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Army Utilities Privatization (UP) & Water Security Defense Communities National Summit 5 June 2014 Curt Wexel, P.E.

Army Utilities Privatization (UP) & Water Security Defense Communities National Summit 5 June 2014 Curt Wexel, P.E. UP Program Manager Assistant Chief of Staff for Installation Management Installation Services Directorate Privatization and Partnerships Division.

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Army Utilities Privatization (UP) & Water Security Defense Communities National Summit 5 June 2014 Curt Wexel, P.E.

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  1. Army Utilities Privatization (UP) & Water Security Defense Communities National Summit 5 June 2014 Curt Wexel, P.E. UP Program Manager Assistant Chief of Staff for Installation Management Installation Services Directorate Privatization and Partnerships Division
  2. What is Utilities Privatization (UP)? UP transfers ownership and uses a Utility Service Contract to upgrade to industry standards. UP helps Army, taxpayers, energy, environment UP is Army’s preferred re-investment strategy Leverages private funding & skills UP is unlike other privatization initiatives: Army sells the utility system, but owns the real-estate After sale, Army is a customer, not a vested partner 50-yr Utility Service Contracts authorized by 10 USC §2688
  3. The Case for Utilities Privatization (UP) Affordable Risk Insurance Transfer Liability Risks Leverage Private Funds Reduced Leaks & Losses 31% less gas use [21 UP sites] 28% less water [23 UP sites] $57M/yr utility savings 2.3 year simple payback Improved Energy Security 28% life-cycle cost avoidance Full sustainment platform Utility Privatization (UP) leverages industry expertise and financing, where cost-effective, to upgrade utilities for more safe, efficient, and sustainable service.
  4. Fort Belvoir: Before & After FY09 UP
  5. UP Evaluation Decision Select best option for FULL Sustainment “Cost Avoidance” 28% Average Scarce MILCON Funds Upgrade UP Central Funds (OMA) Unfunded Repair & Restoration 50-Year $ Cost OMA Funded ~75% of Req’t Relatively stable Installation Cost Operate & Maintain OMA CurrentGovernment UP Reality“Should Cost”Offer Government is unable to perform as it “should”
  6. UP SupportsEnergy & Environment Fix & Upgrade Infrastructure Reduced leaks & losses Improved Energy & Water Security Helps meet Energy & Water goals UP Compatible with Energy, Safety, Environment Net Zero energy, water, waste Load management (UP Provider can do UESCs) Project initiatives (from Army or UP Provider) Utility Service Contract is separate from commodity UP can tie-in PPAs, solar arrays, cogeneration …
  7. Army UP Program Results 86% of evaluations complete 307 out of 355 U.S. systems evaluated for UP 144 Privatized Systems: 39 Electric, 38 Gas, 31 Water, 33 Wastewater, 3 Heat/Power $2B (28%) Life-Cycle O&M Projected Cost Avoidance PLUS benefits of efficient, safe, reliable service… and commodity savings $57M/yr in FY13 2.3 yr payback of award costs
  8. Actual Field Efficiency Gas per Energy Policy Act of 2005 Water per Executive Order 13423 31% Less Gas Use @ 21 UP Sites $46 M/yr cost avoidance FY13 vs FY03 baseline 28% Less Water Use @ 23 UP Sites $11 M/yr cost avoidance FY13 vs FY07 baseline Bubbles proportionate to usage
  9. Army UP Working Schedule – April 2014 144 Privatized Utility Systems Pending Evaluations Aberdeen PG - E, G, W, WW Aberdeen (Edgewood) - G Adelphi Lab - G A.P. Hill - E, W, WW Belvoir - E, G, W, WW Benning - E, G, W, WW Bliss - E, G, W, WW Blue Grass AD - G Bragg - E, W, WW, G Campbell - G, W, WW Detrick - G Detroit Arsenal - G Devens - E, G, W, WW Dix - E, G Eustis - E, G, W, WW Gordon - E, G, W, WW Greely - E, W, WW, P Hawaii - W Hood – W, WW Huachuca – E Hunter AAF - E Irwin - E, W, WW Jackson - W, WW Knox - E, W, WW Leavenworth - E, W, WW Lee - E, W, WW Leonard Wood - E, G Letterkenny AD - W, WW Lewis – G Meade - E, G, W, WW FY14Henderson Hall – E Picatinny Arsenal – W, WW FY15Gillem Enclave – E, G, W, WW Fort Polk – G JB Lewis-McChord – E, W, WW Fort Campbell – E FY16 Fort Hood – E, G Oahu – E Fort Riley – E, G, W, WW Fort Jackson – G Aberdeen PG – W, WW USAG W.Point – E, G, W, WW FY17 Anniston AD – W, WW Fort Leonard Wood – W, WW Fort Buchannan – E, W, WW Oahu – W TBD: Tobyhanna AD – W, WW Myer/ McNair & ANC – W, WW Pine Bluff ARS – G Redstone ARS – E, G, W Iowa AAP – E, G, W, WW Rivanna Station – E, G, W, WW Arlington Nt’l Cemetery – E Mark Center – WW Arlington Nt’l Cemetery – G The UP schedule gives priority to evaluate deteriorated utility systems (ISR Q3 or Q4) McCoy - E, G McNair - E, G Monmouth - G Monroe - E, W, WW Myer - E, G Natick Lab - E, G Oahu/ Schofield Barracks – WW Ord Community - E, G, W, WW Parks RFTA - E, G, W, WW Picatinny Arsenal - E, G Pickett - E, W Polk – W, WW, E Pres Monterey - E, G, W, WW Red River AD - E, W, WW Redstone Arsenal – WW Richardson - E, G, W, WW, P Rucker - E, G, W, WW Sam Houston - E, G Sierra AD - E, G Sill - G, W, WW Stewart - E Stewart Sub-Post - G Story - E, G, W, WW Sunny Point MOT - E Tooele AD - G Vancouver Barracks - G Wainwright - E, W, WW, P Walter Reed AMC - G Yakima Training Center - G W= water WW= wastewater E= electric G= natural gas P= heat & power
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