, including wood, shredded tires, waste oil, and coal.
      4. Despite the use of lower cost fuels, revenues have not kept pace with rising production costs.
      5. New investments in emerging technologies can further reduce costs and increase profitability.
   3. Financial Advantages that Akron Thermal provides to Stakeholders
      1. A district energy provider like Akron Thermal can provide economies of scale that are not available to individual customers.
         1. Investments in new technologies can reduce cost.
         2. Innovations in fuel sources and processing can improve efficiency and reduce negative environmental impact.
      2. Akron Thermal can provide cost savings to customers. This savings can enhance economic development by providing a competitive advantage for businesses located in the downtown area.
3. Next steps
   1. Meet with Customers
      1. Bring together large customers of Akron Thermal to discuss challenges and opportunities during the spring of 2006.
      2. Evaluate expansion of delivery system to new customers.
   2. Include Akron Thermal Issues in Discussions about the Future of Downtown
      1. Educate Taxpayers
         1. Akron Thermal will communicate to customers and the public about the advantages it provides.
         2. The City of Akron will oversee the development and delivery of these communications.
      2. Key Points to Share with Customers and the Public
         1. Akron Thermal offers competitive prices to downtown customers.
         2. Cost savings are possible due to the pooled resources available for capital investments and operational improvements.
         3. Akron Thermal is a significant asset owned by the City. Accordingly, its management is appropriately supervised by and accountable to the City through routine audits and other due diligence.
         4. The shared services model allows all customers to benefit from Akron Thermal’s physical plant and personnel rather than making independent investments.
            1. Eliminates inefficiency and excessive redundancy (some redundancy is appropriate for emergency back up in critical areas).
            2. Staffing capabilities are enhanced because many customers are sharing the services of technicians and administrators.
            3. Shared responsibility and accountability enable greater responsiveness to the changing requirements of federal and other regulatory agencies.