2014 Vol. 98 No. 3

25 HќќѠіђџȱ юћјђџ юџѐѕ 2014 )LQDQFLQJ 086+ ,QVWLWXWLRQV The municipal, university, state and healthcare (MUSH) market is one of the largest in the United States. It represents $4 billion to $6 billion in performance contracting sales annually. Most MUSH market customers hire ESCOs to design, implement and M&V their energy conservation projects. This strategy saves time, transfers performance liability and leverages the ESCO’s expertise. )LQDQFLDO ,QFHQWLYHV The federal government, many states, and local utilities provide ꗊ—Œ’Š•ȱ’—ŒŽ—’ŸŽœȱ’—ȱ‘Žȱ˜›–ȱ˜ȱ grants and utility rebates to entice Œžœ˜–Ž›œȱ˜ȱŽ—Ž›¢ȱ›Ž›˜ęȱ‘Ž’›ȱ older facilities and investors to fund the projects. The grants and incentives are based on project size and the equipment installed. The larger the project, the greater the incentives. Typically they are spread over ˜—Žȱ˜ȱ꟎ȱ¢ŽŠ›œȱ˜ȱ’—Œ›ŽŠœŽȱ™›˜›Š–ȱ participation and compliance. ([DPSOH 3HUIRUPDQFH &RQWUDFWLQJ 3URMHFW )LQDQFLQJ Issue: City, USA, would •’”Žȱ˜ȱŽ—Ž›¢ȱ›Ž›˜ęȱŗśȱŒ’¢Ȭ owned facilities to reduce energy consumption and carbon emissions. Solution: City, USA, hires an ESCO to perform an energy audit to identify the energy conservation measures to reduce its energy consumption and carbon emissions, and to lower its utility bill. The City and ESCO enter into a $5 million energy service agreement to implement energy conservation measures at 15 city-owned facilities. Assumptions: The project involves ’—œŠ••’—ȱ—Ž ȱ‘’‘ȬŽ—Ž›¢ȬŽĜŒ’Ž—Œ¢ȱ •’‘’—ȱę¡ž›Žœǰȱ ǰȱ‹˜’•Ž›œȱŠ—ȱ controls. The customer operates the building in exactly the same manner as prior to installing the ECMs. The upgrades are expected to reduce energy consumption by 30 percent per year. The ESCO will provide M&V services to guarantee the energy savings for the initial 10 years of the project’s 25-year useful life. Financing: The city has decided ˜ȱꗊ—ŒŽȱ‘Žȱ™›˜“ŽŒȱ˜ŸŽ›ȱŗśȱ¢ŽŠ›œǰȱ with a tax-exempt interest rate of 4 percent and annual payments equal ˜ȱǞŘŘřǰŘŚşǯŜŗǯȱ ‘Žȱꗊ—Œ’—ȱ ’••ȱ‹Žȱ fully amortizing, with no residual at maturity. ŒŒž–ž•ŠŽȱŒŠœ‘ȱ̘ DZȱThe project’s annual savings will exceed ‘Žȱꗊ—Œ’—ȱ™Š¢–Ž—œȱŠ—ȱŽ—Ž›ŠŽȱ ™˜œ’’ŸŽȱŠŒŒž–ž•ŠŽȱŒŠœ‘ȱ̘ ȱ˜ȱ $2,167,147 over the life of the project. Total program savings equals the summation of the utility and operational savings and utility incentives. The program cost includes ‘ŽȱŠ——žŠ•’£Žȱꗊ—Œ’—ȱ™Š¢–Ž—œȱ and M&V cost. The program savings •Žœœȱ‘ŽȱŒ˜œȱŽšžŠ•ȱŠ——žŠ•ȱŒŠœ‘ȱ̘ ǯȱ The summation of the subsequent Š——žŠ•ȱŒŠœ‘ȱ̘ œȱŽšžŠ•œȱ‘Žȱ—Žȱ Œž–ž•Š’ŸŽȱŒŠœ‘ȱ̘ ǯ Although the conditions are valid for the example provided, total program Œ˜œȱŒŠ—ȱ‹ŽȱŠěŽŒŽȱ‹¢ȱ‘Žȱ™›˜“ŽŒȂœȱŒ˜œǰȱ IT Policies and Procedures Library IT Audits Risk Assessments Penetration Testing Pretext Calling, Phishing Physical Breach Attempts See only what you need to see, when you need to see it! Event Log Management IPS/IDS and ELM 24x7x365 Real Time Monitoring Competitive Pricing Managed Security Services Fight the Noise! my.infotex.com | (800) 466-9939 infotex Come see us at MegaConference Booth #318 where we will proudly display our Diamond Award &RQWLQXHG RQ SDJH

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