a collection of short stories energy savings performance contracting

A collection of short stories

Energy Savings Performance Contracting

VRA – Community Investment Workshop Series2

Energy Savings Performance Contracting

EnergySavingsPotential

High

Med

Low

HighMedLow

FacilityUpgrades

Capital PC

HighNeed/Large

Savings


Savings Chart

Roanoke CountyCost (Before & After ECMs)

$227,202

$272,643

$218,114 $204,482

$102,233

$112,457

$103,786$95,588

$68,435$90,264

$27,921

$34,901

$29,666

$29,666

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Present Cost Rate Increase After ECM's(Conservative)

After ECM's(Aggressive)

Ele

ctri

city

, Fu

el a

nd

Wat

er A

nn

ual

$

Electricity Fuel Water Savings


(Metric tons of CO2)

Greenhouse Gas Emissions

0

500

1000

1500

2000

2500

Your Facilities - Now Your Facilities - After PC


• Improvements are made to generate energy (and other) savings and to further the customer’s mission.

• Municipal Lease for project funding is available from VRA

• Guaranteed Energy savings pays for part or all of the municipal lease

• Legislated in Commonwealth of Virginia, process spelled out by DGS, local flexibility

How Does Performance Contracting Work?


A Type of Procurement

• Stretches taxpayer dollars

• Often no new capital dollars required

• Collaborative process between owner and partner

• Faster implementation, lower costs

• Build projects around good stewardship components, making the owner “GREEN”.


Two Short Stories

• Wise County

Courthouse

• Wise County Public

Schools


Once Upon a Time at Wise County…

The judge says “If

you do not fix the

comfort in this

building (the

courthouse), we are

going to lock up the

County Administrator

(Ed Sealover)”


The Solution

• Guaranteed energy

savings of $17,337

annually, or 26% of

existing utility bill.

• Entire building receiving

infrastructure renovation

• Chiller replacement


The Solution

• Variable Air Volume box replacement

• Controls upgrade

• Steam system repairs

• Lighting retrofit


A Happy Ending

• Savings helped pay for the $476,000 in improvements

• Building comfort and working environment significantly improved due to consistent temperatures and quality lighting.

• Savings exceeding guarantee by over $5,000 annually


Once Upon a Time at Wise County Public Schools…

“Parents are complaining about the indoor air quality in two of our schools.

The architects have estimated each school will cost $2 million to renovate, but we only have the money to renovate one school.

Which should we fix?”


The Solution

• System improvements made to five schools to generate enough savings to pay for the upgrade of the “second” school.

• LF Addington and Powell Valley Primary School received new mechanical systems


A Happy Ending

• Significant improvements to the learning environment

• Reduced maintenance repair part cost by over $5,000 annually.

• The guaranteed savings have been exceeded by $53,658 after three years.

• Wise County Public Schools Phase II performance contract is almost complete, addressing 6 more schools


Stewardship of Taxpayer Dollars


Energy Awareness


Teamwork


Teamwork

• 738 Trane employees in Virginia

• 9 Professional Engineers (PEs)

• 30+ LEED Accredited Professionals

• 10 Certified Energy Managers (CEMs)

• 284 Service Technicians


Review of the Process

• Improvements are made to generate energy savings and to further the customer’s mission.

• Municipal Lease available from VRA

• Guaranteed Energy savings pays for part or all of the municipal lease

• Legislated in Commonwealth, process spelled out by DGS, local flexibility


Your Next Step

• Commonwealth website http://www.dgs.state.va.us (Energy and Building Contracts, then Energy Performance Contracting)

• Steps of Process– Back of the Envelope Audit (BOE)– Detailed Study– Contract (Financing)

• Contact peers

http://www.dgs.state.va.us/

a collection of short stories energy savings performance contracting

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