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AEE Certified Energy Manager (CEM) Sample Questions:

1. Which of the following is NOT a typical benefit of performance contracting from the building owner's perspective?

A) Maintenance services provided by the performance contractor can add value to the overall savings achieved
B) The energy-service company can have a financial incentive to achieve projected savings
C) Performance contracting is a simple and quick process
D) Net cash flow can be neutral or positive for the owner
E) Performance contracting can provide access to external financing when the owner may not have sufficient equity for in-house financing for large projects

2. A 75-kW induction motor operates at 80% partial load and 88% efficiency. A new high-efficiency 75-kW motor can be installed that will operate at 95% efficiency (also at 80% partial load). What is the reduction in electric power demand?

A) 5 kW
B) 4 kW
C) 8 kW
D) 1 kW
E) 2 kW

3. You are using a performance contract to finance the added cost of using more-efficient equipment in the construction of a new building. Which of the following International Performance Measurement and Verification Protocol (IPMVP) options would you use to verify annual energy savings?

A) Option C - Whole facility measurement
B) Option B - Retrofit isolation: all parameter measurement
C) Option A - Retrofit isolation: key parameter measurement
D) Option E - Stipulated savings
E) Option D - Calibrated simulation

4. In general, which of the following is the least expensive and easiest way to finance an energy project?

A) Debt
B) Equity
C) Performance contract

5. You can buy air compressor A for $15,000 or air compressor B for $6,000. Compressor A will cost $10,000 per year to operate. Compressor B will cost $11,500 per year to operate. If both air compressors have a 10- year life and your required return on investment is 12%, which air compressor has the lowest total life-cycle cost?

A) Compressor A
B) Both air compressors have the same life-cycle cost
C) Compressor B

Solutions: