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NAESCO Newsletter

October 2011

Featured Articles

NAESCO Updates


New Members

NAESCO welcomes the following new members:

Upcoming NAESCO Events

Advocacy Report

Industry News

Member Projects

Member News

 


Featured Articles

Interview with Lynn Sutcliffe, CEO of The EnergySolve Companies, NAESCO Board Member and Chairman of the NAESCO Government Affairs Committee Regarding NAESCO's SEC Advocacy Initiatives

  1. During the SEC Advocacy initiative process, what have been the most common questions asked by members and Hill staff about the ESCO industry?
    The most common question is "what is an ESCO" and "what does it do". Some staff may have some familiarity with the FEMP program but the education process started with the basics of explaining performance contracting and the $3 billion to $5 billion investment made in energy efficiency by entities working with ESCOs. Another common question is "how does a guarantee of savings work".
     
  2. What can our membership and NAESCO itself do to better educate Congressional representatives and their staff about the business of creating and delivering energy efficiency?
    NAESCO needs to develop a program whereby member companies meet with members and staff of key jurisdictional committees and Senate and House leadership to explain the ESCO business and how it does not require Federal dollars to achieve energy efficiency but it does require a strong Federal policy in support of energy efficiency. NAESCO also needs to continue to explain how energy efficiency is the least expensive resource and creates the most employment per dollar expended on new energy resources. Meetings need to be held on the Hill and in Congressional districts or at the state level for Senators.
     
  3. As a former chairman of NAESCO and Chair of the Government Affairs Committee, do you see a change among our membership in their recognition of the importance of a robust industry advocacy voice?
    The SEC Advocacy initiative seems to have awakened the membership to the need for a continual advocacy presence at the Federal level beyond FEMP - an advocacy presence that is capable of ramping up and ramping down as the political environment dictates. The membership has always recognized the need for a robust advocacy voice at the state level as issues develop.

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NAESCO Op-Ed Piece On PA GESA Program Published

Below is a NAESCO Op-Ed published in the Patriot-News in Harrisburg, PA on Sunday, September 16. Jim Dixon is Vice President for Legal & Compliance Services at Con Edison Energy and Chair of the National Association of Energy Service Companies. Dan Kerr is Director of Energy Services at McClure Company and a NAESCO Board member.

Pennsylvania's Guaranteed Energy Savings Act Is Winner For All Parties
By James Dixon & Dan Kerr

The energy-efficiency industry is one of the only industries to grow during the recession, hiring people at a time when unemployment seems stubbornly stuck at levels not seen since the early 1980s.

According to statistics from the Pennsylvania Department of Labor and Industry, there are more than 106,000 Pennsylvania jobs in the renewable energy and energy efficiency industries.

Energy efficiency is an economic winner. This is not wishful thinking — it's based on actual market experience. The commonwealth of Pennsylvania has the opportunity to create 19,000 high-paying jobs and provide $2 billion of upgrades to its state and local government buildings without any tax increases through a process called energy savings performance contracting.

Under an energy-savings performance contract, energy service companies provide technical, engineering and managerial expertise while private sector financial institutions fund the retrofit projects, which make buildings significantly more energy efficient. The costs of design and installation of new technologies as well as equipment upgrades are to be paid back out of the energy savings over the life of the contract — at no net cost to the government.

Every $1 million of ESPC project value is estimated to create about 10 direct jobs in engineering, construction and equipment manufacturing, professions hardest hit in this recession. The multiplier effect of the income created by these direct jobs provides another 10 to 12 imputed jobs per $1 million of project value.

Energy performance contracting equals jobs, period. Not maybe, not possibly, but certainty. This kind of economic growth is the result of public policies such as Pennsylvania's Guaranteed Energy Savings Act, which enables job-creating energy performance contracting.

But now, it's all at risk. The Corbett administration is evaluating GESA and has suspended projects under development. This has put on hold the proven job-creating benefits of the GESA that can continue putting Pennsylvanians to work in this tough economic environment at no expense to the government.

At a time when all policies are being measured against the yardstick of job growth, we encourage Gov. Corbett to support GESA and allow energy-service companies to get back to business putting people to work, saving taxpayers money and reducing energy costs for the people of Pennsylvania.

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NAESCO Updates

New Members

NAESCO welcomes the following new members.

Building Controls & Services, Inc. (BCS) - Associate Energy Service Affiliate Member - Building Controls & Services, Inc. (BCS) is a privately owned Energy Services Company with offices in New York and Pennsylvania. BCS provides complete turnkey services on a full range of energy projects in K-12 schools, colleges and universities, health care facilities, industrial facilities, governmental facilities, and commercial facilities.

McQuay International - Energy Service Affiliate Member - McQuay International delivers engineered, flexible solutions for commercial, industrial and institutional HVAC requirements with reliable products, knowledgeable applications expertise, and responsive support. As part of Daikin Industries, a Fortune 1000 company, McQuay is the second largest air conditioning, heating, ventilating and refrigeration company in the world.

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Upcoming NAESCO Events
 

2011 Annual Meeting
November 1-2, 2011
Hilton San Diego Resort & Spa
San Diego, CA

Webinar Series - Delivering a Quality Performance Contract and Energy Efficiency Project
October 2011- February 14, 2012
Webinar

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NAESCO Advocacy Report

The full version is posted on the NAESCO Members Only Site, which can be accessed here.

NAESCO Federal Advocacy Activities
NAESCO has undertaken a significant lobbying effort this year to oppose adoption of a proposed SEC rule which would require ESCOs to register as municipal securities advisors and be subject to regulatory oversight appropriate to that status. NAESCO has worked extensively with its member companies to mount a major lobbying initiative to overturn this SEC rule. Members companies and NAESCO have met with SEC Commissioners and staff, as well as staff and members of Congressional Committees that have jurisdiction over the SEC and/or are concerned with the potential effects of the rule on the ESCO industry.

NAESCO has based its advocacy around the argument that the SEC has misunderstood the intent of the Congress, which specifically exempted engineering firms from the registration requirement, and should apply a similar exemption to ESCOs. NAESCO has succeeded in generating letters to the SEC supporting its position from Senators Landrieu, Coons, and Bingaman in addition to Senator Sherrod Brown of Ohio. NAESCO is currently concentrating its lobbying resources in the House to generate parallel support. In response to NAESCO's efforts, and the efforts of other industries that are arguing that the SEC has misinterpreted the intent of the Congress, the SEC has delayed the issuance of the final rules, and NAESCO continues to work to get the proposed rules modified. In recent testimony before Congress, SEC Chairman Shapiro said that the proposed draft overreached the intent of the Congress in a number of areas, and that the SEC is reconsidering and rewriting a number of sections of the rule.

State Energy Efficiency Action Project
NAESCO has been participating in the State Energy Efficiency Action (SEE Action) project. Convened by DOE and EPA, the purpose of SEE Action is to accelerate the adoption of aggressive energy efficiency programs that seek to acquire all cost-effective energy efficiency, across the country. NAESCO is a member of the Executive Group and three Working Groups and has recently been asked to join a national Steering Group, to help create a pilot project employing a framework for M&V protocols for common energy efficiency measures.

State Advocacy Activities
NAESCO has worked aggressively in several states during the third quarter of 2011, to defend existing ESPC programs and energy efficiency funds, and to expand the use of ESPC in states that have historically not had aggressive programs.

California
There are four ongoing issues in California on which NAESCO has been working.

SB-118
NAESCO led the successful effort of the ESCO industry to defeat SB 118, which would have replaced negotiated performance contracts with low-bid procurement for all public agency EE and RE projects.

Gas Surcharge Funds
The California FY 2012 budget deal designed to close the massive state deficit appropriated the $150 million surcharge from the funding that was supposed to support gas EE programs into the state's General Fund. NAESCO is supporting a lawsuit to be brought by multiple parties to have the funding grab declared illegal. The CPUC currently has a proceeding underway to cobble together enough funding from various sources to keep the gas EE programs running through 2012. Proposed Decisions have been issued, and are now out for comment. A CPUC decision was issued on October 12, and NAESCO is reviewing the implications of the decision for California ESCOs.

Electric EE System Benefits Charge (SBC)
The legislation to renew the electric SBC beyond its expiration at the end of 2011 failed on the last day of the legislative session. Utilities that administer the electric EE programs believe that the defeat of the bill will not result in cuts to electric EE programs, because the 2012 budgets have already been set by the CPUC, and full funding is a matter of the amount of the SBC funding.

Custom Measures EM&V
The Energy Division of the Public Utilities Commission had proposed an EM&V process that involves an unworkable additional review by the already overworked ED staff, or a 20% discount on project savings. NAESCO participated in a coalition of other project implementers to fight the ED proposal through several rounds of comments, lobbying visits to the CPUC Commissioners and staff and a special hearing held by the three new CPUC Commissioners on June 6. As a result of this effort, the decision issued by the Commission in mid-July mandated an M&V protocol that is a substantial improvement from the original proposal.

Bridge Year Programs
All stakeholders in the California EE programs agree that the new program portfolios will not be ready for implementation on the currently scheduled date nor will the pre-requisite EM&V work on the current portfolio be completed in time to allow the Commission and the utilities to incorporate the EM&V results into the 2013 program portfolios. NAESCO coordinated a group of stakeholders recommending continued funding for successful programs for the Bridge Year. Parties are now waiting for the Commission's Proposed Decision in this matter.

Georgia
The RFP for a pre-qualified list of ESCOs was issued in mid-August, with responses due September 23. Evaluation of the responses will then take up to two months, with the announcement of the rankings of the pre-qualified ESCOs to be announced in early December.

New York

NYSERDA SBC IV Planning
The program has been bifurcated into Technology and Market Development (TMD) and energy efficiency implementation (EEPS). NYSERDA's total budget remains at about $175 million per year, but the allocation of the funding shifts about $40 million from EE to TMD. NAESCO has protested this funding shift in two rounds of comments, and has participated in a working group that is addressing the rationale and funding allocations for the TMD programs. The New York Public Service Commission recently issued its decision to extend the EEPS program. (See article below for more details.) The funding level is essentially the same as the current program funding. NAESCO is reviewing the decision to determine its effects on ESCOs operating in New York.

NYC Schools Retrofits
New York City is starting a program to remove all of the PCB-laden magnetic ballasts from about 700 school buildings, and to expand the lighting retrofits into comprehensive retrofits, which will include the replacement of boilers that currently burn #4 and #6 oil to natural gas. NAESCO believes the ten year timeline for the plan is too slow and should be accelerated.

Michigan
The reorganization of the Department of Energy, Labor and Economic Growth by the new governor had slowed down ESPC program progress but the program has apparently recovered from this setback, and is moving ahead with the next set of projects.

New Jersey
In early June, the Christie Administration released its long delayed draft Energy Master Plan. The Plan re-affirms the central role of energy efficiency and renewable energy and also calls for the state to lead by example with an aggressive implementation of EE in state buildings, using the recently enacted ESPC legislation. NAESCO will participate in the development of the program initiatives that will result from its adoption. NAESCO is also involved in providing analysis to a protest that has been launched by environmentalists in New Jersey to the decision by Governor Christie to pull the state out of the nine-state Regional Greenhouse Gas Initiative.

Pennsylvania
The governor of Pennsylvania suspended the Guaranteed Energy Savings Agreement (GESA) program in the spring, pending the results of an audit of the program by the Department of Public Works. ESCOs have met with the Governor's Energy Executive and have unsuccessfully sought meetings with the Deputy Secretary for Public Works within DGS. The Energy Executive would not discuss the future of the GESA program until he has the results of the DPW audit. The audit was originally to be delivered in mid-August but its delivery date is now uncertain, according to the Governor's Energy Executive. NAESCO has reviewed some project information that was obtained through a Freedom of Information request by a Pennsylvania organization, and the documents indicate that the project is meeting its savings targets.


Industry News

Study: Energy Efficiency Loan Financing Proving To Be A Low Risk Investment With Large-Scale Potential
Energy efficiency loan financing is proving to be a stable, low risk investment with low default rates and large-scale potential, according to a study released by the American Council for an Energy-Efficient Economy (ACEEE). A review of 24 energy efficiency loan programs finds extremely low default rates ranging from 0-3% throughout the life of the financing program. Default rates for efficiency loan programs have also remained largely unchanged, even during the near collapse of the real estate market over the past few years.

The study finds that energy efficiency loan programs finance building upgrades by providing funding directly to building owners or managers. These projects lower energy bills and reduce annual energy costs by an average of 12-17%. Small commercial banks and credit unions have led in offering these energy efficiency loan products, often working with utilities as well as local and state governments. The programs evaluated by the ACEEE report have loaned over $1.5 billion. Through the use of subsidies and energy program funds, interest rates for borrowers averaged 3-5% annually.

To access the report, entitled What Have We Learned from Energy Efficiency Financing Programs?, click here.

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Survey Of Small Business Owners Shows Strong Support For Energy And Environmental Standards
A new survey finds that the majority of small business owners widely support aggressive environmental policies. Eighty-seven percent of businesses polled agree that improving innovation and energy efficiency are good ways to increase prosperity for small businesses. Seventy-six percent support the Environmental Protection Agency's regulation of carbon emissions for power plants, refineries and other emitters.

The small businesses surveyed disagreed with claims that environmental regulations are harming small businesses and the domestic economic recovery. Only 13% believe regulation is the biggest problem facing their small businesses. Conversely, 46% believe their small business is hurt by uncertainty about the future economy and 43% believe their small business is hurt by the rising cost of doing business.

The poll was coordinated by Greenberg Quinlan Rosner Research in partnership with Small Business Majority. A full copy of the results can be found here.

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Study Finds Most Americans Value Energy Efficiency
A recent study reveals that most Americans see energy efficiency as important and requires action. Eighty-six percent of respondents deem energy efficiency as important, of which nearly two-thirds said it is "very important".

Respondents said that improving energy efficiency is justified for three important reasons: the desire to reduce expenses (97% said good reason, of whom 75% consider this to be a very good reason); the guarantee of energy security (95% said good reason, of whom 53% believe this to be a very good reason); and environmental protection (91% said this was a good reason).

Although Americans are aware of energy efficiency issues, and believe they are informed about the measures taken in their country, their knowledge is actually somewhat limited. Three out of four people claim to have heard that incandescent light bulbs are being phased out, but only 46% know exactly what the incandescent lamp phase out is. Similarly, 88% of respondents have heard of the Federal and State Government tax incentives related to home heating and ventilation systems and renewable energy devices, however, only 34% of them know exactly what it is.

Rexel, an electrical supplier, is responsible for the survey. To access the full results, click here.

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New York PSC Reauthorizes Efficiency Standard Initiative
The New York State Public Service Commission voted October 13 to reauthorize the State's Energy Efficiency Portfolio Standard (EEPS) initiative. With the Commission's decision, 100 electric and gas programs providing benefits to residential, commercial, industrial and agricultural customers are reauthorized for the four-year period beginning Jan. 1, 2012 and ending Dec. 31, 2015.

"The State's energy efficiency program remains as critically important for the State's energy future as it was when it was created three years go," said New York Public Service Commission Chairman Garry Brown. "Energy efficiency is the most cost-effective, and most immediate, way to reduce the burden of rising energy costs on residential and business customers. The steps we have taken helped ensure that energy efficiency remains an integral part of New York's clean energy economy."

The Commission's long-term goal is to reduce electric usage by 15 percent of projected levels by 2015, with similar reductions in natural gas usage, making EEPS one of the most aggressive efficiency initiatives in the nation. With the Commission's decision, 100 electric and gas programs providing benefits to residential, commercial, industrial and agricultural customers are reauthorized for the four-year period beginning Jan. 1, 2012 and ending Dec. 31, 2015.

The total annual targets for electric programs equal 1.3 million MWh for 2012, enough to meet the electricity needs of approximately 200,000 homes. The total 2012 electric program budget is $368 million. The EEPS electric programs are on a trajectory to achieve the Commission's goal, established in 2008, of reducing electricity use by 11.2 million MWh by the end of 2015, enough to meet the electricity needs of approximately 1.73 million homes.

Meanwhile, the total 2012 targets for gas programs equal 3.4 million dekatherms, enough to meet the natural gas usage of approximately 411,000 homes each year. The total 2012 budget for gas programs is $154.4 million.

As part of its decision to approve funding for the EEPS programs, the Commission decided to increase funding for low-income natural gas programs administered by NYSERDA by $18.7 million, meaning that some $75 million annually will now be directed toward low-income electric and natural gas programs statewide.

In addition to reauthorizing programs, the Commission said it will begin a process of considering whether the incentives utilities' receive to participate in the EEPS initiative need to be revised.

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New Study Finds Emerging Technologies Increase Consumer Choice And Improve Performance
A new study by the American Council for an Energy-Efficient Economy (ACEEE) finds that new energy-efficient water heating technologies and practices can save residential and commercial buildings on average 37% more energy than conventional technologies. These energy savings could be worth nearly $18 billion.

Water heating is typically the second largest use of energy in residential buildings, following space heating and cooling. The study surveys and examines a suite of sixteen products and services ranging from heat pumps (50-55% savings) and high efficiency gas water heaters (30-39% savings) to best maintenance practices for multifamily buildings (25% savings).

To read the report, Emerging Hot Water Technologies and Practices for Energy Efficiency as of 2011, click here.

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Study Shows Codes Really Can Improve Energy Efficiency
A recent study by the Climate Policy Initiative (CPI) finds that homes built when state energy codes were in effect are, on average, 10% more energy efficient, derive a greater share of their energy from natural gas and, on a per-house basis, average 16% lower greenhouse gas emissions than homes built in locations where there was no energy code. In 2008, that per-house reduction in emissions reduced overall residential building emissions by about 1.8%, the study found.

Forty of the 50 states have adopted residential building energy code, in most cases a version of the International Energy Conservation Code, which is revised every three years. Some states, notably California, Florida, Oregon, and Washington, have adopted more-stringent standards.

Click here for the full report.

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Pew Study Finds Department of Defense Accelerates Clean Energy Innovation
The U.S. Department of Defense (DoD) is accelerating clean energy innovations in an effort to reduce risks to America's military, enhance energy security and save money, according to a report released by The Pew Charitable Trusts. The study finds that DoD clean energy investments increased 300 percent between 2006 and 2009, from $400 million to $1.2 billion, and are projected to eclipse $10 billion annually by 2030.

The study finds that since 1985, DoD has reduced its facility energy consumption by more than 30 percent. By insulating 9 million square feet of base structures in Iraq and Afghanistan, energy consumption has been reduced by 77,000 gallons a day. Another initiative is the Army's "net zero" program, which aims to have each of six installations produce as much as they consume in energy, water or waste by 2020, and two other installations, Fort Bliss in Texas and Fort Carson in Colorado, will become net zero in all three areas.

DoD has 450 ongoing renewable energy projects producing or procuring 9.6 percent of its energy from clean sources in fiscal 2010. Renewable energy spending by the department is projected to reach $3 billion by 2015 and $10 billion by 2030.

To access the report entitled From Barracks to the Battlefield: Clean Energy Innovation and America's Armed Forces, click here.

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Member Projects

Building Controls & Services, Inc. (BCS) Helps Millcreek Community Increase Energy Efficiency
Millcreek Community Hospital has recently completed the implementation of $2.3 million in facility enhancements designed to improve operations, comfort, and energy efficiency in the hospital's Peach Street facility. Building Controls & Services, Inc. (BCS) is completing the work under an Energy Efficiency Upgrade Project approved by the hospital's Board of Directors and partially funded with $ 250,000 received under the Pennsylvania Conservation Works Grant Program. BCS is projecting that the hospital will reduce its utility costs by $179,000 annually once the implementation of the improvements is completed. BCS will replace older mechanical equipment and inefficient lighting, and install a specialized control system to reduce energy consumption associated with the hospital's heating and air conditioning systems.

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Building Controls & Services, Inc. (BCS) Partners With Wattsburg Area School District To Reduce Energy Use
The Wattsburg Area School District recently completed the implementation of $1.6 million in facility enhancements in the district's three facilities. Building Controls & Services, Inc. (BCS) completed the work under a Guaranteed Savings Performance Contract with the district. BCS is guaranteeing that the district will reduce its utility costs by almost $142,000 annually with the implementation of the improvements. The district's facilities total more than 315,000 square feet and are situated on a rural campus of approximately 96 acres. BCS will replace antiquated boilers and inefficient lighting, upgrade controls and recommission existing controls, and upgrade mechanical systems including installation of variable speed motor drives on fans and pumps as well as reconditioning of unit ventilators. BCS will also install a specialized control system to reduce energy consumption associated with the district's numerous personal computers.

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Bellevue Union School District And Chevron Energy Solutions Announce Solar Project Expected to Save District $3.3 Million
Bellevue Union School District and Chevron Energy Solutions announced the completion of a 618-kilowatt solar power generating system expected to save the district more than $3.3 million over the life of the project. The California school district is guaranteed to save more than $750,000 in the first five years. The system is installed at four elementary school campuses and reduces the district's electrical utility costs by more than 80 percent. By reducing its purchase of utility power, the district is reducing its annual carbon emissions by 407 metric tons, equivalent to the carbon sequestered by 87 acres of pine forest. Chevron Energy Solutions designed, engineered and constructed the project and will operate and maintain the solar system's performance for 10 years.

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Energi Participates In The PACE Commercial Consortium Initiatives In Sacramento And Miami - Dade County
Energi, a Massachusetts based Industrial Reinsurance Company, has announced its participation in the PACE Commercial Consortium (PCC). The consortium was put together by the Carbon War Room, a nonprofit environmental group based in Washington set up by Richard Branson, the British entrepreneur and billionaire. The consortium is led by a company called Ygrene Energy Fund of Santa Rosa, CA, which has already won an exclusive contract to manage a retrofit program for a half-dozen communities in the Miami area and is in the late stages of completing a contract with Sacramento. Short-term loans provided by Barclays Capital will be used to pay for the upgrades. Contractors will offer a warranty that the utility savings they have promised will actually materialize, and Energi will back up that warranty. Those insurance contracts, in turn, will be backed by Hannover Re, one of the world's largest reinsurance companies. Experts assert the Miami - Dade County funding can generate up to $1.8 billion in economic activity. The Consortium sees the potential for an initial $100 million market in the city of Sacramento, California to stimulate an additional $530 million in economic activity. The Consortium believes these combined programs could stimulate $2.3 billion of economic activity and more than 17,000 jobs.

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Honeywell To Reduce Energy Costs At Alger County Facilities
Honeywell announced a building modernization program to upgrade infrastructure across three Alger County facilities in Munising, MI and save more than $114,000 in annual utility and operating costs for the county. The energy retrofit initiative, backed by guaranteed savings through a 15-year, $1.4 million performance contract with Honeywell, will include a variety of energy efficiency and building system upgrades at the Alger County court house, sheriff's office and emergency medical services building. As part of the project, Honeywell will make improvements to HVAC systems, including replacement of decades-old duct work and installation of a new Honeywell ComfortPoint building control system, which will centralize energy management across all three facilities for greater temperature control. The company will also install energy-efficient lighting, upgrade plumbing fixtures to improve water conservation, make building envelope improvements to reduce loss of treated air, and install a new fire alarm system. All building upgrades are expected to be complete by spring 2012.

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Honeywell Helps City Of Huntington Reduce Energy Use
Honeywell announced that the City of Huntington, WV has awarded the company a $2.4-million energy conservation and building modernization program that will decrease energy consumption and utility expenses at the targeted facilities by an estimated 25 percent. Funded through a 15-year performance contract, the program includes a variety of facility and infrastructure upgrades that are expected to cut almost $200,000 in annual energy and operating costs.

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NORESCO To Upgrade University of Massachusetts Dartmouth Facilities
NORESCO has secured a $33.9 million guaranteed energy savings agreement with the Commonwealth of Massachusetts Division of Capital Asset Management and Maintenance (DCAM) for work at the University of Massachusetts Dartmouth (UMD). The project includes installation and performance term services, and according to DCAM, is the largest initiative of its type ever executed by the organization. Phase 1 contains 18 energy conservation measures to address energy and water savings opportunities and critical HVAC infrastructure improvements. Phase 2 contains the largest and most complex energy conservation measure - a new gas turbine combined heat and power system to replace UMD's old, inefficient heating plant boilers. Both phases will receive substantial financial incentives from the local public utility company. The remainder will be paid from savings generated by the energy conservation and facility modernization measures over a 20-year period.

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NORESCO To Improve Buildings For Alabama Department of Corrections
NORESCO has increased its energy savings performance contract with the Alabama Department of Corrections (ADOC) to include two new phases of work totaling an additional $22.4 million investment. Energy conservation measures at ADOC facilities in Phases 2 and 3 of the project are funded by excess guaranteed savings from the original phase of work and incremental guaranteed savings over the life of the 20-year contract. Phase 2 features improvements that include HVAC upgrades, new domestic hot water systems and new roofs at selected locations. Phase 3 centers on improvements to buildings on the Wetumpka campus that ADOC previously acquired from the Alabama Board of Pardons and Parole, which will serve as a minimum security facility for women. The Phase 3 project will decentralize heating and cooling systems, improve water conservation and upgrade lighting. The original $27.2 million contract between ADOC and NORESCO included more than $11 million in funding from the American Recovery and Reinvestment Act of 2009 (ARRA) through the Alabama Department of Economic and Community Affairs. Key energy conservation measures included central plant upgrades, mechanical upgrades, lighting upgrades and water conservation improvements.

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Pepco Energy Implements $34.9 Million Final Project Phase For Prince George's County Public Schools
Pepco Energy Services, Inc. is currently implementing the final phase of its $77 million energy savings performance contract for Prince George's County Maryland Public Schools, which was first awarded in 2007. This fourth phase will produce $34.9 million in energy infrastructure improvements for 103 school facilities, generating approximately $3.4 million in energy savings per year. This final project phase will continue to allow Pepco Energy to help provide Prince George's County Public Schools with greater cost and energy savings through lighting upgrades, building automation controls systems and integrated energy management solutions, which will result in a better learning and work environment for students and employees. This fourth phase will reduce annual emissions by close to 14,800 metric tons, increasing the school system's total emissions reductions to nearly 20,300 metric tons per year. The overall project will be completed in 2012. Additional energy conservation measures include the installation of energy-efficient heating and cooling systems, steam trap replacements, energy-efficient transformers, domestic hot water systems and a photovoltaic solar project.

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Siemens To Deliver Energy Efficiency Makeover To DeSoto County, Mississippi
Siemens Industry, Inc. announced that work under a recently-signed $6.2 million performance contract for energy efficiency improvements to 27 DeSoto County, MS facilities should reduce the county's annual utility consumption 33 percent. Over the 15-year contract period, work by Siemens should reduce electricity consumption by county buildings by 37 million kWh. Identified as the largest municipal performance contract of its kind in the state, Siemens teamed up with officials to secure $1 million in ARRA grant funding which the county leveraged to self-finance the overall project. Siemens, serving as the design/build general contractor, is managing the overall project employing a local engineering firm and several local contractors and suppliers to implement the energy saving improvements to the county buildings. Among the array of energy and operational saving improvements implemented will be a new chilled water plant to supply chilled water to the jail, courthouse, and administration buildings. The project's energy and resource savings will yield the annual equivalent of $323,927 in avoided utility and operational costs.

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Wendel Energy Services Awarded Performance Contract For Genesee County, New York
Wendel Energy Services will soon start construction on a Genesee County project that will provide facility improvements across 10 facilities addressing energy conservation measures including energy efficient lighting & lighting controls, high efficiency boiler upgrades and variable speed drives. Acting as the county's Grant Administrator, Wendel was able to assist the county in obtaining more than $420,000 in ARRA Funding. Genesee County will save over $320,000 in energy and operational savings over the term of the project and reduce their carbon footprint by more than 264,000 pounds.

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Wendel Energy Services Helps City of Geneva Schools Become More Efficient
Wendel Energy Services recently entered into a performance contract with the City of Geneva, New York schools. The district wide project will provide facility improvements at their two elementary schools, middle school, and high school. Facility improvements will include energy efficient lighting & lighting controls, building management system upgrades, automated pool cover, burner management controls and building envelope improvements. The project will save the district nearly $2.4 Million over the project term and reduce carbon emissions by 1.2 million pounds annually.

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Member News

Ameresco, Inc. Acquires APS Energy Services
Ameresco, Inc acquired NAESCO member APS Energy Services Company, Inc. from Pinnacle West Capital Corporation. APS Energy Services, headquartered in Tempe, AZ, is a full-service company that provides integrated energy efficiency and renewable energy solutions for a variety of institutional customers, including state and local governments, school districts and universities. With the acquisition of APS Energy Services, Ameresco strengthens its presence in the Southwest.

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Fulham Launches FREELITE Brand Exit Signage
The new Fulham FREELITE™ line of photoluminescent exit signs requires no electrical power for operation other than the normal building ambient light. FREELITE technology absorbs light during the day, then the self-illuminating, non-radioactive, tritium-free, fully recyclable materials in the signs shine bright when the lights go off. The company states that in addition to no power required for operation, they also eliminate costly testing/maintenance, are extremely easy to install and are not apt to fail in loss of power situations. More information about FreeLite is available at fulham.com.

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Dan Svejnar Joins Green Campus Partners, LLC
Green Campus Partners, LLC is pleased to announce that Dan Svejnar, formerly Managing Director at Luminous Power Group has joined the company as Senior Vice President, Project Development. At GCP, Svejnar will lead a project development team focused on originating project development opportunities and making principal investments in cost-effective and practical energy projects in the Northeastern region of the United States.

Focused for the last nine year on project and structured finance, he was most recently based in Prague, Czech Republic, where he founded Luminous Power Group, a solar project investment group focused on assets in late stage development or operations in the Central and Eastern European markets. At GCP, Dan will lead a project development team focused on originating project development opportunities and making principal investments in cost-effective and practical energy projects in the Northeastern region of the United States.

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All content Copyright 2011 The National Association of Energy Service Companies. All rights reserved. NAESCO, as sponsor and publisher, as well as the Newsletter editors cannot be held liable for changes, revisions or inaccuracies contained in the material published. For more detailed information on the products, projects, programs, services or policies covered in the NAESCO Newsletter, it is recommended that readers contact the appropriate person, company, organization, agency, or industry group.

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