Energy services company ConEdison Solutions signed a $56 million contract with the U.S. Army Reserve’s 99th Regional Support Command (RSC) to provide energy efficiency services and operations and maintenance support at 90 sites in 11 states.
The contract is a component of the U.S. Department of Energy’s Energy Savings Performance Contract (ESPC) program. Under this initiative, a limited number of qualified, private-sector energy service providers – selected on a competitive basis – can provide energy efficiency, renewable energy and water conservation services to federally owned buildings and facilities.
According to federal officials, the DOE’s ESPC program is designed to save energy, reduce federal energy costs, cut greenhouse gas emissions, bring more cutting-edge technologies to use, strengthen national security and help strengthen the economy.
Under the DOE awards, contractors design, construct and obtain financing for energy projects and facility upgrades. Then, over time, an agency pays for the improvements using funds that had been previously budgeted, and which would have otherwise been applied toward utility bills in the absence of an energy-reduction program.
In terms of both its financial impact and its capacity to reduce energy use, the ESPC initiative is highly beneficial to taxpayers. By using energy savings performance contracts, agencies can undertake energy initiatives without using appropriated money.
Taxpayers also enjoy protection because the contractor guarantees that improvements will generate the full amount of projected savings. This guarantee ensures that the improvements installed will operate as designed. If they do not, the contractor would be obligated to make the government whole for any shortfalls caused by non-performance.
The final design and construction for the project is underway and should be completed in 2015.