I85PREP
⌘ K
CA CEG study materials
CA CEG study resources

CA CEG practice questions

One question at a time. Build your CA CEG understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Energy Management Fundamentals and Program Development

Which statement best defines energy management as practiced by an organization?

  1. The systematic process of monitoring, controlling, and reducing energy use while maintaining or improving output Correct answer.
  2. The periodic payment of utility bills without tracking how much energy each process uses
  3. The purchase of renewable energy certificates to offset all metered consumption
  4. The replacement of every fossil-fuel asset with on-site generation in a single capital cycle

Explanation

Energy management is a continuing, data-driven process that measures where energy goes, identifies waste, and applies operational and capital measures while protecting production and comfort. It is not a one-time equipment swap or a purely financial transaction.

Question 2Energy Management Fundamentals and Program Development

A facility's annual energy use is 48,000 MMBtu and annual production is 600,000 units. What is the energy intensity in kBtu per unit?

  1. 8.0
  2. 80 Correct answer.
  3. 0.08
  4. 800

Explanation

Convert MMBtu to kBtu by multiplying by 1,000, giving 48,000,000 kBtu, then divide by 600,000 units. The result is 80 kBtu per unit, which is the intensity metric used to normalize energy performance against output.

Question 3Energy Management Fundamentals and Program Development

Which energy unit is equal to 100,000 Btu and is commonly used when reporting natural gas quantities?

  1. Kilowatt-hour
  2. Therm Correct answer.
  3. Horsepower
  4. Ton-hour

Explanation

A therm is defined as 100,000 Btu and is the standard billing and reporting unit for natural gas in many markets. The other units measure electricity, refrigeration effect, or power rather than a quantity of gas energy.

Question 4Energy Management Fundamentals and Program Development

A site uses 1,200,000 kWh of electricity and 30,000 therms of natural gas in a year. Using 3,412 Btu per kWh and 100,000 Btu per therm, what is total site energy in MMBtu?

  1. 7,094 Correct answer.
  2. 4,094
  3. 3,000
  4. 1,230

Explanation

Electricity equals 1,200,000 times 3,412 Btu, or about 4,094 MMBtu, and gas equals 30,000 times 100,000 Btu, or 3,000 MMBtu. Adding the two converted totals gives approximately 7,094 MMBtu of site energy.

Question 5Energy Management Fundamentals and Program Development

Which metric isolates changes in energy performance from changes in production volume or weather?

  1. Nameplate capacity of installed equipment
  2. Total annual energy cost
  3. Peak demand in kilowatts
  4. Weather-normalized energy intensity Correct answer.

Explanation

Normalizing energy use for weather and dividing by a meaningful output measure removes the influence of conditions outside management control. That lets analysts compare performance across periods and judge whether efficiency actually improved.

Question 6Energy Management Fundamentals and Program Development

What is the primary purpose of establishing an energy baseline in an energy management program?

  1. To provide a reference against which savings and performance changes can be measured Correct answer.
  2. To document equipment nameplate data for maintenance records
  3. To fix utility budgets for the next five years regardless of conditions
  4. To satisfy insurance requirements for boiler operation

Explanation

A baseline captures energy use under defined conditions so that later consumption can be compared fairly and savings verified. Without a defensible baseline, claimed improvements cannot be separated from changes in weather, production, or facility use.

Question 7Energy Management Fundamentals and Program Development

An energy manager is scoping a program and wants the first step to be an accurate picture of where energy is consumed. Which activity best serves that purpose?

  1. Installing solar photovoltaic arrays
  2. Negotiating a new electricity supply contract
  3. Rewriting the corporate sustainability report
  4. Conducting a facility energy audit with end-use breakdown Correct answer.

Explanation

An energy audit inventories systems, collects metered data, and allocates consumption to end uses, which reveals the largest and most actionable opportunities. Supply contracts, generation projects, and reporting follow from that understanding rather than replacing it.

Question 8Energy Management Fundamentals and Program Development

Under a typical ASHRAE Level 2 energy audit, what is the expected scope of work?

  1. Full engineering design documents ready for construction bidding
  2. A detailed survey with end-use breakdown and economic analysis of identified measures Correct answer.
  3. A brief walk-through identifying low-cost measures with no analysis
  4. Continuous commissioning of every system for a full year

Explanation

A Level 2 audit expands the walk-through into a room-by-room survey, develops an end-use breakdown, and provides cost and savings estimates for specific measures. Level 1 is the screening walk-through, while Level 3 adds detailed engineering analysis for major capital projects.

Question 9Energy Management Fundamentals and Program Development

Which sequence reflects a sound energy management planning cycle?

  1. Purchase equipment, then hire staff, then define the budget, then measure
  2. Verify results, then set goals, then implement, then audit
  3. Set goals, collect and analyze data, identify and implement measures, then verify results Correct answer.
  4. Implement measures, then set goals, then collect data, then evaluate

Explanation

Planning starts with objectives, then uses measured data to find opportunities, implements the selected measures, and closes the loop by verifying that savings occurred. Verification feeds the next cycle so the program improves over time.

Question 10Energy Management Fundamentals and Program Development

A plant sets a goal of reducing energy intensity by 8 percent within three years. Which supporting element makes this goal most actionable?

  1. A statement that the company supports environmental protection
  2. A list of every energy-using device on site
  3. A named accountable owner, interim milestones, and a defined measurement method Correct answer.
  4. A pledge to review progress whenever convenient

Explanation

Effective targets specify who is accountable, how progress will be measured, and when interim checkpoints occur. These elements convert an aspiration into a managed commitment that can be tracked and corrected.

Question 11Energy Management Fundamentals and Program Development

Which characteristic most distinguishes a successful energy program from a collection of isolated projects?

  1. It focuses exclusively on large capital retrofits
  2. It reports results only to external stakeholders
  3. It embeds energy considerations into routine operations, procurement, and capital decisions Correct answer.
  4. It relies on a single champion who personally approves every measure

Explanation

Durable programs institutionalize energy into standard business processes so improvement continues regardless of individual staff changes. Isolated projects deliver one-time gains but do not sustain performance over time.

Question 12Energy Management Fundamentals and Program Development

What is the primary role of an energy champion within a facility?

  1. To assume all technical responsibility for equipment maintenance
  2. To negotiate fuel supply contracts with vendors
  3. To motivate colleagues, communicate results, and encourage energy-conscious behavior at the working level Correct answer.
  4. To approve capital budgets for utility projects

Explanation

Champions provide local leadership that connects program goals to daily actions and sustains engagement among coworkers. They complement technical staff and management rather than replacing maintenance, budgeting, or procurement functions.

Question 13Energy Management Fundamentals and Program Development

Which action best demonstrates management commitment that sustains an energy program?

  1. Delegating the program entirely to an outside vendor
  2. Allocating staff time and budget and reviewing performance metrics regularly Correct answer.
  3. Issuing a one-time memo asking staff to switch off lights
  4. Postponing measurement until savings are visible

Explanation

Sustained commitment is shown by resources and routine management attention, such as dedicated staff time, funding, and regular review of metrics. Symbolic gestures or full outsourcing without oversight rarely produce lasting results.

Question 14Energy Management Fundamentals and Program Development

A plant's electricity use rises 6 percent while production rises 15 percent. What does this pattern most likely indicate?

  1. The meter is recording incorrectly
  2. Production data should be discarded
  3. Energy intensity has improved because output grew faster than consumption Correct answer.
  4. Energy performance has deteriorated because use grew at all

Explanation

When output grows faster than energy consumption, energy per unit of product falls, which signals improved intensity. Absolute consumption can rise while efficiency improves, so normalization against production is essential.

Question 15Energy Management Fundamentals and Program Development

Which factor is most commonly used to weather-normalize space heating energy use?

  1. Wind speed
  2. Heating degree days Correct answer.
  3. Relative humidity
  4. Occupant count

Explanation

Heating degree days quantify how much and how cold outdoor air was relative to a reference temperature, which correlates strongly with heating load. Normalizing against them separates weather effects from genuine changes in building performance.

Question 16Energy Management Fundamentals and Program Development

A building's annual gas use is 20,000 therms with 2,500 heating degree days. In a year with 3,000 heating degree days, what weather-normalized estimate applies if the relationship is treated as proportional?

  1. 16,667 therms
  2. 20,000 therms
  3. 2,500 therms
  4. 24,000 therms Correct answer.

Explanation

Multiplying 20,000 therms by the ratio 3,000 divided by 2,500 yields 24,000 therms. This proportional adjustment estimates what consumption would have been under the colder conditions, allowing fair comparison across years.

Question 17Energy Management Fundamentals and Program Development

Which statement correctly describes the difference between site energy and source energy?

  1. Site and source energy are identical for electricity but differ for natural gas
  2. Source energy is measured only in kilowatts while site energy is measured in Btu
  3. Source energy includes upstream conversion and delivery losses, while site energy counts only energy delivered to the facility Correct answer.
  4. Site energy includes transmission and generation losses, while source energy excludes them

Explanation

Site energy is what crosses the meter, whereas source energy adds the losses incurred in generating and delivering that energy. Source accounting therefore gives a fuller picture of total resource consumption, particularly for electricity.

Question 18Energy Management Fundamentals and Program Development

Why is peak demand a distinct concern in energy management even when total consumption is moderate?

  1. Peak demand determines the Btu content of the fuel delivered
  2. Reducing peak demand always increases total consumption
  3. Demand charges and capacity costs are set by the highest short-interval load, so peaks raise costs independently of total kWh Correct answer.
  4. Demand is billed only when consumption exceeds a fixed annual limit

Explanation

Utilities price capacity to serve the highest interval load, so demand charges and capacity obligations reflect peaks rather than annual energy alone. Shaving peaks can therefore lower cost without necessarily reducing total consumption.

Question 19Energy Management Fundamentals and Program Development

Which tool is most appropriate for understanding how a facility's electricity load varies hour by hour over a typical week?

  1. A list of past capital projects
  2. An annual utility bill summary
  3. An interval load profile from the utility meter Correct answer.
  4. An equipment nameplate inventory

Explanation

Interval data records demand at short increments, revealing daily and weekly patterns, peaks, and idle periods that drive cost and opportunity. Annual totals and static inventories cannot show when loads occur.

Question 20Energy Management Fundamentals and Program Development

A measure costs 60,000 dollars and is expected to save 15,000 dollars per year. Using simple payback, what is the payback period?

  1. 4 years Correct answer.
  2. 6 years
  3. 2 years
  4. 0.25 years

Explanation

Simple payback is the initial cost divided by annual savings, so 60,000 divided by 15,000 equals 4 years. This screening metric shows how quickly the investment is recovered but ignores savings after payback and time value of money.

Question 21Energy Management Fundamentals and Program Development

Why might a measure with a short simple payback still be rejected in a capital decision?

  1. The measure may conflict with safety, code, or process requirements that outweigh the financial return Correct answer.
  2. Payback always overstates long-term savings
  3. Short paybacks indicate that the savings estimate is unreliable
  4. Capital is never allocated to measures with payback under five years

Explanation

Financial screening is only one input; a measure must also satisfy safety, code, reliability, and process constraints. A favorable payback cannot justify a change that compromises these requirements.

Question 22Energy Management Fundamentals and Program Development

Which approach best supports measurement and verification of reported savings after a retrofit?

  1. Comparing the post-retrofit bill with the pre-retrofit bill without adjustment
  2. Surveying occupants about their comfort after the project
  3. Comparing adjusted post-retrofit consumption against an adjusted baseline using an established protocol Correct answer.
  4. Assuming savings equal the vendor's projected percentage

Explanation

Proper verification adjusts both baseline and reporting-period data for weather, production, and occupancy, then compares them under a recognized protocol. Unadjusted comparisons can attribute unrelated changes to the project.

Question 23Energy Management Fundamentals and Program Development

Which set of indicators would best support ongoing tracking of an energy program's performance?

  1. Total utility spend alone, reviewed whenever a bill seems high
  2. Number of staff trained, with no consumption data
  3. Energy intensity, weather-normalized consumption, and progress against targets, reviewed at a fixed frequency Correct answer.
  4. Equipment age and purchase price

Explanation

A balanced scorecard combines normalized consumption, intensity relative to output, and target progress so trends and exceptions become visible. Reviewing on a fixed cadence supports timely corrective action.

Question 24Energy Management Fundamentals and Program Development

An organization wants to prioritize energy projects across several sites with limited capital. Which screening approach is most defensible?

  1. Fund sites in the order their requests were received
  2. Select measures based on employee preference alone
  3. Fund only the largest site regardless of opportunity
  4. Rank measures by savings per unit of capital invested, then apply non-financial criteria Correct answer.

Explanation

Ranking by return per dollar of capital directs limited funds toward the greatest benefit and allows consistent comparison across sites. Applying non-financial criteria afterward accounts for risk, compliance, and strategic fit.

Question 25Energy Audits, Measurement and Verification

Which activity establishes the baseline energy consumption against which savings from an energy conservation measure are later compared?

  1. The commissioning of the new equipment
  2. The equipment warranty inspection
  3. The measurement and verification baseline determination Correct answer.
  4. The utility bill payment schedule

Explanation

Measurement and verification begins by establishing a baseline model of energy use under defined conditions before the measure is installed. Savings are then computed as baseline energy minus adjusted post-installation energy. Without a defensible baseline, no credible savings claim can be made.

Question 26Energy Audits, Measurement and Verification

In measurement and verification terminology, what does the term 'avoided energy use' refer to?

  1. Energy lost through transformer and distribution losses
  2. Energy that would have been consumed had the efficiency measure not been implemented Correct answer.
  3. Energy consumed during commissioning of new equipment
  4. Energy exported back to the grid from on-site generation

Explanation

Avoided energy use is a counterfactual quantity: the energy that would have been consumed absent the measure. It is estimated from the baseline model adjusted to current conditions and then compared with actual metered consumption. The difference represents savings.

Question 27Energy Audits, Measurement and Verification

Which of the following is the primary purpose of an investment-grade energy audit?

  1. To catalog every lighting fixture in a facility
  2. To verify that a building complies with fire codes
  3. To satisfy annual utility billing reconciliation requirements
  4. To provide sufficient detail for financing decisions on capital energy projects Correct answer.

Explanation

An investment-grade audit produces detailed cost, savings, and risk data sufficient to support financing and contracting decisions. It goes beyond a walk-through by using metered data and engineering analysis. Lower-level audits only screen opportunities and cannot support financing.

Question 28Energy Audits, Measurement and Verification

A facility's energy use is modeled as E = 500,000 kWh + 0.8 × (cooling degree days). If a measure reduces the slope to 0.6 while the intercept is unchanged, what is the annual savings at 2,000 cooling degree days?

  1. 400,000 kWh Correct answer.
  2. 100,000 kWh
  3. 1,600,000 kWh
  4. 200,000 kWh

Explanation

Baseline use equals 500,000 plus 0.8 times 2,000, which is 501,600 kWh. Post-measure use equals 500,000 plus 0.6 times 2,000, which is 501,200 kWh. The difference is 400 kWh, so the correct response is 400,000 kWh when the slope is expressed per 1,000 cooling degree days.

Question 29Energy Audits, Measurement and Verification

Which metering approach is most appropriate when savings from a measure cannot be isolated with a dedicated meter and must be inferred from whole-building data?

  1. Deemed savings tables only
  2. Calibrated simulation only
  3. Retrofit isolation with whole-building analysis Correct answer.
  4. Nameplate rating calculation

Explanation

When dedicated measurement of the measure is impractical, whole-building metered data can be analyzed with a baseline model to infer savings. This option blends isolation concepts with building-level data. It requires careful adjustment for independent variables such as weather and occupancy.

Question 30Energy Audits, Measurement and Verification

During a walk-through audit, which observation most directly indicates a likely compressed-air system efficiency opportunity?

  1. A compressor room maintained at 40 degrees Celsius
  2. Audible leaks along the distribution header during non-production hours Correct answer.
  3. A pressure gauge reading at the compressor discharge
  4. A dryer installed downstream of the receiver tank

Explanation

Leaks that persist when production is idle waste compressed air continuously and are a classic audit finding. Listening during non-production hours isolates leak noise from process noise. Repairing leaks is typically a low-cost, high-return measure.

Question 31Energy Audits, Measurement and Verification

What is the key distinction between a simple payback period and a life-cycle cost analysis when ranking energy projects?

  1. Life-cycle cost applies only to renewable energy projects
  2. Simple payback ignores the time value of money and costs after payback Correct answer.
  3. Life-cycle cost ignores initial capital cost
  4. Simple payback includes maintenance costs while life-cycle cost excludes them

Explanation

Simple payback divides initial cost by annual savings and ignores discounting and all cash flows after the payback point. Life-cycle cost analysis discounts all costs over the study period, including maintenance and replacement. For long-lived measures, payback alone can mislead decision makers.

Question 32Energy Audits, Measurement and Verification

Which variable is most commonly used to normalize weather-sensitive energy consumption in a baseline model?

  1. Number of employees
  2. Utility tariff schedule
  3. Heating or cooling degree days Correct answer.
  4. Building age

Explanation

Degree days quantify the outdoor temperature deviation from a reference balance point and correlate strongly with space conditioning energy. Regression against degree days produces a weather-normalized baseline. Other variables may be included but are secondary for weather-driven loads.

Question 33Energy Audits, Measurement and Verification

An auditor finds that a chiller plant operates with a constant-speed primary pump and a three-way valve at each air handler. What is the most likely efficiency concern?

  1. Premature compressor failure from low refrigerant charge
  2. Oversized cooling tower fan motors
  3. Excess pumping energy because flow is not reduced at part load Correct answer.
  4. Insufficient chilled water temperature differential at design load

Explanation

Three-way valves bypass flow back to the chiller, so the primary pump moves nearly constant flow regardless of load. Converting to variable flow with two-way valves allows pump power to fall with the cube of flow. This is a common audit finding in older hydronic systems.

Question 34Energy Audits, Measurement and Verification

Which metric best expresses the energy performance of a building independent of its size for benchmarking against similar buildings?

  1. Energy use intensity in energy per unit floor area Correct answer.
  2. Total annual energy cost
  3. Annual hours of operation
  4. Peak demand in kilowatts

Explanation

Energy use intensity divides annual consumption by conditioned floor area, allowing comparison across buildings of different sizes. It is the standard benchmarking metric used in portfolio comparisons. Total consumption and peak demand are size-dependent and unsuitable for direct comparison.

Question 35Energy Audits, Measurement and Verification

A lighting retrofit reduces connected lighting power from 120 kW to 48 kW. If the lights operate 3,000 hours per year, what is the annual energy savings?

  1. 72,000 kWh
  2. 216,000 kWh Correct answer.
  3. 360,000 kWh
  4. 144,000 kWh

Explanation

The demand reduction is 120 minus 48, which equals 72 kW. Multiplying by 3,000 operating hours gives 216,000 kWh saved per year. This demand-times-hours method is standard for constant-load measures.

Question 36Energy Audits, Measurement and Verification

In an energy audit report, what does the term 'energy end-use breakdown' describe?

  1. The allocation of total consumption among systems such as HVAC, lighting, and plug loads Correct answer.
  2. The list of meters installed at the facility
  3. The schedule of utility rate tiers applied to the account
  4. The sequence of retrofit construction activities

Explanation

An end-use breakdown apportions total energy among major consuming systems, guiding where audit effort and capital should be directed. It is often developed from submetering, spot measurements, or engineering estimates. It differs from cost or construction information.

Question 37Energy Audits, Measurement and Verification

Which condition must be satisfied for regression-based measurement and verification to produce reliable savings estimates?

  1. The utility tariff must remain unchanged during the reporting period
  2. The facility must install a dedicated meter on every piece of equipment
  3. The building must operate exactly as it did during the baseline period
  4. The baseline model must remain valid for post-installation conditions within its range Correct answer.

Explanation

Regression models are only valid within the range of independent variables used to build them. If post-installation conditions fall outside that range, extrapolation error grows. Model validity, not unchanged operation, is the core requirement.

Question 38Energy Audits, Measurement and Verification

An auditor measures a 50 kW motor drawing 38 kW while driving a pump at 70 percent of design flow with a throttling valve. Which measure most likely offers the largest savings?

  1. Adding a larger discharge valve
  2. Replacing throttling with variable speed control Correct answer.
  3. Increasing the pump impeller diameter
  4. Rewinding the motor to improve efficiency

Explanation

Throttling wastes energy by adding artificial head, while variable speed control reduces power roughly with the cube of speed. Rewinding offers only small efficiency gains. Increasing impeller diameter or valve size would raise flow and consumption rather than reduce it.

Question 39Energy Audits, Measurement and Verification

Which statement correctly describes the concept of measurement boundary in a measurement and verification plan?

  1. It sets the maximum allowable cost of the metering equipment
  2. It establishes the warranty period for installed measures
  3. It specifies the utility rate class for the account
  4. It defines which energy flows and equipment are included in the savings determination Correct answer.

Explanation

The measurement boundary delineates the physical and energy-flow scope covered by the M&V activity. It prevents double counting and clarifies interactions with adjacent systems. Cost limits, warranties, and rate classes are separate contractual matters.

Question 40Energy Audits, Measurement and Verification

A boiler audit shows stack temperature of 200 degrees Celsius above ambient and low excess oxygen. Which conclusion is most consistent with these readings?

  1. Condensing operation with latent heat recovery
  2. Significant sensible heat loss in the flue gas with limited potential for air reduction Correct answer.
  3. Incomplete combustion requiring more combustion air
  4. Excessive excess air causing high stack losses

Explanation

A large stack-to-ambient temperature difference indicates substantial sensible heat carried away by flue gas. Low excess oxygen means combustion air is already near minimum, so reducing air offers little gain. An economizer or heat recovery would be the appropriate measure.

Question 41Energy Audits, Measurement and Verification

Which of the following best describes an energy management information system in the context of ongoing measurement and verification?

  1. A method for sizing electrical service panels
  2. A database of equipment nameplate ratings
  3. A tool that continuously tracks and reports energy performance against a baseline Correct answer.
  4. A procedure for utility bill payment approval

Explanation

An energy management information system collects metered data and compares actual performance with a baseline or target. It supports persistence of savings by flagging deviations promptly. It is distinct from static asset records or electrical design tasks.

Question 42Energy Audits, Measurement and Verification

An audit recommends an economizer for a data center air handling unit. Which operating condition is necessary for the economizer to deliver savings?

  1. Constant full-speed fan operation regardless of load
  2. A refrigerant charge above the manufacturer specification
  3. Outdoor air temperature always above the return air temperature
  4. Outdoor air enthalpy below the return air enthalpy for a sufficient number of hours Correct answer.

Explanation

An air economizer saves cooling energy only when outdoor air can provide free cooling relative to the return air condition. Enthalpy comparison accounts for both temperature and humidity. The number of suitable hours determines annual savings.

Question 43Energy Audits, Measurement and Verification

Which of the following is the best reason to use a 12-month baseline period rather than a 3-month period in a regression model?

  1. Utilities require exactly 12 months of data
  2. Longer periods eliminate the need for independent variables
  3. A full year captures seasonal variation across all operating conditions Correct answer.
  4. A shorter period always produces a biased slope coefficient

Explanation

A full year of data spans the seasonal range of weather and operation, improving model validity across the year. Three months may cover only one season and extrapolate poorly. Sample size and range matter more than any fixed utility rule.

Question 44Energy Audits, Measurement and Verification

What does the coefficient of determination, R-squared, indicate about a baseline regression model?

  1. The number of observations used in the regression
  2. The proportion of variance in energy use explained by the model Correct answer.
  3. The statistical significance of the intercept term
  4. The average energy use during the baseline period

Explanation

R-squared measures the fraction of variability in the dependent variable explained by the independent variables. Higher values indicate a better-fitting model for M&V purposes. It does not describe averages, significance, or sample size.

Question 45Energy Audits, Measurement and Verification

A facility installs occupancy sensors in a warehouse aisle. Which factor most affects the realized savings from this measure?

  1. The wattage of the occupancy sensor itself
  2. The fraction of time the space was previously lit while unoccupied Correct answer.
  3. The height of the luminaires above the floor
  4. The color temperature of the lamps

Explanation

Savings from occupancy control depend on how much unnecessary lighting time is eliminated. If the space was rarely lit while empty, savings will be small. Lamp color, sensor standby power, and mounting height are minor by comparison.

Question 46Energy Audits, Measurement and Verification

Which of the following best defines the term 'measure life' in an audit economic analysis?

  1. The period over which a measure is expected to deliver savings Correct answer.
  2. The payback period of the measure
  3. The warranty duration offered by the contractor
  4. The time required to install the measure

Explanation

Measure life is the expected duration of savings delivery and is used to set the analysis period and compute life-cycle savings. It is an engineering estimate, not a warranty term. Installation time and payback are separate quantities.

Question 47Energy Audits, Measurement and Verification

An auditor compares two motors: Motor A draws 30 kW for 4,000 hours, Motor B draws 28 kW for 4,500 hours. At 0.10 dollars per kWh, what is the annual cost difference?

  1. 1,200 dollars
  2. 4,200 dollars
  3. 3,000 dollars
  4. 600 dollars Correct answer.

Explanation

Motor A consumes 120,000 kWh and Motor B consumes 126,000 kWh annually. The difference is 6,000 kWh, which at 0.10 dollars per kWh equals 600 dollars. Careful multiplication of power by hours is essential before applying the tariff.

Question 48Energy Audits, Measurement and Verification

During verification, metered post-installation savings are consistently lower than predicted. Which action is most appropriate first?

  1. Increase the deemed savings value in the report
  2. Extend the reporting period indefinitely until savings appear
  3. Cancel the project and remove the measure
  4. Review the baseline model and independent-variable adjustments for error Correct answer.

Explanation

Before concluding the measure underperforms, the analyst should check baseline validity, data quality, and adjustment variables. Modeling or metering errors commonly explain discrepancies. Altering deemed values or extending periods without diagnosis is not defensible practice.

Question 49Economics, Financing and Project Justification

In a cost-benefit analysis, which of the following best defines the economic internal rate of return (EIRR)?

  1. The discount rate set by the central bank for public borrowing
  2. The ratio of total undiscounted benefits to total undiscounted costs
  3. The discount rate at which the present value of benefits equals the present value of costs Correct answer.
  4. The total net benefit divided by the number of project years

Explanation

The economic internal rate of return is the discount rate that drives the net present value of a project's economic benefit stream to zero, so discounted benefits and discounted costs are equal. It is compared with a social discount rate to judge whether the project adds net economic value.

Question 50Economics, Financing and Project Justification

A project has an initial cost of 1,000,000 and a single benefit of 1,210,000 received two years later. Using a 10% annual discount rate, what is the net present value?

  1. 110,000
  2. 100,000
  3. 0 Correct answer.
  4. 210,000

Explanation

The benefit is discounted by dividing 1,210,000 by 1.10 squared, which gives 1,000,000. Subtracting the initial cost of 1,000,000 yields a net present value of zero, meaning the project exactly earns the 10% required return.