EPC agreements are typically ten years in length, are adaptable to site specific needs and are best suited for facilities that have the following characteristics:
• Annual utility cost in excess of $100,000
• Stable use of the facility for the next five to ten years
• Minimal availability of funds for energy related capital improvements
• Have accomplished minimal energy efficiency upgrades over the past ten years
What may I expect from an Energy Performance Contract ?
• A thorough assessment of how your facility uses energy and manages energy cost
• Recommendation of all technically and economically viable energy conservation measures for inclusion in the project scope
• The ability to negotiate specific project scope, terms and conditions, etc. in the Energy Services Agreement
• Annual savings in the range of 20 percent to 30 percent of the utility cost at your facility
• Capital investment of one to two times the utility cost at your facility
• Flexible financing arrangements tailored to your site-specific needs
• Capital improvements without up front capital expenditures
• The opportunity to utilize existing expenditures to "buy" the project
Where can I find out more about Energy Performance Contracting ?
Contact the Energy Performance Contracting Program (EPC) staff. EPC staff are experienced in all phases of Energy Performance Contracting and in assisting facilities in the development of successful projects. The Program has assisted various public sector participants over the past twelve years and has developed sample documents that reduce or eliminate the need to "recreate the wheel." EPC staff would be pleased to discuss Energy Performance Contracting arrangements and the Energy Performance Contracting Program with interested parties.
The Energy Performance Contracting Pilot Project for state buildings ended in 2006. Over its ten-year term, capital improvements of $33.4 million were financed through private certificates of participation (COPS) in the seven state facilities. The savings have exceeded $4.7 million annually and will continue into the future, although at slightly decreased levels as the higher-efficiency equipment starts to age.
Since the initial pilot, DCEO has provided technical assistance to local governments, schools, colleges, and other organizations helping them to implement a total of $144.6 million in projects with annual utility savings of over $17.2 million per year, with most of these since 2005.