PROJECT DEVELOPMENT OVERVIEW

Government Units seeking capital and operational improvements for their energy-consuming infrastructure systems in order to contain energy costs and reduce energy consumption must consider entering into an ESPC agreement. The ESCO will identify and evaluate energy and watersaving opportunities and then recommend and install a package of improvements that will be paid for through savings. The ESCO will guarantee that savings meet or exceed annual payments to cover all project costs over a maximum contract term of 15 years. If savings do not materialize the Government Unit can claim the difference from the ESCOs guarantee. There are five (5) steps to successfully initiate and complete an ESPC Project: 1. Identifying a Project 2. Selecting an Energy Service Company (ESCO) 3. Contracting with the ESCO to Conduct an Investment Grade Audit (IGA) 4. Contracting with the ESCO to implement ESPC Project 5. Payments, O&M, and Measurement and Savings Verification. CHAPTER FOUR: ESPC PROJECT DEVELOPMENT