Onsite Energy Corp. announces $5 million energy efficiency incentive

CARLSBAD, Calif., Oct. 3, 2001 – Onsite Energy Corporation said the California Energy Commission approved a $5 million incentive contract with Onsite to provide 20 MW in peak load reduction from food processors and cold storage facilities by June 2002.

Onsite will negotiate with existing and prospective customers to identify specific projects to meet the California Energy Commission demand reduction requirement. Potential projects for these market segments will include innovative projects such as thermal storage, flywheeling freezers and other proven measures including new condensers, purgers, controls, piping and energy efficient doors on freezers and coolers.

“Improving the energy efficiency of cold storage and food processing facilities is an important objective of the Agricultural Peakload Program,” said Commissioner Robert Pernell. “Specialists, such as Onsite, have the expertise to help cold storage operators reduce their peak load energy use and cut utility bills to receive state incentives. We are confident this partnership with Onsite will achieve the goal of reducing peak load energy use by 20 MW.”

The Onsite contract is funded through monies from SB 5x, energy legislation that was passed earlier this year. Pursuant to the contract, Onsite will develop, administer and implement the agricultural projects for food processing and cold storage facilities. Onsite responsibilities include the design, purchase, installation and commissioning of efficiency improvements and equipment to allow load shifting at these facilities.

“We plan to use this allocation to assist customers in proceeding with projects that will give them relief from the dramatic increases they have seen in peak electric rates,” commented Elizabeth Lowe, vice president for Onsite. “Onsite continues its commitment to improving efficiency and reducing energy costs for food processors and cold storage facilities. We are pursuing an aggressive strategy to identify specific customers and implement measures to reduce peak energy consumption. The California Energy Commission funding will allow us to reduce the capital costs of these energy-saving measures to customers.”

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