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Be a leader. Use less energy. Use smart energy. Greening Your Business and Improving the Bottom Line – Implementing Energy Efficiency Improvements through Performance Contracting. Sustainability in Local Government May 4 th , 2011. Commodity Prices. Water Contaminants.

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Be a leader. Use less energy. Use smart energy.

Greening Your Business and Improving the Bottom Line – Implementing Energy Efficiency Improvements through Performance Contracting

Sustainability in Local Government

May 4th, 2011


Commodity Prices

Water Contaminants

Challenging Global Economy

GHG Emissions

Water Scarcity

Climate Change

“Perfect Storm”



Energy Prices Increasing + Water Rates Increasing

Demand for “Green”

Economic Uncertainty and Leadership Changes

Value Proposition

Water Conservation

Energy Efficiency

Renewable Energy

Asset Renewal or Replacement

Your Benefits

SAVE Money

SAVE Resources

Sustainable, Green Environment


Start with “Sustainability”

Sustainability doesn’t require sacrifice;

it requires a new frame of mind


The Challenge --- “Do More with Less”

  • During the recession we see and experience a variety of behaviors:
    • Survival - just hang on – it’ll get better, hunker down.
    • Difficult to be upbeat.
    • Do the best with the resources we have (people, budget dollars, and tools)

Opportunity to do things differently.

  • Where do we start?
  • What should we focus on first?
  • How do we prioritize?
  • Who’s in?
  • What’s the goal?
  • Where do we get the money?


(Time) (Quality) ($$$)


What % of your operating budget is consumed by your total utility costs?

$$$ Thousands and Thousands

GOAL – Write a smaller check to We Energies and …….

use the savings to pay for your prioritized energy efficiency improvement measures.

energy performance contracting
Energy Performance Contracting
  • Reduce energy usage
  • Reduce water usage
  • Reduce operating and maintenance costs
  • Reduce emissions
  • Reduce waste

In short, Performance Contracting is a procurement tool that allows you to leverage the savings you get from making building improvements in order to pay for the improvements.

WI Statute 66.0133

Qualified Provider + Savings Pay for Improvements + Guarantee with M&V Services

How does it work?


Improvements such as:

Customer Discussion to Identify Goals:

energy efficiency, emissions reduction,

operational savings, water savings, etc.

What’s Possible?

Preliminary audit/Site visit

Does it make technical and financial sense?

Customer commitment

Detailed audit

Sophisticated analysis tools used to gather data and develop customized solution

$ Cost

Energy Performance Contract with Savings Guarantee

Lighting, water, HVAC, renewable energy, building upgrades, wireless, meters/controls

Reduce Ops Budget


Water Use


Utility Use

Reduce Waste

Reduce Emissions

Reduce Maintenance

Meet Customer Goals


Performance Contracting - Steps



30 days








30 days

30-60 days

60-90 days

3-6 months


  • Accurately
  • Assess:
  • Cost savings
  • Energy savings
  • Meet payback
  • requirements
  • Project
  • Development
  • Agreement
  • Sign Contract
  • Memorandum of
  • Understanding
  • Evaluate potential
  • Analyze:
  • Existing
  • conditions
  • Future plans
  • Needs
  • Determine
  • feasibility
  • Execute work
  • Timely manner
  • Around your
  • schedule
  • To achieve results
  • Assure results by:
  • Measuring
  • Validating
  • Quantifying

Details to Understand about the Process

  • Know your specific procurement requirements. Talk with your corporation counsel to get direct guidance on steps to follow.
  • Engage a qualified energy service company to jointly review existing facilities/infrastructure and operating practices. Make your priorities known.
  • Savings come in the form of:
    • Energy Reductions (utilities - electricity, natural gas, steam)
    • Reduced Operating Expenses (e.g. materials used to repair/maintain equipment, contractors paid to make repairs, etc.)
    • Avoided Capital Costs (budgeted future capital costs)

Details to Understand about the Process

  • Measurement and Verification Services are required to support the guarantee by providing documentation on actual savings achieved compared to what was promised (reduced utility consumption).
  • Know the approval process and key decision makers that will be involved (political, financial, technical, & personal).
  • Contact Focus on Energy “early” so qualifying improvement measures receive appropriate grants/incentives.

Path to Sustainability

Economic Benefits +

Environmental Impacts +

Social Responsibility

  • Economic Benefits
  • Energy savings
  • Water savings
  • Operations & Maintenance (O&M) savings
  • Improved occupant productivity
  • Environmental Stewardship
  • Greenhouse Gas reduction
  • Lower water and fossil fuel consumption
  • Social Responsibility
  • Job creation
  • Local MBE participation
  • Economic development
  • Community education and public awareness