Granite Construction’s update of its 1980s-era facility produced an unexpected benefit: significant electric savings and rebates.
Upon consulting with TEP representatives, the nationwide company qualified for incentives on upgrades to its Tucson plant that will save on energy costs in the long run.
The partnership with Granite shows how TEP can assist large businesses with their long-term energy needs and sustainability goals.
“TEP sees the value in working with customers to improve their efficiency,” said Chris Herne, Plant Manager of Granite’s Swan Road facility. Herne said he appreciated TEP’s partnership with Granite through the process.
Need for New Facility
Designed in the 1970s, Granite’s previous Swan Road plant was inefficient in manufacturing aggregate products – a combination of rocks, sand and gravel used for construction projects such as roads and ready-mix concrete.
The old facility required three or four washes to remove mud from road particles to produce the aggregate, taking significant time, effort and energy, Herne said.
In 2021, Granite officials decided to tear down the plant and replace it with a new one, developing a new design while discussing plans with TEP.
Incentives for Equipment
Granite reached out to TEP to discuss its plans with Aracely Lucero, TEP’s Key Account Manager for the company. When she learned about the plans for new motors and equipment upgrades, Lucero shared TEP rebate opportunities through TEP’s Business Energy Solutions program, which provides a variety of incentives to commercial businesses and schools for energy efficient improvements.
“Granite wanted to make the plant more energy efficient, reducing its usage as well as improving sustainability. I connected them with our programs and tapped the knowledge of our experts to help Granite meet their goals,” Lucero said.
With help from TEP’s partner, Franklin Energy, Granite installed process motor variable frequency drives, high-efficiency motors, process controls and automation, said Eddie Scholz of Franklin. Granite qualified for more than $82,000 in rebates.
By incorporating modern automation, the plant is enabled to move much of its operation to off peak times – including overnight – to save on costs and reduce the strain on the overall electric grid.
Improving Electric Service
In evaluating the design plans, Lucero also helped Granite transition to higher-voltage service, which will reduce its electricity costs over time.
The switch required Granite to invest in transformers, conductors and other facilities to distribute power onsite. By assuming this responsibility, the company pays a lower rate and avoids some “demand” fees for usage during periods of high energy use.
“When we walked into this, we were not intending to buy all the transformers and overhead lines,” said Herne. “We ended up going with it since we pay a lower rate for the power.”
While higher-voltage service is only an option for very large customers, such as hospitals or mines, TEP will work with any-sized customer to determine the best rate and plan for their usage, Lucero said. Read about TEP’s electric rate options.
By the Numbers
Through all of these efforts, Granite was able to increase its sustainability, aligning with its objective of environmental stewardship. At the new plant, Granite washes twice as much aggregate product with the same amount of water. Annually, it also is saving nearly 1.4 million kilowatt hours (kWh). That is the annual equivalent of:
- 3 million smartphones recharges;
- Nearly 2.5 million miles driven by a typical gasoline-powered passenger vehicle; or
- The annual energy use of 125 typical Tucson households.
Based on TEP’s 2023 energy portfolio, Granite’s annual energy savings will avoid 637 metric tons of greenhouse gas emissions. In this way, their savings also support greater sustainability for our entire community.
