Quarterly Representative Newsletter 2024

QUARTERLY REPRESENTATIVE NEWSLETTER

• MESSAGE FROM PREFERRED

• BOOKINGS

• PREFERRED FUELS THE FUTURE

• AND MORE

A MESSAGE FROM PREFERRED

Greetings fellow business partners! I sure hope that your 2023 finished as nicely as ours did here at Preferred. I think everyone has been eyeing 2024 with cautious optimism BUT it sure hasn’t slowed down our activity. The requests for quotations on projects is still overflowing. Usually, an election year brings about a lot of hesitation with spending on projects. Let’s hope this isn’t the case this time. With inflation still a problem, it appears that a lot of end users are NOT putting off projects due to the inevitable increase in cost down the road. A salesperson hates to use this fact as a sales tool but, it is a reality. I see 2024 as a year of preparing for a HUGE 2025.

Make sure you reach out to me for training and helping with any “Lunch and Learns”. Also, we will have a LARGE presence at the ABMA Boiler 2024 Technology Conference & Expo in Denver CO May 1-3. Make sure you put this on your calendar and come see us.

Till next time, happy selling!

Steve Pelt V.P. Business Development

PREFERRED FUELS

THE FUTURE: A NYC DATA CENTER PROJECT JOURNEY

Contributed by John Haber

In New York City, ACS has provided Preferred’s fuel oil equipment to a data center who is a repeat customer. Known for quality, durability (in the harshest conditions and even surviving natural disasters), and redundancy, Preferred’s fuel oil equipment will power emergency generators, which are the required power source for all data center applications. We’re proud to showcase our Americanmade technology on this important venture.

PROJECT HIGHLIGHTS:

Duplex Pump Skid and Filtration Unit: Our cutting-edge duplex pump skid and filtration unit, ensuring optimal fuel flow and quality, plays a crucial role in the project’s success.

Underground 6K Gallon Oil Tanks: Two substantial 6,000-gallon oil tanks are being installed underground, providing a reliable and ample fuel source for the data center’s operations.

PREFERRED FUELS

THE FUTURE: A NYC DATA CENTER PROJECT JOURNEY

Advanced Pump House: The project includes a state-of-the-art pump house equipped with baseboard heating, a drop ceiling, and a 20-amp service. Delivered as a knockdown unit, it demonstrates our commitment to innovation and efficiency.

Continued Legacy: This project marks a significant milestone in the continued legacy of our fueling equipment, initially provided in 2007. The durability and reliability of our solutions have stood the test of time, reinforcing our position as leaders in the industry.

As we embark on a new era of technology at this data center project, Preferred is proud to contribute to the technological evolution of New York City. Our Americanmade fuel oil equipment will play a pivotal role in ensuring a reliable and efficient energy supply for this facility and many other mission critical facilities like it.

UNDERSTANDING SCADA SYSTEMS

A Technical Educational Article

by Estera Cioroch

SCADAs are used anywhere there is a need to regulate automated functions, including manufacturing, power generation, water treatment and distribution, food production and refrigeration, oil and gas refining, mass transit and traffic regulation, and so much more. Given their broad use and application, understanding what they are and what they do is key to grasping the importance and value of these automated systems. But what exactly is a SCADA?

SCADA stands for Supervisory Control and Data Acquisition and can be thought of as the “brain and nervous system” of an industrial plant. It is a type of control system architecture composed of five main parts: Programmable Logic Controllers (PLCs), Remote Terminal Units (RTUs), communication infrastructures, a supervisory system, and a Human Machine Interface (HMI). The PLCs and RTUs connect to sensors in the field, gathering and sending data via the communication infrastructure to the supervisory system. The supervisory system, which is typically what is referred to as the SCADA in discussions, then transfers data to the HMI (essentially the program displayed on the monitor of the

SCADA computer.) An operator can then use the HMI to read and monitor data from tags, respond to alarms, and run commands that streamline and control plant operations. Typically, a SCADA system will also include alarming, as well as a historian that supports trending or reporting—both useful analytical tools.

There are many reasons that SCADAs are so commonly used in a variety of industries. For one, SCADAs provide a clear visual of what is happening inside a plant in real time, allowing operators to respond quickly to critical situations and prevent potential accidents. Additionally, SCADA systems record and store data, which can then be analyzed to reveal operational vulnerabilities and help drive informed decisions to increase plant

UNDERSTANDING SCADA SYSTEMS

efficiency, profit margins, plant safety, or even the life of equipment within a plant. Finally, SCADA systems also provide remote control of devices and operations on the field, automating many system functions that would otherwise have to be performed manually. In short, SCADA systems provide incredible value to a wide range of industries, driving plant efficiency and helping to streamline automated processes.

THERMOPUMP FUEL OIL TRANSFER PUMP AND HEATER SET

The Thermopump Fuel Oil Transfer Pump and Heater Set provides the above ground oil storage tank and exposed suction and return lines with a re-circulating flow of warm oil. Additionally, the Thermopump system can provide automatic duplex pump sequencing and monitoring for boiler and day tank applications.

• For No. 2 Fuel Oil Applications

• Flows from 20 to 2200 GPH

• Above ground storage tanks supply & return oil line heating system and Loop or Day Tank Fuel Oil Transfer System

• When heating is required, an electric heater is turned on and an automatic solenoid valve energized to recirculate fuel oil

Ensuring Reliability Year-Round:

The Preferred Thermopump System in Action. As winter continues, the significance of the Preferred Thermopump system continues to shine, especially when integrated into a duplex fuel pump skid. Beyond its role in warmer months, the Thermopump Fuel Oil Transfer Pump and Heater Set play a crucial role in preventing diesel fuel from reaching a gel state during colder

temperatures, a potential pitfall for above ground oil storage systems with exposed suction and return lines.

Winter Resilience:

The Thermopump system’s value extends beyond cold weather fuel protection. It seamlessly provides automatic duplex pump sequencing and monitoring for boiler and day tank applications in large, mission critical facilities like data centers, hospitals, nursing homes, airports, and federal buildings. Operating independently of the plant’s boiler triplex supply pumps, the Thermopump provides continuous circulation of fuel from supply tanks without disrupting boiler fuel supply and operation.

THERMOPUMP FUEL OIL TRANSFER PUMP AND HEATER SET

Utilizing Preferred’s Fuel System

Controller (FSC) Nodenet system, the Thermopump system is easily operable and monitorable from any control panel in the fuel oil system. This integrated approach harmonizes with plant-level control, boiler supply pumps, filtration, leak detection, and overfill alarms, creating a comprehensive fuel oil package suitable for very large plants.

Reliability in the Face of Challenges:

Preferred has successfully deployed Thermopump systems in large facilities, demonstrating their ability to isolate and report issues to a central point, ensuring uninterrupted uptime. In critical environments like data centers and healthcare facilities, where constant operation is paramount, this level of reliability is indispensable.

Adaptable Solutions:

The Thermopump system finds further application in plants unprepared for diesel fuel heating during sporadic cold weather. In situations where utility plants and central steam plants switch to oil firing to conserve natural gas for residential and other non-backup oil firing plants, the Thermopump system steps in, maintaining fuel temperature and circulation.

Texas Cold Front Case Study:

The Texas cold front of February 2021, bringing some of the coldest temperatures since 1936, exemplifies the Thermopump’s resilience. In areas like Houston and San Antonio, where plants are not typically equipped to heat diesel fuel during cold weather, the Thermopump system proved instrumental in preventing gelling and keeping operations running smoothly.

Year-Round Assurance:

Winter or summer, the Preferred Thermopump system stands ready to prevent temperature-related issues and identify performance issues seamlessly. Whether safeguarding against unexpected weather or maintaining uninterrupted operations in critical facilities, the Thermopump system remains a reliable and easy-to-monitor solution for any size of operation. Depend on the Thermopump system to keep your operations up and running, no matter the conditions.

PREFERRED INITIATIVES:

THANK YOU CREW

We extend our heartfelt gratitude to everyone who generously contributed to support the Christian Churches in Ukraine. This collective effort was made possible through the collaboration of both Calvary Baptist Church members and Preferred Crew. Your kindness and generosity have made a meaningful impact, demonstrating the power of unity and compassion in making a positive difference in the lives of others. Thank you for being a part of this important initiative.

PREFERRED UTILITIES BUSINESS SYSTEMS

By Scott Thompson

UPDATE: Preferred Utilities places a premium on leveraging advanced business systems to enhance its operational capabilities. Preferred's business systems contribute to superior customer service, cost reduction, and support scalability, collectively reinforcing our commitment to efficient operation and delivering top-notch service to our clients. These systems play a pivotal role in optimizing our shop and engineering operations, ensuring precision and efficiency in every aspect of our work.

BENEFITS:

1. Increased efficiency and productivity: Preferred’s business systems automate routine and repetitive tasks, freeing our valuable employees to focus on more strategic and value-added work. This leads to significant increases in both efficiency and productivity.

2. Improved accuracy and consistency: Preferred’s business systems help to ensure that tasks are performed correctly and consistently every time. This reduces Engineering errors and improves the overall quality of work.

3. Enhanced visibility and control: Preferred’s business systems provide real-time visibility into key business processes and metrics. This gives our team members the information they need to make better decisions and identify and address potential problems early on.

In addition to these three benefits, Preferred’s business systems:

• Improve customer service

• Reduce costs

• Support business growth and scalability

Overall, business systems help Preferred Utilities to operate efficiently and effectively. Increasing the efficiency and productivity of our shop and Engineering while improving accuracy and consistency for our customers’ jobs.

EMPOWERING EFFICIENCY: SALES TOOL

By Jeremiah Embrador

Empowering Efficiency: Preferred's New Sales Tool

In the last half of 2023, the Business Systems Team worked on the Sales Tool, an application for creating estimates that would remove the need for Excel-based sales forms, provide a system to track the changes between versions of estimates, and coordinate communication among departments.

One of the major problems with using spreadsheets for logging data is that information regularly desynchronizes, an example for which would be pricing information for items in the Preferred Catalog. However, with the Sales Tool, all relevant information is stored in and drawn from a single database that contains all necessary data to provide information to the Sales Tool, maintaining synchronicity for everyone using the system.

Additionally, because changes made to quotes were made through forms and spreadsheets, it was difficult to see how they changed over time. However, with the new version tracking system that the Sales Tool utilizes, users can easily see the change history as the estimate evolves.

The creation of an estimate that will eventually become a sales order requires coordinated communication among various departments. Because of features that allow users to write notes and leave comments tied to each estimate, the Sales Tool frees its users from having to dig through email inboxes and messages to find what has been said about an estimate.

The Sales Tool, completed in November of 2023, has greatly aided the creation and maintenance of sales estimates for users spanning multiple departments by removing the need for unsynchronized spreadsheets, allowing users to track version change history, and facilitating contact among users.

TRADESHOWS

CAMPUS ENERGY 2024

At Campus Energy this year, we showcased our impactful carbon reduction initiatives, focusing on burner technology and our expertise in biofuels. Representing us was David Eoff, he was ready to share insights into our commitment to sustainability. In lieu of a live presentation, we secured a display where we featured a science project-style presentation highlighting our work with BRO 500 at our facility. Additionally, we showcased our successful endeavors in converting NYC schools from traditional oil to B20 biodiesel, underlining our dedication and experience implementing environmentally conscious solutions.

BOILER 2024

We will also be attending the bi-yearly Boiler 2024 in Denver, an event proudly organized by ABMA, of which we’ve been dedicated members for over 80 years. Our extensive experience and commitment to innovation will be on display at our large 20x20 booth. We hope to showcase our burner on a competitor-styled boiler – can you guess the giant competitor with boilers in a distinctive split-pea-soup-green? This event is not only a fantastic networking opportunity for our Representatives and Distributors but also a platform for live demos and discussions on new projects.

TRADESHOWS

EXPO PACK MEXICO 2024

Follow our journey to the EXPO PACK Trade Show in Mexico City from June 4th - 7th tailored exclusively for packing companies looking for combustion solutions and process partners! We are thrilled to introduce our new sales representative – TermoEnergia y Calderas, equipped with knowledge and insights into the packaging processes marketplace. In the booth, we will be displaying our combustion technology that promise to enhance efficiency, reduce costs, and minimize environmental impact. EXPO PACK’s immersive experience, features interactive demonstrations, exclusive product launches, and presentations from seasoned professionals. TermoEnergia y Calderas along with Preferred Utilities will give personalized consultations, putting tailored solutions together to meet our customers unique applications. We are excited to pave the way for a sustainable and efficient future together in Central and South America.

TermoEnergia y Calderas & Preferred Utilities!

RECOPE & SETEC VISIT TO DANBURY, CT:

In Puerto Limon, Costa Rica, we are thrilled to announce the successful advancement of an important combustion project currently in its installation phase at the country’s sole refinery. Our SETEC team has been instrumental in supporting the RECOPE refinery’s commitment to environmental solutions and seamless operations. The project is set to redefine industry standards, leveraging state-of-the-art combustion solutions and specially formulated fuels tailored to enhance efficiency while minimizing environmental impact. This achievement underscores our shared dedication to sustainability and innovation, positioning the refinery as a beacon of responsible industry practices in Costa Rica.

As we progress through the installation phase, SETEC continues to work handin-hand with the refinery team, so that every element of the combustion project aligns with their unique operational needs. The collaboration emphasizes our commitment to delivering not just products, but comprehensive solutions that contribute to RECOPE’s long-term

success. We are proud to be at the forefront of this transformative project and continue a successful path with SETEC and EQUIGAS.