A centrifugal chiller with a capacity of 500 kW and with an average seasonal COP of 4.0 operates with a leaving chilled temperature of 4.5 °C. Determine the cost savings incurred by installing an automatic controller that allows the leaving water temperature to be set 2.5 °C higher on average. Assume that the number of equivalent full-load hours for the chiller is 1,500 per year and that the electricity cost is $0.07/kWh.

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10.5 R A A: Absorption chiller R: Reciprocating chiller C: Centrifugal chiller S: Screw compressor S 9.0 7.5 6.0 4.5 Leaving Chilled Water Temperature, "C 25 20 15 10 5 Percent Increase in COP