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EPA Green Power



What is Energy Savings Performance Contracting (ESPC)?

Energy Saving Performance Contracting (ESPC) is:

·               A partnership of the owner and the Energy Service Company (ESCO) where the ESCO identifies improvements, designs and constructs a project and guarantees the improvements will generate energy cost savings to pay for the project over the term of the contract

·               The most cost-effective process for completing building energy upgrades

·               A guaranteed means to use utility savings to pay all project costs

·               Authorized under Chapter 66.0133 of the Wisconsin Municipal code

 

How Energy Saving Performance Contracting works:

·               You (with MEETAP’s help) post an open, public  invitation to provide a preliminary audit of your facilities

·               MEETAP staff evaluates the preliminary audits with you in order to select the best candidate

·               The selected ESCO is contracted to complete an Investment Grade Audit & Energy Assessment Report

·               MEETAP’s engineering staff work with you to make sure the ESCO’s proposal meets the needs of your facility and your energy savings goals.  No contracts are signed for implementation until you understand the project, timeline, guaranteed savings, and long-term measurement and verification plan

·               MEETAP staff will work with you to understand “traditional” financing through the ESCO, and weigh the benefits of using BCPL money versus traditional bonds

·               The ESCO designs, installs, commissions, and finances the projects you select

·               The ESCO guarantees both the maximum project cost and the projected energy savings

·               MEETAP's energy engineer will help you with long-term monitoring of project savings

 

Advantages of ESPC:

·               Single point of accountability – the ESCO

·               No requirement to use the lowest bid

·               Owner, with the MEETAP energy engineer’s assistance,  participates in equipment and subcontractor selection

·               Low interest financing available through the Board of Commissioners of Public Lands

·               Verification of annual energy savings through a monitoring program

 

Guarantees with ESPC:

·               Guaranteed Project Cost

·               Guaranteed Savings

·               Guaranteed Equipment Performance

 

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Last Modified:  9/10/2014 9:20:14 AM

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Wisconsin State Energy Office
610 N Whitney Way
Madison, Wisconsin  53705
Phone:  608-261-6609  FAX:  608-266-3957
OEI@wisconsin.gov