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Business Case Results for Energy Performance Contracting
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Summary and Background Information:
The attached presentation provides an overview of a proposed Energy Performance Contracting (EPC) program for the City. EPC allows the use of guaranteed future energy savings to fund upgrades that reduce costs and environmental impact without upfront capital expense. Before a City can enter into a contract with an Energy Service Company, there must be a guarantee that utility and maintenance savings will repay all EPC contracts over a twenty year period. In order to ensure that the projects would be self-funding, the City entered into a sole source agreement with Schnieder Electric.
Over the last few months, Schneider Electric performed a no-cost business case to determine the technical and financial viability of pursuing an Energy Performance Contract through the Colorado Energy Office. The resulting report, summarized in the attached presentation, includes high level utility benchmarking, maintenance and operating analysis of buildings, identification of potential energy efficiency scope measures, identification of city goals and community engagement opportunities, and a financial feasibility analysis of savings and potential economic impact. In order to conduct the business case, Schneider was provided escorted access to City-owned facilities to conduct site visits, 24-36 months of utility (gas, electricity, water) data for municipal owned buildings and assets, and meeting time with key personnel to discuss operating requirements and requests for information.
Schneider Electric’s no-cost business case has provided the City with the following:
A) Identification of organization goals/ mission/ vision of Commerce City;
B) A current state of operations analysis including potential cost savings estimates;
C) Identification of potential solutions opportunities for advancing organizational goals;
D) A financial analysis/ overview for savings and overall economic ...
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