# Presentation: 325184

## Overview

- Moving Stalled ESPC Projects Workshop
- By
- David McAndrew
- Federal Energy Management Program

## Workshop Basics

- Held June 30 - July 1, 2004 in Washington, DC
- Objectives
- Update on Status of ESCO Authority
- Strategize on how to unstick stuck projects
- Suggest possible partnership as solution
- Utility/ESCP Partnership
- BPA/ESCO Partnership
- BPA/ESCO/ Utility Partnerships
- Offer FEMP assistance in getting stuck projects unstuck

## ESPC Authority not available 
UESC Authority available
Not clear when ESPC Authority will return
ESCOs and Utilities forming partnerships 
Agencies/ESCO/Utilities partnering with BPA
Some stalled projects moving forward

- UESC Authority available
- Not clear when ESPC Authority will return
- ESCOs and Utilities forming partnerships
- Agencies/ESCO/Utilities partnering with BPA
- Some stalled projects moving forward

**Current Situation**

## Sample ESPC Projects in Development Phase

- PWC Yoksuka, JP
- MCB Kaneohe, HI
- MCAGCC 29 Palms, CA
- MCAS Camp Pendleton
- MCAS Miramar, CA
- CCAD Texas (waste water treatment)
- CCAD Texas (collector well cooling)
- NRST Multiple Bases
- NAS JRB Fort Worth, TX
- MCB Camp Lejeune, NC
- NSU Portsmouth, VA
- MCB Quantico, VA
- NDW – NMC Bethesda, MD
- NDW – Washington Navy Yard (lighting)
- NDW – Washington Navy Yard (chiller plant)
- NSA Naples, Italy
- NAVSTA Guam
- NWS Crane, IN

- Lackland AFB, TX
- Lyndon B. Johnson Presidential Library & Museum
- NASA JSC, TX
- VA Medical Center, TX
- FCI La Tuna, TX
- Beltsville Agricultural Research Ctr, MD
- Fort Monmouth, NJ
- Argonne National Lab, IL
- GSA Michigan
- GSA Minnesota
- NARA Gerald Ford Presidential Library, MI
- DOD ARNG – MA
- VA Medical Center - Northport, NY
- Cape Cod National Seashore, MA
- Columbus Air Force Base, MS
- SSA Harold Washington Social Security Center, IL

## Scenarios from ESPC/UESC Meeting

- ESCO has developed project with agency but ESPC Authority *not* available,
- Using Utility to get project done through UESC
- Use Utility as prime contractor and financier, with ESCO as Utility sub
- Use Utility as prime contractor and BPA as financier, with ESCO as Utility sub
- Getting project done without using local utility
- Use BPA as financier and project implementer (BPA turnkey) in Western states
- Use BPA as financier and ESCO is contracted directly by agency under a direct procurement
- (CICA and Anti deficiency issues discussed)

## ESPC Authority is reauthorized:
Business as Usual
ESCOs and Utilities will compete for new projects
New projects will depend on best value and past relationships

Utility/ESCO Partnerships
Utility / ESCO partner to provide enhanced service to Agency where partners core competencies are complementary
Experienced ESCO/Utility serves as mentor/partner to utility wishing to provide UESC services to its customers
Allows existing utility ESCOs to expand beyond service territory

BPA financing option
Lowers cost of financing to agency
Improves economics of projects
Provides competitive advantage to Utility
Gets financing off Utility’s books

- Business as Usual
- ESCOs and Utilities will compete for new projects
- New projects will depend on best value and past relationships
- Utility/ESCO Partnerships
- Utility / ESCO partner to provide enhanced service to Agency where partners core competencies are complementary
- Experienced ESCO/Utility serves as mentor/partner to utility wishing to provide UESC services to its customers
- Allows existing utility ESCOs to expand beyond service territory
- BPA financing option
- Lowers cost of financing to agency
- Improves economics of projects
- Provides competitive advantage to Utility
- Gets financing off Utility’s books

**Scenarios from ****ESPC/UESC Meeting (cont’d)**

## Partnership Examples

- OG&E & NORESCO
- Providing UESC in OG&E territory
- Virginia Natural Gas & Exelon
- Partnership began 2 years ago
- Navy – Norfolk, VA
- HECO & various ESCOs
- Partnering meeting

## Sample Utility - ESCO Partnership Agreement

- Purpose
- Acknowledgement
- Relationship of the Parties
- Margin Sharing
- Proprietary Information
- Limitation on Liability
- General
- Signature Blocks

*Based on actual working agreement*

## Utility/ESCO/BPA Partnerships may 

- Short term
- Unstick stuck projects
- Improve relationship with customers
- Lower project cost through lower interest rates
- Long term
- Increase the number of utilities doing UESCs
- Provide a better value to agencies
- Lower project costs through lower interest rates

## How Can FEMP Help?

- FEMP can help build partnerships between parties at the request of the agency and/or utility
- Sample ESCO-Utility Agreement available
- Provide direct technical support
- Contact David McAndrew for more information:
- Phone: (202) 586-7722
- E-mail: david.mcandrew@ee.doe.gov