JCPenney Headquarters Benefits from 25 Years of Energy Storage Using CALMAC's IceBank® Technology

FAIR LAWN, N.J.--(BUSINESS WIRE)--

CALMAC^®, a leader in energy storage systems, today announces that JCPenney's corporate headquarters in Plano, Texas has saved more than $100,000 in 2015 using ice-based energy storage. For 25 years, CALMAC's technology has been installed at JCPenney's 1.8 million square-feet, LEED Gold-certified headquarters, and due to its design, is still as efficient now as the first day it was incorporated. The ice-storage system is one of the largest in the world, producing and storing nearly 4MW of cooling or 2.4 million pounds of ice each night – the equivalent of 600,000 frozen margaritas.

CALMAC's technology has proven its versatility to reduce operating costs since the tanks were installed in 1991. However, today the energy landscape in Texas is vastly different from 25 years ago. JCPenney is currently faced with a ratcheted demand charge from its utility as well as coincident peak charge, which make up a large portion of the company's monthly utility bill.

With the ratcheted demand pricing, the month with the highest energy usage sets the annual peak demand charge. In 2013, the annual peak demand charge was set in August at $37,479. The charge is ratcheted at 80 percent, which means that for the 11 months following August, JCPenney pays a demand charge of $29,983 (80 percent of $37,479). This applies unless a new peak demand is set, in which case the process starts over.

The other significant demand charge that JCPenney's Headquarters incurs is called a Transmission Cost Recovery Factor, also known as a 4CP or coincident peak demand charge. The 4CP is determined by averaging a customer's demand during the highest grid-wide peak hours of peak demand in each of the four summer months, June through September. This charge is levied by ERCOT, the grid operator for Texas, and is also ratcheted, but at 100 percent.

By using CALMAC's IceBank® energy storage technology JCPenney is able to flatten its electricity load profile and significantly reduce energy consumption during peak demand periods. Cooling is created and stored in the form of ice at night, when demand is at its lowest. The next day the ice is used to cool the building. CALMAC's technology enabled JCPenney to enroll in an Emergency Response Service program, which requires the facility to keep peak demand below 4.5MW daily and 2MW on demand response days. As a result of its participation, the peak demand calculated during both of JCPenney's coincident peak and ratchet demand charge periods were reduced by 56 percent.

"When the tanks were originally installed the utility pricing was less complicated," said Kyle Wilkes, Energy and Engineering Director Construction Services at JCPenney. "Now, with ratcheted rates and the programs available to us, we have a much more strategic plan for the ice tanks to target demand charges."

"Currently, close to 200 locations in Texas, are using our IceBank® energy storage tanks to store a total of 50MW," said Mark MacCracken, CEO of CALMAC. "However, the effectiveness of ice-based energy storage isn't limited to just warmer climates. Many people are surprised to find out that once demand charges are accounted, the price of energy is roughly 50 percent cheaper at night across the country. This clearly demonstrates the value of energy storage."

About JCPenney:

J. C. Penney Company, Inc. JCP, one of the nation's largest apparel and home furnishings retailers, is on a mission to ensure every shopping experience is worth the customer's time, money and effort. Whether shopping jcp.com or visiting one of over 1,000 store locations across the United States and Puerto Rico, customers will discover a broad assortment of products from a leading portfolio of private, exclusive and national brands. Supporting this value proposition is the warrior spirit of over 100,000 JCPenney associates worldwide, who are focused on the Company's three strategic priorities of strengthening private brands, becoming a world-class omnichannel retailer and increasing revenue per customer. For additional information, please visit jcp.com.

About CALMAC:

At CALMAC, we're changing the world, transforming the way buildings use energy for cooling. As the world's leading manufacturer of ice-based energy storage systems, CALMAC's proven technology lowers cooling costs, supports sustainable energy and enables LEED certification. IceBank systems strengthen the smart grid storing critical energy sources - including renewables like wind power - for later use. Our IceBank tanks are installed at over 4,000 locations worldwide. Widely recognized for promoting peak energy conservation and energy cost savings CALMAC is a member of the U.S. Green Building Council (USGBC) and the New Buildings Institute.

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